Posts Tagged ‘EBAY’

EBay Call Buyers See Overnight Gains As Shares Extend Rally

 

Today’s tickers: EBAY, HOV & ITB

EBAY - eBay, Inc. – Buyers of weekly call options on eBay yesterday are seeing substantial overnight gains on their positions, as shares in the online marketplace provider move higher for a second consecutive session. The stock is up 2.2% at $51.21 this morning, helped higher by positive analyst comments, including an upgrade to ‘Buy’ from ‘Hold’ with a 12-month price target of $56.00 at Cantor Fitzgerald. The company also said it will update its fee structure for online merchants in an effort to make it simpler and more competitive with rival Amazon. Yesterday we noted heavy call buying in the Mar. 22 ’13 $52.5 strike calls, with roughly 3,000 of the weekly contracts purchased at an average premium of $0.08 each during morning trading. Premium on the $52.5 weekly calls has tripled overnight to $0.24 as of 11:15 a.m. ET on Tuesday. Upwards of 3,200 of the $52.5 calls have changed hands this morning, and it looks like some traders may be bulking up on the bullish options, while others take quick profits off the table. The company holds its 2013 Investor/Analyst Day next Thursday in San Jose, California.

HOV - Hovnanian Enterprises, Inc. – Shares in U.S. homebuilder, Hovnanian Enterprises, rallied more than 7.0% to $6.43 this morning on strong housing starts and building permits data. Upside call buying on the stock near the open suggests some traders are positioning for shares in the name to extend gains in the near- and long-term. Traders looking for shares to edge to the highest level since the start of 2013 snapped up around 1,000 calls at the April $7.0 strike for an average premium of $0.125 today, and may profit at expiration next month in the event that HOV’s shares gain more than 10% to settle above the average breakeven price of $7.125. Meanwhile, traders placing longer-term bullish bets on the homebuilder looked to options contracts expiring in January of 2014. Volume in far out-of-the-money calls caught our eye this morning, with…
continue reading


Tags: , ,




Protective Puts Change Hands On Hewlett-Packard As Shares Hit Highest Since May

 

Today’s tickers: HPQ, EBAY & PMTI

HPQ - Hewlett-Packard Co. – An upgrade to ‘Overweight’ from ‘Equal Weight’ with a price target of $27.00 at Morgan Stanley this morning is helping shares in Hewlett-Packard rise to the highest level since May of 2012. Shares in HPQ, up roughly 100% since touching down at a multi-year low of $11.35 in November, rallied 2.5% on Monday morning to trade at $22.72 as of 11:30 a.m. ET. Perhaps seeking to lock in HPQ’s strong gains during the past five months, some options traders appear to be snapping up protective puts on the stock. Notable volume in the May $23 strike put options changed hands during the first half of the trading day, with volume topping 5,400 contracts versus previously existing open interest of 297 lots. It looks like most of these in-the-money contracts were purchased in the early going at an average premium of $1.28 apiece. Profits, or downside protection, on the strategy kick in if shares in Hewlett-Packard drop 4.4% from the current price of $22.72 to breach the average breakeven point on the downside at $21.72 by May expiration.

EBAY - eBay, Inc. – Bullish options looking for shares in the online marketplace operator and payment services provider to reverse recent losses are active today. The stock is down 1.0% on the day at $49.90 as of 11:50 a.m. in New York, on the heels of a more than 12% pullback in the price of the underlying from the stock’s 52-week high of $57.27 set back in February. Trading traffic in weekly calls on eBay suggests some traders are preparing for shares in the name to rebound this week, with upwards of 2,600 lots in play at the Mar. 22 ’13 $52.5 strike versus open interest of 1,122 contracts. It looks like most of the call options were purchased earlier in the session at an average premium of $0.08 each. Call buyers may profit at expiration this week in the event that EBAY shares rally 5.4% over the current…
continue reading


Tags: , ,




Traders Lock In Gains At eBay; Big Prints In XLB, XLI Puts See Stormier Skies Up Ahead

 

