Posts Tagged ‘DTV’

Bullish Bets Build In Wynn Resorts Weekly Options

 

Today’s tickers: WYNN, CTRP, DTV & WMT

WYNN - Wynn Resorts, Ltd. – Weekly options on Wynn Resorts are humming with activity today on news the casino operator is cutting ties with principal shareholder and director, Kazuo Okada. Wynn is the biggest gainer in the S&P 500 Index this afternoon, with the stock trading 6.7% higher on the day at $120.24. Options activity suggests some traders expect the stock to extend gains on the news, at least through the end of this week. Feb. ’24 $120 strike calls printed the most volume of the weekly contracts, with some 2,660 lots changing hands against open interest of 204 positions. It looks like most of the $120 strike calls were purchased for an average premium of $2.04 apiece. Traders long the contracts stand ready to profit at expiration in the event that Wynn’s shares rally another 1.5% to surpass the average breakeven price of $122.04. Bullish activity spread to the higher Feb. ’24 $125 strike where around 1,100 call options were snapped up at an average premium of $0.50 each. Finally, fresh interest is building in far out-of-the-money contracts at the Feb. ’24 $130 strike where some 925 contracts traded against zero open positions. Most of the calls appear to have been purchased for an average premium of $0.16 each, positioning traders to profit should shares soar 8.25% to top the average breakeven price of $130.16 by expiration. Shares in WYNN last traded above $130.16 in November of last year.

CTRP - Ctrip.com International, Ltd. – Shares in China’s largest online travel site took a big hit Tuesday after the Company reported lower-than-expected fourth-quarter earnings on Monday. The earnings miss was followed by a number of analyst downgrades, helping drive Ctrip.com’s shares down as much as 10.3% to an intraday…
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Call Options Fly Off the Shelves at AIG

 Today’s tickers: AIG, CAT, DTV, WPI, PBR, DNR, V & M

AIG - American International Group, Inc. – The insurer’s shares rallied as much as 12.2% today to touch an intraday- and new 2-year high of $60.96 on news the firm secured $4.3 billion in bank credit lines. Mounting confidence in the insurance company along with the rising value of AIG shares inspired bullish options traders to purchase in- and out-of-the-money calls today. Weeklies were popular with options traders expecting to see shares end the year on a high note. Investors picked up more than 2,900 now in-the-money calls at the December ’31 $57.5 strike for an average premium of $0.93 each, and coveted upwards of 2,900 in-the-money call options at the higher December ’31 $60 strike at an average premium of $0.51 a-pop. Optimistic individuals also purchased some 1,300 call options at the December ’31 $65 strike for an average premium of $0.27 apiece. Options strategists looked to the January 2011 contract to place bullish bets, as well. Notable in-the-money call buying was observed here, as well as fresh interest in calls at the January 2011 $62.5 strike where more than 1,700 contracts were purchased for an average premium of $1.46 each. The sharp increase in demand for American International Group calls pushed the overall reading of options implied volatility on the stock higher by 25.2% to 50.30% in the final 15 minutes of the trading day.

CAT - Caterpillar, Inc. – It looks like some options investors expect the machinery maker’s shares to trend higher at the start of 2011. CAT-bulls are buying call options in the January 2011 contract this afternoon despite the 0.45% decline in the price of the underlying stock to $94.04. Options traders exchanged more than 7,200 calls at the January 2011 $95 strike by 3:10pm in New York trade. It looks like the majority, or approximately 5,300 of the call options, were purchased for an average premium of $1.58 a-pop. Call buyers make money if CAT’s shares rally more…
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Rising Risk Aversion Prompts Crude Oil Bears to Target USO Put Options

Today’s tickers: USO, SU, DTV, AIG, CCE, PMCS & TRLG

USO – United States Oil Fund LP – Despite a stronger dollar so far during 2010 the price of crude oil has rebounded smartly and spent some time this week trading above $80 per barrel. Today’s sudden bout of risk aversion knocking equity prices running for cover has created fears of lower oil prices ahead according to options activity today. Investors targeted downside protection as they snapped up more than 10,000 put options reserving rights to sell shares in the fund that mimics the price of crude before expiration in March. Investors chose the fixed strike price of $36.00 to lock into selling rights compared to the fund’s share price of $37.67 – down 3.4% already today. Investors forced the premium of the put options from 45 cents to as high as 59 cents throughout the morning. It appears that today’s activity is fresh investor activity since it exceeds the number of open positions as of the close of business on Wednesday, while the volume also represents more than 20% of overall options volume today.

