Posts Tagged ‘CZR’

Faltering Thursday – Last Chance to Make Strong Bounces

INDU DAILYWe decided to give yesterday a pass.  

Though the indexes failed to hold our strong bounce lines (well, 3 of 5 did), we can blame Canada for that one as a gunman shot up Parliament yesterday afternoon and the "terrorist attack" news sent our markets lower.  Other than that (and these things are unavoidable when you sell 500M guns to 400M people in North America), it wasn't a bad day for the markets, so we're going to wait and see what actually sticks.  Our watch levels remain:

  • Dow 16,466 (weak) and 16,632 (strong).
  • S&P 1,878 (weak) and 1,903 (strong).
  • Nasdaq 4,280 (weak) and 4,360 (strong).
  • NYSE 10,360 (weak) and 10,540 (strong).  
  • Russell 1,104 (weak) and 1,128 (strong).

RUT WEEKLYSo the Dow fell almost exactly from it's strong bounce to it's weak bounce yesterday.  Aside from confirming the 5% Rule™ is firmly in charge, holding the weak bounce line is bullish – IF it holds.  The S&P and Nasdaq held their strong bounce lines (thanks to AAPL) while the NYSE stayed in it's range but the Russell was a big disappointment and failed the weak bounce – a very bad sign if they can't take it back today.  

We had a lot of fun playing the Russell Futures yesterday, starting with my too-early short…
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Tempting Tuesday – Lead Us Not Into Betting on Bounces

"Forgive us our debts, as we have also forgiven our debtors."

Hah – what a crock!  How many people who have recited that prayer have forgiven any debts?  How many have had debts forgiven?  Certainly none of the G20, who owe each other tens of Trillions of Dollars and certainly not Argentina's bondholders, who drove the nation to default and certainly not the bondholders of THREE Atlantic City Casinos that are on the verge of shutting down and putting 10,000+ people out of work in a county of 275,000 so about 5% of the working population.

Are casinos simply a bad business or is the economy not quite as strong as we are led to believe?  

In the past 14 years, we have more than tripled the debt of the first 224 years of our nation's existence and, in the next 7 years, we are on track to add 150% more (than the $5Bn we had when Clinton left office).  

The $2.4Bn Revel Casino opened in March of 2012 and was $1.5Bn in debt at the beginning of 2013 but did a pre-packaged bankruptcy last year that cut the debt to $272M but it's been hemorrhaging money since and the value of the casino has been slashed to $450M yet an auction scheduled for yesterday got ZERO bidders, which may now lead to yet another bankruptcy – making it an annual event.  

This is no run-down property, this is a beautiful, modern building that LOOKS like $2.4Bn was spent to build it.  It's a beautiful property with nice restaurants and great rooms and a nice beach and a swim out pool on the deck so you can use it even in the winter – no expense was spared but, like many grand projects, the cash flow isn't there to support the great dreams of the creators

Even at $450M, if you could sell the 1,400 rooms (57 floors) into condos and got $300,000 for 1 bedroom apartments, that's only $420M and wouldn't be worth the effort.  So, if you can't do that and you need 3,800 people to run the casino/hotel – that's a pretty big nut to cover each month.  The casino loses roughly $3M per…
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Put Options Active In Cognizant As Shares Edge Lower

Today’s tickers: CTSH, CZR & MCK

CTSH - Cognizant Technology Solutions Corp. – Put options are changing hands on IT consulting and technology services provider, Cognizant Technology Solutions Corp., this morning, with shares in the name declining as much as 1.1% to an intraday low of $78.12. The stock has declined 3.7% since last week after securing a new 52-week high of $81.12 during Thursday’s trading session. Cognizant was downgraded to ‘Sector Perform’ from ‘Outperform’ at Pacific Crest on Monday. One or more options traders bracing for further declines in Cognizant’s shares in the near term snapped up April expiry puts on the name in the early going today. The April $75 strike puts are the most actively traded contracts on Cognizant, with upwards of 5,800 lots in play versus open interest of 897 contracts. It looks like most of the volume was purchased during the first few minutes of the trading day for an average premium of $0.83 each. The contracts make money if shares in CTSH decline another 5.0% from today’s low of $81.12 to breach the average breakeven point on the downside at $74.17 by April expiration. Shares in Cognizant last traded below $74.17 in January.

CZR - Caesars Entertainment Corp. – Shares in casino operator, Caesars Entertainment Corp., are rallying Wednesday, up as much as 10.4% during the first half of the session to touch a new 52-week high of $15.83. Front month call buyers appear to be positioning for further gains in the price of the underlying ahead of the weekend, while fresh interest in April expiry puts suggests other strategists are prepared for shares to potentially decline during the next five weeks. Traders exchanged more than 1,100 in-the-money calls at the Mar. $15 strike by 12:30 p.m. ET on Wednesday, and it looks like most of the volume was purchased for an average premium of $0.48 per contract. Bullish bets may pay off at expiration later this week in the event that shares in Caesars settle above the average breakeven price of $15.48. Meanwhile, the most heavily traded options contracts on CZR so far today are the April $15 strike puts, with roughly 1,800 lots in play versus open interest…
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Bullish Bets On Caesers Pay Off For Some Traders As Shares Race Higher

 

Today’s tickers: CZR, SD & LUV

CZR - Caesars Entertainment Corp. – Shares in the casino entertainment company are soaring on Friday, up nearly 30% at $12.88as of 11:40 a.m. in New York trading, on reports that Las Vegas strip casino gambling revenue rose 13.49% in December. The operator of Caesars Palace, Harrah’s and other casino brands reports fourth-quarter earnings at the end of February. Options traders who placed bullish bets on the stock ahead of Friday’s big rally are seeing sizable overnight paper profits on their positions. The largest increase in call open interest yesterday was in the Mar. $10 strike call options. Time and sales data from Thursday suggests some 1,300 of the $10 strike calls were purchased yesterday for an average premium of $0.39 apiece. The last traded price on these contracts just prior to midday on the East Coast is $3.30 each, an eight-fold increase in value overnight. Bullish bets on Caesars were also established at the June $10 strike yesterday, with around 260 of those contracts purchased at a premium of $0.80 apiece. Premium to buy the June $10 strike call options today has jumped to $3.90 per contract of 11:55 a.m. ET on Friday. Overall options volume on CZR is upsharply versus the stocks average daily level, with upwards of 8,700 calls and puts in play on the stock compared to average volume of 819 contracts.