Today’s tickers: EBAY, XLB & XLI

EBAY - eBay, Inc. – Equities are moving broadly lower today as Spain’s borrowing costs spike, heightening concerns over Europe’s debt crisis. Shares in eBay, which rallied to a fresh six-year high last week on the heels of better-than-expected earnings and a number of analyst upgrades, surrendered 3.4% this morning to trade at $43.34 as of 11:45 a.m. in New York. Put activity on the operator of online marketplaces and electronic payments systems, PayPal, suggests some traders are bracing for further declines in the near term. Upwards of 5,900 puts changed hands at the Aug. $43 strike this morning versus open interest of 2,887 contracts. It looks like most of the puts were purchased for an average premium of $1.48 apiece, thus providing buyers with profits – or downside protection – beneath the average breakeven price of $41.52 through expiration next month.

XLB - Materials Select Sector SPDR – Materials stocks are among the worst performers on a down day for the market, with shares in the XLB down 2.2% at $34.64 as of 12:30 p.m. on the East Coast. A large block of put options purchased on the fund this morning suggests that materials may continue to decline in the next couple of months. All thirty stocks in the fund are in the red today, with Freeport-McMoRan, the fifth-largest holding and 7.61% of the total, down 4.3% on the day at $32.31. It looks like one big options market participant purchased more than 33,000 puts at the Sept. $30 strike for a premium of $0.30 apiece. Open interest in the Sept. $30 strike put exceeds 28,000 contracts, with the bulk of the existing put positions purchased back on July 10th for a premium of $0.41 each. Bearish positioning in the Sept. $30 put looks for the price of the underlying fund to sustain a more than 14% move to the downside within the next nine weeks to expiration.…
continue reading


Tags: , ,




EBay Options Volume Up Ahead Of Earnings

 

Today’s tickers: EBAY, IR & PLD

EBAY - eBay, Inc. – Options on eBay, Inc. are active today as traders await the Company’s first-quarter earnings report due out after final bell. Shares in the provider of secure online payment services and online marketplaces are off slightly, trading 0.15% lower on the session at $36.03, as of 12:20 p.m. in New York. Signs some traders are prepping for a potential post-earnings report pullback in the price of eBay’s shares cropped up roughly 15 minutes into the trading day. Put volume at the May $34 strike exceeds 8,000 contracts versus just 322 previously existing positions, with most of the puts having been purchased this morning for an average premium of $0.78 apiece. Put buyers may be taking an outright bearish stance on the stock, or could be hedging long positions in the shares prior to the earnings release. Traders buying put options outright profit at expiration if EBAY shares drop 7.8% to breach the average breakeven price of $33.22. Overall options volume on the stock is approaching 45,000 contracts in early-afternoon trade, which is roughly 2.5 times EBAY’s 90-day average options volume read at 17,320. Call options are more active than puts at present, with around 1.25 call options trading for each single put option in play.

IR - Ingersoll-Rand PLC – Options volume on the provider of industrial and security technologies and products is up sharply today, with some 9,500 contracts in play this afternoon versus the stock’s 90 day average volume of 958 contracts. The bulk of the trading traffic is in the front month calls ahead of the Company’s first-quarter earnings report on Friday morning. Shares in Ingersoll-Rand are currently up 0.60% at $40.31 as of 12:45 p.m. ET. April $41 strike calls are seeing the heaviest…
continue reading


Tags: , ,




Sony Corp. Calls And Puts In Play

 

Today’s tickers: SNE, PLCE & EBAY

SNE - Sony Corp. ADR – The consumer electronics maker popped up on our ‘hot by options volume’ market scanner this morning after large positions were initiated in July expiry calls and puts. The strategist responsible for the trades appears to be positioning for shares in Sony Corp. to post double-digit gains in the next five months to expiration. The stock is up 1.35% at $21.17 on Thursday afternoon, one day after the Company’s new handheld game player and entertainment device, the Playstation Vita, went on sale in the U.S. It looks like the trader responsible for the bulk of total volume in Sony options today sold 5,000 puts at the July $16 strike for a premium of $0.35 each, and purchased around the same number of July $23 calls at an average premium of $0.93 apiece. The sizable positions were not marked as a spread, but the trades printed at approximately the same time this morning. The sale of the puts yields a net credit of $0.35 per contract, which the investor keeps as long as shares in Sony exceed $16.00 through expiration day. Long calls at the $23 strike prepare the investor to profit in the event that Sony’s shares rally 13.0% to surpass the effective breakeven price of $23.93 by expiration day in July. Finally, the purchase of around 1,300 calls at the July $22 strike suggests other bullish players are anticipating share price appreciation for the electronics maker. Traders paid an average premium of $1.40 per contract for the $22 strike calls and may profit in the event that shares settle above $23.40 at expiration.

