Contrarian Plays Payoff As 3D Systems Shares Stage Intraday Rebound
by Option Review - February 25th, 2013 3:43 pm
Today’s tickers: DDD, KMB & CMP
DDD - 3D Systems Corp. – Shares in the provider of 3D content-to-print solutions were hit hard on Monday after the company reported fourth-quarter revenue below analyst expectations. The stock fell as much as 20% to $30.28 in the first 30 minutes of the trading session, but has since rebounded somewhat to trade 7.8% lower on the day at $35.00 as of 12:05 p.m. ET. Options traders anticipating a rebound in DDD shares in the near term snapped up weekly calls on the stock this morning. It looks like traders picked up around 450 contracts at both the Mar. 01 ’13 $31.67 and $33.33 striking prices at average premiums of $1.41 and $0.69 each, respectively. The strong intraday recovery in shares of 3D Systems now finds these upside call options changing hands at $4.20 and $2.70 apiece as of 12:15 p.m. in New York to the benefit of early-bird buyers of those contracts. Meanwhile, options players bracing for further declines have seen the value of bearish positions decline with the rebound in DDD shares. Upwards of 800 puts traded at the Mar. 01 ’13 $30 strike during the first half of the session, with much of the volume purchased for an average premium of $0.55 apiece in the early going. Premium required to purchase the $30 strike weekly puts has halved intraday to $0.25 per contract as of 12:20 p.m. ET.
KMB - Kimberly-Clark Corp. – Bullish options are changing hands on the operator of well-known consumer hygiene brands, including Kleenex and Scott, with shares in Kimberly-Clark rising 1.5% to a record high of $95.90. The company last week raised its quarterly dividend by 9.5% to $0.81 a share. Options traders looking for shares in the name to add to the more than 13% rally since the end of 2012 picked up March expiry calls on the stock this morning. Traders stepped in the purchase around 500 of the Mar. $97.5 strike calls on KMB this morning for an average premium of…
GDWheee Friday – Could be a Wild Ride!
by phil - April 30th, 2010 8:30 am
Attention ladies and gentlemen:
The stock market will soon be leaving the station, please secure all personal items, pull down the safety bar (our Disaster Hedges) and keep all body parts inside ride at all times. Well you know you can follow all of the safety instructions and STILL get smacked in the face with a black swan (like our friend Fabio, pictured here) which is why we elected to get back to cash ahead of this report. The markets were just too insane this week and who the heck knows if Europe will still be a Union on Monday or what the GDP number is going to be (but I do think it's a miss).
Since our biggest weekend fear is financial panic in Europe, our cash US dollars will become more valuable in a crisis and if the market drops, all the better as we can ride back in and do some bargain hunting. If the market takes off on good GDP and Greece is "fixed" and Spain is "fixed" and Portugal and Ireland are not really a problem (especially for MS and JPM) and the CRIMINAL charges against Goldman look beatable and and the Financial Reform Bill doesn't disrupt the market with a disorderly breakup of the big banks and the Bank of International Settlements Report continues to be ignored and the run on the Greek banks doesn't spread to other STUPID counties – well, then we can BUYBUYBUY because, if all this doesn't matter, then it's very likely that the entire planet Earth could explode but Wall Street will keep ticking higher.
Yep, I can't wait to ride this baby mindlessly higher! After all, what can go wrong? BIDU is ONLY $710 a share, BLK is $190, CMP is $76, GOLD is $84, BUCY is $65, FAST is $56, MMM is $90, FOSL $40, F $13.50, DECK $149, SHOO $55, TPX $35, LZB $14, CTB $22, NOG $16, CEO $176, FTI $75, CLB $150, CIB $46, BBD $19, TD $75, BCA $45, BAP $87, ITUB $22, EDU $94, WYNN $93, FFIV $72, CY $14, CREE $77, UPS $70, UNP $78…
These were stocks I was looking at last week, when I told members I thought it was easier to construct a Sell List than our usual…