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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Zero Hedge

NYC's Housing-Market Weakness Spreads From Manhattan To The Outer Boroughs

Courtesy of ZeroHedge. View original post here.

Throughout vast swaths of New York City, members of the city's vast middle class work force can barely afford even a modest apartment. Yet for years after the post-crisis housing market recovery began, that reality did little to slow down the rise in home valuations as foreign capital and rock bottom interest rates fueled a buying frenzy, pushing rents ever-higher. But after citywide rents peaked in 2014, the NYC housing market, particularly the most expensive areas o...



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ValueWalk

#1 Performing Global Macro Hedge Fund Sees More Shorts Opportunities Ahead As China Bursts

By Jacob Wolinsky. Originally published at ValueWalk.

Crescat Global Macro Fund update to investors on 1/19/2019

Crescat Global Macro Fund and Crescat Long/Short fund delivered strong returns for both December and full year 2018 in a difficult market. Based on ...



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Phil's Favorites

Divisive economics

 

Guest author David Brin — scientist, technology consultant, best-selling author and futurist — explores the records of Democrats and Republicans on the US economy in the following post. For David's latest posts, visit the CONTRARY BRIN blog. For his books and short stories, visit his web...



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Kimble Charting Solutions

Stock declines did not break 9-year support, says Joe Friday

Courtesy of Chris Kimble.

We often hear “Stocks take an escalator up and an elevator down!” No doubt stocks did experience a swift decline from the September highs to the Christmas eve lows. Looks like the “elevator” part of the phrase came true as 2018 was coming to an end.

The first part of the “stocks take an escalator up” seems to still be in play as well despite the swift decline of late.

Joe Friday Just The Facts Ma’am- All of these indices hit long-term rising support on Christmas Eve at each (1), where support held and rallies have followed.

If you find long-term perspectives helpf...



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Digital Currencies

Transparency and privacy: Empowering people through blockchain

 

Transparency and privacy: Empowering people through blockchain

Blockchain technologies can empower people by allowing them more control over their user data. Shutterstock

Courtesy of Ajay Kumar Shrestha, University of Saskatchewan

Blockchain has already proven its huge influence on the financial world with its first application in the form of cryptocurrencies such as Bitcoin. It might not be long before its impact is felt everywhere.

Blockchain is a secure chain of digital records that exist on multiple computers simultaneously so no record can be erased or falsified. The...



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Insider Scoop

Cars.com Explores Strategic Alternatives, Analyst Sees Possible Sale Price Around $30 Per Share

Courtesy of Benzinga.

Related 44 Biggest Movers From Yesterday 38 Stocks Moving In Wednesday's Mid-Day Session ...

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Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...



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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Biotech

Opening Pandora's Box: Gene editing and its consequences

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

 

Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from www.shutterstock.com

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.

...

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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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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:

 

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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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