Posts Tagged ‘CVBF’

Pessimistic Player Targets Momenta Pharmaceuticals Put Options

 Today’s tickers: RHT, XLF, MNTA, ODP, AA & CVBF

RHT - Red Hat, Inc. – Shares of the software company are down 2.5% at $46.67 in the final hour of the trading session, but near-term options activity on the stock suggests investors are hoping for the stock to rally ahead of January expiration. Red Hat’s better-than-expected forecast for fourth-quarter profits of $0.21 to $0.22 a share, released during the company’s third-quarter earnings report after the close of trading yesterday, inspired a plethora of analyst upgrades and hikes in share price targets. Investors expecting shares to rebound in short order took advantage of the decline in premium on out-of-the-money calls, and purchased the majority of some 7,850 contracts exchanged at the January 2011 $48 strike today. It looks like bulls bought approximately 4,000 of the call options for an average premium of $0.87 apiece. Call buyers are prepared to make money should Red Hat’s shares rally 4.7% over the current price of $46.67 to surpass the average breakeven price of $48.87 by January expiration. Following earnings, the overall reading of options implied volatility on the world’s largest distributor of the open-source Linux operating system plunged 27.7% to 29.90% by 3:45pm.

XLF - Financial Select Sector SPDR ETF – The purchase of a massive chunk of March 2011 contract put options on the financials SPDR ETF appears to be the work of a cautiously optimistic options strategist hedging a large position in the underlying shares. Shares in the XLF, an exchange-traded fund designed to track the performance of the Financial Select Sector of the S&P 500 Index, are up 0.90% to stand at $15.95 as of 3:45pm in New York. The investor appears to have established a delta neutral hedge, buying 1,500,000 shares of XLF, and picking up 50,000 protective puts at the March 2011 $15 strike for a premium of $0.39 per contract on a 0.30 delta. It seems the trader is positioning for continued bullish movement in the price of XLF shares, but opting to shell out…
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Penwest Price Jump Elicits Put Purchase as Legal Threat Emerges

Today’s tickers: PPCO, BPOP & CVBF

PPCO Penwest Pharmaceuticals Co. – Shares in the pharmaceutical company that has agreed to sell itself to Endo Pharma Holdings are 5% higher today at $4.97. Penwest shareholders would receive $5.00 per share assuming the deal goes ahead. The deal price is twice the value shares in the company were trading at as recently as March this year and 25% above where they were a week ago. Still, a press release made by one legal company today claims an investigation of the Board of Directors is due and will consider a neglect of its fiduciary duties amongst other issues for failing to shop the outfit to potentially deeper-pocketed suitors. One option investor stepped up to ensure that a soured deal doesn’t cause any financial distress after shares have jumped. The investor scooped up 10,000 put options at the $5.00 strike expiring in December, paying just over five cents granting the privilege to sell the stock at that price. Looks like a low-cost wager in the event the Board is forced to bow to pressure and the buyer washes its hands of the company. However, such legal shenanigans can disappear as quickly as they arrive on the scene.

BPOP Popular Inc. – An analyst upgrade to “overweight” for the consumer financier and mortgage lender has sent its shares jumping by almost 7% to $2.79 this morning. The bank has a market capitalization of just $2.8 billion and operates in the southern part of the U.S., Puerto Rico and the Dominican Republic. About one month ago it appears an investor, possibly a bull on the bank, bought some protection against slippage in the share price by taking on board 10,000 put options at the $2.50 strike price. The trade was possibly made as insurance against a long position on the underlying. Following today’s positive news on the bank, the investor appears to have sold the protection possibly for a loss of up to 25% on the strategy. The trade went through at around 30 cents compared to what appears to be a purchase price of 40 cents in July. Still the shares are up nicely from $2.50 at the time. Some of the loss of premium is also due to a sharp decline in the implied volatility on the options, which has shrunk from 74% to 57% making the loss on the put options actually seem…
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ValueWalk

AZO and ORLY: Which one is a better buy?

By Marek Mscichowski. Originally published at ValueWalk.

AutoZone, Inc. (NYSE:AZO) and O’Reilly Automotive Inc (NASDAQ:ORLY): Both auto parts retailers are uncorrelated to S&P 500, but which one is a better buy?

By Price Earnings Ratio Tracker Team

Q4 2019 hedge fund letters, conferences and more

Over recent months I have created valuation models for the two main competitors in the auto parts retail business – AutoZone, the leader on the coasts with a $26 billion market ca...



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Phil's Favorites

The Fed Apparently Thinks It's Going to Lose $454 Billion on Its Wall Street Bailout

Courtesy of Pam Martens

On Thursday, March 26, in the midst of a growing panic on Wall Street over a lack of liquidity for toxic debt, the Federal Reserve Chairman Jerome Powell did something unprecedented. He appeared live on the Today show. His interviewer, Savannah Guthrie, opened the interview by noting that one writer had said that the Fed can simply conjure money out of thin air. (It can.) Guthrie asked Powell if there was any limit to the amount of money...



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Kimble Charting Solutions

S&P Repeating 2000 & 2007 Patterns Almost Exactly?

Courtesy of Chris Kimble

Does History Repeat? Is does rhyme sometimes!!!

This chart looks at the S&P 500 on a weekly basis over the past 20-years.

The S&P declined by 50% during the 2000-2003 bear market. On the week of 3/23/2001, it experienced its first counter-trend rally, which lasted 8-weeks, before the bear market resumed.

The S&P declined by 50% during the 2007-2009 bear market. On the week of 3/21/2001, it experienced its first counter-trend rally, which lasted 8-weeks, before the bear ...



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Zero Hedge

Next Wave Of Shortages Strikes: NYC Pharmacies Run Out Of Tylenol, Common Drugs

Courtesy of ZeroHedge View original post here.

In the weeks since California became the first state to order residents to shelter in place, millions of Americans have grappled with an alarming fact: That shortages of products from Tylenol to toilet paper have continued. If anything, they've gotten worse, even as governors like Andrew Cuomo have pleaded with the public not to hoard and buy up supplies like gloves and masks that are needed by health-care professionals.

While health officials have tried to dismiss this simply as a consequence of panicked hoarding, ...



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Biotech/COVID-19

What the coronavirus does to your body that makes it so deadly

 

What the coronavirus does to your body that makes it so deadly

SARS-CoV-2 virus particles (pink dots) on a dying cell. National Institute of Allergy and Infectious Diseases, NIH

Benjamin Neuman, Texas A&M University-Texarkana

COVID-19 is caused by a coronavirus called SARS-CoV-2. Coronaviruses belong to a group of viruses that infect animals, from peacocks to whales. They’re named for the bulb-tipped spikes that project from the virus’s surface and give the appearance of a corona surrounding it.

A coronavirus infection usually plays o...



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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

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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! 

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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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