PLCE - Children’s Place Retail Stores, Inc. – Traders driving volume in options on the specialty retailer of children’s apparel and accessories appear…
continue reading


Tags: , ,




Rumor Mill Drives Heavy Action In Valero Options

Today’s tickers: VLO, EBAY, TMO & TRGT

VLO - Valero Energy Corp. – Reports of takeover chatter fueled frenzied trading in Valero Energy Corp. options, with volume in VLO topping 83,000 contracts by 12:05 pm in New York. Shares in the producer of gasoline, jet fuel and other refined products surged 11.1% to $24.28 in early-afternoon trade. Call options are changing hands at a rate of more than three contracts to each single put option in play on the stock. November and December contracts are the most heavily trafficked thus far in the session, although options plays are present in each available expiry. While trading in Nov. and Dec. calls is mixed, there does appear to be a bullish bias to the transactions. Investors snapped up calls at the Nov. $24, $25, $26 and $27 strikes to position for continued bullish movement in the price of the underlying through expiration next month. The Nov. $25 strike call has generated the most volume, with more than 3,500 contracts having changed hands so far today. It appears buyers of the Nov. $25 strike call picked up more than 1,800 lots for an average premium of $0.99 each. Traders long the contracts may profit at expiration day if shares in VLO rally another 4.7% to surpass the average breakeven price of $25.99. Investors hoping to see sharp gains in the stock over the next few weeks purchased around 515 calls up at the Nov. $31 strike for an average premium of $0.09 each. Premium paid to get long the calls may be lost and gone forever in the event that shares are trading below those levels come expiration day in a few weeks time. Valero Energy Corp. is scheduled to report third-quarter earnings before the opening bell on November 1.

EBAY - eBay, Inc. – Bearish activity in eBay, Inc. options this morning suggests one strategist may profit if shares in the provider of online marketplaces and secure payment services decline substantially within the next four weeks. Meanwhile, trading traffic in November contract call options may be the work of an investor throwing in the towel on hopes for a sharp near-term rally in the price of the underlying. Shares in EBAY slipped 2.75% to $30.80 by 11:30 am in New York. Volume in eBay’s options is heaviest at the Nov. $29 strike, where it appears one trader purchased around 6,000 puts for an average premium of…
continue reading


Tags: , , ,




Crowd Forms Around Clorox Call Options

Today’s tickers: CLX, IGT, EBAY & NVLS

CLX - Clorox Co. – Bullish options activity on the manufacturer and marketer of a range of consumer goods jumped this afternoon with shares in Clorox Company rising 5.6% to $71.94. Clorox has been the subject of takeover chatter on several occasions over the years, which in the past tended to drive up the price of the underlying as well as call volume and options implied volatility. No rumors have come to our attention today, but shares are soaring, calls are in high demand and implied volatility is up sharply by 82.6% to arrive at 25.20% by 1:55 pm ET. Options traders are piling into Clorox calls to buy into the rapid rise in the price of the underlying. Volume is heaviest at the July $70 strike where more than 4,200 now deep in-the-money calls changed hands against open interest of 2,322 contracts. Most of the calls at this strike were purchased by first-responders for an average premium of just $0.40 each. The huge run-up in volatility and rally in share price has lifted premium on the July $70 strike calls up to $1.90 each this afternoon. Bulls tacked August contract calls, as well. Traders purchased the majority of the 1,285 calls exchanged at the August $72.5 strike for an average premium of $0.44 a-pop. Investors long the calls profit in the event that shares exceed the average breakeven price of $72.94 through August expiration. Shares in Clorox Co. reached their current all-time high of $72.43 back on February 11. The maker of bleach and Burt’s Bees® personal care products reports fourth-quarter earnings ahead of the opening bell on August 3.

