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

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

 

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Image by Gerd Altmann from Pixabay

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

"Whatever our so-called 'leaders' are doing," said Swedish climate activist Greta Thunberg, "they are doing it wrong."

By Jake Johnson, Common Dreams

The United Nations warned Friday ...



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Politics

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

 

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Image by Gerd Altmann from Pixabay

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

"Whatever our so-called 'leaders' are doing," said Swedish climate activist Greta Thunberg, "they are doing it wrong."

By Jake Johnson, Common Dreams

The United Nations warned Friday ...



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Biotech/COVID-19

FDA panel recommends limiting Pfizer booster shots to Americans 65 and older, and those at high risk of severe COVID-19

 

FDA panel recommends limiting Pfizer booster shots to Americans 65 and older, and those at high risk of severe COVID-19

No third dose for now. AP Photo/Robert F. Bukaty

Courtesy of Matthew Woodruff, Emory University

The key scientific advisory council of the Food and Drug Administration has voted to deny authorization of...



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Zero Hedge

Elon Musk's China Ass-Kissing Tour Has Resumed

Courtesy of ZeroHedge View original post here.

With interesting questions now being raised about Tesla's sales in China seemingly not matching official insurance data for registrations, Elon Musk is continuing his Chinese ass kissing tour that he began earlier this year.

In a forum on Friday, Musk praised Chinese automakers - also known as Tesla's competition - as “the most competitive in the world”. Musk also said China had "great potential" as a nation for elect...



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Digital Currencies

Animal Spirits: Crypto's Gateway Drug

 

Animal Spirits: Crypto’s Gateway Drug

Courtesy of Michael Batnick

Today’s Animal Spirits is brought to you by YCharts

On today’s show we discuss:

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Chart School

Gold and Silver Volume Waves Review

Courtesy of Read the Ticker

The sign says it all. The professionals want the public to focus on the words, to scare out the weak hands, but the color of the sign underlines the value in a money printing world, its gold stupid.

Point and figure (PnF) charts draw price waves with the sum of volume per wave. PnF charts high light true accumulation underneath price action. This is why Richard Wyckoff favored PnF charts.    

In the charts below we see price moving sideways to down, yet volume on up waves are greater than volume on down waves. At the moment there is no heavy selling on down waves. Or in other words price is being moved down at a low volume expense to allow accumulation at a lower price.

This action represents professionals building their...

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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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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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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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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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