Posts Tagged ‘ELX’

Weekly Calls Active On Cisco As Shares Rally

Today’s tickers: CSCO, FTNT & ELX

Options commentary will resume on July 8, 2013.

CSCO - Cisco Systems, Inc. – Shares in Cisco Systems are up the most in the Dow Jones Industrial Average this morning, trading up 1.15% at $24.60 as of 11:15 a.m. in New York. Trading traffic in weekly options contracts on the maker of switches and routers today indicates some traders are positioning for the price of the underlying to continue to climb in the near term. Out-of-the-money calls that expire next week attracted buyers in the early going, with roughly 1,400 lots in play at the Jul 12 ’13 $25 strike. It looks like most of the volume was purchased for an average premium of $0.17 apiece, thus positioning buyers to profit at expiration next week should CSCO’s shares rally another 1.3% over today’s high of $24.84 to exceed the average breakeven point at $25.17. The Jul 12 ’13 $25.5 and $26 strike calls are also active, with more than 900 of the $25.5 strike calls purchased at a premium of $0.09 apiece and roughly 300 of the $26 strike weekly calls picked up for a premium of $0.03 each. Options traders are favoring calls on CSCO overall today, with the call/put ratio hovering around 4.5 at 11:30 a.m. ET.

FTNT - Fortinet, Inc. – A large call spread initiated on Fortinet on Wednesday morning looks for shares in the provider of network security solutions to rise markedly during the next six weeks. The stock rallied as much as 7.3% today to a near four-week high of $18.62 after the company announced it will report second-quarter earnings on…
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Options Suggest Carnival Corp. Rally Is Running On Empty

Today’s tickers: CCL, ELX, OVTI & KKR

CCL - Carnival Corp. – Shares in the provider of cruise vacations are up 3.0% at $30.30 in early-afternoon trade, but options activity on the stock indicates the rally may lose steam. Investors appear to be selling in- and out-of-the-money calls on the cruise operator today perhaps on the expectation that today’s stock market rally represents but a brief respite from painful market pullbacks on the horizon. Abundant signs the market is slowing coupled with potential debt disasters overseas could dampen consumers’ willingness to spend hard-earned money on a non-essential cruise vacation. Shares in Carnival currently hover just above Wednesday’s fresh 52-week low of $29.35. Traders expecting Carnival’s shares to sink below $30.00 by expiration next month sold some 8,500 calls at the September $30 strike to pocket an average premium of $1.80 per contract. Call sellers keep the full amount of premium received as long as CCL’s shares fail to exceed $30.00 at expiration day. Premium received on the sale acts as a buffer against potentially uncapped losses to the upside, but protection gives way in the event that shares exceed the effective breakeven price of $31.80. Call selling spread to the higher September $32 strike where some 200 lots sold for an average premium of $0.92 a-pop. Reminders of the strong headwinds to growth going forward would likely once again spur investors to abandon ship on consumer discretionary names such as Carnival. The call options sold today expire several days ahead of CCL’s third-quarter earnings report on September 20.

ELX - Emulex Corp. – Shares in the provider of networking convergence solutions and equipment rose 1.6% this afternoon to $6.92, led higher by the broad market rally in U.S. stocks and Cisco’s better-than-expected fourth-quarter earnings report. Emulex is slated to post its…
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Massive Trade in American Eagle Calls Commands Attention

Today’s tickers: AEO, AMKR, SWFT & ELX

AEO - American Eagle Outfitters, Inc. – Options on apparel retailer American Eagle are some of the most active today after one big player traded 65,000 February contract call options on the stock. Shares in the name surged 9.1% to an intraday high of $14.32 after June retail sales for apparel and teen stores came in far better than estimated. The run up in the price of the underlying today as well as the rise in implied volatility on the stock seem to have set the stage for the massive position initiated in AEO options. The trader sold some 65,000 calls at the February $15 strike, against nearly nonexistent open interest, to pocket premium of $1.10 per contract. Premium received on the trade amounts to $7.15 million, which the investor keeps as long as the calls expire worthless at expiration next year. The investor responsible for the transaction sees shares likely trading below $15.00 over the next eight months, but is on the hook to deliver a staggering 6.5 million shares of stock should the calls land in-the-money at expiration.

