Posts Tagged ‘DGX’

Options Volume Pops On CA Inc. As Stock Hits Highest Since 2005

Today’s tickers: CA, GME & DGX

CA - CA, Inc. – Shares in the provider of IT management solutions rallied to the highest level since 2005 this morning, gaining as much as 6.6% in the early going to hit $29.83. An analyst at RBC Capital Markets raised his target price on the sector perform rated stock to $30.00 from $26.00 today. Options on CA Technologies are far more active than usual today, with volume in excess of 11,000 contracts versus average daily volume of around 500 contracts. June and July expiry calls also attracted heavier than usual trading traffic on Thursday, with much of the volume changing hands within minutes of the closing bell. Buyers of front month calls yesterday afternoon are seeing big overnight gains in the value of their positions today. The most-traded contracts by volume on CA yesterday were the Jun $28 strike calls. It looks like one or more traders may have purchased roughly 7,000 of the $28 calls for an average premium of $0.45 apiece. These contracts are currently trading at $1.35 each as of 11:15 a.m. ET, down from an earlier high of $2.00 in premium apiece. A burst of activity near the close of trading on Thursday occurred in the July expiry calls as well, with around 1,400 lots purchased at the $28 strike for an average premium of $0.80 each, and 500 calls picked up at each of the $29 and $30 strikes at average premiums of $0.40 and $0.20 apiece, respectively. The $28, $29 and $30 strike calls today are trading at $1.70, $1.10 and $0.65 per contract as of the time of this writing. Buyers of the bullish options yesterday have in some cases seen a three-fold increase in the value of their contracts overnight. Finally, traders positioning for shares in CA to extends gains snapped up calls on the stock straight out of the gate on Friday. Much of the volume is concentrated in the July expiry options, with calls purchased across the several in and out of the money striking prices.

GME - GameStop Corp. – Video game retailer, GameStop Corp., is in rally mode on Friday, with shares up as much as 8.2%…
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Upside Call Buyers Look For Further Gains In Travelers

 

Today’s tickers: TRV, ETH & DGX

TRV - The Travelers Companies, Inc. – The provider of commercial and personal property and casualty insurance products and services is the biggest gainer in the Dow Jones Industrial Average today, with shares up as much as 4.65% to hit a record high of $74.70, after the company reported third-quarter profits that handily beat average analyst expectations. The blowout earnings release sparked fresh bullish positioning in Travelers Cos. options this morning as some traders look for shares in the insurer to extend gains. Meanwhile, options players that snapped up TRV calls on Wednesday, prior to the earnings report, are enjoying sizable paper profits on those positions. Traders anticipating higher-highs for TRV shares by the end of this week picked up around 1,100 calls at the Oct. $75 strike for an average premium of $0.22 apiece. These contracts have one full trading day remaining until expiration, and may be profitable should shares in TRV settle above the average breakeven price of $75.22 by end of day Friday. Upside call buying spread to the November expiry options where $75 and $77.5 strike calls are most active. Traders purchased around 600 calls at each strike in the first half of the session for average premiums of $0.95 and $0.30 apiece, respectively, and may profit at November expiration in the event that TRV shares settle above breakeven prices at $75.95 and $77.80. Paper profits on positions initiated Wednesday afternoon are available for the buyer or buyers of 800 of the Oct. $72.5 strike call at an average premium of $0.15 apiece. The now deep in-the-money $72.5 strike call currently displays a last-traded price of $1.70 per contract, an 11-fold overnight-increase in the value of those options. Finally, some strategists appear to be purchasing downside protection, notably the Nov. $72.5 and $75 strike put, perhaps to lock in gains on the impressive 25% increase in Travelers shares since June.

ETH - Ethan Allen
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Call Buyers Shrug Off $2 Billion Disaster, Position For UBS Recovery Story

Today’s tickers: UBS, MHP, ESRX & DGX

UBS - UBS AG – Switzerland’s largest bank said it may be unprofitable in the third quarter due to the staggering $2 billion in trading losses one of its employees racked up in unauthorized dealing. The news sent shares in UBS down as much as 11.6% to a two-year low of $11.21, but options traders appear to have largely shrugged off concerns and are betting on a rebound in the price of the underlying. Call buying and put selling on the stock appear to be the most oft-employed strategies of the day. Investors expecting shares to recover in the next five weeks picked up roughly 3,100 calls at the October $12 strike for an average premium of $0.73 each. Call buyers profit if shares in UBS rally 12.5% over the stock’s current price of $11.32 to exceed the average breakeven point at $12.73 by expiration day next month. Meanwhile, put sellers targeted the October $10, $11 and $12 strikes, suggesting some investors expect shares to exceed those levels through October expiration. Traders pocketed an average premium of $1.27 per contract on the sale of roughly 615 puts at the October $12 strike. Premium received is money in the bank for sellers of the options as long as the contracts expire worthless next month. Longer-dated calls drew some attention, as well. Investors snapped up around 2,000 calls at the December $12 strike for an average premium of $1.10 each. Traders may see the value of these calls appreciate if shares in UBS reverse course over the next few months to December expiration. The positions are profitable at expiration if shares exceed the effective breakeven price of $13.10.

