Posts Tagged ‘DRI’

Traders Take To Angie’s List Options

Today’s tickers: ANGI, DRI & AEO

ANGI - Angie’s List, Inc. – Demand for Angie’s List options, which have been available for trading for less than one week, is on the rise today. Shares in the operator of same-named website that aggregates consumer ratings for local service providers such as electricians and plumbers rose 3.7% to stand at $14.53 in early-afternoon trade. The stock ended the month of November below its $13.00 IPO price, but has come back to life in December, rallying back above its initial IPO this past Friday. The Internet company’s shares continued their ascent on Monday, but call selling by one strategist suggests he sees little chance the stock will achieve new record highs by January 2012 expiration. The trader appears to have sold 800 calls at the Jan. 2012 $17.5 strike for a premium of $0.90 apiece. The full amount of premium received on the transaction is safe in the investor’s wallet as long as Angie’s List shares trade below $17.50 at expiration day next month. Shares in ANGI would need to jump 26.6% to top the upper breakeven price of $18.40 in order for the investor to start losing money on the position.

DRI - Darden Restaurants, Inc. – Options traders appear to be gearing up for shares in the operator of Red Lobster and Olive Garden to rise over the next couple of weeks to December expiration. Shares in Darden Restaurants, Inc. increased 0.90% to stand at $47.95 as of 11:50 AM in New York. The stock has rallied more than 7.0% in the past six trading session. Investors hungry for additional gains in the price of the underlying snapped up more than 2,300 calls at the Dec. $50 strike for an average premium of $0.35 a-pop. Call buyers stand prepared to profit should shares in Darden climb…
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Appetite for Darden Calls and Puts Grows Ahead of Earnings

Today’s tickers: DRI, MGM, CSTR & RMD

DRI - Darden Restaurants, Inc. – Investors are dining on both call and put options on the operator of Red Lobster and Olive Garden restaurants today ahead of the company’s fourth-quarter earnings report tomorrow after the close of trading. Shares in one of the world’s largest company-owned and operated full-service restaurant companies are up 0.70% this afternoon to stand at $49.60. The rise in demand for options on the stock helped lift DRI’s overall reading of options implied volatility 13.3% to 31.00% by 1:00pm in New York. Traders gearing up for a post-earnings rally purchased more than 2,000 calls at the July $50 strike for an average premium of $1.05 a-pop. Call buyers make money in the event that Darden’s shares rise 2.9% to trade above the average breakeven price of $51.05 through July expiration day. Bullish sentiment on the stock spread to the August $55 strike where investors scooped up 1,400 calls at an average premium of $0.30 per contract. Traders long the calls profit at August expiration if shares in DRI soar 11.5% to exceed the average breakeven price of $55.30. Of course, investors may be able to sell the calls ahead of expiration if a post-earnings rally in the price of the underlying shifts call premium in their favor. Not all options players are hungry for a rally. It looks like traders positioning for a near-term pullback in Darden’s shares paid an average premium of $1.30 per contract to pick up around 2,400 puts at the July $49 strike. Put buyers profit if shares in the restaurant operator tumble 3.8% to breach the average breakeven point on the downside at $47.70 at expiration next month. More than 9,500 options have changed hands on Darden Restaurants, Inc. as of 1:05pm on the East Coast.…
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Investors Feed on Darden Restaurants Call and Put Options Ahead of Earnings

 Today’s tickers: DRI, AKS, GRA & GMXR

DRI - Darden Restaurants, Inc. – Options strategists are feasting on near-term call and put options on the operator of eateries such as Red Lobster and Olive Garden ahead of the firm’s second-quarter earnings report, which is scheduled for release before the market opens on Tuesday. Shares in Darden Restaurants rallied as much as 1.6% during the session to touch an intraday high of $50.67. The impending earnings announcement as well as increased demand for options on the stock lifted Darden’s overall reading of options implied volatility 12.0% to 33.20% as of 12:40pm in New York. Investors expecting shares to shatter the current 52-week high of $50.83 by January 2011 expiration scooped up in-the-money call options. It looks like bulls purchased roughly 2,000 now in-the-money calls at the January 2011 $50 strike for an average premium of $1.92 per contract. Call buyers are prepared to profit should shares in Darden Restaurants jump 2.5% over today’s high of $50.67 to surpass the average breakeven price on the calls at $51.92 by January expiration day. Meanwhile, traders wary that shares of the underlying stock may slip following earnings picked up roughly 1,800 puts at the same January 2011 $50 strike for an average premium of $1.76 each. Put buyers at this strike are poised to profit in the event that the restaurant operator’s shares decline 4.8% to trade below the effective breakeven point on the downside at $48.24 by expiration next month.

AKS - AK Steel Holding Corp. – Options activity on the steel producer today suggests one strategist expects shares in AK Steel Holding Corp. to remain range-bound over the next six months to June 2011 expiration. AK Steel’s shares fell as much as 3.4% during the first half of the trading session to touch down at an intraday low of $15.72. The steel maker’s shares rallied sharply at the end of last week, rising 14.3% from Wednesday’s closing price of $14.42 to Friday’s high of $16.48. But, the sale…
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Japanese ETF Options Active (After Philstockworld’s Thursday Pick)

Today’s tickers: EWJ, RX, UUP, DRI, IMAX, SFD & AET

EWJ – iShares MSCI Japan Index Fund – Shares of the Japan exchange-traded fund rose 0.3% today to $9.92. The roughly 125,000 contracts exchanged on the fund today is likely the work of one investor adjusting previously established positions. The trader may be unraveling a portion of a bearish risk reversal established back in late-September. It appears 62,500 puts were sold at the March 10 strike for 53 cents apiece, spread against the purchase of the same number of calls at the January 2011 12 strike for 24 cents premium each. The technically bullish direction of the risk reversal play is possibly a closing transaction given the large levels of existing open interest at each strike described above.

