Posts Tagged ‘EAT’

Trading Picks Up In Dreamworks Calls Prior To Q3 Earnings Next Week

DWA – Dreamworks Animation SKG, Inc. – Animated feature film producer Dreamworks Animation popped up on our ‘hot by options volume’ market scanner on Tuesday morning due to heavier than usual trading in November expiry calls.

Trading in the Nov $30 calls suggests at least one strategist may be positioning for the price of the underlying to hit fresh 52-week highs after the company’s third-quarter earnings report after the closing bell next Tuesday. Roughly 1,900 of the Nov $30 calls have changed hands so far today, which is more than three times previously existing open interest in the $30 calls of 489 contracts. Time and sales data indicates most of the calls were purchased during the first five minutes of the session at a premium of $1.00 each. Call buyers stand ready to profit at expiration next month in the event that Dreamworks Animation’s shares rally 6.6% to exceed the breakeven price of $31.00.

Shares in DWA are currently up 0.45% on the session at $29.07 as of 10:45 a.m. ET. 

FDX – FedEx Corp – Shares in shipping solutions provider FedEx Corporation are up strongly on Tuesday, gaining 3.0% to $131.23 during morning trading after the stock was upgraded to ‘Overweight’ from ‘Neutral’ with a target share price increase to $153.00 from $134.00 at J.P. Morgan.

Trading traffic in weekly calls on FDX indicates some options players are positioning for the price of the underlying to extend gains during the next few sessions. The most-traded weekly calls are the Oct…
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Bearish Options Traders Take A Seat At OpenTable

Today’s tickers: OPEN, FDO & EAT

OPEN - OpenTable, Inc. – Shares in OpenTable are moving lower this morning, down 2.9% at $65.96 as of 11:10 a.m. ET, after analysts at Citigroup initiated a ‘sell’ rating on the stock with a price target of $58.00. Options on the provider of online restaurant reservations are more active than usual, with volume nearing 1,200 contracts versus the stock’s average daily volume of around 600 contracts. Front month put options are seeing the most action, specifically at the Jul $65 strike where more than 800 contracts have changed hands so far today. It looks like most of the $65 puts were purchased for an average premium of $1.13 apiece, thus positioning buyers to profit at expiration next week in the event that OpenTable’s shares dip 3.2% from the current price of $65.96 to breach the average breakeven point on the downside at $63.87.

FDO - Family Dollar Stores, Inc. – Upside call options are changing hands on discount retailer, Family Dollar Stores, Inc., today with shares in the name up as much as 4.6% in the early going to touch a six-month high of $66.90. The company reported better than expected third-quarter comparable store sales growth and higher than expected third-quarter earnings ahead of the opening bell. The Aug $67.5 strike calls attracted the most volume during morning trading, with upwards of 3,900 contracts in play against open interest of 138 contracts. It looks like most of the $67.5 strike calls were purchased for an average premium of $1.60 apiece. Call buyers stand ready to profit at expiration next month should shares in FDO rally another 3.3% over today’s high of $66.90 to surpass the average breakeven price of $69.10. Shares in Family Dollar Stores last traded above $69.10 in December of 2012.

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Options Combo-Play Sees Multi-Year Highs Ahead For Electronic Arts

      Today’s tickers: ERTS, SNE, EAT & ETR

ERTS - Electronic Arts, Inc. – Shares in the video game developer may rally to their highest in more than two years by January 2013 expiration according to three-legged bullish plays initiated in Electronic Arts options this morning. Earlier this week the company announced an agreement to acquire PopCap Games, which makes games for mobile phones, tablets, PCs and social networking sites, in a cash and stock deal valued at up to $1.3 billion. Shares in Electronic Arts are currently up 0.50% to arrive at $23.63 as of 11:30 am ET. Long-term bullish investors eyeing fresh multi-year highs by Jan. 2013 expiration appear to have sold put options on the stock in order to partially offset the cost of debit call spreads. Traders sold around 5,000 puts at the Jan. 2013 $17.5 strike at an average premium of $1.42 each, purchased around the same number of calls up at the Jan. 2013 $25 strike for an average premium of $3.67 per contract, and sold some 5,000 calls at the Jan. 2013 $30 strike at an average premium of $1.97 a-pop. Average net premium paid to initiate the three-way trade amounts to just $0.28 per contract. Investors employing the strategy profit if shares in Electronic Arts rally 7.0% to exceed the average breakeven price of $25.28 by expiration day in more than one year. Maximum potential profits of $4.72 per contract are available on the spread in the event that shares in the interactive entertainment provider jump 27.0% to trade above $30.00 at expiration in January 2013. The company’s first-quarter earnings report is expected to hit the stands after the final bell on August 2.

