Posts Tagged ‘CQB’

Pandora Options Active As Shares Extend Rally

 

Today’s tickers: P, NXPI & CQB

P - Pandora Media, Inc. – Shares in the Internet radio provider are on a tear this year, having rallied nearly 30.0% since the final trading session of 2011. The stock is up 8.1% at $13.06 today, although it’s worth noting the stock trades below its June IPO. Put activity on the music media company this morning suggests at least one strategist does not expect the music to stop in the near future. Investors exchanged more than 3,200 puts at the Feb. $10 strike against open interest 563 contracts, indicating the positions were opened. It looks like most of the put options were sold for an average premium of $0.25 each. Put sellers walk away with the full amount of premium at expiration next month as long as shares in Pandora Media, Inc. exceed $10.00. The strategy could saddle sellers of the options with shares of the underlying stock at February expiration in the event of a sharp pullback below the strike price. Premium received on the play provides limited protection against losses should shares tank, however, traders start to see losses on the downside should the stock drop 25.0% to trade below the effective breakeven price of $9.75 at expiration day. The put contracts expire ahead of the Company’s March 1 fourth-quarter earnings release.

NXPI - NXP Semiconductors NV – Call options on the semiconductor supplier are more active than usual this morning, with shares in the Eindhoven, The Netherlands-based Company soaring 14.7% to an intraday high of $19.72. Traders appear to be placing bullish bets on NXPI today, snapping up in- and out-of-the-money call options to position for shares to extend gains in the near term. Meanwhile, some call buyers that purchased calls ahead…
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Options Strategist Sees Halliburton Rebound On The Horizon

Today’s tickers: HAL, AOL, CQB & XRT

HAL - Halliburton Co. – Options activity on Halliburton suggests one strategist seized the opportunity to take a bullish stance on the provider of oil equipment and services this morning on the heels of a 27.5% dip in the price of the underlying during the past three weeks. Shares in Houston, TX-based Halliburton recovered 4.8% of their value thus far in the session to trade at $44.46 as of 11:45 am ET. It looks like the options player is positioned for limited, albeit potentially substantial, bullish movement in the price of the underlying through September expiration. The investor initiated a ratio call spread, buying 5,000 calls at the September $50 strike for a premium of $1.21 each, and selling 10,000 calls up at the September $55 strike at a premium of $0.425 apiece. Net premium paid to initiate the spread amounts to $0.36 per contract, thus preparing the trader to profit should shares in HAL rally another 13.3% over the current price of $44.46 to surpass the effective breakeven price of $50.36 by expiration next month. Maximum potential profits of $4.46 per contract pad the investor’s wallet in the event that Halliburton’s shares surge 23.7% to settle at $55.00 at September expiration. HAL’s shares reached a 52-week high of $57.77 on July 25 before the market meltdown pulled the price of oil and oil and gas companies down with it.

AOL - AOL, Inc. – U.S. stocks are rallying ahead of the FOMC statement this afternoon, recovering somewhat from Monday’s harrowing selloff, but investors in global web services provider AOL suffered more pain today as shares in the name failed to join in the broad market gain. AOL’s shares plunged 22.0% today to $11.75, the lowest traded price since the company’s 2009 spinoff from…
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Bulls Prepping for a Rally Don Red Hat Call Options

Today’s tickers: RHT, MDRX, CQB & DOW

RHT - Red Hat, Inc. – Options activity in December contract calls on the world’s leading provider of open source solutions suggests shares in Red Hat may rally more than 10.0% to their highest in more than a decade by the end of 2011. The stock gained 1.80% this afternoon to trade at $44.57 by 12:30 pm on the East Coast, paring some losses realized earlier in this week. In the previous four weeks Red Hat’s shares moved up 17.0% on strong first-quarter earnings as well as analyst upgrades. Bullish strategists expecting the company’s shares to extend gains purchased around 4,390 call options at the December $46 strike on open interest of just 242 contracts. Traders paid an average premium of $3.40 per contract and stand ready to profit should Red Hat’s shares surge 10.8% over the current price of $44.57 to exceed the average breakeven point to the upside at $49.40 by expiration day in December. The Raleigh, NC-based company reports second-quarter earnings after the market closes on September 22. Call buyers may see the value of their positions sky-rocket if Red Hat’s second-quarter results send the price of the underlying skyward.

