Posts Tagged ‘EA’

Call Spreads Trade On Electronic Arts

Call spreads trading on Electronic Arts Inc. (Ticker: EA) today look for shares in the videogame and digital entertainment company to rocket to fresh multi-year highs during the next couple of months. Shares in Electronic Arts are up 1.0% on the day at $35.65 as of 1:20 p.m. ET.
It looks like roughly 10,000 of the Sep 37.0/41.0 call spread was purchased during the first half of the trading session at a net premium of $1.00 each. The strategy starts making money if shares in EA rally more than 6.0% over the current level to exceed the breakeven price of $38.00 and reaps maximum possible gains of $3.00 per contract in the event the stock soars 15% to $41.00 by September expiration. Electronic Arts is scheduled to report first-quarter earnings after the closing bell on July 22nd. Shares in EA are down roughly 4.0% off a 52-week high of $37.26 reached in June, but is up roughly 50% since this time last year.


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Dreamworks Draws Heavy Options Volume As Shares Soar

DWA – Dreamworks Animation SKG, Inc. – Shares in Dreamworks are soaring on Wednesday, rallying as much as 18.7% to a fresh 52-week high of $33.02, after the animated feature film maker reported third-quarter profits well above average analyst estimates following the closing bell on Tuesday.

Options traders looking for shares in Dreamworks to continue to hit new highs during the next couple of weeks picked up November expiry calls on the stock this morning, helping drive overall options volume on DWA to more than four times the average daily level as of 11:00 a.m. ET. Traders positioning for shares to continue higher appear to have purchased more than 500 of the now in-the-money Nov $32 strike calls for an average premium of $0.95 apiece during the first 20 minutes of the session. Intraday gains in the price of the underlying now finds the $32 strike calls changing hands at $1.65 each as of the time of this writing.

Bullish strategists also appear to be buying the Nov $34 and $35 strike calls, purchasing around 400 of the $34 calls at a premium of $0.55 each and picking up more than 250 of the $35 calls for a premium of $0.30 apiece. Traders long the $34 and $35 strike calls stand ready to profit at expiration in the event that Dreamworks shares rally another 4.6% and 6.9% to exceed breakeven prices of $34.55 and $35.30, respectively. Shares in Dreamworks Animation are up roughly 95% since the start of the year. 

EA – Electronic Arts Inc. – Better than expected second-quarter earnings reported by videogame maker Electronic Arts and an upgrade of the stock to ‘Strong Buy’ from ‘Hold’ with…
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Takeover Chatter Sparks Heavy Volume In Electronic Arts Options

 

Today’s tickers: EA, BKS & SNDK

EA - Electronic Arts, Inc. – Speculative bullish bets are on the rise in Electronic Arts this morning after the New York Post reported, according to unnamed sources, that the second-largest U.S. video game publisher has been approached by private equity firms and may be interested in a $20.00 a share deal. The latest from the rumor mill sent shares in EA up as much as 10% to $14.39 and drove options volume to roughly 10 times the average daily volume by 12:30 p.m. in New York. More than 63,000 contracts have traded on Electronic Arts so far today, with approximately three calls changing hands for each single put option in play. Traders looking for further upside in the near term picked up calls at the Sept. $14 and $15 strikes, paying average premiums of around $0.83 and $0.47 apiece, respectively. The largest trade in EA options this morning was the purchase of a block of 15,855 of the Sept. $16 strike call at a premium of $0.25 each. The buyer of the contracts stands ready to profit at expiration next month should EA shares surge 18% over the current price of $13.78 (EA share price as of 12:45 p.m. ET) to top the breakeven point at $16.25. Of course, the strategist could lose the full $0.25 in premium paid to establish the position should shares remain south of the $16.00-level at expiration.