IGT - International Game Technology – Options on International Game Technology, which were popular with strategists positioning for shares in the maker of…
continue reading


Tags: , , ,




eBay Call Options Active Ahead of Earnings

Today’s tickers: EBAY, NTAP, GT & BONT

EBAY - eBay, Inc. – At least one bullish options strategist is positioning for a rally in eBay’s shares ahead of the company’s first-quarter earnings report after the final bell on Wednesday. Shares in the operator of online marketplaces increased as much as 3.1% during the first half of the session to secure an intraday high of $32.94. It looks like one or more investors initiated debit call spreads, buying around 2,000 calls at the June $34 strike for an average premium of $1.04 per contract, and selling roughly 2,000 calls up at the June $36 strike at an average premium of $0.44 apiece. The average net cost of buying the spread amounts to $0.60 per contract. Thus, investors employing call spreads start making money in the event that eBay’s shares rally another 5.0% over today’s high of $32.94 to surpass the average breakeven price of $34.60 by expiration day in June. Maximum potential profits of $1.40 per contract are available on the position if the price of the underlying stock jumps 9.3% to exceed $36.00 at expiration. EBAY’s shares secured a 52-week high of $35.35 back on February 17, 2011.

NTAP - NetApp, Inc. – The provider of enterprise storage and data management software and hardware products and services appeared on our scanners today after sizable prints popped up in long-dated call and put options. Shares in NetApp are currently up 2.1% at $52.10 just after 11:45am. The stock was upgraded to ‘Outperform’ from ‘Sector Perform’ with a 12-month target share price of $64.00 at Pacific Crest this morning. Activity in NetApp LEAPS indicates one options player expects the price of the underlying to improve going forward. It looks like the trader initiated a bullish risk reversal, selling approximately 5,500 puts at the…
continue reading


Tags: , , ,




Vale Options Combination Play

Today’s tickers: VALE, BID, EBAY & YGE

VALE - Vale S.A. – Earlier we reported that a large-volume three-legged bearish transaction had taken place on iron ore producer, Vale. Market sources have since informed us that the direction of the trade is the reverse of what had been indicated by raw time and sales data. The new information regarding the transaction alters our interpretation of the spread to bullish from the previously reported bearish view. Shares in the Brazilian firm increased as much as 0.82% during the session to secure an intraday high of $35.60, but are currently trading 0.20% high on the session at $35.38 as of 2:50pm. The options investor responsible for most of the volume in options exchanged on Vale today reportedly sold a large number of puts on the stock in order to buy in- and out-of-the-money call options in the May contract. The investor paid a net $2.24 per contract, selling 23,000 May $30 strike puts in order to buy 11,500 May $35 strike calls and another 11,500 calls up at the May $40 strike. The transaction positions the trader to benefit from bullish movement in the price of the underlying shares heading into Vale’s fourth-quarter earnings report on February 24, 2011, through to expiration day in May.

BID - Sotheby’s Holdings Inc. – One options player pocketed big profits on a well-timed bullish bet in Sotheby’s calls this morning. The auctioneers’ shares are currently up 0.2% at $48.34 as of 11:30am in New York, but hit a 6-month high of $49.03 yesterday, driving the stock’s run up to 86.4% since August 31, 2010. The gavel-bearer populating Sotheby’s today initiated a bullish bet back on January 25, 2011, when shares in the name encountered a bump in rally-road and slipped to a three-month low of $38.23.…
continue reading


