Posts Tagged ‘CSTR’

Bearish Bets On Safeway Pay Off As Stock Tumbles After Earnings

 

Today’s tickers: SWY, CAKE & CSTR

SWY - Safeway, Inc. – Shares in the food and drug retailer are trading down sharply on Thursday, falling more than 18% to $23.14 during the first half of the session, after the company posted first-quarter revenue that missed analyst estimates. At least one trader who appears to have purchased front month put options on Safeway on Wednesday afternoon is benefitting from the double-digit percentage declines in the price of the underlying today. The largest increase in put open interest on SWY yesterday was the 4,566-lot jump in the number of open contracts at the May $26 strike. It looks like most of the $26 puts were purchased at a premium of $0.40 each. Traders long the contracts are benefitting from Safeway’s pain today, with premium on the $26 puts up more than six-fold at $2.55 apiece as of 11:55 a.m. in New York. Today, some options players appear to be nibbling at Safeway calls to position for the shares in Safeway to rebound somewhat in the near term. Traders picked up around 1,400 calls at the May $24 strike for an average premium of $0.94 apiece and may profit at expiration in the event that shares rally 7.8% over the current price of $23.14 to top the average breakeven point at $24.94.

CAKE - Cheesecake Factory, Inc. – Options traders who initiated bullish bets on Cheesecake Factory yesterday ahead of the restaurant operator’s first-quarter earnings release are enjoying sizable gains in the value of their positions today, with shares in the name up nearly 9.0% in the early going to touch an all-time high of $41.02. Trading traffic in the May $38 and $39 strike calls picked up speed yesterday just before 12:15 p.m. ET. It looks like one or more traders snapped up around 320 of the $38 strike calls at an average premium of $1.13 apiece, and roughly 400 of the $39 strike calls for an average premium of $0.77 each. The value of these contracts are up sharply,…
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Coinstar Options Volume Rises Ahead Of Earnings After The Close

 

Today’s tickers: CSTR, YHOO & KO

CSTR - Coinstar, Inc. – Options on Coinstar are more active than usual today ahead of the company’s fourth-quarter earnings report after the close. Shares in the provider of Coinstar self-service coin-counting kiosks and Redbox self-service DVD and video game rental kiosks advanced up to 1.2% in the early going to touch $51.95, but currently trades flat on the session at $51.32 as of midday in New York. Sizable prints in February expiry call options on CSTR during the first 30 minutes of the trading day indicate one trader may be positioning for shares in Coinstar to rally sharply after earnings. It looks like the strategist purchased a 4,500-lot Feb. $57.5/$62.5 call spread at a net premium of $1.10 per contract. The spread makes money if shares in the name rally 14% over the current price of $51.32 to exceed the effective breakeven point at $58.60, with maximum potential profits of $3.90 per contract available on the position given a more than 20% upside move in the stock price to $62.50 by expiration next week. Shares in Coinstar last traded above $62.50 back in July 2012.

YHOO - Yahoo!, Inc. – Shares in Yahoo are bucking the trend today, up 0.65% at $19.98 as of 11:30 a.m., amid a down day for U.S. stocks. The company said yesterday it will begin working with Google’s AdSense and AdMob services to increase revenue from content on its sites. The Internet media company was raised to ‘Buy’ from ‘Hold’ with a 12-month target share price of $23.00 at Pivotal Research Group LLC today. Trading traffic in YHOO calls suggests some strategists are positioning for the price of the underlying to extend gains in the near term. Cheap upside bets are building at the Feb. 08 ’13 $20.5 strike where upwards of 3,500 weekly puts changed hands against open interest of 123 contracts. It looks like most of the calls were purchased in the early going for an average premium of $0.06 each. Traders long the calls lose their investment of $0.06 per contract…
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Options In Focus At Coinstar As Shares Hit New Highs

 

Today’s tickers: CSTR, BCS & SWY

CSTR - Coinstar, Inc. – Shares in the provider of coin-counting and Redbox self-service kiosks are bucking the trend today, surging as much as 13.7% during the session to hit a new all-time high of $69.74, after the Company raised its 2012 earnings forecast. The down-day for U.S. equities has taken some of the wind out of Coinstar’s sails this afternoon, though the stock continues to trade 7.6% higher at $66.00 as of 12:25 p.m. on the East Coast. Options on the kiosk provider are far more active than usual, with volume up above 16,000 contracts in early-afternoon trade, versus the stock’s 90-day average volume of 2,012 contracts.  Trading patterns are mixed, but there are some strategists positioning for the rally to continue next week. Out-of-the-money calls in the front month attracted bullish bets, with more than 2,060 contracts changing hands at the April $70 strike against 1,720 open positions. The $72.5 strike calls expiring next week traded more than 540 times, with much of the volume initiated by buyers shelling out an average premium of $0.44 apiece this morning. Traders long the $72.5 strike calls profit at expiration in the event that shares jump 10.5% to surpass the average breakeven price of $72.94. Barring that move, call buyers lose the full amount of premium paid if the options are out-of-the-money at April expiration.

