Posts Tagged ‘DISH’

DISH Call Options Active After AT&T / T-Mobile Merger Falls Through

             Today’s tickers: DISH, CROX, USB & BPOP

DISH - DISH Network Corp. – Investors were busy buying call options on the provider of direct broadcast satellite subscription television service straight out of the gate this morning on speculation the company may have what AT&T needs after the potential deal with Deutsche Telekom’s T-Mobile USA unit fell through. Shares in DISH Network rallied sharply on news of the failed merger as analysts directed attention to the Englewood, Colorado-based Company’s spectrum, an attractive asset to AT&T, which needs to bulk up on wireless airwaves. DISH’s shares increased as much as 9.4% to $27.50 in the first half of the session, spurring some strategists to snap up call options in the front month. It looks like investors prepping for shares in DISH Network to extend gains in the near term purchased around 1,250 in-the-money calls at the Jan. 2012 $27 strike for an average premium of $1.50 each. Call buyers stand ready to profit at expiration next month in the event that shares in DISH rally another 3.6% to exceed the effective breakeven price of $28.50. Bullish activity spread to the Jan. 2012 $29 strike where some 230 calls were purchased at a premium of $0.65 per contract. DISH Network’s shares must soar 7.8% to top $29.65 in order for higher-strike call buyers to profit at expiration day in January.

CROX - Crocs, Inc. – Options traders slipped their feet into Crocs call options this morning, with shares in the rubber clog maker climbing as much as 6.7% to $15.53 today. Heavy call volume in the front month suggests some strategists are gearing up for substantial near-term gains in the price of the underlying stock. The company yesterday announced it obtained a five-year $70 million secured revolving line of credit to replace its existing $30 million asset backed line of credit. The CFO of the company said in a release that the new credit agreement provides “additional financial flexibility to invest in our strategic initiatives.” Bullish investors that purchased more than…
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Call Spreader Eyes Near-Term Turn-Around In Valeant

Today’s tickers: VRX, DISH, GE & S

VRX - Valeant Pharmaceuticals, Inc. – Shares in Canada’s largest drug maker have lost roughly one-third of their value in just over one week’s time, and it looks like one options player is prepared to see the stock recover somewhat in the next couple of weeks. Valeant’s shares currently trade 6.15% lower on the session at $38.34. The stock fell sharply on Thursday after the company reported lower-than-expected profits for the second quarter. Massive prints in August contract call options point to one player’s optimism for a speedy, albeit limited, rebound in the price of the underlying by expiration this month. It looks like the investor initiated a bull call spread, buying 25,000 now in-the-money calls at the August $38 strike for a premium of $1.75 each, and selling the same number of calls up at the August $43 strike at a premium of $0.45 apiece. The net cost of the trade amounts to $1.30 per contract, thus preparing the options strategist to profit should shares in Valeant increase 2.5% over the current price of $38.34 to surpass the effective breakeven point on the spread at $39.30 by expiration day. Maximum potential profits of $3.70 per contract pad the investor’s wallet if shares in the drug maker gain 12.2% to trade above $43.00 by expiration in two weeks. Options implied volatility on the pharmaceuticals company stands 25.6% higher this afternoon at 67.51% as of 1:40 pm on the East Coast.

DISH - DISH Network Corp. – The sharp pullback in shares of DISH Network today appears to have paid off handsomely for one strategist holding put options on the stock. It looks like the investor more than doubled his money in the past 48 hours by selling puts originally purchased on Wednesday. Shares in…
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Ratio Put Spreader Tunes in to DISH Network Corp. Options

Today’s tickers: DISH, LBTYA, HGG, VECO, WBMD, VLO & TFSL

DISH – DISH Network Corp. – The implementation of a ratio put spread on the U.S. provider of direct broadcast satellite subscription television service this afternoon was perhaps put on by an investor looking to lock in recent share price gains. DISH shares, which are currently up 2.4% on the day to arrive at $20.77 by 3:40 pm ET, have rebounded nearly 17.5% since touching down to $17.75 on July 1, 2010. It looks like one trader purchased 3,000 puts at the December $20 strike for an average premium of $1.58 each, and sold 6,000 puts at the lower December $18 strike for an average premium of $0.83 a-pop. The investor responsible for the transaction receives a net credit of $0.08 per contract, and keeps the full amount at long as DISH’s shares exceed $20.00 through December expiration. The trader is perhaps utilizing the spread to protect the value of a position in the underlying shares. If this is the case, downside protection kicks in should shares reverse course to trade below $20.00 by expiration day. The decision to employ a ratio spread rather than a 1-by-1 spread or a plain-vanilla long put stance suggests this investor does not expect DISH shares to collapse ahead of expiration at the end of 2010. The firm is scheduled to report second-quarter earnings ahead of the opening bell on August 9, 2010.

