Posts Tagged ‘CVC’

Calls See Possible Upside Moves For Urban Outfitters, Declines In Cablevision

Today’s tickers: URBN, CVC & TXT

URBN - Urban Outfitters, Inc. – Options activity on the specialty retailer jumped on Wednesday morning as news of the CEO’s resignation saw shares in Urban Outfitters tumble more than 20.0% to an intraday low of $23.42. Trading in Urban call options outpaced that of puts in the first half of the session, and it looks like a number of strategists are positioning for the price of the underlying to rebound in the near term. Investors poised to potentially benefit from a bounce in Urban’s shares scooped up more than 1,600 in-the-money calls at the Jan. $24 strike for an average premium of $0.74 each and another 1,800 calls at the Jan. $25 strike at an average premium of $0.52 apiece in the first couple of hours of the trading day. Call buyers may profit at expiration next week in the event that shares in URBN settle above the average breakeven points at $24.74 and $25.52, respectively. Similar positions were initiated out at the Feb. $25 strike, where more than 1,500 calls changed hands against open interest of just 2 contracts. Investors appear to have purchased the majority of the calls for an average premium of $0.84 apiece and may profit at expiration next month if shares in Urban Outfitters rally 6.5% over the stock’s current price of $24.27 to exceed the average breakeven point at $25.84. Meanwhile, relatively lighter put buyer action on the name indicates some traders are prepared in the event the shares extend losses. Options traders have exchanged nearly 35,000 contracts on URBN as of 12:20 PM in New York against overall open interest of 76,962 positions.

CVC - Cablevision Systems Corp. – The purchase of a large number of Cablevision Systems Corp.…
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Call Volume Picks Up Ahead Of MetroPCS Earnings Report

Today’s tickers: PCS, BID, BBBY & CVC

PCS - MetroPCS Communications, Inc. – Shares in the wireless provider are down 4.25% at $8.56 ahead of the company’s pre-market third-quarter earnings release on Tuesday. Options players populating the front month calls and puts appear to be taking largely bullish stances on the stock. Investors positioning for shares to move higher in the next few weeks picked up more than 2,600 in-the-money calls at the Nov. $8.0 strike for an average premium of $1.05 a-pop. Call buyers at this strike profit at expiration in the event that shares in MetroPCS rally 5.7% to surpass the average breakeven point at $9.05. Options players also snapped up more than 300 call options at each of the higher Nov. $9.0 and $10 strike prices at average premiums of $0.49 and $0.19 each, respectively. Finally, the sale of some 1,100 puts at the Nov. $8.0 strike for an average premium of $0.40 per contract may mean traders see shares in the name trading above $8.00 come expiration day next month. Put open interest at the Nov. $8.0 strike is sufficient to cover volume in play thus far in the session. As such, traders may be adjusting existing positions rather than selling-to-open bullish stances on PCS. Options implied volatility on the stock is up 15.9% at 77.25% in early-afternoon trade. Nearly 9,000 option contracts have changed hands on MetroPCS so far today, with trading in calls outpacing that of puts by a factor of roughly two-to-one.

BID - Sotheby’s Holdings Inc. – The auctioneer of authenticated fine art, antiques, jewelry and collectibles popped up on our ‘hot by options volume’ market scanner this morning after one strategist initiated a sizable ratio put spread in the January 2012 contract. BID’s shares are currently down 3.2% at $36.26 as of 11:50 am in New York. The put player responsible for just about all of the activity in Sotheby’s options today may be bracing for limited bearish movement in the price of the underlying heading into the company’s third-quarter earnings report after the close on Thursday. The investor appears to have purchased 2,000 puts at the Jan. 2012 $35 strike for an average premium of $3.325 each, and sold 4,000 puts at the lower Jan. 2012 $30 strike at a premium of $1.50 apiece. Net premium paid to initiate the spread amounts to $0.325 per contract. The strategist profits if BID’s shares slide 4.4%…
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Bears Tune Into Cablevision Puts After Earnings Disappoint