MHP - McGraw-Hill Companies, Inc. – A burst of activity in McGraw-Hill call options minutes before 12:00 pm…
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Bullish for Hansen’s Monster drinks

Today’s tickers: HANS, SWKS & DGX

HANS - Hansen Natural Corp. – Earlier in the month the manufacturer of fruit juice and smoothies handsomely beat Wall Street’s earnings estimate by 20%. The distributor of Monster energy drink said international sales were doing well especially in Europe. During the past 12 months its share price has performed as a good bellwether for its revenue growth with shares jumping from $40 to $73.79 ahead of quarter one results. Before that one savvy investor showed up in the options market using calls at the $75 strike in an effort to profit from better times ahead. The investor paid $1.80 for 5,000 calls reserving the right to pay a fixed $75 to buy the stock ahead of expiration in September. It appears today that the investor is pushing his expectations higher following an accurate call last month. Spread trading in the name today shows the sale of those calls at a stimulated premium of $4.18 for a healthy 132% gain as the investor rolls in to the $80 strike at a $2.60 premium in the same calendar month today.

SWKS - Skyworks Solutions Inc. – A warning from an analyst at Deutsche Bank on Monday exacerbated a retreat from the sky for wireless chip-maker, Skyworks. Its options were among the most actively traded on Monday with almost four puts trading for each call in action. Yet the picture wasn’t entirely bearish. Deutsche Bank warned that its channel research left it concluding that when the credits roll out for Apple’s iPhone 5 in the fall, the Skyworks logo will be conspicuous by its absence. And as if the loss of sales wasn’t enough, Deutsche Bank warns that according to the outcome of meetings with its Asian contacts, the company has aggressively entered a price war to…
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Bullish Options Investor Enacts Call Spread on iShares FTSE/Xinhua China 25 Index Fund

Today’s tickers: FXI, CDNS, UTX, GS, DGX, GDP & MRK

FXI – iShares FTSE/Xinhua China 25 Index Fund – Shares of the FXI, an exchange-traded fund that seeks investment results that correspond to the price and yield performance of the FTSE/Xinhua China 25 Index, which is an index consisting of 25 of the largest and most liquid Chinese companies, fell 1% during the trading day to stand at $41.88. The slight decline in the price of the underlying shares did not, however, deter one options investor from initiating a large bullish transaction in the August contract. It looks like the trader enacted a plain-vanilla debit call spread to position for a sharp rally in the fund’s share price by expiration. The investor purchased 10,000 calls at the August $45 strike for a premium of $1.38 each, and sold the same number of calls at the higher August $50 strike for $0.40 apiece. Net premium paid for the spread amounts to $0.98 per contract. Therefore, the bullish player stands ready to accrue maximum potential profits of $4.02 per contract in the event that shares of the FXI rally more than 19.3% to exceed $50.00 by expiration day in August. The trader starts making money if the China fund’s shares surpass the effective breakeven share price of $45.98 in the next several months to expiration.

CDNS – Cadence Design Systems, Inc. – Cadence Design Systems, a firm which licenses software, sells or leases hardware technology and provides engineering and education services, experienced a 1% rally in the value of its shares to $7.18 during the trading day. The increase in the price of the underlying shares enticed bullish investors to populate November contract options on the stock. It looks like one investor initiated a bullish stance on Cadence Design Systems by selling short 7,000 in-the-money put contracts at the November $7.5 strike for an average premium of $0.975 apiece. The put seller keeps the full amount of premium pocketed on the transaction if CDNS shares rally above $7.50 by expiration day in November. The trader is apparently happy to have shares of the underlying stock put to him at an effective price of $6.525 each should the put contracts remain in-the-money at expiration. Options implied volatility is down 10.1% to 36.15% as of 3:20 pm (ET). Cadence is slated to report its first-quarter results next week after the closing bell on April…
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Emerging Markets Rally

Today’s tickers: EWZ, X, EEM, VIX, DGX, AMR & XHB

EWZ– The Brazil ETF has rallied more than 2% to $52.19 today, and we observed one investor initiating a bullish calendar spread on the fund. The trader appears to have purchased 10,000 calls at the near-term June 55 strike price for 1.30 each spread against the sale of 10,000 calls at the January 2010 55 strike price for a hefty premium of 5.20 apiece. The investor garners a sweet credit on the trade of 3.90 and is likely looking to exercise his right to call shares of the fund to him in the event that the June 55 strike calls land in-the-money by expiration. EWZ shares would need to rally by at least 5% in order for the calls to land in-the-money. – iShares MSCI Brazil Index Fund