American Eagle’s shares spent the majority of their days trading above $15.00 from around February 10 through May 5. It seems reasonable to suspect the stock could once again rally above that level, particularly given the occasional bouts of takeover rumors that have pushed shares higher in the past. The enormity of the transaction and the risk of potentially needing to fulfill the contractual obligation to deliver stock at $15.00, regardless of how expensive shares could be in the open market at that time, may mean the investor responsible for the trade is long the stock and selling covered calls. In this scenario the trader is happy to pocket the rich premium…
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Caterpillar Call Options Active Ahead of Earnings

Today’s tickers: CAT, CLX, S & ELX

CAT - Caterpillar, Inc. – Signs of bullish sentiment on the machinery maker appeared in the options market this morning with the price of Caterpillar’s shares rising as much as 3.1% to an intraday high of $112.20. Strong earnings from a number of big industrials-names this week helped CAT’s shares higher in the face of the company’s own first-quarter earnings report ahead of the opening bell on Friday. In weekly options on the stock, the April ’29 $105 strike put options are most active. Two-way trading in the puts suggests mixed sentiment in the days leading up to CAT’s earnings. Buyers of the puts may be wary of an earnings miss, while sellers of the contracts seem to be saying they at least expect shares in the name to remain above $105.00 through expiration on Friday. Meanwhile, the May contract is a-buzz with activity as well. Call options are more heavily populated than puts in early-afternoon trade. Bullish players positioning for the price of the underlying stock to continue to climb ahead of expiration day next month bought calls and sold puts. Volume is heaviest in the May $115 strike calls, where around 6,300 contracts have changed hands, fewer contracts than the 11,355 lots of previously existing open interest at that strike. Buyers of the options are dominating, paying an average premium of $1.60 per contract for the right to buy the underlying stock at $115.00. Investors long the May $115 strike calls profit at expiration if shares in CAT rally another 3.9% over the current price of $112.20 to exceed the average breakeven point on the upside at $116.60. More than 1,100 call options were picked up at each of the May $120 and $125 strikes at average premiums of $0.52 and $0.17, respectively. Caterpillar’s shares recently hit an all-time high of $113.93 on April 4, 2011. Options players traded more than 55,000 contracts on the machinery manufacturer by 1:20pm in New York.…
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Bull Constructs Three-Legged Spread on Beazer Homes USA

 Today’s tickers: BZH, HBC, MON, EBAY, ELX & PMCS

BZH - Beazer Homes USA, Inc. – A three-legged options combination play initiated on the homebuilder that designs, sells and builds single-family and multi-family homes in the U.S. indicates one strategist sees shares improving ahead of August expiration. Shares in Beazer Homes USA rose 1.5% this afternoon to $5.99 in the final hour of the session. The homebuilding company will reveal its performance for the first quarter before the market opens for trading on February 4, 2011. The investor responsible for the bullish spread sold 5,000 puts at the August $4.0 strike for a premium of $0.25 each, purchased 5,000 calls at the August $6.0 strike for a premium of $1.05 a-pop, and sold the same number of calls at the higher August $7.0 strike at a premium of $0.60 apiece. The net cost of putting on the trade amounts to $0.20 per contract. Thus, the trader stands ready to make money should shares in BZH rally 3.5% over the current price of $5.99 to surpass the effective breakeven point to the upside at $6.20 by expiration day. Maximum potential profits of $0.80 per contract are available to the trader if the homebuilder’s shares surge 16.9% to trade above $7.00 by the time the contracts expire in August. Selling the upper-strike calls as well as the out-of-the-money put options greatly reduced the cost of taking a bullish stance on the stock. The sale of the August $4.0 strike put options suggests this trader is more than willing to bear the risk of having 500,000 shares of the underlying stock put to him at $4.00 each should the puts land in-the-money at expiration.