Today’s tickers: CVC, STMP & LVS

CVC - Cablevision Systems Corp. – Investors punished shares in Cablevision Systems Corp. on Friday after the cable operator said it lost 19,000 video subscribers in the quarter on top of third-quarter net income of $0.14 a share that missed estimates of $0.32 a share by a hefty margin. Shares in CVC plunged 15.25% to an intraday low of $14.50 following the disappointing report. Near-term bearish trading in options covering Cablevision suggests some traders expect the stock to pull back to fresh 52-week lows by expiration in November. Investors exchanged more than 1,400 in-the-money puts at the Nov. $15 strike against open interest of 490 contracts. It appears majority of the puts were purchased for an average premium of $0.65 a-pop. Put buyers may profit at expiration next month in the event that CVC’s shares slip beneath the average breakeven price of $14.35. Another sign of near-term pessimism on the cable operator was the sale of some 217 calls at the Nov. $15 strike this morning for an average premium of $0.78 each. Call sellers walk away with the premium received on the transaction as long as shares in CVC fail to rally above $15.00 through expiration day. Options volume on the stock is relatively high, with more than 6,000 contracts in play as of 12:45 pm on the East Coast. Put options on the stock are more than twice as active as calls this afternoon.

STMP - Stamps.com, Inc. – Shares in the provider of online postage solutions and services soared 25.0% to a more than five-year high of $32.47 today on the heels of better-than-expected third-quarter earnings reported after the close on Thursday. Options trading patterns on Stamps.com this morning suggest there are some strategists prepping for shares to continue to climb in the near term. Meanwhile, pre-earnings report call buyers are today holding contracts that exploded in value overnight. Some traders initiated their positions on Stamps.com at the beginning of the month, before the market commenced its sharp move to the upside. The Nov. $20 strike call was one area populated by bullish players. Open interest in the call stands at 1,145, and it looks like more of those positions were initiated by buyers than sellers for an average premium of $2.50 each. These calls are now nearly five times as expensive, with the last-traded price on the option displaying $12.10 as of 12:25 pm…
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Baidu Options Abuzz on Reports of Agreement with Facebook

Today’s tickers: BIDU, PCS, JACK & CVC

BIDU - Baidu, Inc. – Frenzied options trading ensued at Baidu today on reports the owner of China’s most-used search engine signed an agreement with Facebook Inc. to set up a social networking website in China. BIDU’s shares rallied nearly 5.0% at the start of the session to touch an intraday- and new all-time high of $148.92. Investors are favoring call options on the stock, trading more than 2.8 calls for each single put option in play today. Options expiring this Friday are the most heavily populated in early-afternoon trade, with two-way trading traffic evident at most strikes. Volume is heaviest at the April $150 strike, with more than 15,740 calls having changed hands there as of 12:40pm on previously existing open interest of 5,441 contracts. Call volume is substantial at the in-the-money April $145 and April $155 strikes today, as well. Investors have traded upwards of 11,100 calls at each of those strikes this afternoon. Options expiring in May are active, and provide traders the opportunity to take positions on the stock in advance of the company’s first-quarter earnings report on April 27, 2011. Medium-term optimists scooped up call options at sky-high strikes in anticipation of continued bullish movement in Baidu’s shares through June expiration. Investors picked up more than 1,100 calls as high as the June $190 strike for an average premium of $0.95 a-pop. Call buyers at this strike make money if shares in BIDU spike 28.2% higher in the next couple of months to top the average breakeven price of $190.95 by expiration day in June. Options implied volatility on the Beijing-based company increased 11.2% to 47.03% as of 1:00pm in New York, with overall options volume on the stock exceeding 99,930 contracts.