X– Shares of the integrated steel producer have jumped more than 7% to $30.60 amid reports that U.S. raw steel production rose 3.7% last week to 1.06 million tons up from 1.023 million tons just one week prior. Although raw steel production in the U.S. is still down about 51.3% as compared to last year’s tonnage, option traders reacted positively to the slight increase reported by taking bullish stances on the stock. The near-term June 31 strike contract saw about 2,750 calls purchased for a premium of 1.75 apiece. But, the more interesting trade took place in the July contract. A bull call spread was initiated by the purchase of 7,000 calls at the July 33 strike price for 2.10 each spread against the sale of 7,000 calls at the higher July 40 strike for an average of 65 cents apiece. The net cost of the trade amounts to 1.45 and yields a maximum potential profit to the investor of 5.55 if shares can rally up to $40.00 by expiration. This optimistic individual will begin to amass profits if shares rise by about 6% to the breakeven point at $34.45. – United States Steel Corporation

EEM– The emerging market ETF has experienced a share price rally of more than 2% to $32.44 today prompting some traders to shed downside protection. Out of the more than 31,000 puts sold at the December 31 strike price for a premium of 3.45 apiece, 28,300 of the contracts were shed by one investor. Such a trade suggests that the individual does not see shares declining through
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Zero Hedge

These Are The Most (And Least) Generous Countries In The World

Courtesy of ZeroHedge View original post here.

The Charities Aid Foundation has released the 2019 edition of the World Giving Index which surveyed 1.3 million people in 128 countries to determine generosity levels.

Unfortunately, as Statista...



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Phil's Favorites

How Asia transformed from the poorest continent in the world into a global economic powerhouse

 

How Asia transformed from the poorest continent in the world into a global economic powerhouse

By sladkozaponi/Shutterstock

Courtesy Deepak Nayyar, University of Oxford

In 1820, Asia accounted for two-thirds of the world’s population and more than one-half of global income. The subsequent decline of Asia was attributed to its integration with a world economy shaped by colonialism and driven by imperialism.

By the late 1960s, Asia was the ...



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Digital Currencies

Five hurdles blockchain faces to revolutionise banking

 

Five hurdles blockchain faces to revolutionise banking

Shutterstock

Courtesy of Markos Zachariadis, Warwick Business School, University of Warwick

Blockchain is touted as the next step in the digital revolution, a technology that will change every industry from music to wast...



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Chart School

Gold Stocks Review

Courtesy of Read the Ticker

Gold stocks are swinging back forth between the range, and a break out swing higher is due. Gold stocks are holding a near perfect Wyckoff accumulation pattern. All should get ready to play this sector. Yet we must recognize that gold stocks are a one of the most crazy rides at the stock market fair, so play very carefully.

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GDX PnF chart from within the video

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Important channels around the HUI.
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The Technical Traders

Treasuries Pause Near Resistance Before The Next Rally

Courtesy of Technical Traders

Our research team believes the US Treasuries and the US Dollar will continue to strengthen over the next 2 to 6+ weeks as foreign market and emerging market credit and debt concerns outweigh any concerns originating from the US economy or political theater.  Overall, the major global economies will likely continue to see strength related to their currencies and debt instruments simply because the foreign market and emerging markets are dramatically more fragile than the more mature major global economies.

We believe the US Treasuries may surprise investors by rallying from current levels, near price resistance, to levels above $151 on the TLT chart. 

Our belief ...



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Insider Scoop

48 Biggest Movers From Yesterday

Courtesy of Benzinga

Gainers
  • Hepion Pharmaceuticals, Inc. (NASDAQ: HEPA) shares climbed 43.2% to close at $3.58 on Thursday after the company announced the publication of a research article, "A Pan-Cyclophilin Inhibitor, CRV431, Decreases Fibrosis and Tumor Development in Chronic Liver Disease Models," in the peer-reviewed Journal of Pharmacology and Experimental Therapeutics.
  • Synthesis Energy Systems, Inc. (NASDAQ: SES) rose 26.9% to close at $9.20 after surging 12.24% on Wednesday.
  • Assembly Biosciences, Inc...


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Kimble Charting Solutions

Bank Index Breakout? Stock Market Bulls Sure Hope So

Courtesy of Chris Kimble

One of the most important sectors of the stock market is the banking industry and bank stocks.

When the banks are healthy, the economy is likely doing well. And when bank stocks are participating in a market rally, then it bodes well for the broader stock market.

In today’s chart, we look at the Bank Index (BKX).

As you can see, the banks have been in a falling channel for the past 20 months. As well, the banks have been lagging the broader market during this time as well – see the Ratio in the bottom half of the chart above.

That said, th...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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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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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