BCS - Barclays PLC – Put options on Barclays are more active than usual, with shares in the financial services provider sliding 4.1% to $13.74 by midday in New York. The stock joined in on the broad market decline, pulling back on European concerns, China’s GDP reading and U.S. consumer confidence data, to snap the three-day rally in equities. The heaviest action in BCS options is in the…
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FedEx Corp. Options Point To Near-Term Share Price Pullback

Today’s tickers: FDX, IR, XLK & CSTR

FDX - FedEx Corp. – Bearish activity cropped up in FedEx Corp. call and put options within minutes of the opening bell this morning. Shares in the provider of transportation, e-commerce and business services are down 1.9% to stand at $75.59 as of 11:40 am ET, with less than one week to go before the Memphis, Tennessee-based company is scheduled to report first-quarter earnings. Yesterday, FedEx rival, UPS, reaffirmed its full year earnings guidance, but warned of difficult economic conditions and anemic growth. Traders positioning for shares in FedEx to extend losses, and possibly dip to new 52-week lows ahead of October expiration, initiated a few different bearish strategies in the first half of the session. Plain-vanilla put buying ensued at the Oct. $77.5 strike, where roughly 1,900 in-the-money puts were purchased for an average premium of $4.07 apiece. Investors long the puts profit at expiration next month if shares in FDX slide 2.85% from the current price of $75.59 to breach the effective breakeven point on the downside at $73.43.

Most of the volume in FedEx options was generated by one strategist, who initiated a three-legged bearish spread straight out of the gate this morning. It looks like the investor sold 2,500 calls at the Oct. $85 strike in order to purchase the 2,500-lot Oct. $67.5/$75 put spread. The transaction cost the trader a net premium of $0.90 per contract. The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares. Profits are available to the trader should shares in FDX drop 2.0% to breach the effective breakeven price of $74.10 by expiration day. The investor may walk away…
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Appetite for Darden Calls and Puts Grows Ahead of Earnings

Today’s tickers: DRI, MGM, CSTR & RMD

DRI - Darden Restaurants, Inc. – Investors are dining on both call and put options on the operator of Red Lobster and Olive Garden restaurants today ahead of the company’s fourth-quarter earnings report tomorrow after the close of trading. Shares in one of the world’s largest company-owned and operated full-service restaurant companies are up 0.70% this afternoon to stand at $49.60. The rise in demand for options on the stock helped lift DRI’s overall reading of options implied volatility 13.3% to 31.00% by 1:00pm in New York. Traders gearing up for a post-earnings rally purchased more than 2,000 calls at the July $50 strike for an average premium of $1.05 a-pop. Call buyers make money in the event that Darden’s shares rise 2.9% to trade above the average breakeven price of $51.05 through July expiration day. Bullish sentiment on the stock spread to the August $55 strike where investors scooped up 1,400 calls at an average premium of $0.30 per contract. Traders long the calls profit at August expiration if shares in DRI soar 11.5% to exceed the average breakeven price of $55.30. Of course, investors may be able to sell the calls ahead of expiration if a post-earnings rally in the price of the underlying shifts call premium in their favor. Not all options players are hungry for a rally. It looks like traders positioning for a near-term pullback in Darden’s shares paid an average premium of $1.30 per contract to pick up around 2,400 puts at the July $49 strike. Put buyers profit if shares in the restaurant operator tumble 3.8% to breach the average breakeven point on the downside at $47.70 at expiration next month. More than 9,500 options have changed hands on Darden Restaurants, Inc. as of 1:05pm on the East Coast.…
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F’ing Dip Thursdsay – Do We Buy It?

Caution - Dips Ahead SignJust buy the f’ing dip.

That’s the great advice we had back on December 2nd, as it was pointed out by Captain Broccoli that we should just ignore all the so-called "facts" of the economy and "just borrow money at this ridiculous low interest rate and just buy the f’ing dip."  "It’s not a pyramid scheme, you  idiot," says the Captain – "It’s a dip buying scheme!"  So far, on every little dip we have had since December 2nd – the Captain has had the winning strategy – do we dare ignore his sage advice today?  