HBC - HSBC Holdings PLC – Some investors trading options on the financial services firm are positioning for the price of the underlying to appreciate in the next couple of months, while others appear to be taking profits off the table today. Shares in London-based HSBC Holdings increased as much as 4.9% during the current…
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Hewlett-Packard Options Deliver Winner to Call Seller

Today’s tickers: HPQ, ELX, FXI, IYR, MOS, WFC, ABX & VIX

HPQ - Shares of the global technology company have surrendered more than 2% to arrive at the current price of $43.85. Gloomy predictions by one bearish investor were rewarded during the session as he apparently made a closing purchase of a short call position in the September contract. It appears that the trader originally shed about 4,500 calls at the September 47 strike price for a premium of 65 cents each back on August 12, 2009. Today he closed out the short position by buying the calls back for just 12 cents per contract. The trader’s pessimistic foresight yielded net profits of approximately 52 cents for a total payoff of $238,500. – Hewlett-Packard Co. –

ELX - The telecommunications firm appeared on our ‘hot by options volume’ market scanner after bullish activity was detected in the January 2010 contract. Shares of ELX have resisted the overall bearish market momentum today by rising a modest 0.5% to $9.72. A bullish risk reversal was established through the sale of 5,000 puts at the January 7.5 strike for 30 cents each spread against the purchase of 5,000 calls at the higher January 12.5 strike for 35 cents apiece. The net cost of the transaction amounts to just one nickel per contract and positions the trader to benefit from further bullish movement in the price of the underlying. Shares of Emulex must rally approximately 29% higher by expiration in order for the investor to break even at a price of $12.55. – Emulex Corp. –

FXI - A bearish reversal play was enacted on the China ETF this afternoon amid a 2% decline in shares to $38.46. The investor responsible for the reversal may simply be looking to amass profits to the downside. Alternatively, the trader could hold a long position in the underlying stock, in which case he has taken a protective stance. The transaction involved the sale of 15,000 calls at the November 39 strike price for 3.00 apiece spread against the purchase of 15,000 in-the-money put options at the same strike for 3.20 each. The sale of the calls significantly reduced the cost of getting long the puts. The reversal cost the investor just 20 cents per contract and allows him to accrue profits beneath the breakeven price of $38.80. Given the current price of the FXI, the trader has already amassed profits…
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Elan Reversals Indicate Bearish Sentiment

Today’s tickers: ELN, NOK, WYE, ELX, GERN, VALE, NVDA & EXC

ELN – The neuroscience-based biotechnology company headquartered in Dublin, Ireland, jumped onto our ‘most active by options volume’ market scanner after a massive bearish reversal was initiated on the stock. Shares are currently lower by more than 5% to $6.59. It looks as though one trader sold 30,500 calls at the January 2010 10 strike price for 50 cents apiece in order to finance the purchase of 30,500 puts at the January 5.0 strike for 74 cents per contract. The net cost of getting long the protective put options amounts to 24 cents. We note that the existing open interest present at both strike prices exceeds the volume traded today. But, it does not appear that this trade represents an attempt to close a previously established position. – Elan Corporation PLC

NOK– The manufacturer of mobile devices has experienced a share price decline of more than 3% to stand at $14.55. We observed a number of bearish trades by investors active on the stock today amid a rating initiated as ‘underperform’ by analysts at BMO Capital Markets. Traders appear to be bracing for significant declines in the price of the underlying as the October 11 strike price saw more than 11,000 put options purchased for 32 cents apiece. Shares would need to plummet 27% from today’s price before profits begin to amass for put-holders at the breakeven point of $10.68. Additional evidence of bearish sentiment was seen at the January 2010 20 strike price where 5,400 calls were shed for 39 cents per contract. – Nokia Corporation

WYE– A sudden frenzy of bullish call activity on the pharmaceutical company was picked up by our scanners this afternoon amid a slight 0.5% decline in shares to $45.12. It appears that the investor or investors responsible for the call action expect Wyeth’s shares to move higher. Perhaps such sentiment stems from speculation regarding the proposed Pfizer-Wyeth merger, which will be put to a shareholder vote at Wyeth on July 20, 2009. In the nearer-term August contract, it looks as though a long call position was rolled to a higher strike price resulting in fresh buying of some 5,000 calls at the August 50 strike price for 15 cents apiece. The calls appear to have been rolled from the existing open interest at the lower August 45 strike where 5,000 lots look
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Phil's Favorites

The PhilStockWorld.com Weekly Webinar - 05-27-2020

For LIVE access on Wednesday afternoons, join us here at Phil's Stock World!