RX – IMS Health, Inc. – Shares of the provider of prescription information to the pharmaceutical and healthcare industries plummeted 14% to $18.34 at the start of the trading session. The stock collapsed on news senate democrats proposed an amendment to restrict data-mining practices. Investor uncertainty, as measured by option implied volatility, exploded today on fears the proposed ban may hurt RX’s recent $5.2 billion sale to TPG Inc. and the CPP Investment Board. IMS Health’s shares recovered significantly by midday (EDT) with the stock down a lesser 7.5% to $19.77. Frenzied option traders vied for both calls and puts in the December and January contracts. Investors exchanged nearly 100,000 contracts on the stock in the first three hours of the trading day. Today’s volume blew right past the previous existing open interest on RX of 73,386 contracts. Heavy trading volume and rising investor uncertainty launched option implied volatility up as much as 401.72% to a one-year high of 70.55%. Some traders appear to be selling call options to buy puts in the December contract, while other investors initiated plain-vanilla put buying strategies. Bearish individuals shed more than 6,000 calls at the December 20 strike for an average premium of 46 cents apiece. Traders keep the premium received on the sale if shares of RX remain below $20.00 through expiration. Put buyers favored the December 17.5 strike where roughly 10,000 puts were picked up for about 46 cents each. Some of the puts were spread against the sale of higher strike call options, while other contracts were purchased outright. Roughly 5,000 puts were purchased at the lower December 15 strike where investors…
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Monday Morning – 6 Unemployed People Per Job?

The number of unemployed people per job opening has climbed to 6:

27jobs-graf01

Six is a lot, as you can see from the above chart.  6 means that if you get a job, 5 people absolutely will NOT be able to get a job because you just took the last one.  Notice Job Openings are still falling and people without jobs are still rising – this is not a good combination, despite how great you hear things are getting on TV.   In the first 6 months of this year, there are half as many manufacturing jobs available, 17% less Government Jobs, 21% less Professional Jobs and 21% less Educational Jobs.

Call me old-fashioned but I still think you need people to work in order to have a strong economy.  If we have 10% unemployment (the "official" number) and only 1 in 6 people COULD get jobs if they filled every single available opening tomorrow.  That still leaves us with 8.5% unemployment.  We are miles and miles away from creating jobs and that is very scary.

68017.strip.sunday

As I predicted in the Weekend Wrap-Up, Merkel won her election in Germany and the new "Pro-Business" coalition is making investors happy but Germany has some silly rule about balancing their budget so it will be a long time before you see the massive tax cuts that investors are salivating over.  Also, one would think people would sober up and short the Euro if their plan is to start running the German printing presses in a US-styled Spendocracy but no action in the currency markets so far.    I wrote some extensive commentary on the German situation in Member Chat so I won't get into it again here. 

This weekend, I also posed the questions "Are Fundamentals Making a Comeback," or are we just resting before the next big push to 10,000?  We’ll be keeping a very close eye on our 5% rule levels next week, especially the retrace levels from the 20% run-ups since early July:

       


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Zero Hedge

10-Year Treasury Yield Plunges To Just 1 Basis Point Away From Recession "Tipping Point"

Courtesy of ZeroHedge View original post here.

After more than a month of shocking complacency (because what, central banks will somehow print antibodies and "fix" the covid pandemic which will restore collapsing global supply chains?) traders are "suddenly" realizing that the coronavirus outbreak contains a significant likelihood of impact to the global economy and the potential to become a black bat, pardon, black swan type event. An event which could quickly spiral into a US - and global - recession.

How to determine if a recession is coming? One place to wat...



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Phil's Favorites

Threats to democracy: oligarchy, feudalism, dictatorship

 

Threats to democracy: oligarchy, feudalism, dictatorship

Courtesy of David Brin, Contrary Brin Blog 

Fascinating and important to consider, since it is probably one of the reasons why the world aristocracy is pulling its all-out putsch right now… “Trillions will be inherited over the coming decades, further widening the wealth gap,” reports the Los Angeles Times. The beneficiaries aren’t all that young themselves. From 1989 to 2016, U.S. households inherited more than $8.5 trillion. Over that time, the average age of recipients rose by a decade to 51. More ...



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Biotech & Health

What scientists are doing to develop a vaccine for the new coronavirus

 

What scientists are doing to develop a vaccine for the new coronavirus

It is critical to learn more about SARS-CoV-2, including its source and why transmission appears to be more efficient than with previous coronaviruses. (Shutterstock)

Courtesy of Marc-Antoine De La Vega, Université Laval

With an increasing number of confirmed cases in China and 24 other countries, the COVID-19 epidemic caused by the novel coronavirus (now known as SARS-CoV-2) looks concerning to many. As of Feb. 19, the latest numbers listed 74,280 confirmed cases including 2,006 deaths. Four of these de...



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Members' Corner

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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The Technical Traders

Gold Rallies As Fear Take Center Stage

Courtesy of Technical Traders

Gold has rallied extensively from the lows near $1560 over the past 2 weeks.  At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018.  Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer-term fear that is build...



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Kimble Charting Solutions

Precious Metals Eyeing Breakout Despite US Dollar Strength

Courtesy of Chris Kimble

Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.

The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).

What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.

In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.

The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further ...



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Insider Scoop

68 Stocks Moving In Friday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
  • TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
  • ...


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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Tuesday, 01 October 2019, 02:18:22 AM

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Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

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Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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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.

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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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