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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Phil's Favorites

Technology start-ups that fail fast succeed faster

 

Technology start-ups that fail fast succeed faster

It took Thomas Edison countless failures before he succeeded in developing a marketable lightbulb. Shutterstock

Courtesy of Grant Alexander Wilson, University of Saskatchewan

Failure rates of new technology-based companies are shockingly high. It is estimated that 75 per cent of technology start-ups do not generate profits. Other data suggests upwards of 90 per cent of new technology enterprises completely fail.

However, some fa...



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Zero Hedge

The "Trade War" Is Over, Trump Just Doesn't Realize It Yet!

Courtesy of ZeroHedge View original post here.

Authored by Lance Roberts via RealInvestmentAdvice.com,

On Tuesday, the markets bid higher following a statement from the U.S. Trade Representative’s office that tariffs will commence on September 1st, but that some products will be delayed until December 15th. To wit:

“…some tariffs will take effect on Sept. 1 as planned, ‘certain products are bei...



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Kimble Charting Solutions

Transports 10-Year Bullish Trend Being Tested! Rally Time or Breakdown?

Courtesy of Chris Kimble

Is the DJ Transportation Index presenting a rare buying opportunity? The broad market most likely hopes so!

Transports have spent the majority of the past decade creating a series of higher lows. This pattern has created rising channel (1), which started back in 2009.

Transports have created a bearish divergence to the S&P 500 over the past 20-months, as they have created lower highs, while the S&P has done the exact opposite.

The softness in Transports has the testing its May lows and the 10-year rising channel to start out the week at (2). While testing...



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Insider Scoop

UBS: Monster Beverages Continues To Face 'Fundamental Controversy'

Courtesy of Benzinga

Monster Beverage Corp (NASDAQ: MNST) continues to face a "fundamental controversy" related to its growth profile, especially for the Reign brand which fell short of expectations in the second quarter, according to UBS.

The Analyst

UBS analyst Sean King maintains a Sell rating on Monster Beverage's stock with a $52 pr...



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The Technical Traders

Negative Yields Tell A Story Of Shifting Economic Leadership

Courtesy of Technical Traders

Negative yields are becoming common for many of the world’s most mature economies.  The process of extending negative yields within these economies suggests that safety is more important than returns and that central banks realize that growth and increases in GDP are more important than positive returns on capital.  In the current economic environment, this suggests that global capital investors are seeking out alternative solutions to adequately develop longer-term opportunities and to develop native growth prospects that don’t currently exist.

Our research team has been researching this phenomenon and how it relates to the continued “capital shift&rdq...



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Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...



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Chart School

Bitcoin 2019 fractal with Gold 2013

Courtesy of Read the Ticker

Funny how price action patterns repeat, double tops, head and shoulders. These are simply market fractals of supply and demand.

More from RTT Tv

Ref: US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter

Today's news from the US IRS has been blamed for the recent price slump, yet the bitcoin fractal like the gold fractal suggest the market players have set bitcoin up for a slump to $9000 USD long before the IRS news hit the wire.

Get the impression some market players missed out on the b...

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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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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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