Posts Tagged ‘ELY’

Zynga Weekly Calls Active

ZNGA – Zynga Inc. – A narrower than expected third-quarter loss on higher than expected revenue reported by the social game developer on Thursday lifted shares in Zynga on Friday, with shares in the name rallying as much as 14% to a new 52-week high of $4.04.

Trading traffic in weekly calls on the maker of Farmville and other games suggests some options players are positioning for the price of the underling to extend gains next week. More than 9,000 calls have changed hands at the Nov 01 ’13 $4.0 strike as of 11:30 a.m. ET against open interest of 1,926 contracts, with much of the volume purchased in the early going at a premium of $0.19 each. Buyers of the $4.0 weekly call options on ZNGA stand ready to profit at expiration should shares in the San Francisco, California-based company rally another 3.7% to exceed the breakeven price of $4.19.

Overall options volume on the stock is well above average today, with roughly 72,500 contracts in play versus Zynga’s average daily options volume of around 29,000 contracts. 

ELY – Callaway Golf Co. – Shares in the maker of golf equipment and apparel are soaring on Friday, up better than 14% to hit a new 52-week high of $8.32 after the company reported third-quarter results after the close on Thursday and raised its full-year revenue guidance. Callaway was raised to ‘Buy’ from ‘Neutral’ with a 12-month target share price of $11.00 at DA Davidson following the quarterly earnings report.

Options traders who purchased upside calls on the stock prior to the company’s earnings release are enjoying sizable gains in the value of bullish positions. Yesterday, one or more traders snapped up more than 800 of the Nov $8.0 strike calls at premiums of $0.10 and $0.15 each. The sharp move in the price of the underlying today now finds the $8.0 strike calls trading at $0.40 each as of the time of this writing.

Today, it looks like traders are purchasing in-the-money call options on Callaway, buying roughly 760 of the Nov $7.0 strike calls at an average premium of $1.23 apiece during morning trading. Options players long the $7.0 strike calls stand ready to profit at expiration next month should shares in ELY settle above the average breakeven price of $8.23. 


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Frightening Friday – Halloween Edition!

Wheee what a day! 

Who said we placed a spread bet on the Dow moving 200 points one way or another in yesterday's morning post?  Me, that's who.  And how much did the Dow move yesterday?  199.89 points.  OK, so I was wrong by .11 but our plays worked out just fine and we flipped bearish again as we flew up and we'll see if my streak continues this week.  We would have gone more aggressivley bearish but we were worried about end of the month (and end of the year for many hedge funds) window dressing that would keep things going for one more day.

Everything went according to plan and we got the bounces we were looking for but the RUT failed to retake 589, which was our canary in the coal mine's breakdown level from last week.  As I alerted members at 12:15, that and the Qs failing to hold 42 into the close, which failed to confirm the Nas move over our 2,088 watch level.  We have our DIA puts, we have our SRS longs, we have our DXD longs (which are half price as our DDMs paid off yesterday) and we shorted SPG into the close as Cap noted they had a ridiculous run-up ahead of today's earnings. 

As I said to members in the afternoon, my gut said to go more bearish but we allowed ourselves to be spooked by Mr Stick in the afternoon and ended up about 55% bearish with a 1/2 cover of our long DIA puts but we already made a quick 20% on the sale of short puts in the morning so it's a position we had a little slack in going into the close.  Our logic is, even if we have another up day today, we're still going to want some pretty serious coverage into the weekend unless the Russell and the Qs can confirm this move up today. 

Bulls should be spooked by the fact that a blow-out GDP report, showing an economy with a HUGE turnaround and the President crowing on TV about how great things are going could ONLY erase 1/2 the losses we suffered since last week.  Another market move I hit on the head yesterday was my prediction that, after 3 consecutive 1.8% down days in a row, the Hang Seng would jump
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Long Shots

Every once in a while, it's fun to take a chance.

Today we made a play on YRCW where we sell the 2011 $2.50 puts for $1.75 and sell the 2011 $5 calls for .75, which net's us $2.50 on the $2 stock.  We like YRCW and think they are undervalued here but that's no reason to actually buy them in an uncertain market.  The nice thing about selling the 2 naked leaps is that we have collected $2.50 and our worst-case outcome to the downside is that the stock goes bankrupt and we owe the put holder $2.50 back – making this a null trade

Our real risk (our only risk) is to the upside.  Our strategy for managing that risk is to put a buy on YRCW at $2.50 and a sell on YRCW at $2.50.  In other words, we will buy it when it's breaking over and sell it when it's breaking under.   Each time we do this, we may lose a few pennies here and there but, if YRCW finishes over $2.50 by 2011, we will own the stock for free (we collected $2.50 and paid $2.50 for the stock) and will be called away at $5 – a VERY nice profit over 18 months.

