Posts Tagged ‘CVH’

Coventry Call Buyers In The Black Following Aetna Deal

 

Today’s tickers: CVH, CS & WYNN

CVH - Coventry Health Care, Inc. – Options traders who purchased Coventry Health Care call options earlier this month are sitting on substantial paper profits this morning; shares in the managed care company rose 19% to a new four-year high of $41.70 on news Aetna is buying the company for $42.08 a share, in a deal valued at $7.3 billion. One winning trade initiated just before the weekend was the purchase of 220 of the Sept. $36 strike calls for a premium of $0.80 apiece. These contracts are now deep in-the-money and cost $5.80 each to purchase, or 7.25 times more than one trader paid on Friday afternoon. A larger bullish stake was established last Wednesday with the purchase of 2,650 of the Jan. 2013 $33 strike calls at a premium of $2.55 per contract. The asking price on the calls is currently up three-fold at $8.90 apiece as of 11:30 a.m. in New York. Finally, the purchase of some 1,650 calls at the Sept. $35 strike for an average premium of $0.53 each back on August 6th has generated big potential profits. Traders who picked up the $35 calls at $0.53 apiece could currently sell the calls for 11 times as much, or $6.30 per contract, as of 11:40 a.m. ET. Another winner from the deal is hedge fund, Greenlight Capital, Inc., which disclosed a 4.98% stake in Coventry and a long position in around 3.1 million shares in Aetna in the second quarter ended June 30th.

CS - Credit Suisse, Inc. – Traders are buying upside call options on Credit Suisse for a second consecutive trading session, positioning for shares in the Swiss bank to rebound. The stock has lost 40% of its value since March 19th, slipping around 1.5% this morning to $17.98. On Friday, buyers stepped in to pick up approximately 4,000 of the Sept. $18.97 strike calls for an average premium of $0.50 each…
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Dow Chemical, Coventry Health Care Puts In Play; Aeropostale Calls On Trend

 

Today’s tickers: DOW, CVH & ARO

DOW - Dow Chemical Co. – Bearish trading in DOW options this morning suggests some traders are positioning for the price of the underlying to decline further this summer. Shares in Dow Chemical fell 1.6% to $31.73 on Tuesday following a downgrade to ‘Neutral’ from ‘Overweight’ at JPMorgan. Upwards of 4,500 puts changed hands at the Aug. $31 strike in the first half of the trading session against open interest of 1,413 contracts. It looks like most of the puts were purchased at a premium of $1.33 apiece, including a large block of 1,568 contracts that traded within minutes of the opening bell this morning. Put buyers may be taking outright bearish positions on the name or hedging long positions in the underlying shares ahead of the company’s second-quarter earnings report on July 26th. Profits – or downside protection – kick in on the long put positions should shares in the manufacturer of plastic materials and chemicals slide 6.5% to breach the effective breakeven price of $29.67 by August expiration.

CVH - Coventry Health Care, Inc. – The managed care company popped up on our scanners this morning after a large bearish spread was initiated in the front month options today ahead of a decision from the Supreme Court on the 2010 health care law. Shares in Coventry Health Care are off their lows of the session but remain in negative territory, down 0.60% at $33.33 as of 12:15 p.m. in New York. A large 5,000-lot July $28/$32 put spread appears to have been purchased for a premium of $0.95 per contract. The position, rather sizable next to overall open interest on the stock of 32,696 contracts, could be a hedge to protect a long position in the stock or an outright bearish stance on the near term performance of the shares. The spread is profitable – or yields downside protection – in the event that Coventry’s shares decline…
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How a Swiss bank was toppled by a financial scandal in Malaysia - and what can be learned from it

 

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How a Swiss bank was toppled by a financial scandal in Malaysia – and what can be learned from it

Courtesy of Salvatore Cantale, IMD Business School and Ivy Buche, IMD Business School

The world’s biggest financial scandal, over missing b...



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Zero Hedge

The 1997 Asia Crisis: "We Were There"

Courtesy of ZeroHedge. View original post here.

Authored by Nicholas Colas via DataTrekResearch.com,

Having covered cyclical industries (primarily autos, in my case) since the early 1990s, I vividly remember every financial crisis of the last 30 years because “my” stocks always get destroyed in the process. Based on that experience I can tell you every such event feels unique and shocking as you transit through them. To borrow from Tolstoy, every happy market is the same, but every crisis market is different in its own way.

...



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ValueWalk

Senator Elizabeth Warren Speaks with Jim Cramer [TRANSCRIPT]

By Jacob Wolinsky. Originally published at ValueWalk.

The following is the unofficial transcript of a CNBC interview with Senator Elizabeth Warren and CNBC’s Jim Cramer on “Mad Money w/ Jim Cramer” (M-F 6-7PM) today, Wednesday, August 15th. The following is a link to video of the interview on CNBC.com: https://www.cnbc.com/video/2018/08/15/sen-elizabeth-warren-trade-deals-help-companies-not-workers.html.

...



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Kimble Charting Solutions

Are Commodities Sending Global Macro Message To Investors?

Courtesy of Chris Kimble.

Commodities are becoming a hot topic… and an important investing theme. With the US Dollar coming back to life, commodities have pulled back. And that pullback now has the “equal weight” complex in trouble.

Below is a chart of the Thomson Reuters Equal Weight Commodity Index. The green shaded area represents a 20-year rising channel (point 1).  Within that channel, however, commodities have formed a multi-year downtrend (point 2 – marked in red).

Using the all-time high and the early 2016 low, we can identify key Fibonacci levels. One level is the 23.6% Fib, which proved to be stiff resistance (point 3), marking a bearish reversal as well.

Currently, the Commodity Index is attempting to break 20-year channel support (point 4).

Investors should watch for ...



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Insider Scoop

Vertical Group Turns More Bearish On Tesla, Doesn't Expect Company To Go Private

Courtesy of Benzinga.

Related TSLA Upcoming Earnings: Tech Giant Nvidia Unveils New GPUs Ahead Of Q2 Results The Downfall Of Elon Musk ...

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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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Biotech

Here's what we know about CRISPR safety - and reports of 'genome vandalism'

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

 

Here's what we know about CRISPR safety – and reports of 'genome vandalism'

A standee of the movie ‘Rampage’ at a theater in Bangkok, Thailand. Scientists in the film used CRISPR to create a monster. By Sarunyu L/shutterstock.com

Courtesy of Jianhua Luo, University of Pittsburgh

A movie just recently released called “Rampage” features Dwayne “The Rock” Jo...



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Digital Currencies

What is a blockchain token?

 

What is a blockchain token?

What’s this digital token good for, anyway? knipsdesign/Shutterstock.com

Courtesy of Stephen McKeon, University of Oregon

People are just becoming acquainted with the idea of digital money in the form of cryptocurrencies like bitcoin, where transactions are recorded on a secure distributed database called a blockchain. And now along comes a new concept: the blockchain-based token, which I’ve been following as a blockchain researcher a...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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