SNE - Sony Corp. – Call activity on the designer and manufacturer of electronic equipment and devices suggests some strategists are positioning for shares in the Tokyo, Japan-based company to rally substantially by October expiration. Sony’s shares suffered following the March 11 earthquake and tsunami in its home country. A number of…
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Testy Tuesday – Have the Markets Become Comfortably Numb?

"There is no pain you are receding
A distant ship's smoke on the horizon.
You are only coming through in waves.
Your lips move but I can't hear what you're saying.
When I was a child
I caught a fleeting glimpse
Out of the corner of my eye.
I turned to look but it was gone
I cannot put my finger on it now
The child is grown,
The dream is gone.
but I have become comfortably numb
." – Pink Floyd
 

I have a theory that the markets (and the American people in general) aren't irrational, they are simply shell-shocked after suffering a very traumatic group financial experience… 

To be shell-shocked is to be "mentally confused, upset, or exhausted as a result of excessive stress" and the most common symptoms are: Fatigue, slower reaction times, indecision, disconnection from one's surroundings, and inability to prioritize – That certainly sounds like our Congress doesn't it?  Combat stress disorder was first diagnosed in WWI, when 10% of the troops were killed and 56% wounded – far worse than had been experienced in previous wars.  Our current financial crisis has similarly affected more people than any previous crisis with almost everyone knowing someone who is bankrupt or lost their jobs or homes and almost no one escaped the carnage of the downturn without some financial damage. 

Combat fatigue may go a long way to explaining the severe drop-off in volume that has plagued the markets since March, with participation now down to 25% of where we were last January and that leaves us open to the blatant sort of market manipulation that Karl Denninger caught last week as well as the usual nonsense we get daily from HFT programs that drive the market with such precision that we are able to tell how the day is going to go by simply checking our hourly volume targets.  Here's a clip from CNBC where a floor trader discusses market manipulation as a fact of trading (2 mins in).  

As Nicholas Santiago points out on In The Money Stocks,   "January is usually a very high volume month, yet it has started off the New Year even lighter than the last two months of 2009.  Light volume markets are very difficult to
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Bears Bombard Wells Fargo with Pessimistic Option Plays

Today’s tickers: WFC, GS, EWZ, EK, CHRW, BIDU, CBY, ACOR, INTC, EK & EAT

WFC – Wells Fargo & Co. – Bearish traders lumbered around Wells Fargo today purging calls and feasting on out-of-the-money put options. Pessimistic positions were initiated during the trading session despite the 1.5% move up in shares of the underlying to $29.02. Investors piled into put options at the February $23 strike where roughly 23,000 contracts were purchased for an average premium of $0.13 apiece. Perhaps put buyers are merely securing cheap downside protection in case WFC’s shares fall off the proverbial cliff by expiration next month. Traders may be expecting a pull back in shares of the financial firm. If the puts were purchased as an outright bearish bet on the stock, investors long the contracts could turn profits by selling the puts before expiration next month if premium levels on the lots appreciate above $0.13. Medium-term pessimism was apparent in the April contract where traders shed 4,700 calls at the April $32 strike for an average premium of $0.66 each. Additional bearishness took place at the April $28 strike as investors picked up roughly 5,600 puts for $1.55 apiece. Pessimistic trading patterns suggest a bumpy start to the new year for Wells Fargo.

GS – Goldman Sachs Group, Inc. – Bullish activity in the February contract on investment banking firm, Goldman Sachs, suggests shares are poised to pop up in the next few weeks. Shares appreciated slightly during today’s session, rising 0.10% to $169.22 ahead of the closing bell. One optimistic options strategist purchased a debit spread to position for bullish movement in the price of the underlying. The trader bought 10,000 calls at the February $180 strike for a premium of $2.25 apiece, spread against the sale of 10,000 calls at the higher February $185 strike for $1.30 each. The investor shelled out a net $0.95 per contract on the trade. Goldman’s shares must gain approximately 7% from the current price in order for the call-spreader to breakeven at $180.95. Maximum potential profits of $4.05 per contract amass for the trader if GS shares jump 9.3% to $185 by expiration day in February.

