Posts Tagged ‘CMC’

Bears Augment Put Positions On Consumer Discretionary ETF

Today’s tickers: XLY, REGN, WM & CMC

XLY - Consumer Discretionary Select Sector SPDR Fund – Bears are hoarding put options on the Consumer Discretionary SPDR Fund following the release of dismal employment figures ahead of the open this morning. We noted growing interest in XLY puts on Tuesday and Wednesday of this week, which suggested traders were hungry for varying degrees of protective or bearish positions on the sector. Shares in the XLY, an exchange-traded fund that tracks the performance of the Consumer Discretionary Select Sector of the S&P 500 Index, are down 1.9% in early-afternoon trade to stand at $36.42. The fund’s shares have fallen roughly 13.0% since hitting a 52-week high of $41.78 in the first full trading week of July. The sizable positions initiated in XLY puts earlier in the week, pale in comparison to the large bearish prints in the options today. It looks like one or more investors purchased some 34,750 puts at the October $30 strike for an average premium of $0.41 apiece. Put buyers profit if shares in the XLY plunge 18.75% from the current price of $36.42 to breach the average breakeven point on the downside at $29.59 by expiration day next month. Much of the 17,564 puts represented in open interest at the October $30 strike were purchased Tuesday for an average premium of $0.36 each. Traders long the put options may see the value of their positions appreciate if the price of the underlying fund continues to push lower in the next seven weeks to October expiration day.

REGN - Regeneron Pharmaceuticals, Inc. – Demand for Regeneron calls jumped after the New York Times reported five more patients using Roche’s cancer drug Avastin to treat eye diseases were blinded. Shares in the biotechnology company Regeneron, which is seeking FDA approval…
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Options on Emerging Markets Index fly Amid New 52-week High

Today’s tickers: EEM, CNX, GDX, EK, IYR, CMC, SYNA, RF, BP & IGT

EEM – iShares MSCI Emerging Markets Index ETF – Shares of the emerging markets fund, which tracks the price and yield performance of the MSCI Emerging Markets Index, rallied 0.40% to touch a new 52-week high of $43.79 during the trading session. Options players have exchanged more than 315,000 option contracts on the fund with less than two hours remaining the trading day. A number of options players appear to be bracing for a potential pullback in the price per share of the emerging markets fund, while other investors may be positioning to benefit from greater options implied volatility on the fund during the next several months. One trader enacted a three-legged bearish options combination play in the May contract. The options investor sold 10,000 calls at the May $47 strike for a premium of $0.26 apiece in order to partially finance the purchase of a debit put spread. On the put side, the trader picked up 10,000 lots at the May $41 strike for a premium of $0.60 each, and sold the same number of puts at the lower May $37 strike for $0.16 apiece. The net cost of the bearish transaction amounts to $0.18 per contract. Therefore, the investor is prepared to accrue maximum potential profits of $3.82 per contract if shares of the EEM plummet 15.4% from the new high of $43.74 to reach the lower strike price of $37.00 by May expiration. Further along in the June contract, another options player appears to have invested in a long straddle on the fund. The trader responsible for the straddle purchased 10,000 calls at the June $44 strike for a premium of $1.75 apiece in combination with the purchase of 10,000 in-the-money puts at the same strike for a premium of $2.06 each. Net premium paid by the investor amounts to $3.81 per contract. The nature of the straddle strategy indicates the trader expects the price of the underlying fund to shift dramatically in either direction ahead of June expiration. The investor makes money if shares surge at least 9.3% to exceed the upper breakeven point at $47.81, or if shares decline at least 8.1% to breach the lower breakeven price of $40.19, by expiration day in June.

CNX – Consol Energy Inc. – Multi-fuel energy producer and energy services provider, Consol Energy, Inc., attracted…
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Covered-Call Sellers Make Note of Exits on American Airlines Parent Corp.

Today’s tickers: AMR, AIG, C, GME, HD, XLP, ALL, CMC, QLGC & YUM

AMR – AMR Corp. – Bullish investors engaged in covered-call selling on AMR Corporation this afternoon after its subsidiary, American Airlines, revealed February passenger unit revenue increased between 6.5% to 7.5% as compared to roughly the same time a year ago. The so-called buy-write strategy took off amid an 11% rally in the price of the underlying stock to $9.93. Options traders sold approximately 16,300 calls at the March $11 strike for an average premium of $0.09 apiece, and simultaneously purchased an equivalent number of AMR-shares when the stock was trading at approximately $9.84 each. The net price paid per AMR-share amounts to $9.75 apiece because of the $0.09 per contract financing provided by the sale of the call options. Investors utilizing the buy-write strategy are positioned to accumulate maximum potential gains of 12.82% if shares rally through $11.00 by expiration day. The covered-calls provide an effective exit strategy for investors, who walk away with 12.82% profits if AMR shares rally to $11.00, and if the underlying shares are called from them at expiration.

