Posts Tagged ‘CSC’

Macy’s Call Options On Trend As Shares Extend Rally

Today’s tickers: M, HLF, CSC & WSM

M - Macy’s, Inc. – The department store operator’s shares are on a tear following better-than-expected retail sales data out earlier in the week. Macy’s, Inc. shares tacked on another 2.6% today to secure a four-year high of $34.80. Trading in call options on the retailer is outpacing that of puts roughly 2.5 contracts to one, with overall volume up at 18,000 lots as of 12:45 PM in New York. Investors snapped up out-of-the-money calls in the front month, suggesting the stock may have more room to run in the near term. Call buyers looked to the Jan. $35 strike, picking up around 1,400 contracts for an average premium of $0.58 a-pop. Volume was heaviest up at the Jan. $36 strike where more than 4,200 calls traded against open interest of 1,463 contracts. Trading traffic in the calls was mixed, with buyers and sellers facing an average premium of $0.26 apiece. Finally, far out-of-the-money call options with a low probability of landing in-the-money at expiration attracted traders willing to pay an average premium of $0.09 apiece for roughly 2,000 contracts at the Jan. $38 strike. Investors long the $38 strike calls profit at expiration if shares in Macy’s jump 9.5% to top $38.09.

HLF - Herbalife, Ltd. – Shares in the provider of weight management products rallied 1.6% to $52.04 this morning, but the stock has underperformed some competitors since the start of the New Year. Weight Watchers shares are currently up 17.8% year-to-date, while Herbalife’s shares have lost 1.2% of their value in the same period. Though the stock is presently in the red for the new calendar year, activity in HLF call options suggests some traders are positioning for substantial gains in the name ahead of February expiration. Investors traded more than 2,000 calls at the…
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Put Players See More Pain Ahead For Computer Sciences Corp.

Today’s tickers: CSC, SGY, JPM & UNH

CSC - Computer Sciences Corp. – Bearish traders snapped up put options on the provider of information technology services straight out of the gate this morning, a sign the already hard-hit stock may have further to fall before the current calendar year concludes. Shares in Computer Sciences Corp. opened sharply lower, one day after the company reduced its fiscal 2012 profit estimate and reported a second-quarter net loss of $2.88 billion. Excluding some items the company earned $0.94 a share in the quarter, more than the $0.68 a share anticipated by analysts, on average. CSC’s shares closed Wednesday’s session down 15.0%, and extended losses on Thursday, falling 8.0% this morning to an intraday low of $25.67. The stock was cut to ‘Underweight’ from ‘Neutral’ at JPMorgan today. Investors positioning for the stock to continue to decline picked up deep out-of-the-money November and December expiry puts that look for the price of the underlying to suffer additional double-digit declines in the near future. Bears populating the front month picked up more than 700 puts at the Nov. $25 strike for an average premium of $0.58 each, and purchased some 400 put options at the lower Nov. $22.5 strike at an average premium of $0.15 a-pop. Options volume on the stock is heaviest, however, in the December expiry. One trader appears to have purchased a block of 5,000 put options at the Dec. $20 strike for a premium of $0.30 each. The put player may profit at expiration next month in the event that CSC shares plunge 23.25% off today’s low of $25.67 to breach the effective breakeven price of $19.70. Finally, Dec. $22.5 strike puts were popular this morning, as well, with some 1,300 of the options having been purchased for an average premium of $0.59 apiece. Computer Sciences Corp. shares are down a staggering 55.0% off the February 8, 2010, 52-week high of $56.51. Options implied volatility on CSC is up better than 40.0% to stand at 69.2% as of 11:50 AM in New York.

SGY - Stone Energy Corp. – The independent oil and natural gas company popped up on our ‘hot by options volume’ market scanner today due to heavier-than-usual activity in its calls. Shares in Stone Energy Corp. are up more than 5.1% this afternoon to stand at $26.25 as of 12:50 PM ET, and it looks like some traders are gearing up for…
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Bulls Position for Near-Term Rally in TJX Companies

 Today’s tickers: TJX, TIVO, BP, CSC, ANF, GT & OCR

TJX - TJX Companies, Inc. – Near-term bullish options traders are betting on a rebound in shares of the operator of the largest off-price retail chains, T.J. Maxx and Marshalls, by picking up call options in the January contract this afternoon. Shares in TJX Companies fell 1.30% in the final hour of the session to $43.01, recovering off an earlier intraday low of $42.55. TJX shares are down 4.0% since December 30, and have lost a total of 8.9% since November 5, 2010, when shares touched a 6-month high of $47.21. Investors positioning for a rally in TJX Companies are perhaps hopeful shares will rebound following the release of December same-store sales data. Optimistic traders scooped up more than 2,600 calls at the January $44 strike for an average premium of $0.49 apiece. Call buyers at this strike stand ready to accrue profits should shares rise 3.4% to exceed the average breakeven price of $44.49 ahead of January expiration. Bullish sentiment spread to the higher January $45 strike where nearly 1,000 call options were purchased at an average premium of $0.24 a-pop. Higher-strike call buyers make money if TJX shares rally 5.2% to trade above the average breakeven point at $45.24 before the contracts expire in a couple of weeks.

