Posts Tagged ‘CNO’

Big Payday for Pre-Earnings Put Buyer on RIMM

Today’s tickers: RIMM, TMO, CNO & PIP

RIMM - Research In Motion Ltd. – Ouch. Shares in the BlackBerry maker plunged 23.35% today to an intraday- and four-year low of $27.08 following the release of worse-than-anticipated first-quarter earnings on Thursday after the close. Ongoing concerns regarding RIMM’s ability to stay competitive in the smartphone market coupled with the company’s second revision lower to earnings estimates for the full year were reason enough for investors to punish the stock. Options volume on Research In Motion is greater than 565,000 contracts as of 1:05pm in New York. Puts are trading roughly 1.75 times to each single call option in play this afternoon. Trading traffic is heaviest in June contract options expiring today, while weekly options expiring next Friday generated interest, as well. Nearer-term contracts are certainly the most popular today, but traders are also generating substantial volume in longer-dated options. The largest single print in options on the stock thus far in the session appears to be the work of one strategist profiting from RIMM’s pain. It looks like the investor purchased roughly 30,000 puts at the January 2012 $35 strike for a premium of $4.80 on Wednesday. The nose-dive in the price of the underlying stock sent premium on those puts flying, and it appears the trader sold the position for $7.80 a-pop within the first 25 minutes of the opening bell this morning. In roughly 48 hours, the put buyer has banked net profits of $3.00 per contract on the position, or total gains of approximately $9 million. Next, it looks like the investor extended bearish sentiment on the stock by purchasing another chunk of around 30,000 puts at the lower January 2012 $30 strike for a premium of $4.76 each. The fresh lot of puts position the trader to profit should shares in RIMM trade beneath the effective breakeven price of $25.24 at expiration next year. Of course, the put buyer need not wait until expiration to take profits on position if…
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Put Sellers See Bright Future for Ford Shares in 2011

 Today’s tickers: F, MSFT, ZQK, LULU, EK, CNO & SFD

F - Ford Motor Co. – The automaker’s shares are up 0.55% at $16.78 heading into the close this afternoon after earlier rising as much as 0.95% to an intraday high of $16.85. Bullish options traders expecting Ford’s shares to continue to rally higher over the next six months sold in-the-money put options in the June 2011 contract today. Bank of America/Merrill Lynch reiterated their ‘buy’ rating on the stock, upped their target share price on Ford Motor Co. to $24.00 from $20.00, and revised higher earnings estimates for 2011 and 2012 for the automaker. Optimistic options investors looked to the June 2011 $17 strike to sell some 16,000 in-the-money puts to receive premium of $1.92 per contract. Put sellers keep the hefty chunk of change received on the transaction as long as Ford’s shares exceed $17.00 ahead of expiration day next year. The sale of the contracts suggests traders are more than happy to have shares of the underlying stock put to them at an effective price of $15.08 each should shares fail to rally sufficiently, and the put options trade in-the-money at expiration.

MSFT - Microsoft Corp. – Bullish risk reversals initiated using Microsoft call and put options expiring in July 2011 are signs of investor optimism on the software company. Microsoft’s shares started out the session in the black but have slipped lower in the final hour of trading, losing 0.70% to stand at $27.04 as of 3:10 pm. One options strategist is positioning for shares in MSFT to rebound sharply ahead of July expiration by selling a total of 15,000 puts at the July 2011 $23 strike for a premium of $0.83 each, in order to buy the same number of calls at the higher July 2011 $30 strike at a premium of $0.97 apiece. The net cost of the risk reversal amounts to $0.14 per contract, providing relatively cheap upside exposure should Microsoft’s shares take off in 2011. Shares of the…
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Optimistic individual Initiates Mammoth Bullish Risk Reversal Play on Conseco

Today’s tickers: CNO, OSIP, HIG, FXI, JDSU, ARQL, GNW, TEVA, KO & UBS

CNO – Conseco, Inc. – The holding company for a number of insurance companies, such as Colonial Penn Life Insurance Co. and Washington National Insurance Co., popped up on our ‘most active by options volume’ market scanner late in the session after a massive bullish risk reversal was established on the stock in the January 2011 contract. Conseco’s shares declined 0.80% during the course of the trading day to stand at $6.18. It looks like one optimistic options player sold 33,727 puts at the January 2011 $5.0 strike for a premium of $0.50 apiece in order to partially finance the purchase of 33,727 calls at the same strike for $1.80 each. The net cost of the transaction amounts to $1.30 per contract. Thus, the investor responsible for the reversal is prepared to amass profits if Conseco’s shares rally through the breakeven price of $6.30 ahead of expiration day in January. The 67,454 contracts involved in the spread trump existing open interest on the stock of 48,756 lots.