LBTYA – Liberty Global, Inc. – It looks like one options strategist expects shares of the international producer of video, voice and broadband internet services to remain range-bound through October expiration. Liberty Global’s shares are currently down 0.20% to stand at $29.65 as of 3:05 pm ET. LBTYA reported an adjusted net loss of $2.42 a share for the second quarter of 2010 after the market closed on Tuesday. But, shares moved very little following earnings. Perhaps the lack of fluctuation in the price of the underlying shares during earnings season bolstered the strangle seller’s premonition that LBTYA’s shares are likely to trade within a specified range for the next couple of months. The investor appears to have sold roughly 10,000 puts at the October $27.5 strike for a premium of $0.70 each in combination with the sale of about the same number of calls at the October $32.5 strike for an average premium of $0.35 apiece. The trader pockets…
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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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Opportunist Dollar Bear Hones in on PowerShares

Today’s tickers: UUP, MBT, DISH & CY

UUP – As noted in our IB FX View earlier this morning, demand for the dollar as a safety play is emerging with notable declines of the other traditional safety plays of the yen and the Swiss franc against the dollar at least. One option investor is taking advantage of this dollar strength through a bearish stance using options on this dollar bullish index fund. The recent bearish tack for the dollar saw the price of this bull fund languish lately and its price reached a low at $23.35 for a 10-month low. The sudden reversal in the dollar’s fortunes has lifted shares to $23.70 earlier today. An option player sold calls at the nearby 24 strike and used the 25 cent premium to offset the richer cost of puts options at the same strike. Those 24 strike puts carry intrinsic value since they are already in the money. The investor is clearly dollar-bearish and doesn’t expect the near-term dollar advance to hold. – PowerShares US Dollar Index Bullish fund

MBT – The Russian cellular communications company appeared on our ‘hot by options volume’ market scanner today amid a more than 6.5% decline in shares to $38.29. Despite the current dip in price, investors seem to expect a brighter future, and were observed initiating bullish call spreads in the March 2010 contract. The March 40 strike price had 3,000 calls purchased for an average premium of 6.58 each, which were spread against the sale of 3,000 calls at the higher March 50 strike for 3.10 apiece. The net cost of positioning for a significant recovery in MBT amounts to 3.48. Investors stand to accumulate maximum profits of 6.52 per contract if shares can rally up to $50.00 by expiration. Shares will need to climb 14% from the current price in order for call-spreading traders to begin to amass profits at the breakeven price of $43.48. – Mobile TeleSystems OJSC

DISH – Shares of the subscription television services firm are currently lower by about 1.5% to $16.84. Investors fearful of further declines in the price of the underlying were seen getting long of put options in the September contract. Approximately 5,500 puts were purchased at the September 16 strike price for an average premium of 95 cents apiece. Profits will begin to amass to the downside in the event that shares fall
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Phil's Favorites

Any Fool Can Be a Stock Market Genius

 

Any Fool Can Be a Stock Market Genius

Courtesy of 

Last week Barry sat down for an amazing conversation with Joel Greenblatt, author of You Can Be a Stock Market Genius (originally titled Any Fool Can Be a Stock Market Genius).

Greenblatt tells a story about when he went to a school in Harlem to talk with kids about investing. To explain how markets work and how they influence behavior, he brought a jar of jelly beans into the class room and had the kids write down how many beans they thought were in the jar. The average guess was 1771, remarkably close to the actual number, 1776. Before he revealed the average guess, he wen...



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Zero Hedge

The Pension Crisis Gets A Catchy Name: "Silver Tsunami"

Courtesy of John Rubino, DollarCollapse.com

Pensions really are in crisis, but the story is so full of large numbers, obscure projections, and dry terms like “unfunded liabilities” that not many people are paying attention.

The same is true for a lot of other big trends out there, which is why those sounding the alarm eventually settle on pithy/scary (if not always accurate) terms to get people’s attention. Global warming, for instance, or nuclear winter.

Now the pension crisis may have found its hook:

‘Silver Tsunami’ hits as pension costs devour California school budgets

By Arun Ramanathan and Chad Aldeman, San Francisco Chronicle ...



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Chart School

Semiconductors Approach 200-day MA; S&P Sleeper Play

Courtesy of Declan.

There were modest losses today with most indices holding the status quo from Friday. The one exception was the Semiconductor Index as it lost over 1% in a confirmed break of support. However, it does have the 200-day MA for a likely test tomorrow. All technicals are negative and relative performance took another step lower but no change there.


The Nasdaq broke bearish wedge support but is resting on a minor support level.  Today saw a new On-Balance-Volume 'sell' trigger but the 6,800/7,500 trading ra...

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Insider Scoop

32 Biggest Movers From Yesterday

Courtesy of Benzinga.

Gainers
  • Limelight Networks, Inc. (NASDAQ: LLNW) gained 21.71 percent to close at $4.99 on Friday following a first-quarter earnings beat. The company also raised its fiscal 2018 estimates.
  • Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) shares surged 17.17 percent to close at $7.78 after reporting strong Q1 results.
  • Farmers Capital Bank Corp (NASDAQ: FFKT) rose 16.45 percent to close at $49.20. WesBanco Inc (NASDAQ: ...


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Digital Currencies

Bitcoin Tops $9,000 As NY Fed Says "Doesn't Pass Test Of What Currency Should Be"

Courtesy of Zero Hedge

Bitcoin is now up almost 40% from its lows right before Tax-Day, breaking back above $9,000 for the first time in over a month.

But while Bitcoin is rebounding, the rest of the cryto-space is soaring...with Ripple up 85% and Ethereum up lamost 65% in the last two weeks...

As it seems 'risk-on' is back in the cryptocurrency markets after a month or two of tax turmoil...

Additionally, Bloomberg ...



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Biotech

Why marijuana fans should not see approval for epilepsy drug as a win for weed

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

 

Why marijuana fans should not see approval for epilepsy drug as a win for weed

Small vials of CBD, which some believe could be a cure for many ailments. Roxana Gonzalez/Shutterstock.com

Courtesy of Timothy Welty, Drake University

A Food and Drug Administration panel recommended approval of a drug made of cannabidiol on Ap...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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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

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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