Yesterday we had the biggest pullback since November 23rd with the Russell and the SOX, two of our most over-extended indexes, falling 2.5% in a single day.  The Russell essentially gave up an entire month’s worth of gains in a single day because, as I have warned you over and over and over until I myself was bored hearing it, it has been a low-volume rally and the pure physics of the situation means that, when people finally want to sell stocks, there aren’t enough buyers in the world to support the prices they have run up to.  

The Shanghai, which we’ve been watching closely, dropped another 3% today to 4-month lows this morning.  We did the chart of the Shanghai vs the Hang Seng on Friday, when I was droning on about how weak the real Global economy is and how dangerous inflation was looking and how the government was papering it all over, etc.  Even so, I reminded Members in Chat that none of that reality mattered and we still had to buy the dips until it stopped working.  Is today the day or have we finally reached the end of the gravy train?  

We did some hedged buying on Friday with new long-term bullish trade ideas on AAPL, AET, BAC, GENZ and INTC (2) as well as shorter-term bullish trade ideas on CSTR (April) and ABX (quick 50% profit and done).  We also had a short play on PCX (up huge already) and hedged with RKH Feb $85 puts at $1.15 (now $1.80, up 56%) and rolled our losing QID position in the $10,000 Virtual Portfolio to the Feb $10 calls at an average of $1.15 (now .90, down 22%).  This is how we can be long-term bullish and short-term bearish.  Buying the f’ing
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Halliburton Options Trade Smartly

 Today’s tickers: HAL, CSTR, AMAG & FXI, SPY

HAL - Halliburton Co. – A sharp fall in Thursday’s session for oil services and sloppy cement-mixer Halliburton has not gained much traction at the end of the week. The stock today trades on both sides of unchanged and is currently at $31.71. While the prospects for additional liability are pretty much set out on the table following a report showing it provided BP with an unstable cement mix to surround the Macondo oil well, BP didn’t notice or attempt to rectify the error. Halliburton’s November puts are being sold as the stock stabilizes while the smart trade appears to be selling well out of the money call options expiring in April. Around 4,000 call options at the $36 strike price have traded to the bid telling us that an investor is taking a long stock and short call position or is simply just writing premium. The 52-week high at $35.89 remains a tall order after yesterday’s news making the short position in the calls look like a viable proposition.

CSTR - Coinstar Inc. – Coin and DVD-rental-machine operator Coinstar provided a pop for its shares after reporting surging revenues thanks to growth in its DVD-machine operations located in supermarket chains around the nation. Investors were primed for a dip in profits but were left smiling by a 42% increase in revenues on the movie-rental side. Call options on the stock were equally hot property on Friday after the share price jumped by 23% to $56.86. Formerly out-of-the-money call options expiring in November and which were trading at $1.50 yesterday traded all the way up to $8.00 a piece today despite a 20% slide in options implied volatility, typical after earnings. The share price surge put calls at six option strikes in-to-the-money on Friday. Compared to a 10-day average today’s overall options volume stacks up to more than five-times the norm.…
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Bears bombard Massey Energy Corp. as FBI Investigates Mining Tragedy

Today’s tickers: MEE, CSTR, SMH & RTP

MEE – Massey Energy Corp. – News the coal producer is being looked at by the Federal Bureau of Investigation following the tragic explosion at one of the firm’s mines in West Virginia on April 5, 2010, fuelled bearish options trading activity today and pushed Massey’s shares down 5.9% to $38.90 as of 12:45 pm (ET). Earlier in the session Massey’s shares declined 9% to an intraday low of $37.43. Shares of the underlying stock are currently down 31% since April 5, 2010, when the stock touched a new 52-week high of $54.80 before falling on news of the mining accident. Investors piled into put options on Massey today, with trading traffic heaviest in out-of-the-money puts in the May contract. The May $35 strike attracted the most volume with more than 12,600 puts changing hands at that strike by 12:50 pm (ET). It looks like at least 6,700 puts were purchased there for an average premium of $0.97 apiece. Put-buyers make money if Massey’s shares fall another 12.5% from current price of $38.90 to breach the average breakeven point to the downside at $34.03 by May expiration. News of the FBI’s involvement, coupled with investors’ voracious appetite for puts on the stock today, boosted Massey’s overall reading of options implied volatility 22.5% to 64.53% as of 12:55 pm (ET).

CSTR – Coinstar, Inc. – Shares of the provider of diverse services, such as self-service coin counting and Redbox $1-a-day movie-rental dispensaries, are up more than 21.5% to $46.44 as of 12:10 pm (ET). Earlier in the session Coinstar’s shares surged 32% over Thursday’s closing value of $38.21 to attain a new 52-week and intraday high of $50.35. One options player reeled in hefty profits by selling a previously established long call position in the May contract. It looks like the investor initially purchased 600 in-the-money calls at the May $35 strike for an average premium of $2.83 apiece back on Monday April 26, 2010, when shares of the underlying stock were trading at a volume-weighted average price of $36.51. Today the trader sold the calls for $14.40 each, banking average net profits of $11.57 per contract. Perhaps expecting continued bullish movement in the price per Coinstar share, the investor established a fresh optimistic stance on the stock by purchasing 600 calls at the May $50 strike for an average premium of $2.20 apiece.…
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Kimble Charting Solutions

Tech Leader Facing Important Long-Term Breakout Test!