MDRX - Allscripts-Misys Healthcare Solutions, Inc. – Allscripts shares rose 1.1% to $19.96 this morning after the company said it expects adjusted earnings and revenues for the second quarter to come in better than analysts’ estimates. Despite positive comments from the Chicago, IL-based company, it looks like some options traders are positioning for shares in the healthcare information services company to pullback ahead of August expiration. Allscripts reports second-quarter earnings on August 4. MDRX shares rose 9.1% in the past two weeks, but put buyers populating the stock today are prepared to benefit should shares erase recent gains in the next…
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Straddle-Strategist Sells Flextronics Options

Today’s tickers: FLEX, BMY, CQB & TSS

FLEX - Flextronics International, Ltd. – The Singapore-based provider of electronics manufacturing services popped up on our scanners after one big player sold a massive straddle in the July contract. Shares in Flextronics are currently up 5.0% at $8.14 as of 11:55am in New York. The sizable straddle play composed of a total of 49,000 FLEX options is almost on par with the overall level of open interest on the stock of 56,483 contracts. It looks like the investor is reeling in time-rich, in-the-money call premium as well as just out-of-the-money put premium, in the expectation that volatility will come off and shares in the name will remain around this level. The straddle-strategist sold 24,500 calls at the July $8.0 strike for a premium of $0.70 each, and sold 24,500 puts at the same strike for a premium of $0.60 apiece. Gross premium pocketed on the transaction amounts to $1.30 per contract. The trader keeps the full premium received on the sale as long as shares in FLEX settle at $8.00 at expiration in July. The short straddle strategy implies the investor at least sees shares trading within a certain range through expiration. In this case, the trader keeps some of the premium received and staves off losses unless shares in FLEX swing above the upper breakeven price of $9.30, or slip beneath the lower breakeven point at $6.70. The short stance in both call and put options expose the trader to potentially devastating losses in the event that shares work against him in the next few months. However, the investor need not hold the position to expiration. The trader may be able to buy back the straddle at an advantageous price at some point, benefiting from the erosion of time value as well as subsiding levels of implied volatility.…
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Bull Buys Call Spread as Arena Pharmaceuticals’ Shares Soar

Today’s tickers: ARNA, CQB, GAP, KWK, MCD & FL

ARNA – Arena Pharmaceuticals, Inc. – Shares of the clinical-stage biopharmaceutical company shot up 10.7% today to an intraday high of $5.89, inspiring one options strategist to purchase a debit put spread in the October contract. Arena’s shares have increased significantly since an FDA advisory panel said it does not recommend rival Vivus’ obesity drug, Qnexa, receive FDA approval. The bullish options investor prepared for continued upward movement in Arena’s shares by purchasing 3,000 now in-the-money calls at the October $5.0 strike for a premium of $2.45 each, and selling the same number of calls at the higher October $7.0 strike at a premium of $1.45 apiece. The net cost of the transaction amounts to $1.00 per contract. Thus, the trader is prepared to make money should the biopharmaceutical firm’s shares rally 1.85% over the current price of $5.89 to trade above the effective breakeven price of $6.00 by October expiration day. The investor walks away with maximum potential profits of $1.00 per contract if Arena’s shares surge 18.85% to exceed $7.00 by expiration. In the nearer-term September contract, another bullish player opted to sell 2,700 puts at the September $2.0 strike to take in an average premium of $0.30 per contract. The put seller keeps the premium received on the transaction as long as Arena’s shares trade above $2.00 through expiration day in September. Options implied volatility on ARNA is higher by 14.1% to 101.05% as of 2:55 pm (ET).

