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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Zero Hedge

Visualizing The 150 Apps That Power The Gig Economy

Courtesy of ZeroHedge. View original post here.

Go back in time a decade, and you’d have a tough time convincing anyone that they would be “employed” through an app on their phone.

And yet, as Visual Capitalist's Jeff Desjardins explains, in a short period of time, the emergence of the smartphone has enabled the gig economy to flourish into a multi-trillion dollar global market. And by leveraging apps like Uber, Airbnb, and Etsy, it’s estimated that ...



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Phil's Favorites

What's going on with Blue Apron?

By Ilene 

The Blue Apron business model appears, perhaps, flawed. While the service is convenient, I think it would appeal mostly to very busy people who don't have time to shop for food -- but enjoy cooking -- and have enough money that the trade off between paying for food delivery vs. spending time shopping is worth it. Here's the unfortunate stock chart and some numbers from Yahoo:

The company has been losing money, and is projected to lose money again next year. Revenue is projected to decrease in 2019 from the 2018 level, but pick up again in 2020, though still below 2018's revenue. Maybe a larger company that could integrate APRN's services into its existing infrastructure should acquire APRN and save it from its apparent...



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Chart School

Palladium minor cycle bottom

Courtesy of Read the Ticker.

Once again RealVision TV posts another trade idea, long palladium. We shall review it with our RTT cycle tools and parallel channels.







Any trader will be concerned with the supply shock at $1800 which pushed down price quickly. Profit taking maybe, sure! The question, is there more supply out (or more profit taking) there ready to dump on the market, either now or after any minor advance. This why waiting for the 'C' wave of the A-B-C to form over some more time is a good idea, and once done, we want to see solid buying moving price up before acting, after all we do not want to be early or a lonely bull (Richard Wyckoff logic). 

The parallel channel highl...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Kimble Charting Solutions

Banks Sending Bearish Message To Stocks, Says Joe Friday

Courtesy of Chris Kimble.

Quality bull markets prefer to see Banks stronger than the broad markets or at least keeping up with it. Concerns often crop up when banks reflect relative weakness compared to the S&P.

This chart looks at the Bank Index (BKX) over the past few years, reflecting a falling channel of lower highs and lower lows has taken place inside of falling channel (1). This falling channel has now been in play for the past 15-months.

The index hit the bottom of the channel in December of 2018 and a counter-trend rally took place. The rally off the December lows saw the index hit the top...



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Insider Scoop

Analyst: US Sanctions 'May Not Kill Huawei'

Courtesy of Benzinga.

President Donald Trump signed an executive order Wednesday that limits how "foreign adversaries" conduct business with U.S. companies.

What Happened

The Department of Commerce said China's Huawei and 70 related companies will be included in the "Entity ...



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Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

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

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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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:

 

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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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