Posts Tagged ‘DPS’

Road To Commodity Meltdown Paved In Silver Put Options

 Today’s tickers: SLV, COF, DPS & ADI

SLV - iShares Silver Trust ETF – The rebound in investor sentiment following the post-earthquake, fear-driven spike in the Japanese yen was quite remarkable, with global equity benchmarks almost rebounding to February peaks. During that recovery period something critical developed in the currency world that lifted commodity prices to new heights. The debate between FOMC members regarding whether less rather than more stimulus was needed, was eclipsed by the ECB’s reversal of monetary policy, which in turn hobbled the dollar. Demand for commodities took a further step forward as investors swiftly concluded that the dollar was most likely to trail the euro even in a risk-on environment. That has made the cascade in commodity prices all the more spectacular today as growth-sensitive currencies lose favor. The IMF downgrade to growth and Goldman’s warning over a possible stall in the advance has investors targeting downside risk across the commodity field. Silver prices, already at a 30-year high, are likely to stumble further and faster according to a sizable put butterfly strategy on the iShares Silver Trust ETF today. The put ‘fly follows Monday’s massive bearish play on the SLV in which some 100,000 July $25 strike puts were picked up at a premium of $0.10 apiece. The 0.40% decline in the price of the ETF’s shares to $39.05 this afternoon saw the asking price on the July $25 strike puts more than double to $0.21 per contract at times on Tuesday. In contrast, the put’ fly player accelerated the bearish view on the price of silver by targeting May contract put options. The 25,000-lot May $34/$36/$38 bearish butterfly spread positions the player to attain maximum benefits should the price of SLV shares fall around 7.5% to $36.00 by expiration day. The spread cost the trader a net $0.31 in premium per contract, but prepares him to accumulate up to $1.69 per contract if the price of the underlying fund settles at $36.00 at expiration. Nearly 400,000 option contracts have changed hands on the SLV as of 1:15pm in New York.…
continue reading


Tags: , , ,




Regional Banking ETF Put Volume Pops During Afternoon Trading

 Today’s tickers: KRE, CPN, PRGO, FITB, DPS, SMH & M

KRE - SPDR KBW Regional Banking ETF – A large-volume debit put spread initiated on the SPDR KBW Regional Banking ETF this afternoon suggests one options investor is wary that the significant run up in the price of the underlying fund since the start of December could reverse course next year. Shares of the KRE, an exchange-traded fund that tracks the performance of the KBW Regional Banking Index, are up slightly by 0.10% to trade at $25.18 as of 3:30pm. The strategist responsible for the put spread may be building up downside protection, or alternatively, could be taking an outright bearish stance on the regional banking sector through March 2011. Shares in the fund rallied 14.25% during December so far to reach a 6-month high of $25.59 this past Wednesday. The put-spreader picked up 19,000 put options at the March 2011 $24 strike for a premium of $0.81 each, and sold the same number of puts at the lower March 2011 $20 strike at a premium of $0.16 apiece. Net premium paid to initiate the spread amounts to $0.65 per contract. Thus, the investor is prepared to make money, or realize downside protection, if shares of the KRE fall 7.3% from the current price of $25.18 to breach the effective breakeven point on the spread at $23.35 by March 2011 expiration. Maximum potential profits of $3.35 per contract are available to the put-spreader should shares of the underlying fund plummet 20.6% lower to trade below $20.00 by expiration day next year. The fund’s shares have not traded below $20.00 in more than a year.

CPN - Calpine Corp. – A large chunk of call options were picked up on Calpine Corp. late in session by a bullish strategist positioning for shares to rally substantially ahead of January 2011 expiration. Shares of the independent power generation company are up 2.6% this afternoon to stand at $13.22 in the final hour of the trading week. Calpine was recently…
continue reading


Tags: , , , , , ,




Frenzied Bearish Options Activity Ensues as Visa, MasterCard Shares Take a Big Hit