 

Major Topics:

00:01:40 - Yang 4 Day Work Week
00:12:21 - DIS
00:19:01 - Bonds
00:25:49 - COVID-19 Update
00:41:12 - Trading Techniques
00:45:18 - US Corporate Taxes
00:52:27 - US National Debt
01:04:36 - Beige Book
01:09:25 - Hedge Funds
01:10:08 - States Reopening
01:14:16 - May Portfolio Review
01:14:52 - STP & LTP
01:26:38 - PAA & Strategy Section
01:29:44 - CSCO
01:34:04 - LTP
01:35:18 - VIAC

Phil's Weekly Trading Webinars provide a great opportunity to learn what we do at PSW. Subscribe t...



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Biotech/COVID-19

How coronavirus contact tracing works in a state Dr. Fauci praised as a model to follow

 

How coronavirus contact tracing works in a state Dr. Fauci praised as a model to follow

Pairing widespread testing with fast, effective contact tracing is considered essential for controlling the coronavirus’s spread as the U.S. passes 100,000 deaths. AP Images/Rick Bowmer

Courtesy of Jenny Meredith, University of South Carolina

After weeks of keeping people home to “flatten the curve,” restrictions on U.S. businesses are loosening and the coronavirus pandemic response is moving ...



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ValueWalk

Don't expect a second round of stimulus checks in June

By Michelle Jones. Originally published at ValueWalk.

Lawmakers from both parties are finally starting to agree that a second round of coronavirus stimulus checks may be needed. However, they are still a long way from making a final decision that will actually result in another round of checks for everyone. Here’s the current status on a second round of stimulus checks.

Q1 2020 hedge fund letters, conferences and more

Coronavirus stimulus checks: second round status

The Democrat-led House of Representatives passed the Health and Ec...



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Zero Hedge

Futures Tread Water In Calm Before US-China Storm, Trump Twitter Crackdown

Courtesy of ZeroHedge View original post here.

The S&P's remarkable stretch of posting gains in the overnight session continued for another day, with the S&P rising as high as 3,053, and last trading 9 points higher at 3,044, tracking global stocks higher, with Europe's Stoxx 600 rising 1.3% to session highs as investors weighed again increased friction between America and China and the official passage of China's National Security Law in defiance of Trump, against fresh fiscal stimulus promised by the European Union. Treasuries edged up, while the dollar was modestly lower even as traders "treaded water...



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Kimble Charting Solutions

Tech Indicator Suggesting A Historic Top Could Be Forming?

Courtesy of Chris Kimble

Tech stocks have been the clear leader of the stock market recovery rally, this year and since the lows back in 2007!

But within the ranks of leadership, and an important ratio may be sending a caution message to investors.

In today’s chart, we look at the ratio of large-cap tech stocks (the Nasdaq 100 Index) to the broader tech market (the Nasdaq Composite) on a “monthly” basis.

The large-cap concentrated Nasdaq 100 (only 100 stocks) has been the clear leader for several years versus the ...



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The Technical Traders

M2 Velocity Collapses - Could A Bottom In Capital Velocity Be Setting Up?

Courtesy of Technical Traders

M2 Velocity is the measurement of capital circulating within the economy.  The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth.  When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.

The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market colla...



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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Chart School

Is this your local response to COVID 19

Courtesy of Read the Ticker

This is off topic, but a bit of fun!


This is the standard reaction from the control freaks.








This is the song for post lock down!







What should be made mandatory? Vaccines, hell NO! This should be mandatory: Every one taking their tops off in the sun, they do in Africa!

Guess which family gets more Vitamin D and eats less sugary carbs, TV Show



...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Promotions

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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.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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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