SU – Suncor Energy, Inc. – Despite the nearby bearish overture for the fortunes of crude oil prices, a decent-sized bullish options transaction was established on the Canadian energy company. Undeterred by a 3% decline in Suncor Energy’s share price to $28.24, one investor initiated a debit call spread in the June contract to position for a sharp rebound in Suncor’s share price by expiration in four months. The trader purchased 10,500 calls at the June $31 strike for a premium of $1.26 apiece, and sold the same number of calls at the higher June $36 strike for a premium of $0.30 each. The net cost of the spread amounts to $0.96 per contract. Maximum available profits of $4.04 per contract accumulate for the bullish trader if Suncor’s shares rally approximately 27.5% from the current value of the stock to $36.00 by June expiration. We note that shares traded as high as $38.22 on January 6, 2010.

DTV – The DIRECTV Group, Inc. – Covered-call selling is the theme of the day in Directv options trading as it appears investors are picking up shares of the underlying stock while simultaneously shedding out-of-the-money calls in the June contract. Shares of the provider of subscription television services slipped 0.90% during the session to $33.30. Approximately 25,300 calls…
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Options Trader Constructs Bullish Risk Reversal on SandRidge Energy, Inc.

Today’s tickers: SD, DTV, YHOO, SLXP, MDVN, PDCO, XLE, LOW, AIG & CA

SD – SandRidge Energy, Inc. – A bullish risk reversal on natural gas and oil exploration and development company, SandRidge Energy, Inc., suggests one investor may be positioning for a rally in the value of the underlying shares by expiration in June. SandRidge’s shares slipped 0.50% during the session to stand at $8.52. The trader sold 10,000 put options at the June $7.5 strike for an average premium of $0.53 apiece in order to offset the cost of buying 10,000 calls at the higher June $9.0 strike for $0.90 each. The net cost of the reversal play amounts to $0.37 per contract. Shares of the energy firm must rally approximately 10% over the current day’s price in order for the trader to break even on the transaction at $9.37. Profits are available to the upside beyond the breakeven point at $9.37 through expiration day in June.

DTV – The DIRECTV Group, Inc. – Investors sold strangles on the subscription television services company today amidst a 0.55% rally in the price of the underlying stock to $33.83. The use of the short strangle strategy implies traders anticipate reduced volatility in the price of DTV shares and expect the share price to remain range-bound through expiration in June. Throughout the trading session options traders sold approximately 15,000 calls at the June $35 strike for an average premium of $1.77 apiece in combination with the sale of 15,000 puts at the lower June $30 strike for a premium of $0.78 each. Strangle-sellers pocket a gross premium of $2.55 per contract, which they keep if Directv’s share price trades within the range of $30.00 to $35.00 through expiration. The premium received on the transaction provides limited protection against losses should DTV’s shares swing outside of the strike prices described. Stranglers accumulate losses if shares of Directv trade above the upper breakeven price of $37.55, or if shares decline beneath the lower breakeven point at $27.45, by expiration day.

YHOO – Yahoo!, Inc. – The slight 0.15% decline in the price of Yahoo’s shares to $15.55 today did not some options traders from establishing bullish stances on the stock. One individual initiated a bullish risk reversal to position for a rebound in shares by expiration in January of 2011. The investor sold 15,000 put options at the January 2011 $15 strike for…
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Investor Uses Options to Strangle Ford’s Share Price through June 2010

Today’s tickers: F, WLP, IBN, SWHC, UNG, SNDK, MU, DTV, FDO & MON

F – Ford Motor Co. – A short strangle play in the June contract on Ford suggests shares of the automaker are likely to remain range-bound through the next six months to expiration. Ford’s shares continued to rally during the current session following yesterday’s news that the firm enjoyed a 33% increase in December auto sales over the previous year. Shares reached a new 52-week high of $11.42 today on a 4.20% increase over Tuesday’s close. The sold strangle transaction implies one investor expects the recent boom to dissipate along with option implied volatility. The strangler sold 15,000 puts at the June $10 strike for a premium of $0.80 cents apiece in combination with the sale of 15,000 calls at the higher June $12 strike for $1.10 each. The investor pockets a gross premium of $1.90 per contract, which he keeps if Ford’s share price stays within the confines of the strike prices described through expiration. The premium received provides limited protection should shares swing outside the boundaries. But, the investor faces losses in the event that shares move above the upper breakeven price of $13.90, or trade beneath the lower breakeven point at $8.10 by expiration in June. It is possible the strangle-seller expects to benefit from a move lower in volatility. Option implied volatility on Ford rose significantly by 18.87% over the past 48-hours, from a low of 40.85% on Tuesday morning, to today’s high of 48.56%. Shrinkage in the reading of volatility on Ford may allow the investor to close out the short position at a profit because, as a general rule, declines in volatility weigh down option premiums.