Today’s tickers: V, MA, JPM, COF, EEM, STX, MDC, DPS, MYL & LEN

V – Visa, Inc. – Shares of the world’s largest payments network are down sharply by 7.75% to stand at $68.92 as of 2:55 pm (ET) after Senator Sheldon Whitehouse (D – RI) suggested Monday that the U.S. should cap interest rates on credit cards. Other credit card companies such as MasterCard and Capital One Financial Corp. are also suffering significant share price erosion this afternoon. Bearish options investors flooded the May contract with pessimistic plays, while more optimistic traders appear to be positioning for a rebound in Visa’s share price by June expiration. Investors bracing for continued bearish movement in the price of the underlying stock picked up 3,600 now in-the-money puts at the May $70 strike for an average premium of $1.15 apiece. Buying interest spread to the lower May $65 strike where 1,400 puts were purchased at an average premium of $0.36 each. Finally, uber-bearish traders scooped up 1,290 puts at the May $60 strike – the lowest strike price currently available in the front month – for an average premium of $0.16 apiece. Investors long the May $60 strike puts make money if Visa’s shares plummet 13.15% from the current value of $68.92 to breach the average breakeven point to the downside at $59.84 by expiration on Friday. Bearish traders also ravaged May contract calls, selling roughly 7,000 lots at the May $75 strike to take in an average premium of $0.71 per contract. Investors also shed 2,000 calls at the May $70 strike to receive an average premium of $2.47 apiece. Call sellers retain the full premium received today as long shares of the underlying stock do not exceed $70.00 ahead of expiration. Finally, optimistic options investors are positioning for a rebound in the credit card company’s shares by purchasing 1,800 calls at the June $70 strike for an average premium of $4.71 each. Shares must rally 8.4% over the current price of the stock before June $70 strike call buyers start to make money above the average breakeven price of $74.71. Bullish call buying activity spread to the higher June $72.5 strike where 2,500 calls were picked up for an average premium of $3.64 per contract. Investor uncertainty, as measured by the overall reading of options implied volatility, is net up on Visa today with volatility rising 16.5% to 52.68% as…
continue reading


Tags: , , , , , , , , ,




 
 
 

Phil's Favorites

Red Friday

 

Red Friday

Courtesy of Scott Galloway, No Mercy/No Malice@profgalloway

Smoking wasn’t popular among women until Edward Bernays, the father of public relations, rebranded it. In 1929 he capitalized on the feminist movement and repositioned cigarettes with a “torches of freedom” campaign. Bernays hired women to march down Fifth Avenue smoking as a public display of emancipation and rebellion. Within six years, women were purchasing 1 in 5 cigarettes, up from 1 in 20 in 1923.

The strategy is simple: If people associate something negative with your product (e.g., cancer), change the conversation — “You’ve come a long way, baby.”

Facebook’s rebranding...



more from Ilene

Zero Hedge

"The Omicron Variant" - Magic Pills, Or Solving The Africa Problem?

Courtesy of ZeroHedge View original post here.

Authored by Kit Knightly via Off-Guardian.org,

Yesterday the WHO labelled the sars-cov-2 variant B.1.1.529 as a “variant of concern” and officially named it “Omicron”.

This was as entirely predictable as it is completely meaningless. The “variants” are just tools to stretch the story out and keep people on their toes.

...



more from Tyler

Biotech/COVID-19

The hunt for coronavirus variants: how the new one was found and what we know so far

 

The hunt for coronavirus variants: how the new one was found and what we know so far Scientists find variants by sequencing samples from people that have tested positive for the virus. Lightspring/Shutterstock

Courtesy of Prof. Wolfgang Preiser, Stellenbosch University; Cathrine Scheepers, University of the Witwatersrand; Jinal Bhiman, National Institute for Communicable Diseases; ...



more from Biotech/COVID-19

Politics

The first Thanksgiving is a key chapter in America's origin story - but what happened in Virginia four months later mattered much more

 

The first Thanksgiving is a key chapter in America’s origin story – but what happened in Virginia four months later mattered much more

In the 19th century, there was a campaign to link the Thanksgiving holiday to the Pilgrims. Bettman/Getty Images

Courtesy of Peter C. Mancall, USC Dornsife College of Letters, Arts and Sciences

This year marks the 400th anniversary of the first Thanksgiving in New England. Remembered and retold as an allegory for perseverance and cooper...



more from Politics

Chart School

Gold and Silver still working higher

Courtesy of Read the Ticker

Using Gann Angles from zero we can time the next run up, and it is near.

The last two days gold and silver are down on the back of central bankers talking the US Dollar higher in a attempt to off set inflation. A rising dollar is a form of tightening. Also the talk of a faster 'taper' has sent interest rates higher. But Luke Gromen knows this cant not last.

@LukeGromen Externally-financed twin deficit nations with insufficient external financing (ie the US, not Japan) cannot abide rising real rates for long.


RTT Comments: What this means a higher US Dollar makes it harder for those outside the US to buy the vast quantity of US Treasuries. 


U...

more from Chart School

Digital Currencies

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

 

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

Safe as houses? iQoncept

Courtesy of Jean-Philippe Serbera, Sheffield Hallam University

Cryptocurrencies have had an exceptional year, reaching a combined value of more than US$3 trillion (£2.2 trillion) for the first time in November. The market seems to have benefited from the public having tim...



more from Bitcoin

Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



more from Promotions

Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



more from Kimble C.S.

ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



more from ValueWalk

Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



more from M.T.M.

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...



more from Tech. Traders

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...



more from Lee

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.
...

http://www.insidercow.com/ more from Insider





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.