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

Buyer beware: How Libra differs from Bitcoin

 

Buyer beware: How Libra differs from Bitcoin

Recent revelations about the lack of privacy protections in place at the companies involved in Facebook’s new Libra crytocurrency raise concerns about how much trust users can place in Libra. (Shutterstock)

Courtesy of Alfred Lehar, University of Calgary

Facebook, the largest social network in the world, stunned the world earlier this year with the announcement of its own cryptocurrency, Libra.

The launch has raised questions about the difference between Libra and existing cryptocurrencies, as well as the implications of private companies competing with s...



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Digital Currencies

Buyer beware: How Libra differs from Bitcoin

 

Buyer beware: How Libra differs from Bitcoin

Recent revelations about the lack of privacy protections in place at the companies involved in Facebook’s new Libra crytocurrency raise concerns about how much trust users can place in Libra. (Shutterstock)

Courtesy of Alfred Lehar, University of Calgary

Facebook, the largest social network in the world, stunned the world earlier this year with the announcement of its own cryptocurrency, Libra.

The launch has raised questions about the difference between Libra and existing cryptocurrencies, as well as the implications of private companies competing with s...



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Zero Hedge

What's Hot In Women's Fashion?

Courtesy of ZeroHedge View original post here.

Via Global Macro Monitor,

Capitalism at its best or worst?

We have a few questions:

1)  Does the Tariff Man get a royalty for the sale of each dress sold, and will that violate the Emolumen...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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The Technical Traders

Is A Price Revaluation Event About To Happen?

Courtesy of Technical Traders

Skilled technical traders must be aware that price is setting up for a breakout or breakdown event with recent Doji, Hammer
and other narrow range price bars.  These types of Japanese Candlestick patterns are warnings that price is coiling into
a tight range and the more we see them in a series, the more likely price is building up some type of explosive price breakout/breakdown move in the near future.  The ES (S&P 500 E-mini futures) chart is a perfect example of these types of price bars on the Daily chart (see below).

Tri-Star Tops, Three River Evening Star patterns, Hammers/Hangmen and Dojis are all very common near extreme price peaks and troughs.  The rea...



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Kimble Charting Solutions

India About To Experience Major Strength? Possible Says Joe Friday

Courtesy of Chris Kimble

If one invested in the India ETF (INDA) back in January of 2012, your total 7-year return would be 24%. During the same time frame, the S&P 500 made 124%. The 7-year spread between the two is a large 100%!

Are things about to improve for the INDA ETF and could it be time for the relative weakness to change? Possible!

This chart looks at the INDA/SPX ratio since early 2012. The ratio continues to be in a major downtrend.

The ratio hit a 7-year low a few months ago and this week it kissed those lows again at (1). The ratio near weeks end is attempting to...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Credit Suisse raised IHS Markit Ltd (NYSE: INFO) price target from $68 to $76. IHS Markit shares closed at $67.75 on Thursday.
  • Wedbush boosted Restoration Hardware Holdings, Inc (NYSE: RH) price target from $170 to $185. RH shares closed at $169.49 on Thursday.
  • Mizuho lifted Seagate Technology PLC (NASDAQ: STX) price target from $46 to $50. Seagate shares closed at $52.94 on Thursday.
  • UBS raised the price target for Weight Watchers Intern...


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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

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.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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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