WLP – WellPoint, Inc. – Shares of the health and benefits company reached another new 52-week high of $61.45 today, adding to gains experienced earlier this week. The stock appreciated 5.5% from $58.27 on the final day of 2009, up to $61.45 today, the highest price attained in the past 12 months. Option traders displayed diverse strategies on WellPoint during the trading day. Near-term players banked gains by selling 7,000 calls at the now in-the-money January $60 strike for a premium of $1.70 apiece. One trader rolled 3,500 calls forward to a higher strike by selling-to-close 3,500 lots at the January $60 strike for $2.00 each, and buying up 3,500 calls at the higher February…
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Technology Bull Boosts Optimism

Today’s tickers: XLK, EEM, XLP, WLP, DTV, AMAT & EEM

XLK – SPDR Technology Select Sector ETF – A massive calendar roll was initiated on the Technology Select Sector exchange-traded fund today. Shares of the ETF, which corresponds to the performance of publicly traded equities of companies in the technology sector, rallied nearly 0.5% to $22.29 during the session. One investor sold roughly 73,900 calls at the now in-the-money December 22 strike for a premium of 41 cents per contract. The trader likely purchased the options for 40-49 cents premium per contract back on September 18, 2009, when shares of the XLK were at $20.87. The closing sale of the original call position today was spread against the purchase of 73,900 fresh calls at the higher January 23 strike for 24 cents each. The calendar roll indicates the investor expects shares of the fund to reach a new 52-week high by expiration in January. Profits amass on the new bullish stance if shares rally above the breakeven price of $23.24.

EEM – iShares MSCI Emerging Markets ETF – A large-volume put spread traded in the June contract on the emerging markets fund this afternoon. Shares of the ETF stand 0.15% higher to $41.03 as of 1:45 pm (EDT). It looks like investors, who are likely long shares of the underlying, are purchasing long-term downside protection on the EEM. Approximately 49,000 puts were picked up at the June 38 strike for an average premium of 2.95 apiece, and spread against the sale of roughly 43,000 puts at the lower June 28 strike for 65 cents each. Perhaps put spreaders fear emerging markets could encounter a few speed bumps as the global economy continues to fight its way out of recession in 2010. Traders employing the put plays are protected if shares of the fund dip back down through $38.00 by expiration in June.

XLP – Consumer Staples Select Sector SPDR – The XLP ticker symbol launched to the top of our ‘most active by options volume’ market scanner today after a huge chunk of call options changed hands. Shares of the fund, which replicates the total return of the Consumer Staples Select Sector of the S&P 500 Index, gained 0.5% during the trading day to $26.90. Approximately 106,000 call options traded at the January 27 strike for an average premium of 32.5 pennies per contract. Open interest of 116,354 contracts at…
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Dow Chemical Option Bulls and Bears on the Prowl

Today’s tickers: DOW, GLD, ISIS, DTV, SINA, XOM, SPWRA, AGO & SINA

DOW – The Dow Chemical Co. – Shares of the manufacturer of chemicals and plastic materials increased 2% during the trading session to $29.45. We observed a mix of bullish and bearish option plays on the stock today. One investor appears to have unraveled an in-the-money ratio call spread in the December contract in order to finance the purchase of 7,500 calls at the December 28 strike for 1.92 apiece. Further along, in the January 2010 contract, another bullish player rolled a long call position to a higher strike price. It looks like the investor originally paid between 2.35 to 3.30 in premium to buy 5,000 calls at the now deep-in-the-money January 24 strike back on September 14, 2009. Today the trader closed out the December 24 strike calls by selling 5,000 contracts for 5.30 each. The closing sale of the calls was spread against the purchase of 5,000 fresh call options at the higher January 28 strike for about 2.45 premium per contract. Finally, protective plays dominated the March 2010 contract. Two put spreads were established this afternoon. The first transaction involved the purchased of 5,000 puts at the March 27 strike for 2.08 each, marked against the sale of the same number of puts at the lower March 20 strike for 47 cents apiece. The net cost of the trade amounts to 1.61 per contract and yields protection beneath the breakeven price of $25.39. The other put spread involved the same number of put options but was transacted at the March 26/19 strikes at a net cost of 1.38 per contract. Downside protection on this play kicks in if shares decline through the breakeven point at $24.62 by expiration day in March.

GLD – SPDR Gold Trust ETF – More than 253,800 option contracts changed hands on the GLD with about 30 minutes remaining in the trading day. Investors traded calls on the exchange-traded fund more than 1.8 times to each put option in play. Shares of the GLD, which replicates the performance of the price of gold bullion, are up 0.25% in late-day trading to stand at $111.90. A large-volume ratio call spread on the fund suggests some investors expect the price of gold to rise sharply by expiration in January 2010. Bullish traders bought approximately 15,000 calls at the January 112 strike for an…
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Wells Fargo Put Spreaders Back in Town

Today’s tickers: WFC, AMR, PG, DRYS, DTV, M, EMC, WYNN, TOL & SFD

WFC – Wells Fargo & Co. – A popular option strategy frequently employed on Wells Fargo, the ratio put spread, appeared once again in the January 2010 contract. The bearish play was initiated despite the more than 2% rally in shares during the trading session to $28.75. The ratio spread involved the purchase of 7,500 puts at the January 27.5 strike for an average premium of 1.60 apiece, marked against the sale of 15,000 puts at the lower January 24 strike for 67 cents each. The net cost of the protective play amounts to 26 cents per contract. Thus, downside protection will kick in if shares decline beneath the breakeven price of $27.24 by expiration in January.