PCS - MetroPCS Communications, Inc. – The…
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Bull Call Spreads Pop Up on Peet’s Coffee & Tea

Today’s tickers: TIF, EWJ, FSLR, HD, PEET, EWJ, ENDP & CVC

TIF - Tiffany & Co. – The retailer of fine jewelry and other high-end luxury goods has not lost its sparkle according to some contrarian traders establishing bullish bets on the stock this morning. Shares in Tiffany & Co. fell as much as 8.8% to an intraday low of $54.58 today, but pared some of the earlier losses to stand 3.9% lower on the session at $57.52 as of 11:35am in New York. One investor betting on a recovery in the price of Tiffany & Co. shares initiated a three-legged spread to prepare for the rebound. The trader sold 2,500 puts at the January 2012 $50 strike for an average premium of $4.62 each, purchased the same number of in-the-money calls at the January 2012 $55 strike at an average premium of $8.46 per contract, and sold 2,500 calls up at the January 2012 $70 strike for an average premium of $2.77 a-pop. Net premium paid to establish the bullish position amounts to $1.07 per contract. Thus, the options player is prepared to make money in the event that Tiffany’s shares exceed the average breakeven price of $56.07 through expiration day in January. Maximum potential profits of $13.93 per contract pad the investor’s wallet in the event that shares surge 21.7% over the current price of $57.52 to trade above $70.00 by expiration next year. The jewelry retailer’s shares currently tout an all-time high of $65.76, attained back on December 21, 2010. Finally, it looks another trader pocketed profits today on a long-term bearish bet established last month on Valentine’s Day. It appears the investor originally purchased 500 puts at the January 2012 $60 strike for a premium of $5.65 each on February 14, when shares in TIF traded as high as $65.59. Today, it looks like the trader sold the now in-the-money puts for a hefty premium of $9.40 apiece. Net profits on the put sale amount to $3.75 per contract. The overall reading of options implied volatility on Tiffany & Co. is up 11.1% at 45.23% just before 11:55am. The luxury goods retailer is slated to report fourth-quarter earnings before the market opens next Monday.…
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Options Player Puts the Strangle-Hold on Cablevision Systems Corp.

 Today’s tickers: CVC, OSTK, AKS, SLB, MON, NDAQ & WGO

CVC - Cablevision Systems Corp. – A short strangle implemented on the cable operator during afternoon trading indicates one strategist expects shares in Cablevision Systems Corp. to remain range-bound through June 2011 expiration. Cablevision’s shares rose earlier in the day, but are down 0.35% to arrive at $34.57 as of 3:40pm in New York. It appears the strangle-player sold 20,000 calls at the June 2011 $38 strike at a premium of $1.25 each, and sold the same number of puts at the lower June 2011 $29 strike for a premium of $0.85 apiece. Gross premium pocketed by the investor amounts to $2.10 per contract. The trader keeps the full amount of premium received on the transaction as long as shares in CVC trade within the confines of the strike prices described through expiration day next year. Short stances taken in both call and put options expose the trader to losses in the event that CVC’s shares soar 16.0% higher to trade above the upper breakeven point at $40.10, or should shares plunge 22.2% lower to breach the lower breakeven price of $26.90 ahead of June expiration.

OSTK - Overstock.com, Inc. – The online retailer’s shares are up more than 4.4% in the final minutes of the trading session to stand at $17.22. Overstock.com made its way onto our scanners late in the trading day due to bullish activity in the front month. Investors expecting shares to continue to rally ahead of expiration day tomorrow purchased more than 1,500 calls at the December $17.5 strike for an average premium of $0.23 each. Call buyers profit if OSTK’s shares rally another 3.0% to surpass the average breakeven price of $17.73 by expiration. Options implied volatility on Overstock.com is up 12.5% at 54.96% as of 3:45pm.…
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Cablevision Systems sees volatility boost after revenue gains

Today’s tickers: CVC, CX, ALL & VALE

CVC Cablevision Systems Corporation – Shares of the cable operator have climbed by more than 2.5% to $18.84 after reporting that first-quarter revenue increased by 10.6% to $1.903 billion. We observed bullish activity on the stock by investors looking for continued upward movement in share price. The May 20 strike had some 4,900 calls coveted for an average premium of 97 cents apiece. Further up at the May 22.5 strike price, about 1,300 calls were bought for 29 cents per contract. Finally, individuals looking for near-term downside protection targeted the May 15 strike price to pick up about 1,400 put options for an average premium of 22 cents each. Option implied volatility on the stock surged from 53% at the start of the trading day up to as high as 71% before dropping of a bit to the current value of 69%.

