Posts Tagged ‘DISCA’

Options Player Plants Short Straddle on Health Management Associates

Today’s tickers: HMA, DELL, AWI & DISCA

HMA - Health Management Associates, Inc. – A sizable short straddle on the provider of health care services yields maximum benefits to the seller at expiration if the price of the underlying stock remains fairly stagnant in the next couple of months. Shares in Health Management Associates fell 1.75% this afternoon to $10.69 just before 12:30pm in New York. Options volume in the amount of 10,000 calls and 10,000 puts employed by the straddle-strategist is huge compared to overall previously existing open interest on HMA of 12,857 contracts. It looks like the trader sold the straddle outright, receiving $0.45 per contract on the sale of 10,000 calls at the August $11 strike, and taking in $0.90 per contract on the sale of 10,000 puts at the same strike. Gross premium pocketed on the trade amounts to $1.35 per contract, which the trader keeps in full if shares in HMA settle at $11.00 at expiration day in August. The investor may retain some portion of the $1.35 per contract as long as shares remain range-bound within the upper breakeven price of $12.35, and the lower breakeven point at $9.65, through expiration. Shares in the health care provider have traded above $9.65 since the end of February, and have not topped $12.35 since 2007. Of course, the options player need not hold the position through expiration to make the transaction worth his while. The effects of time erosion on options premium as well as lower volatility could be beneficial for the investor, and may allow him to buy back the straddle at an advantageous price at some point ahead of August expiration. Health Management Associates is scheduled to report second-quarter earnings after the closing bell on July 26, 2011.

DELL - Dell, Inc. – Shares in…
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US Airways Group, Inc. Call Player at Work as Shares Take Off

Today’s tickers: LCC, XLI, CXO, AMGN, DISH, GNW, DVN, WFR, DISCA & HIG

LCC – US Airways Group, Inc. – Shares of the operator of US Airways are trading higher by 7.50% to $9.29 in late afternoon trading after earlier rallying more than 10.50% to secure a new 52-week high of $9.55. The jump in shares prompted one bullish investor to bank profits on a previously established long call position as well as initiate fresh optimistic stances on the stock. US Airways Group’s shares were helped higher, along with shares of other airline operators, after Continental Airlines Inc. posted better-than-expected monthly unit revenue for May. The LCC-bull appears to have originally purchased approximately 29,000 calls at the June $10 strike for an average premium of $0.23 apiece back on May 26, 2010, when shares of the underlying stock were trading at a volume-weighted average price of $8.33. Today, the trader sold 28,900 calls at the June $10 strike for a premium of $0.45 each to pocket net profits of $0.22 per contract. The same investor then extended optimism on US Airways Group, Inc. by purchasing 25,900 fresh calls at the higher June $11 strike for a premium of $0.24 each. The new June $11 strike call position readies the investor to amass profits should LCC’s shares rally 17.7% over the stock’s new high of $9.55 to surpass the effective breakeven price of $11.24 by expiration. Finally, the trader extended high hopes for a significant rally in US Airways’ shares by picking up another 21,450 calls at the July $12 strike for a premium of $0.32 per contract. The July contract call options yield profits to the bullish player if shares of the airline operator surge 29% to exceed the breakeven price of $12.32 ahead of July expiration.

XLI – Industrial Select Sector SPDR Fund – Put strategists populating the XLI, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Industrial Select Sector of the S&P 500 Index, initiated bullish and bearish transactions on the fund today. Shares of the ETF are currently trading 2.00% higher on the day at $29.52 as of 3:05 pm (ET). The first of the two large trades observed on the XLI was enacted by an investor selling-to-close a large-volume long put stance in the June contract. It looks like the trader originally purchased 27,000 puts at…
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Call Buyers Flock to Cisco After Broker Upgrade