TIVO - TiVo, Inc. – Massive prints in deep out-of-the-money call options on TiVo today appear to be the work of outright bullish players speculating that shares in the television technology firm could more than double by May expiration. Shares in TiVo are up sharply by 8.07% this afternoon to stand at $9.78 as of 2:40pm in New York. TiVo, Inc. is participating in the Citi 21st Annual Global Entertainment, Media and Telecommunications Conference today. Investors hoping to see TiVo’s shares rebound to prices not seen since April of 2010 purchased debit call spreads during the first half of the trading session. Approximately 20,000 calls were picked up at the May $17.5 strike for an average…
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Pessimism on Alcoa Apparent as Bears Bulk Up on Put Options

 Today’s tickers: AA, SWKS, WDC & CSC

AA - Alcoa, Inc. – Bearish options traders decided to pay Alcoa a visit this morning in order to pick up large numbers of put options in the November contract. Shares of the aluminum giant fell as much as 2.7% in the first half of the session to touch an intraday low of $12.77, but have recovered somewhat as of 11:50 a.m. to stand 0.60% lower on the day at $13.05. Pessimistic players piled into put options at the November $13 strike where more than 32,600 contracts changed hands by midday. It looks like the majority of the activity was initiated by one bearish individual who purchased approximately 23,000 puts at that strike at a premium of $0.55 per contract. The investor may be utilizing the puts to protect an existing position in the underlying shares. Alternatively, this transaction may represent an outright bearish bet on the aluminum maker. The put buyer starts to make money if Alcoa’s shares fall 4.6% from the current price of $13.05 to breach the effective breakeven point to the downside at $12.45 by expiration day next month. Alcoa’s overall reading of options implied volatility is up 6.6% at 36.02% as of 11:55 a.m. in New York trading.

SWKS - Skyworks Solutions, Inc. – Shares of the chip making company that supplies semiconductors for cellular devices such as Apple’s iPhone rallied as much as 3.1% this morning to secure a new 52-week high of $21.98. Options traders populating the stock focused their attention almost exclusively in November contract put options despite the rise in the price of the underlying shares. The majority of options volume generated on SWKS today appears to be involved in a sizeable debit put spread. It looks like one investor picked up 7,500 puts at the November $21 strike for a premium of $1.02 each, and sold the same number of puts at the lower November $20 strike at a premium of $0.62 apiece. Net premium paid for the spread…
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Investor Optimism Apparent in Yahoo! Options Action

Today’s tickers: YHOO, PG, MWW, PWER, IYR, HRB, ANF, CSC & EWH

YHOO – Yahoo!, Inc. – The online media company made an appearance on our ‘most active by options volume’ market scanner after one investor initiated a long-term bullish stance on the stock. Yahoo’s shares increased 1.10% to stand at $14.56 by 3:05 pm (ET). Optimism on the operator of one of the most heavily trafficked Internet destinations was perhaps inspired by words from the firm’s CFO, Tim Morse, who intends to end the company’s pattern of poor M&A decisions. Morse addressed Yahoo’s history of overpaying for acquisitions and later selling those assets at a disadvantageous price by announcing plans to improve the company’s return on invested capital to 18% to 24% in 2013 from approximately 5% in 2009. One optimistic options trader opted to purchase a plain-vanilla debit call spread on Yahoo! in order to position for share price appreciation through expiration in January 2011. The investor picked up 5,000 in-the-money calls at the January 2011 $14 strike for a premium of $1.92 apiece, and sold the same number of calls at the higher January 2011 $17.5 strike for a premium of $0.58 each. Net premium paid to establish the spread amounts to $1.34 per contract. Thus, the bullish trader makes money if Yahoo’s shares rally 5.35% to trade above the effective breakeven point on the spread at $15.34 by expiration day in January 2011. The investor exits with maximum potential profits of $2.16 per contract if the online media company’s shares surge 20.2% over the current price of $14.56 to trade above $17.50 by expiration.

PG – The Proctor & Gamble Co. – Investor demand for call options on the global provider of branded packaged consumer goods surged during afternoon trading with options participants exchanging more than 4.4 calls on the stock to each single put option in play thus far in the session. PG’s shares rallied 1.7% to $61.85 by 3:30 pm (ET). It looks like bullish players expecting Proctor & Gamble’s shares to trade at a new 52-week high by August expiration purchased at least 17,900 calls options at the August $65 strike for an average premium of $0.21 per contract. Call buyers are poised to profit should shares of the underlying stock jump 5.4%, surpass the stock’s current 52-week high of $64.10, and trade above the average breakeven price of $65.21 by August expiration.…
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D.R. Horton Rally Attracts Option Bulls