SD - SandRidge Energy, Inc. – A sizable bearish options trade initiated on SandRidge Energy this morning looks for shares in the oil and natural gas company to face limited declines during the first half of the 2012. The stock today trades down 1.2% on the session at $5.87 as of 11:30 a.m. ET. SandRidge reports fourth-quarter and full-year 2012 results after the closing bell on February 28th. The largest transaction in SD options today was the purchased of 12,500 in-the-money puts at the June $6.0 strike at a premium of $1.03 apiece, spread against the sale of 25,000 puts at the lower June $5.0 strike…
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Caesars, Tumi Options Active Ahead Of Earnings After The Close

 

Today’s tickers: CZR, TUMI & SYY

CZR - Caesars Entertainment Corp. – The casino entertainment company and owner of the World Series of Poker® attracted heavier than usual options activity ahead of its second-quarter earnings report after the closing bell today. Shares in Caesars Entertainment Corp. are up 0.25% on the day at $8.34, but have fallen 45% from the stock’s February 7th closing high of $15.40, the same date of the company’s IPO. The purchase of 2,400 Aug. $7.5 strike put options in the first 15 minutes of the trading week suggests one trader is preparing for the price of the underlying to extend losses after earnings. The bearish position cost $0.35 per contract and makes money if shares in Caesars drop 14% from the current price to trade below a breakeven point and record low of $7.15 by August expiration.

TUMI - Tumi Holdings, Inc. – The retailer of high-end luggage, briefcases and bags is enjoying a 1.4% upside move in the price of its shares today to $18.20 ahead of its second-quarter earnings report after the final bell. Call buying initiated on the stock this morning suggests one or more options players are positioning for the price of the underlying to extend gains in the near term. Perhaps anticipating a pop in the shares after Tumi announces its quarterly results for the second time as a public company, traders exchanged more than 3,200 calls at the Aug. $20 strike against previously existing open interest of 136 contracts. It looks like most of the calls were purchased for an average premium of $0.63 apiece, thus positioning buyers to profit at expiration in the event TUMI shares surge 13% to top the average breakeven price of $20.63. Some luxury retail names, such as handbag maker, Coach, Inc., were slammed after recent top line misses. Shares in Coach fell more than 18% on July 31st after fourth-quarter revenue failed to meet analyst expectations. Tumi’s shares…
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Phil's Favorites

CULTS, LIES, AND MORE SADOPOPULISM

 

CULTS, LIES, AND MORE SADOPOPULISM

Courtesy of Teri Kanefield (follow Teri on Twitter here)

Mindy asked me these questions about Trump’s Town Hall yesterday: 

Her questions assume that the ...



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Politics

CULTS, LIES, AND MORE SADOPOPULISM

 

CULTS, LIES, AND MORE SADOPOPULISM

Courtesy of Teri Kanefield (follow Teri on Twitter here)

Mindy asked me these questions about Trump’s Town Hall yesterday: 

Her questions assume that the ...



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Biotech/COVID-19

How and when will we know that a COVID-19 vaccine is safe and effective?

 

How and when will we know that a COVID-19 vaccine is safe and effective?

How much longer must society wait for a vaccine? ANDRZEJ WOJCICKI/Getty Images

By William Petri, University of Virginia

With COVID-19 vaccines currently in the final phase of study, you’ve probably been wondering how the FDA will decide if a vaccine is safe and effective.

Based on the status of the Phase 3 trials currently underway, it i...



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ValueWalk

Financial Strategies for Businesses During COVID-19

By Ankur Shah. Originally published at ValueWalk.

The COVID-19 pandemic has left no business unaffected in many different ways. Most are taking a financial hit across industries. Some may not last through it all.

Q2 2020 hedge fund letters, conferences and more

In order to keep your organization afloat, you’ll need to employ a variety of strategies, technological and otherwise. Here are some ways to plan ahead and help your business survive.

Plan for Different Time Periods and Scenarios

Nobody knows how lon...



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Zero Hedge

Nano-X Shares Plunge After Muddy Waters Says Company Has "No Product To Sell Other Than Its Stock"

Courtesy of ZeroHedge View original post here.

Nano-X shares are plunging this morning after well known short seller Muddy Waters Research has published a new report comparing it to Nikola on numerous occasions (this year's short reference du jour, we guess) and saying it "has no product to sell other than its stock." Shares have fallen 20% in the pre-market.

...



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Kimble Charting Solutions

Could It Be "Schitts Creek" For Technology Stocks If Selling Starts Here?

Courtesy of Chris Kimble

The Nasdaq has been the unparalleled leader of the stock market in 2020, having rallied furiously off the COVID-19 crash market bottom in March.

But all of the excitement around tech stocks and the comeback in the stock market may be coming to an end… that is, if a key Fibonacci price target has anything to do with it!

In today’s chart, we look at the long-term “monthly” chart of the Nasdaq Composite Index (IXIC) and focus in on the 18-year rally.

As you can see, the Nasdaq peaked in 2000 and bottomed in 2002. Applying Fibona...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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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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Promotions

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

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! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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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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