Anything under $2.50 and we keep the net between $0 and the final price, giving the rest back to the put-holder.  This is not the kind of position we worry over, this is simply a play to collect $2.50 and, hopefully, never give it back!  Of course there are margin issues depending on your account situation that need to be considered.  This is a variation of the Buy/Write strategy we love to use, only without the buy.  If you did buy YRCW at $2 and sold the 2011 $5 calls and 2011 $2.50 puts for $2.50 then you would be in the trade for a credit of .50.  In the bankruptcy scenario there, you would have another round put to you at $2.50 and your average entry would be $1 – substantially more potential downside loss than selling naked.  On the upside, you are in better shape as your basis of -0.50 would net you a $5.50 profit if YRCW closes over $5 and you don't have to worry about getting blown out by a buyout of YRCW.

These kinds of plays are always
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Zero Hedge

Google Launches Checking Accounts In Big Tech's Latest Move On Wall Street

Courtesy of ZeroHedge View original post here.

Move over, Apple.

At a time when customers (including the company's co-founder Steve Wozniak) have been non-stop complaining on Twitter about the Apple credit card (brought to you via a partnership with Goldman Sachs), Google has decided that now is the time to make its big leap into the consumer finance business.

According to ...



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Phil's Favorites

The transition from fossils to renewables and its impact on consumer prices

 

The transition from fossils to renewables and its impact on consumer prices

Renewable energy technologies will in the next two years be competitive on price with fossil fuels. Shutterstock

Courtesy of Roula Inglesi-Lotz, University of Pretoria and George Alex Thopil, University of Pretoria

The transition from fossil fuels to cleaner energies is a global pursuit. But it’s faster and more intensive in some countries than others. Take the case of South Africa. Heavily dependent on coal, the country is ...



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The Technical Traders

Welcome to the Zombie-land Of Investing - Part II

Courtesy of Technical Traders

In Part I of this research post, we highlight how the ES and Gold reacted 24+ months prior to the 2007-08 market peak and subsequent collapse in 2008-09.  The point we were trying to push out to our followers was that the current US stock market indexes are acting in a very similar formation within a very mature uptrend cycle.

We ended Part I with this chart, below, comparing 2006-08 with 2018-19.  Our intent was to highlight the new price hig...



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Kimble Charting Solutions

Bank Breakout Of Financial Crisis Highs or Double Topping Again?

Courtesy of Chris Kimble

If the saying “So Goes The Banks, So Goes The Broad Market” is true, banks are facing a critical breakout/resistance test in my opinion.

This chart looks at Financials ETF (XLF) over the past 12-years. This chart reflects that a double top took place prior to the financial crisis getting started.

XLF has remained inside of rising channel (1) since the lows in 2012. It hit double resistance at (2), then it declined nearly 25%.

The decline then tested rising support at (3) and a strong rally has followed. The rally now has XL...



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Insider Scoop

Barrington Downgrades Fluent After Earnings Miss, Stock Drop

Courtesy of Benzinga

Fluent Inc (NASDAQ: FLNT) fell short of top- and bottom-line third-quarter estimates. Some suspect the missed metrics herald longer-term underperformance.

The Rating

Barrington Research analysts James Goss and Patrick Sholl downgraded Fluent to Market Perform but maintained a $5 price target....



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Digital Currencies

3 Reasons Why One Trader Didn't "Manipulate" Bitcoin Price To $20K

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin price highs in 2017 were not the result of a single trader on an exchange, the CEO of payment company Circle claims. In a series of tweets on Nov. 4, Jeremy Allaire disputed ...



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Chart School

Gold Gann and Cycle Review

Courtesy of Read the Ticker

Gold has performed well, golden skies are here again. In fact it has been a straight line move, and this is typically unusual and a pause can be expected.

It seems the markets are happy again, new highs in the SP500, US 10 year interest rates look to re bound, negative interest may soften. The US FED has reversed their QT and now doing $250BN (not QE) repo. The main point is the FED has stopped QT, and will do QE forever. The evidence now is the FED put is under market risk and the possibility of excessive losses do not exist. 

Point: If in future if there is market risk, the FED will print it's way out of it.
Subject To: In this blog view. The above is so until the amount required rocks confidence in the US dollar as a reserve currency.&n...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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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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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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