Today’s tickers: DHI, MBI, CROX, CSC

DHI– Shares of the largest U.S. homebuilder by sales have surged more than 8% to $13.60 after the firm was added to Goldman Sachs’ ‘conviction buy list’. Investors were observed employing various option strategies on the stock in order to take advantage of today’s bullish move. Plain-vanilla bullish call buyers targeted the November 17.5 strike price where nearly 5,000 calls were picked up for an average premium of 35 cents apiece. The stock would need to jump 31% by expiration in November before these traders breakeven at a price of $17.85. Additionally, a sold strangle was initiated in the nearer-term September contract by a more conservative bullish player. The sale of 2,500 puts at the September 12 strike for 50 cents each was combined with the sale of 2,500 calls at the higher September 14 strike for 65 cents. The investor enjoys a gross premium of 1.15 on the transaction and retains the full amount as long as the price of the stock remains ‘strangled’ between the strike prices described through expiration. Such a trade suggests that this trader believes the current rally has likely maxed out at the current level, at least through the third week in September. The short strangle position leaves the investor vulnerable to potentially unlimited losses above the breakeven point to the upside at $15.15, as well as exposed to losses to the downside beneath the breakeven point at $10.85. – D.R. Horton, Inc.

MBI– Shares of the bond insurer surrendered a fraction of gains enjoyed during the more than 26% rally during yesterday’s trading session to a high of $6.95. The stock is currently 2.75% lower today to stand at $6.01. Bullish options activity continued this morning despite the slight dip down in shares. One investor appears to have effectively established a bullish reversal in the January 2010 contract by shedding puts to purchase calls. Though the transactions were not marked as spreads, they were executed within four seconds of one another. The January 5.0 strike had 10,000 puts sold for a premium of 90 cents apiece, and the higher January 10 strike had 18,000 calls purchased for 55 cents per contract. The investor will retain the full premium on the sale of the put options as long as the stock remains higher than $5.00 by expiration. Shares of MBIA would need to rally a whopping
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Phil's Favorites

The COVID Comeback

 

The COVID Comeback

Courtesy of Wade Slome, Investing Caffeine

Rocky Balboa (“The Italian Stallion”) the underdog boxer from the movie, Rocky, was down and out until he was given the opportunity to fight World Heavyweight Champion, Apollo Creed. Like the stock market during early 2020, Rocky was up against the ropes and got knocked down, but eventually he picked himself up and rebounded to victory in his rematch with Creed.

The stock market comeback also persisted last month as th...



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Biotech/COVID-19

Antibody injections could fight COVID-19 infections - an infectious disease expert explains the prospects

 

Antibody injections could fight COVID-19 infections – an infectious disease expert explains the prospects

Antibodies (pink) attacking a virus particle (blue). STEVEN MCDOWELL/SCIENCE PHOTO LIBRARY

Courtesy of Dimiter Stanchev Dimitrov, University of Pittsburgh

Antibodies are part of us – literally.

We have billions of them in our bodies with a combined weight of about 100 grams, or about the weight of a bar of soap. If there are so many antibodies inside our b...



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Zero Hedge

Chicago May Delay Reopening Because Of Riots: Virus Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • Chicago may delay reopening
  • Florida reports jump of just 0,.4%
  • India now home to world's 7th biggest outbreak
  • Brazil passes 500k cases
  • Russia reports highest jump in new cases in weeks as easing begins
  • UK begins unwinding lockdown as daily deaths slow
  • Japan mulls plan to let some tourists back in

* * *

Update (1215E...



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ValueWalk

How Can We Address the Cybersecurity Skills Gap?

By Dale Strickland. Originally published at ValueWalk.

A 2019 report from Burning Glass noted a 94% growth in the number of cybersecurity job postings since 2013. Unfortunately, the available pool workers with the cybersecurity skills needed to fulfill these roles has risen in proportion, creating a significant gap. What can be done to increase the available pool of candidates?

Q1 2020 hedg...



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Chart School

Silver volume says something is near boiling point

Courtesy of Read the Ticker

Fundamentals are important, but they must show up in the chart. And when they do and if they may matter, it is a good sign if price and volume waves show a change of character.

The Point and Figure chart below is readtheticker.com version of PnF chart format, it is designed to highlight price and volume waves clearly (notice the Volume Hills chart).

Silver ETF volume is screaming at us! The price volatility along with volume tells us those who have not cared, are starting to, those who are wrong are adjusting, and those who are correct are loading up. Soon the kettle will blow and the price of silver will be over $20. 

Normally silver suffers in a recession, maybe this time with trillions of paper money being creat...

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Kimble Charting Solutions

Tech Indicator Suggesting A Historic Top Could Be Forming?

Courtesy of Chris Kimble

Tech stocks have been the clear leader of the stock market recovery rally, this year and since the lows back in 2007!

But within the ranks of leadership, and an important ratio may be sending a caution message to investors.

In today’s chart, we look at the ratio of large-cap tech stocks (the Nasdaq 100 Index) to the broader tech market (the Nasdaq Composite) on a “monthly” basis.

The large-cap concentrated Nasdaq 100 (only 100 stocks) has been the clear leader for several years versus the ...



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The Technical Traders

M2 Velocity Collapses - Could A Bottom In Capital Velocity Be Setting Up?

Courtesy of Technical Traders

M2 Velocity is the measurement of capital circulating within the economy.  The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth.  When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.

The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market colla...



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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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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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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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