EWZ – iShares MSCI Brazil Index ETF – Shares of the EWZ, which corresponds to the performance of publicly traded securities in the Brazilian market, edged 1.75% lower during the trading day to stand at $74.53. Bearish option traders made…
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Zero Hedge

"Mega Find" - 5,000 Classic Motorcycles Stashed In Barns 

Courtesy of ZeroHedge View original post here.

The Federal Reserve's quantitative easing and Treasury's fiscal stimulus have resulted in the greatest monetary experiment of all time. The result of trillions of dollars pumped into the economy has lifted prices of all assets, everything from the stock market to homes to baseball cards to crypto to classic cars and motorcycles. 

Last week, readers were one of the first to know about a rare 1955 Porsche 550 Spyder found in an ol...



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Phil's Favorites

Pandemic recovery will take more than soaring growth - to fuel a more equitable economy, countries need to measure the well-being of people, too

 

Pandemic recovery will take more than soaring growth – to fuel a more equitable economy, countries need to measure the well-being of people, too

Researchers have long been searching for a more comprehensive way to assess national progress than GDP. erhui1979 via Getty Images

Courtesy of Bas van Bavel, Utrecht University and Auke Rijpma, Utrecht University

...

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Digital Currencies

"You'd Have To Shut Down The Internet" To Ban Bitcoin, Says SEC's Hester Peirce

Courtesy of ZeroHedge

Any government efforts to ban Bitcoin would be “foolish,” said Hester Peirce (aka “Crypto Mom”), a very Bitcoin-friendly commissioner at the U.S. Securities and Exchange Commission (SEC), during a MarketWatch virtual conference earlier this week, according to Cryptoslate reporter Liam Frost.

"I think we were past that point very early on because you’d have to shut down the Internet,” Peirce said, adding, “I don’t see how you could ban it. Y...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The Biden Yellen team have made their play, and it is not US dollar friendly.

Janet Yellen speech named "International Priorities — Remarks to The Chicago Council on Global Affairs" (here) can be summed to (via Luke Gromen) :


The US is accelerating a move away from "subjugating the US middle and working class to support the USD", to "subjugating the USD to support the US middle and working classes".



Well the above is true, but as we all know large US deficits and the trend of the US dollar are joined at the hip, and that trend is down '...

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ValueWalk

2021 Sohn Investment Conference Featuring Einhorn, O'Shaughnessy And More

By Jacob Wolinsky. Originally published at ValueWalk.

The 2021 Sohn Investment Conference will be held virtually on May 12, 2021 and Valuewalk will be covering the event. Stay tuned for our in-depth coverage!

Q4 2020 hedge fund letters, conferences and more

Check out our coverage of the 2020 Sohn Hong Kong Conferences here.

All proceeds from The 2021 Sohn Investment Conference will be directed to Rockefeller University, which will provide unrestricted funding for scientists working on some of the highest-risk, highest-reward projects primed to advance the treatment of pediatric...



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Biotech/COVID-19

How worried should you be about coronavirus variants? A virologist explains his concerns

 

How worried should you be about coronavirus variants? A virologist explains his concerns

A COVID-19 patient in an ICU unit in a hospital in Capetown, South Africa, in December 2020. A variant emerged in South Africa that has since spread to other parts of the world. Other new variants could emerge elsewhere. Rodger Bosch/AFP via Getty Images

Courtesy of Paulo Verardi, University of Connecticut

Spring has sprung, and there is a sense of relief in the air. After one year of lockdowns and social distancing, mor...



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Politics

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

 

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

Russian police officers beat people protesting the jailing of opposition leader Alexei Navalny, Jan. 23, 2021 in Moscow. Mikhail Svetlov/Getty Images)

Courtesy of Shelley Inglis, University of Dayton

Russian dissident Alexei Navalny, sick with a cough and ...



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Kimble Charting Solutions

Gold; Load Up The Truck Upon Hitting This Level

Courtesy of Chris Kimble

Gold has created lower highs since peaking last summer. Is Gold near a low? Where would a nice entry point come into play?

This chart looks at Gold ETF (GLD) on a weekly basis over the past few years. GLD hit the top of this rising channel at (1) last summer, as it was above moving averages and relative strength was hitting lofty levels.

The decline over the past 7-months has GLD creating a death cross. Warren Buffett sold his Gold holding before this death cross took place!

Where would one want to pick up some GLD at a nice risk/reward price point?

If GLD reaches rising channel support at (2), w...



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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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Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



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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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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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