Tags: , , ,




Bullish Player Rigs Up Call Spread on Oil Services HOLDRS Trust

Today’s tickers: OIH, AFFY, CAT, EBAY, IYT & RIG

OIH - Oil Services HOLDRS Trust – Shares in the Oil Services HOLDRS Trust are up 0.50% in the final hour of trading to secure an intraday- and new 52-week high of $147.34. One options player expecting shares to continue to hit new highs through February expiration initiated a debit call spread. Shares in the OIH, an issuer of depository receipts known as Oil Service HOLDRS that represent ownership in the common stock of companies engaged in drilling, well-site management and other services for the oil service industry, are up 5.25% year-to-date, and have surged 57.75% since touching down at a six-month low of $93.36 on July 1, 2010. The optimistic options trader looked to out-of-the-money calls expiring next month, buying 3,600 calls at the February $155 strike for a premium of $1.48 each, and selling the same number of calls up at the February $160 strike at a premium of $0.58 apiece. Net premium paid to initiate the spread amounts to $0.90 per contract. Thus, the investor is prepared to make money should the price of the underlying shares rally another 5.8% over today’s high of $147.34 to surpass the effective breakeven price of $155.90 by expiration day in February. Maximum potential profits of $4.10 per contract are available to the call-spreader should shares in the OIH jump 8.6% to trade above $160.00 before the contracts expire. Options implied volatility inched up 3.2% to 26.42% by 3:55pm in New York.

AFFY - Affymetrix, Inc. – Investors are buying call options on the biotechnology company today with shares in the Santa Clara, CA-based firm rising as much as 7.6% during the session to an intraday- and 6-month high of $5.67. Bullish players expecting shares in Affymetrix to continue to rally picked up…
continue reading


Tags: , , , , ,




 
 
 

Kimble Charting Solutions

DAX Index Hits Two 18-Year Support Lines, Creates Large Bullish Reversal

Courtesy of Chris Kimble

Has the DAX index from Germany experience a large decline of late? Yes, it has!

Has the decline broken long-term rising support lines? Not so far!

This chart looks at the DAX index on a monthly basis over the past 25-years. Over the past 6-years, it has traded sideways inside of the blue rectangle at (1).

The decline this year saw the DAX hit two 18-year rising support lines at (2) last month, where a large bullish reversal took place.

Until broken, important support remains in play at (2), which is bullish for this key index....



more from Kimble C.S.

Zero Hedge

Aaand Its Gone... The Biggest Support For Asset Prices

Courtesy of ZeroHedge View original post here.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Since the passage of “tax cuts,” in late 2017, the surge in corporate share buybacks has become a point of much debate. I previously wrote that stock buybacks were setting records over the past couple of years. Jeffery Marc...



more from Tyler

Phil's Favorites

Here's how scientists are tracking the genetic evolution of COVID-19

 

Here's how scientists are tracking the genetic evolution of COVID-19

Why do scientists care about mutations on the coronavirus? Alexandr Gnezdilov Light Painting

Niema Moshiri, University of California San Diego

When you hear the term “evolutionary tree,” you may think of Charles Darwin and the study of the relationships between different species over the span of millions of years.

While the concept of an “evolutionary tree” originated in Darwin’s “...



more from Ilene

Biotech/COVID-19

Here's how scientists are tracking the genetic evolution of COVID-19

 

Here's how scientists are tracking the genetic evolution of COVID-19

Why do scientists care about mutations on the coronavirus? Alexandr Gnezdilov Light Painting

Niema Moshiri, University of California San Diego

When you hear the term “evolutionary tree,” you may think of Charles Darwin and the study of the relationships between different species over the span of millions of years.

While the concept of an “evolutionary tree” originated in Darwin’s “...



more from Biotech/COVID-19

ValueWalk

Activists demand revamp of anti-redlining law

By Anna Peel. Originally published at ValueWalk.

Over 100 California Community Organizations and Leaders Call for Banking Regulators to Stop Planned Revamp of Anti-Redlining Law during COVID19 Crisis

Q1 2020 hedge fund letters, conferences and more

Worker, Housing, and Small Business advocates call on all resources to be dedicated to saving lives and responding to Coronavirus

San Francisco--Amongst an unprecedented public health crisis that threatens hundreds of thousands of lives, as small businesses are shuttered across California and the nation, and as millions file for...



more from ValueWalk

Chart School

The Big Short movie guides us to what is next for the stock market

Courtesy of Read the Ticker

There is nothing new in WallStreet, it is only the players that change. Sometimes a market player or an event gets ahead of the crowd and WallStreet has to play catch up.

Previous Post Dow 2020 Crash Watch Dow, Three strikes and your out!

It is important to understand major WallStreet players do not want to miss out on a money making moves.  







...

more from Chart School

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.
...

http://www.insidercow.com/ more from Insider

The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

more from Tech. Traders

Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



more from Our Members

Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



more from Bitcoin

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

more from Promotions

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 ...



more from Lee

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.