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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Phil's Favorites

Coronavirus case counts are going to go up - but that doesn't mean social distancing is a bust

 

Coronavirus case counts are going to go up – but that doesn't mean social distancing is a bust

Empty parking lots show social distancing’s costs. It could take time to see its benefits. Pete Starman/The Image Bank via Getty Images

Abram Wagner, University of Michigan

The last few weeks have brought previously unimaginable changes to the lives of people throughout the United States. Americans everywhere are waking up to a new reality in which they can’t go to work or school outside the home and they have to stay six feet away...



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Biotech/COVID-19

Coronavirus case counts are going to go up - but that doesn't mean social distancing is a bust

 

Coronavirus case counts are going to go up – but that doesn't mean social distancing is a bust

Empty parking lots show social distancing’s costs. It could take time to see its benefits. Pete Starman/The Image Bank via Getty Images

Abram Wagner, University of Michigan

The last few weeks have brought previously unimaginable changes to the lives of people throughout the United States. Americans everywhere are waking up to a new reality in which they can’t go to work or school outside the home and they have to stay six feet away...



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Zero Hedge

Google Publishing Location Data To Monitor Social Distancing

Courtesy of ZeroHedge View original post here.

Google has launched a website which uses anonymized location data to show where people are taking social distancing more seriously than others.

Collected from their various products and services, the COVID-19 Community Mobility Reports site will show changes in behavior - such as shopping and recreation, from a top-down look at entire countries - to individual states.

...

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ValueWalk

Junior gold stocks offer a place of refuge in a falling market

By Michelle Jones. Originally published at ValueWalk.

Junior gold stocks have taken a beating alongside other stocks, but history suggests this could be the time to dive in. The Vaneck Vectors Junior Gold Miners ETF is down from where it was in February, although it’s starting to show signs that it could revive soon.

Q4 2019 hedge fund letters, conferences and more

Crescat likes junior gold stocks

In their March update to investors, Crescat Capital said junior gold stocks retested the lows of a nine-year bear market. ...



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Kimble Charting Solutions

Depression Coming or Is the Bottom Already In? Joe Friday Says Your Answer Lies Here!

Courtesy of Chris Kimble

Are we headed towards a Depression or is the worst already behind us? In today’s world, comparisons to the great depression are easy to find.

Are the Depression concerns well founded or are the declines of late already pricing in a bottom?

In my humble opinion, this chart and the upcoming price action of this index will go miles and miles towards telling us if we are headed towards very tough times or if the huge declines of late are actually in a bottoming process.

This chart looks at the Thomson Reuters Equal Weighted Commodity Index on a monthly basis over the past 54 years. The index has been heading south, reflecting weakness in demand for basi...



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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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The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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