Posts Tagged ‘CNQ’

Vale SA Entices Bulls and Bears to Options Arena

Today’s tickers: VALE, TIVO, MS, CNQ, LVS, PBR & AMD

VALE – Vale SA – Two opposite-minded options strategists initiated directional plays on the Brazilian metals and mining firm in the July contract today. Shares of the world’s biggest iron ore producer are currently flat at $27.03 as of 3:30 pm (ET). One of the investors populating the July contract purchased a bearish put spread while the other trader enacted a bullish risk reversal. The pessimistic player picked up 6,000 puts at the July $26 strike for a premium of $0.81 apiece, spread against the sale of the same number of puts at the lower July $22 strike for a premium of $0.20 each. The net cost of the put spread amounts to $0.61 per contract. The put-spreader is positioned to profit should shares of the underlying stock decline 6.05% from the current price to breach the effective breakeven point to the downside at $25.39 by expiration. Maximum available profits of $3.39 per contract pad the investor’s wallet if Vale’s shares plummet 18.6% to $22.00 ahead of expiration day in July. In contrast to the bearish put spread, another options strategist initiated a bullish risk reversal, selling 4,000 puts at the July $25 strike for a premium of $0.57 each, in order to purchase the same number of calls at the higher July $30 strike for a premium of $0.46 apiece. The responsible party pockets a net credit of $0.11 per contract, and keeps the full amount as long as Vale’s shares exceed $25.00 through July expiration. Additional profits accumulate if shares of the underlying stock rally 11% to surpass the $30.00-level by expiration day next month. Options implied volatility on Vale SA is higher by 7.7% to 46.29% just before 3:40 pm (ET).

TIVO – TiVo, Inc. – Shares of the provider of technology and services for TiVo® subscription-based digital video recorders shot up as much as 8.25% today to touch an intraday high of $8.26 on speculation DirecTV is considering a buyout. The rally in the price of the underlying stock and takeover chatter inspired bullish options activity on TIVO during the session. One long-term optimist purchased a plain-vanilla debit call spread to position for sharply higher shares by expiration in January 2011. The investor picked up 1,000 calls at the January 2011 $11 strike for a premium of $1.16 each, and sold the same number of calls…
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Bank of America Bet to $16 by August

Today’s tickers: BAC, FXI, JWN, WFC, XHB, CNQ, ANF & PEP

BAC– And finally today, one investor apparently sees a 60% improvement in the prospects for shares over at BAC having placed a 60,000-lot trade on the PHLX to lock-in to the bank’s shares at $16.00 apiece come August. The trader bought 60,000 call options at the strike while selling the same amount of 20 strike calls for a net premium of 46 cents. Ordinarily the speculation would have cost the investor 72 cents, but the use of the premium at the 20 strike eroded the cost significantly. Currently the premium associated with securing rights to buy BoA shares at twice the current cost is a staggering 28 cents! With shares trading around $10.73 and down more than 5% at the end of trading today, this investor is taking a very bullish perspective on the company and allowing only a pretty tight schedule. The same tried in November might have cost around 60 cents instead but would have provided three more months to come good. – Bank of America Corp.

FXI – Shares of the China ETF are down 1% to $33.44, but one covered put strategist sees further bearish movement in the stock through expiration in June. It appears that this individual sees Chinese stocks giving back some of the gains made in the rally that followed the release of the stimulus package by the Chinese government. He established the covered put by selling short the stock in conjunction with the simultaneous short sale of 33,955 put options at the June 32 strike price for a premium of 1.13 apiece. This strategy was transacted when shares were at $34.09, just three cents off of the high for the day. The investor is likely looking to have shares put to him at $32.00 when the underlying price falls low enough for the puts to wind up in-the-money. The premium received for writing the puts today effectively lowers the price he must pay, should shares be put to him by expiration, to $30.87. Should this scenario come to fruition, he will have gained 9% on the stock. – iShares FTSE/Xinhua China 25 Index Fund

JWN – The fashion specialty retailer attracted bearish option plays despite a significant bullish move in the price of the underlying stock which is currently up more than 7.5% to $22.56. The department store-chain reported
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Zero Hedge

Anti-Impeachment Democrat Jeff Van Drew Defects To GOP

Courtesy of ZeroHedge View original post here.

Anti-impeachment Democratic Rep. Jeff Van Drew of New York has confirmed that he will switch parties and become a Republican, following a lengthy meeting with President Trump, according to Politico.

Van Drew is one of two Democrats who voted 'no' on opening the impeachment inquiry in the first place, and has been a vocal opponent of the effort, according to the repor...



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Phil's Favorites

Liquidity Matters - Retail Investors Are About To Learn A Valuable Lesson The Hard Way

Courtesy of Lance Roberts, RealInvestmentAdvice.com

One of the great challenges of financial markets is that certain important events only happen infrequently – which makes it all the easier to overlook them during intervening periods. One of those important situations is when it becomes extremely difficult, if not impossible, to sell an investment because too few people are both willing and able to buy it.

Through the course of a cycle the phenomenon of illiquidity occurs periodically but is normally contained to very specific situations and does not affect broader markets. Increasingly, however, there are signs that liquidity could be a problem in the foreseeable future, so it is a good time to review the risks.

...



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Chart School

Funds are getting ready to move out of USA

Courtesy of Read the Ticker

Just before the hang over in the US equity markets, money will move and take their well earned gains else where. Here is why.

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Charts in video.

US is in the late cycle boom.

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US stock market with the US dollar, they have risen together from 2012. A change of this will force money to move.


Cli...



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Kimble Charting Solutions

Euro Breakout In Play? Gold Bulls Sure Hope So!

Courtesy of Chris Kimble

The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullis...



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Insider Scoop

8 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock surged 36.4% to $137.00 during Friday's pre-market session. The market value of their outstanding shares is at $6.1 billion. The most recent rating by Janney Capital, on December 13, is at Buy, with a price target of $175.00.
  • GlaxoSmithKline, Inc. (NYSE: GSK) shares surged 1.1% to $46.44. The market value of their outstanding shares is at $112.9 billion. According to the most recent rating by UBS, on November 21, the current rating is at Buy.
  • AstraZeneca, Inc. (NYSE: ...


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Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

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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.

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