BKS - Barnes & Noble, Inc. – Bears are snapping up downside puts on Barnes & Noble for a second consecutive day as shares in the bookseller continue to sell off. Shares are down 1.3% on the day at $12.38 in afternoon trading. The most active contracts are the Sept. $11 strike puts that have changed hands 2,200 times in the first half of the session against open interest of 1,589 contracts. It looks like most of the puts were purchased at a premium of $0.90…
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Call Spread Predicts Continued Gains In Store For Gap

 

Today’s tickers: GPS, TJX & EA

GPS - Gap, Inc. – The operator of retail chains Gap, Banana Republic and Old Navy popped up on our market scanners after a large bullish spread was initiated in the May expiry. Shares in Gap are up 2.15% at $26.70 today on the heels of an upgrade to ‘Above Average’ with a target price of $32.00 at Caris & Co. Gap’s shares rallied sharply in the first quarter – currently up 44.5% since the start of 2012 – and it looks like one trader employed a sizable debit call spread to position for the up-trend to continue in the near term. The trader appears to have purchased 6,500 calls at the May $28 strike for a premium of $0.58 each, and sold the same number of calls up at the May $30 strike at a premium of $0.17 apiece. Net premium paid to initiate the spread amounts to $0.41 per contract, thus positioning the strategist to profit at expiration as long as shares in Gap rally another 6.4% to top the breakeven point at $28.41. Maximum potential profits of $1.59 per contract are available on the trade in the event that shares surge 12.4% to trade above $30.00 at May expiration. The Gap, Inc. is scheduled to report first-quarter earnings after the closing bell on May 17th.

TJX - TJX Companies, Inc. – Shares in the off-price retail chain operator kicked off the trading week in rally-mode, trading up 0.70% at the open to a new record high of $39.99, but reversed earlier gains to stand 0.20% lower on the day as of 11:20 a.m. in New York. The most active options on TJX Companies suggest at least one strategist is positioning for fresh all-time highs in the price of the…
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Zero Hedge

What's Hot In Women's Fashion?

Courtesy of ZeroHedge View original post here.

Via Global Macro Monitor,

Capitalism at its best or worst?

We have a few questions:

1)  Does the Tariff Man get a royalty for the sale of each dress sold, and will that violate the Emolumen...



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Phil's Favorites

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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The Technical Traders

Is A Price Revaluation Event About To Happen?

Courtesy of Technical Traders

Skilled technical traders must be aware that price is setting up for a breakout or breakdown event with recent Doji, Hammer
and other narrow range price bars.  These types of Japanese Candlestick patterns are warnings that price is coiling into
a tight range and the more we see them in a series, the more likely price is building up some type of explosive price breakout/breakdown move in the near future.  The ES (S&P 500 E-mini futures) chart is a perfect example of these types of price bars on the Daily chart (see below).

Tri-Star Tops, Three River Evening Star patterns, Hammers/Hangmen and Dojis are all very common near extreme price peaks and troughs.  The rea...



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Kimble Charting Solutions

India About To Experience Major Strength? Possible Says Joe Friday

Courtesy of Chris Kimble

If one invested in the India ETF (INDA) back in January of 2012, your total 7-year return would be 24%. During the same time frame, the S&P 500 made 124%. The 7-year spread between the two is a large 100%!

Are things about to improve for the INDA ETF and could it be time for the relative weakness to change? Possible!

This chart looks at the INDA/SPX ratio since early 2012. The ratio continues to be in a major downtrend.

The ratio hit a 7-year low a few months ago and this week it kissed those lows again at (1). The ratio near weeks end is attempting to...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Credit Suisse raised IHS Markit Ltd (NYSE: INFO) price target from $68 to $76. IHS Markit shares closed at $67.75 on Thursday.
  • Wedbush boosted Restoration Hardware Holdings, Inc (NYSE: RH) price target from $170 to $185. RH shares closed at $169.49 on Thursday.
  • Mizuho lifted Seagate Technology PLC (NASDAQ: STX) price target from $46 to $50. Seagate shares closed at $52.94 on Thursday.
  • UBS raised the price target for Weight Watchers Intern...


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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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Biotech

The Big Pharma Takeover of Medical Cannabis

Reminder: We are available to chat with Members, comments are found below each post.

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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.

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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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