AMR – AMR Corp. – American Airlines operator, AMR Corp., attracted a large bullish play by one investor targeting the January 2010 contract. Shares of AMR are up more than 4% to $5.83 with just under one hour remaining in the trading day. An AMR-optimist initiated a call spread by purchasing 15,000 calls at the January 7.5 strike for an average premium of 35 cents each, marked against the sale of 15,000 calls at the higher January 9.0 strike for 10 cents premium apiece. The net cost of the bullish transaction amounts to 25 cents per contract. Profits are available to the call-spreader if shares of AMR rally at least 33% to breach the breakeven point at $7.75 by expiration. Maximum potential profits of 1.25 per contract for a total of $1.875 million are attained by the trader if shares surge 54% to $9.00.

PG – The Proctor & Gamble Co. – Options activity in the January 2011 contract on the consumer products company today indicates one investor expects little fluctuation in shares over the next 14 months. Shares of PG are slightly up by less than 0.25% to stand at $61.90. The trader initiated a sold strangle by selling 2,000 puts at the January 60 strike for 5.73 each, and by selling 2,000 calls at the higher January 65 strike for a premium of 3.82 apiece. The gross premium pocketed on the sale amounts to 9.55 per contract. The strangle-seller retains the full premium if shares of PG remain ‘strangled’ within the parameters of the strike prices described. The investor will benefit from lower option implied volatility on the…
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Zero Hedge

Turkey's Collapse Could Send "Millions" Of Refugees Flooding Into Europe

Courtesy of ZeroHedge. View original post here.

As Turkey braces for a fresh round of US sanctions amid a plummeting lira and what Turkish President Recep Tayyip Erdo?an says is "economic warfare" with Washington over the detention of US pastor Andrew Brunson, millions of refugees - primarily from Northern Africa and neighboring Syria, would likely flood into Europe as the Turkish economy collapses according to ...



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Phil's Favorites

U.S. Media's Use of Its Collective Voice Reveals a Tragic Truth about America

Courtesy of Pam Martens.

By Pam Martens and Russ Martens: August 17, 2018 ~

August 16, 2018 will be remembered as the day there was a collective awakening by America’s media that there was something intrinsically and morally and constitutionally wrong with not just the functioning of the President of the United States – but with America itself.

In response to an August 10 appeal from the Boston Globe to newspaper editorial boards around the country to write and publish their thoughts on Trump’s “dirty war against the free press,” more than 300 newspapers responded yesterday.

The Globe’...



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ValueWalk

The Top 10 Wildest Campaigns Of 2018: Starboard's Stake In Symantec

By ActivistInsight. Originally published at ValueWalk.

This week’s column is a continuation of our 10 “wildest campaigns” of 2018. Find the first part here.

Q2 hedge fund letters, conference, scoops etc

Free-Photos / PixabayTop 10 Wildest Campaigns Of 2018

5. How often does an activist win a proxy contest without support from either of the two main proxy advisory firms? (...



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Kimble Charting Solutions

Small Caps attempting 20-year breakout, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

The Russell 2000 trend remains solidly higher, as it has created a series of higher lows and higher highs inside of rising channel (1) over the past 25-years.

Small caps have been an upside leader in 2018, as they are very near all-time highs.

We applied Fibonacci extension levels to the 2007 highs and 2009 lows at each (2).

Joe Friday Just The Facts Ma’am- Small caps are attempting a dual breakout at (3). 

This is a price point that small-cap bulls would LOVE to see strength and a breakout take place, as monthly momentum is lofty.

...

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Biotech

Nanomedicine could revolutionise the way we treat TB. Here's how

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

 

Nanomedicine could revolutionise the way we treat TB. Here's how

Nanomedicine could scupper the need for TB patients to take multiple daily tablets with toxic side effects. Daniel Irungu/EPA

Courtesy of Sarah D'Souza, University of the Western Cape and Admire Dube, University of the Western Cape

Tuberculosis is one of the world’s ...



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Insider Scoop

Argus Upgrades Lululemon On Multiple Growth Levers

Courtesy of Benzinga.

Related LULU Benzinga's Top Upgrades, Downgrades For August 16, 2018 3 Retailers Jim Cramer Says Are Winners In A Volatile Sector...

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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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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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About Ilene:

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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