AIG – American International Group, Inc. – Insurance firm, American International Group, already reported plans to sell two units for $51 billion, but speculation that it may sell additional assets sparked rampant options trading activity on the stock this afternoon. Shares surged more than 18% to $34.34 at times during afternoon trading. Options investors exchanged more than 224,000 contacts on AIG as of 2:30 pm (ET), and traded more than two call options on the stock for each single put option in play. Two-way trading traffic in out-of-the-money call options is evident, but it looks like – in most cases – more calls are being purchased than sold. The nearest-to-the-money March $35 strike had more than 37,000 calls trade today versus that strike’s previous existing open interest of just 12,297 contracts. More than 12,300 calls were purchased for an average premium of $0.89 apiece. The higher March $40 strike had 12,900 calls picked up by bullish individuals who paid an average $0.25 premium per contract. Finally, the March $45 strike attracted buying interest in the amount of 3,200 calls for an average premium of $0.18 each. More than 7,000 contracts changed hands at the March $45 strike, which trumps existing open interest of just 2,489 lots. It is likely that a large portion…
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Phil's Favorites

March Madness: With gambling legal in eight states, who really wins?

 

March Madness: With gambling legal in eight states, who really wins?

The odds of more legal betting are good. AP Photo/John Locher

Courtesy of John Affleck, Pennsylvania State University

March means springtime, but also breathless headlines of Cinderellas, busted brackets and buzzer beaters.

This year, it’ll also include talk of “sharps,” “handles” and “point spreads,” as millions more Americans are able to openly wager for the first time on March Madness – the NCAA men’s...



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Zero Hedge

Enron 2.0? Jeff Skilling And Lou Pai Are Back With A "New Energy Venture"

Courtesy of Zero Hedge

Former Enron Chief Executive Jeff Skilling is out of prison after 12 years. And he’s getting the old gang back together again.

Just when you thought the world of business couldn’t get more ethically sound, and just when you thought you weren't going to get any more surefire signs of a market top, Jeff Skilling is recruiting his old friends and colleagues and "looking to get back in the energy business", according to a WSJ report.

But that isn’t even the best part - according to the report, Skilling has already landed an investment from former Enron executive and...



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ValueWalk

Tax Receipts Decline As Budget Deficit Reaches Record

By Gary St. Fleur. Originally published at ValueWalk.

The U.S budget deficit has widened as the corporate and individual tax receipts and other revenue declines in the face of federal spending reaching new heights.

geralt / Pixabay

Last year’s fiscal gap for February was $215.2 billion. It has now grown to $234 billion. This is larger than the last budget deficit record set in 2012. This increase is due to declines in tax receipts for October-February. The period saw a decline of 1 percent (1.3 trillion ) from the prior year while growth in federal spending rose upwards of 9 percent to 1.8 t...



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Chart School

Palladium Action Review

Courtesy of Read the Ticker.

Palladium is near its peak, or at least a consolidation. Russia and South Africa are the producers of palladium, and it looks like Putin has been able to play US Futures market for a lot of Russia gain! Which metal is next?


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Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of ...

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Kimble Charting Solutions

NYSE Index Suggesting The Top Is In, Says Joe Friday

Courtesy of Chris Kimble.

Is a very broad stock index suggesting that a top is in play? What this index does to close this week should go a long way to answering that question!

This chart looks at the NYSE Index on a weekly basis over the past 4-years. Over the past 15-months, it has created a series of lower highs and lower lows inside of the shaded falling channel. It hit strong support around Christmas at (1) and a counter-trend rally started. The rally now has it testing the top of the falling channel at (2).

Joe Friday Just The Facts Ma’am- The NYSE index could be cre...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga.

  • Buckingham cut the price target for Trinity Industries Inc (NYSE: TRN) from $32 to $26. Trinity Industries shares closed at $22.96 on Thursday.
  • Canaccord Genuity lowered the price target for Biogen Inc (NASDAQ: BIIB) from $396 to $275. Biogen shares closed at $226.88 on Thursday.
  • H.C. Wainwright cut the price target on Conatus Pharmaceuticals Inc (NASDAQ: CNAT) from $8 to $1.50. Conatus Pharmaceuticals shares closed at $2.91 on Thursday.
  • Wedb...


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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Reminder: We are available to chat with Members, comments are found below each post.

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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Digital Currencies

Facebook's cryptocurrency: a financial expert breaks it down

 

Facebook's cryptocurrency: a financial expert breaks it down

Grejak/Shutterstock

Courtesy of Alistair Milne, Loughborough University

Facebook is reportedly preparing to launch its own version of Bitcoin, for use in its messaging applications, WhatsApp, Messenger and Instagram. Could this “Facecoin” be the long-awaited breakthrough by a global technology giant into the lucrative market for retail financial services? Or will...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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