CQB – Chiquita Brands International, Inc. – Call buying on the international marketer and distributor of bananas and fresh produce continues today with shares of the underlying stock trading higher by 3.15% to stand at $13.10 as of 1:20 pm (ET). Bullish traders started to buy November $12.5 strike calls yesterday afternoon as Chiquita’s shares rallied nearly 5.5% to end Thursday afternoon at an intraday high of $12.72. The company’s shares continued their ascension today, inspiring investors to build up bullish stances on the stock ahead of the second-quarter earnings report next Thursday. Investors purchased approximately 3,000 calls at the November $12.5 strike by 1:25 pm (ET) for an average premium of $1.73 apiece. Call buyers make money if Chiquita’s shares increase another 8.6% to surpass the average breakeven point at $14.23 by November expiration. Traders buying the calls on Thursday have a clear first-mover advantage because they paid an…
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Bulls Go Bananas for Chiquita Call Options

Today’s tickers: CQB, BX, BAC, SWY, LLY, NFLX, MHS & UPS

CQB – Chiquita Brands International, Inc. – Shares of the marketer and distributer of bananas and other fresh produce surged 5.2% this afternoon to an intraday high of $12.68, giving bullish players a healthy appetite for call options on the stock just one week before the firm is slated to report second-quarter financial results. Chiquita Brands International popped up on our ‘hot by options volume’ market scanner after investors coveted approximately 2,900 calls at the now in-the-money November $12.5 strike for an average premium of $1.52 a-pop. Call buyers make money if, by expiration, Chiquita’s shares jump 10.6% over today’s high of $12.68 to trade above the average breakeven point to the upside at $14.02. CBQ shares last traded above $14.02 back on June 15, 2010, but traded as high as $16.84 on April 26, 2010. Investors long the calls are well positioned to accumulate significant profits should the price of the underlying shares rebound to the value recorded at the end of April.

BX – The Blackstone Group LP – Activity observed in LEAPS on the global asset manager and provider of financial advisory services suggests one strategist expects Blackstone’s shares to rise significantly by expiration in January 2012. BX’s shares are up 3.9% at $10.71 as of 3:15 pm (ET), but earlier increased as much as 5.00% to secure an intraday high of $10.83. It looks like the investor enacted a three-legged bullish transaction, selling put options to partially finance the purchase of a debit call spread. The trader sold 4,700 puts at the January 2012 $10 strike for premium of $2.30 each, purchased 4,700 calls at the January 2012 $10 strike at $2.60 in premium apiece, and finally sold 4,700 calls at the higher January 2012 $17.5 strike for a premium of $0.40 a-pop. The transaction yields a net credit of $0.10 per contract, which is safe in the investor’s wallet as long as Blackstone’s shares trade above $10.00 at expiration day. Additional profits accrue above a share price of $10.00, with maximum potential profits of $7.60 per contract available to the trader if the price of the underlying stock jumps 63.3% to trade above $17.50 by expiration day in January 2012. Bullish trading in options on the world’s biggest buyout firm arrived after the release of its second-quarter earnings report before today’s open. The company…
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Phil's Favorites

How high will unemployment go? During the Great Depression, 1 in 4 Americans were out of work

 

How high will unemployment go? During the Great Depression, 1 in 4 Americans were out of work

Unemployed people wait outside a government office in NYC in 1933. AP Photo

By Jay L. Zagorsky, Boston University

CC BY-ND

The U.S. unemployment rate climbed from a half-century low of 3.5% to 4.4% in March – and is expected to go a lot higher.

But could the rate, as ...



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Zero Hedge

Mysterious Colorado Doomsday Shelter For When "Law & Order Breaks Down" Sees Spike In Interest

Courtesy of ZeroHedge View original post here.

As the pandemic unfolds across the US, city dwellers are getting the hell out of dodge and escaping to rural areas. We noted this last week, with many leaving large metro areas in California, fleeing for the mountains and rural communities to limit their probabilities of ...



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Biotech/COVID-19

Why wear face masks in public? Here's what the research shows

 

Why wear face masks in public? Here's what the research shows

People have resorted to using scarves and bandanas as face masks to protect against spreading coronavirus. While cloth masks aren’t as effective as surgical masks, research suggests they can limit the spread of droplets. Jens Schleuter/Getty Images

Hector Chapa, Texas A&M University

With the coronavirus pandemic quickly spreading, U.S. health officials have changed their advice on face masks and now recommend people wear cloth masks in public areas where social...



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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.