Posts Tagged ‘DUK’

Kaleidoscope of Butterflies Lie in Wait for Goldman Sachs Rebound

Today’s tickers: GS, BAC, AEA, QDEL, DUK, HTZ, EFA, MAR, PXD & WLP

GS – Goldman Sachs Group, Inc. – Bullish options strategists touting butterfly wings were once again enticed by the sweet nectar of potential profits hinging on Goldman Sachs’ shares ability to continue to climb out of the hole created by the drama and uncertainty surrounding the SEC’s suit against the investment banking firm. Goldman’s shares are up 2.36% in late afternoon trading at $156.65, but the stock realized a 4.9% rebound in its shares from Tuesday’s intraday low of $150.15, to an intraday high of $157.45 during the current session. We observed bullish butterfly plays on Goldman Sachs each day this week suggesting investors are pre-ordering their tickets on the rebound-boat so as not to miss out on profits to the upside. Tuesday’s call-fly engaged the October 160/175/190 strikes while Monday’s butterfly spread involved the May 150/160/170 strikes. Today, butterflies parked themselves in the June contract, buying approximately 8,000 calls at the June $165 strike for a premium of $4.66 each [wing 1] and purchasing roughly 8,000 calls at the higher June $185 strike for $0.88 apiece [wing 2]. The body of the butterfly centered at the June $175 strike where some 16,000 calls were shed for an average premium of $1.99 a-pop. Average net premium paid for the spread amounts to just $1.56 per contract. The investor or investors holding the bullish stance stand ready to accrue maximum potential profits of $8.44 per contract should GS shares surge up to $175.00 by expiration day. The transaction is a very efficient way to act on bullish sentiment because maximum loss potential – $1.56 per contract in this case – is scant when compared to potential profits which are 5.4 times greater. Profits start to amass if Goldman’s shares rally 6.33% from the current price of $156.65 to breach the average breakeven price of $166.56 ahead of June expiration. Finally, not all optimistic options players selected the butterfly spread strategy. A long-term bullish trader targeted the October contract to enact a plain-vanilla debit call spread. The investor picked up 3,000 in-the-money calls at the October $155 strike for a hefty average premium of $16.50 apiece, and sold the same number of calls at the higher October $180 strike for $6.55 each. The net cost of the call spread amounts to $9.95 per contract, and yields maximum potential profits…
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Patient XLF optimist targets January 2011 combination

Today’s tickers: XLF, DUK, DOW, GE, CX, GME, SEPR & ADBE

XLF – Financial Select Sector SPDR – Helping pummel the S&P index and continuing to sour the tone today is a 9.5% slump in the financial select sector ETF, which is now trading at $6.22 and as if we need to mention it, that’s a fresh lifetime low. In the front March contract there is heavy call volume at the 8.0 and 9.0 strikes, both trading to bid and ask illuminating a decidedly mixed picture. Catching our eye at the January 2011 strike is a curious bullish combination in which an investor appears to have created a ratio put spread at the 4.0 and 5.0 strikes in which twice as many puts were sold at the lower strike. Some 10,000 puts were sold at a premium of 96 cents while 5,000 were bought at the 5.0 strike for 1.51. The net premium creates downside losses starting at $3.45. The other leg of the trade appears much higher up on the call side where some 5,000 calls were paid for at the 20 line with a 21 cent premium. We’re assuming that this investor is pitching camp in the 2011 contract to help weather the financial storm in hopes that sunny days will prevail after the clouds dissipate leaving him well positioned for the inevitable rebound.

DUK – Duke Energy Corporation – The energy company experienced a 3% decline to $12.06, but did not deter bullish action by one investor in the April contract. At the 12.5 strike price, over 18,000 calls were purchased for an average price of 53 cents apiece. Perhaps this trader was taking advantage of falling call premiums given today’s share price decline. In order to profit from the trade shares will need to rally by 8% to the breakeven price of $13.03. Option implied volatility has surged from 37% earlier in the day to the present reading of 49.5%.

DOW – Dow Chemical Co. – Shares of the chemical manufacturer have declined 6.5% to $6.60, reaching a new 52-week low for the stock. We observed bearish option trades in play, the largest of which occurred at the March 5.0 strike price where 20,500 puts were purchased for 34 cents each. This investor is likely buying protection from further downside movement in shares, and it is likely that he is long the stock. The bearish picture…
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Phil's Favorites

So You Wanna Be a Stock Picker

 

So You Wanna Be a Stock Picker

Courtesy of 

The stock market has been a treacherous place for the last few months. You wouldn’t know it by looking at the indexes.

I wrote this opening salvo earlier in the week when the S&P 500 was hovering near all-time highs. This morning, due to a new variant in South Africa, stocks are selling off sharply. The Dow Jones Industrial Average, the people’s index, is down over 1,000 points, sitting 5% below the all-time highs from earlier this month.

It’s been a while since we’ve seen these names on the leader and laggard board and I was hoping to never...



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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.

...



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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; ...



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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...



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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...

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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...



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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...



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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...



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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 ...



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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...



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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...



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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...



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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.
...

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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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