OSIP – OSI Pharmaceuticals, Inc. – The outline of a slightly lopsided iron condor appeared in the May contract on OSI Pharmaceuticals, indicating one options investor expects shares of the biotechnology company to trade within a specified range through expiration. OSIP’s shares surrendered 0.85% during afternoon trading to stand at $59.55 perhaps after The Wall Street Journal reported that Astellas Pharma, Inc. is extending its tender offer for OSI Pharmaceuticals – valued at $3.5 billion – by three weeks to April 23, 2010. The investor responsible for the iron condor play essentially enacted two credit spreads, one using put options and the other calls, in order to pocket options premium. On the call side, the trader shed 4,000 contracts at the May $60 strike for a premium of $1.90 apiece, spread against the purchase of the same number of calls at the higher May $62.5 strike for $0.90 each. As for the puts, the investor sold 4,000 lots at the May $55 strike for a premium of $0.94 per contract, marked against the purchase of 4,000 puts at the lower May $50 strike for $0.62 each. Notice that the put credit spread is wider than the spread on the call side, which creates a lopsided iron condor in this case. The net credit pocketed by the trader amounts to $1.32…
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Phil's Favorites

Johnson & Johnson vaccine suspension - what this means for you

 

Johnson & Johnson vaccine suspension – what this means for you

Vials of the Johnson & Johnson vaccine to prevent COVID-19. The use of this particular vaccine has been halted temporarily. Justin Tallis/AFP via Getty Images

Courtesy of William Petri, University of Virginia

The Centers for Disease Control and Prevention and the Food and Drug Administration on April 13, 2021 halted use of the one-dose Johnson & Johnson COVID-19 vaccine that has been given to 6.8 million people in the U.S. The pause is...



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Biotech/COVID-19

Johnson & Johnson vaccine suspension - what this means for you

 

Johnson & Johnson vaccine suspension – what this means for you

Vials of the Johnson & Johnson vaccine to prevent COVID-19. The use of this particular vaccine has been halted temporarily. Justin Tallis/AFP via Getty Images

Courtesy of William Petri, University of Virginia

The Centers for Disease Control and Prevention and the Food and Drug Administration on April 13, 2021 halted use of the one-dose Johnson & Johnson COVID-19 vaccine that has been given to 6.8 million people in the U.S. The pause is...



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ValueWalk

UK's First-Time Buyers See House Prices Climb

By Jacob Wolinsky. Originally published at ValueWalk.

First-time buyers paying as much as £73k more to get on the ladder since the market reopened

Q1 2021 hedge fund letters, conferences and more

The Climbing Cost Of Houses For First Time Buyers

Research by the new build snagging and defect management experts, ...



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Zero Hedge

Trading Bonds In Venezuela? Bring A Gunman And Cash

Courtesy of ZeroHedge View original post here.

The Venezuelan bond market - described by Bloomberg as one of the 'tiniest and almost certainly the most primitive' in the world - is also one of the most dangerous.

Based in Caracas where Nicolas Maduro's socialist government is 'ever so slowly freeing up the battered economy' for capitalistic endeavors, the US dollar has become the defacto currency. Yet, there's no electronic method to electronically transfer USD from one bank to another - which mean...



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Digital Currencies

Coinbase Sets Reference Price At $250, Well Below Last Private Market Trade

Courtesy of ZeroHedge

Ahead of tomorrow's much-anticipated direct listing of massive crypto-exchange Coinbase, Nasdaq has just announced the company's so-called Reference Price at $250.

On April 14, 2021, the Class A common stock of Coinbase Global, Inc. is expected to list on Nasdaq through a Direct Listing using the ticker “COIN”.

Because this security has not previously traded on any listing market and has no prior day's closing price, Regulation SHO Rule 201 will not apply to the security until its second day of trading on Nasdaq.

As a Direct Listing, COIN will be in a regulatory halt until ...



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Kimble Charting Solutions

Semiconductor Red Hot Performance Tests 20-Year Breakout Level

Courtesy of Chris Kimble

Will the “Red Hot” semiconductor index cool off or get even hotter due to the shortage of chips?

This chart looks at the Semiconductor Index on a monthly basis over the past quarter-century. No doubt the trend is up as it has created a series of higher lows and higher highs since 2009.

Fibonacci extension levels were applied to the 1996 lows and the 2000 highs. Currently, the index is testing the 261% extension level, while at the top of the rising channel as momentum is at the highest level since the 2000 highs.

The rare chip shortage coul...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 31 October 2020, 07:10:55 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Black line could chase the orange line..higher asset prices for 2021. Post US election pop!



Date Found: Saturday, 31 October 2020, 11:32:25 PM

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Comment: Just like gold ...


...

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Politics

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

 

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

Russian police officers beat people protesting the jailing of opposition leader Alexei Navalny, Jan. 23, 2021 in Moscow. Mikhail Svetlov/Getty Images)

Courtesy of Shelley Inglis, University of Dayton

Russian dissident Alexei Navalny, sick with a cough and ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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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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