CX Cemex SAB de CV ADS – The provider of ready-mix cement and other construction materials has declined by more than 3.5% to $10.00. One bearish investor sees shares continuing to decline in the medium-term and today established a ratio credit spread in the July contract in the magnitude of two-to-three. It appears that he sold 17,500 calls at the July 7.5 strike price for a premium of 3.30 apiece and simultaneously purchased 24,500 calls at the July 10 strike for 1.65 each. The investor retains the credit as long as shares remain below $10.00 by expiration. Since he is long more calls at the July 10 strike than he is short at the July 7.5 strike, should shares rally hard the position will effectively leave him long of calls. Thus, if shares should rally rather than fall by expiration, he would begin to profit on the upside on the 7,000 lot call position.

ALL The Allstate Corporation – The insurance giant’s shares have jumped more than 8.5% to $28.00 ahead of its first-quarter earnings report set for release after the market closes this evening. The bullish rise in shares is on the heels of stronger than expected earnings reported by its competitor, Prudential (PRU). ALL leapt onto our ‘most active by options volume’ market scanner after one investor initiated a large-volume calendar spread. It appears that the individual sold 30,000 calls at the October 35 strike price for 1.35 in order to finance the purchase of 30,000 now in-the-money…
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Phil's Favorites

Delta is tempting us to trade lives for freedoms - a choice it had looked like we wouldn't have to make

 

Delta is tempting us to trade lives for freedoms — a choice it had looked like we wouldn’t have to make

shutter_o/Shutterstock

Courtesy of Peter Martin, Crawford School of Public Policy, Australian National University

Last year COVID-19 seemed simple. It was horrific, but the arguments about what to do were fairly straightforward.

On one side were people rightly horrified by its rapid spread who wanted us to stay at home and stay away from school and work and socialising in order to save lives.

On the other side were people concerned about the costs of those measures — to jobs, to educati...



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Biotech/COVID-19

Delta is tempting us to trade lives for freedoms - a choice it had looked like we wouldn't have to make

 

Delta is tempting us to trade lives for freedoms — a choice it had looked like we wouldn’t have to make

shutter_o/Shutterstock

Courtesy of Peter Martin, Crawford School of Public Policy, Australian National University

Last year COVID-19 seemed simple. It was horrific, but the arguments about what to do were fairly straightforward.

On one side were people rightly horrified by its rapid spread who wanted us to stay at home and stay away from school and work and socialising in order to save lives.

On the other side were people concerned about the costs of those measures — to jobs, to educati...



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Politics

Political orientation predicts science denial - here's what that means for getting Americans vaccinated against COVID-19

 

Political orientation predicts science denial – here’s what that means for getting Americans vaccinated against COVID-19

Protesters at an anti-vaccine rally in Pennsylvania in August 2021. Weaver/SOPA Images/LightRocket via Getty Images

Courtesy of Adrian Bardon, Wake Forest University

Vaccine refusal is a major reason COVID-19 infections continue to surge in the U.S. Safe and effective vaccines have been available for months, b...



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Zero Hedge

Chevron CEO Warns "New Dynamics" To Boost Energy Prices Amid Global Supply Crunch

Courtesy of ZeroHedge View original post here.

Soaring energy prices are stoking new concerns about a stagflationary environment of high prices and waning economic growth. Natural gas prices in Europe and the US are through the roof, and WTI futures are over $70 per barrel. 

Chevron Corp.'s CEO Mike Wirth spoke with Bloomberg on Wednesday and warned about elevated prices due to tightening supply. He said oil and ga...



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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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