Today’s tickers: CSCO, TGT, LVS, DISCA, HGSI, OREX, EWJ & GE

CSCO – The largest maker of networking equipment received an upgrade to ‘outperform’ from ‘neutral’ at Credit Suisse Group AG, boosting shares up more than 2.5% to $21.05. Option-bulls were seen picking up call options at the August 22 strike price 3,600 times for an average premium of 42 cents each. Call buying was observed up at the August 23 strike where 2,300 lots were purchased for 18 cents apiece. Shares of CSCO must rally another 10% to the breakeven point at $23.18 in order for call-buyers at the higher August 23 strike to amass profits by expiration. Other traders locked into gains by scooping up protective put options 3,800 times at the August 21 strike for 79 cents per contract. Finally, bullish sentiment spread to the September 23 strike price where 3,000 calls were coveted for 34 cents each. – Cisco Systems, Inc.

TGT – A bullish reversal on the retailer today suggests that at least one investor is hoping for shares of TGT to appreciate through expiration in October. The stock is currently trading flat at $39.56. The sale of 5,000 put options at the October 40 strike price for a premium of 3.20 apiece was spread against the purchase of 5,000 calls at the same strike for 2.70 each. The individual responsible for the transaction receives a net credit of 50 cents and will add to his profits if shares rally through $40.00 by expiration. Perhaps this investor is expecting the stock to rise because the reasonably-priced store may attract a greater percentage of cash-strapped back-to-school shoppers this year. – Target Corp.

LVS – Investors of the hotel and casino operator have enjoyed a more than 15.5% rally in shares of LVS to $9.95. The stock jumped after the firm announced plans to “apply for an initial public offering of shares in its Macau casinos in Hong Kong as early as next month”. Option traders hoping for a continued rally, were seen purchasing call options in the near-term August contract. The August 12 strike price had 1,700 calls bought for 40 cents apiece while the higher August 13 strike also had 1,700 lots coveted for about 26 cents each. The stock would need to improve 33% from the current price in order for August 13 strike call-buyers to profit at the breakeven price of $13.26.
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Phil's Favorites

Fighting historic wildfires amid bad ideas and no funding

 

Fighting historic wildfires amid bad ideas and no funding

A firefighter runs while trying to save a home near Lakeport, Calif. on July 31, 2018. AP Photo/Noah Berger, File

Courtesy of Edward Struzik, Queen's University, Ontario

Shortly after my book “Firestorm, How Wildfire Will Shape Our Future” was published in late 2017, I received a flurry of invitations to speak about the challenges of dealing with fires that are burning bigger, hotter, more often — and in increasingly unpredictable ways.

The invitations came from all over, from Los Angeles to Whiteh...



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Zero Hedge

Hedge Funds Piled Into Facebook Just Before The Crash: Full Q2 13-F Summary

Courtesy of ZeroHedge. View original post here.

It wasn't just David Einhorn who picked just the wrong time to dump most of his Apple stock: in the second quarter, some of the most iconic hedge funds like Duquesne’s Stanley Druckenmiller, Moore Capital Coatue Management and Jana Partners either bought or added to stakes in Facebook in the second quarter... just days before the company's biggest crash in history.

Other weres luckier, and the rich(est) got richer, as Warren Buffett’s Berkshire Hathaway boosted its stake in...



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Kimble Charting Solutions

Junk Bond 12-month divergence matter this time?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.

Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.

Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.

Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?

At this time “It Doesn’t Matter Until It M...



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Insider Scoop

Morgan Stanley Incrementally Bullish On Salesforce, Says MuleSoft Deal Underappreciated

Courtesy of Benzinga.

Related CRM 10 Biggest Price Target Changes For Tuesday Insider Buys Of The Week: AT&T, GE, Salesforce ...

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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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ValueWalk

Hedge Funds Spending Close To $1M A Year On Alternative Data, But Show Me The Alpha

By Mark Melin. Originally published at ValueWalk.

It should come as no surprise to ValueWalk readers that alternative data has an obsolescence value that is negatively correlated to adoption rates. While we have noted data value dropping as usage and knowledge rise, a known concept in the hedge fund industry. What has been unknown until now is the levels to which fund managers must go to ensure the value of their alternative data does not get lost to the dulling mainstream consensus.

...

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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:

 

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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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