Courtesy of Chris Kimble

Since the 2009 lows, Semiconductors have been taken a leadership role as they have far outpaced the gains of the S&P 500.

Gains since the 2009 lows; SOXX Index = +821% S&P 500 = +273%.

The SOXX index has spent the majority of the past 10-years inside of rising channel (1), which first started at the  2009 lows.

As the SOXX index is testing the top of this 10-year rising channel, it is also testing its Fibonacci 423% extension level of its 2001 highs and 2009 lows at (2).

This leading index would send a positive message t...



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Zero Hedge

Global Stocks Slide After Apple Guidance Cut Is "Wake Up Call" To Zombified Investors

Courtesy of ZeroHedge View original post here.

Two weeks ago, when looking at the supply-chain crippling consequences of the Coronavirus epidemic, we asked "Is Tech About To Suffer A "Dot Com" Bubble Collapse?" and concluded that "It's now all in China's hands" noting that "...while the market leaders did not disappoint in the last quarter of 2019 when stocks exploded higher with the blessing of the Fed's QE4, what abou...



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Phil's Favorites

Bloomberg Has Built a Star Wars Machine to Try to Steal the Democratic Nomination

Courtesy of Pam Martens

Michael Bloomberg

Billionaire Michael Bloomberg is used to getting his way. After serving two terms as New York City’s Mayor as a Republican, he used his own vast stash of cash to repeal term limits and give himself another four-year term, running as an Independent. Now he has promised to do the unprecedented: spend $1 billion of his own money to install himself as President of the United States, running on the Democratic ticket.

Bloomberg’s campaign increasingly resembles an octopus with money gushing out of its tentacles into anything and everything that will inject Mic...



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Insider Scoop

AMX Buys Fellow Alabama Company Powell, Adds Reefer Capacity

Courtesy of Benzinga

Alabama Motor Express will push deeper into the refrigerated business with purchase of Powell Transport Solutions.

The acquisition, announced earlier this week, will bring 35 refrigerated trailers to AMX, the company said in a statement. A spokeswoman for AMX, in response to questions submitted by FreightWaves, said the company's business is currently about 10% refrigerated. The AMX fleet before the acquisition was 210 trailers, she said.

Powell's business is 100% refrigerated, according to the...



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Biotech & Health

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Members' Corner

How to Stop Bill Barr

 

How to Stop Bill Barr

We must remove this cancer on our democracy.

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



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The Technical Traders

Is The Technology Sector Setting Up For A Crash? Part I

Courtesy of Technical Traders

One thing that continues to amaze our research team is the total scale and scope of the Capital Shift which is taking place across the globe.  For almost 5+ years, foreign investors have been piling into the US stock market chasing the stronger US dollar and continued advancement of US share prices. It is almost like there is no other place on the planet that will allow investors to pool capital into such a variety of strong assets while protecting against foreign capital risks.  Yet the one big question remains – when will a price reversion event hit the US stock
market?

So many researchers, even our team of researchers, believe we have found the keys to unloc...



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ValueWalk

Russell 2000 Index (RUT) hits an almost one-month high

By Gorilla Trades. Originally published at ValueWalk.

Ad the Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q4 2019 hedge fund letters, conferences and more

Russell 2000 Index (INDEXRUSSELL: RUT) Outperforms Large-Cap Benchmarks

While the overnight session was nothing short of scary stocks held on to most of yesterday's gains and small-caps even extended their winning streak. The Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, finishing higher for the fourth day in a row while outperforming the large-cap benchmarks, and since the Volatility...



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Chart School

Dow theory warning from the Utilities Index

Courtesy of Read the Ticker

Charles Dow died in 1902, and the investors should thank him for his ever lasting Dow Theory Analysis.

Carrying on this blog theme looking at the Utility stocks. Previous post.
Dow Jones Utility index could trade like the FANGs
Formula for when the Great Stock Market Rally ends



You can learn about Dow Theory here

This post is concerned wi...

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Digital Currencies

Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat's Tom Lee

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin is primed for average gains of almost 200% over the next six months, one of its best-known supporters has told mainstream media. 

...



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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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Free eBook - "My Top Strategies for 2017"

 

 

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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.

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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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