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

Three Shot In Times Square Including Four-Year-Old Girl

Courtesy of ZeroHedge View original post here.

New York's Times Square was temporarily cordoned off on Saturday after at least three people were injured in a shooting, according to NBC News, citing police. The suspect, pictured below, was caught on camera.

Earlier today, 3 people were shot in @TimesSquareNYC, including a 4-year-old child.

Help your @NYPDDetectives identify the man pictured below — they want to talk him about the incident.

Call...



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Phil's Favorites

How big is this crypto boom?

 

How big is this crypto boom?

Courtesy of John Hempton, Bronte Capital

Google Trends doesn't predict stock market rallies, well somtimes it does. But more likely it is coincident with them, the suckers at the end of the boom being the biggest (yet) wave of retail buyers.

Here is a five year trend for the phrase "how to buy stocks" for the USA.

 

It has two peaks, one at the height of t...



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Digital Currencies

How big is this crypto boom?

 

How big is this crypto boom?

Courtesy of John Hempton, Bronte Capital

Google Trends doesn't predict stock market rallies, well somtimes it does. But more likely it is coincident with them, the suckers at the end of the boom being the biggest (yet) wave of retail buyers.

Here is a five year trend for the phrase "how to buy stocks" for the USA.

 

It has two peaks, one at the height of t...



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Biotech/COVID-19

India COVID crisis: four reasons it will derail the world economy

 

India COVID crisis: four reasons it will derail the world economy

India is the fifth largest economy in the world. Deepak Choudhary/Unsplash

Courtesy of Uma S Kambhampati, University of Reading

The second wave of the pandemic has struck India with a devastating impact. With over 300,000 new cases and 3,000 deaths across the country each day at present, the total number of deaths has just passed the 200,000 mark – that’s about one in 16 of all COVID deaths across the world....



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Chart School

Yellen can not stop the dollar decline

Courtesy of Read the Ticker

Printing money results in a lower currency, so long as the currency does not fall too fast.

Previous Post: US Dollar Forecast - Weakness

Here are the very strong fundamentals for a lower US dollar: 

(a) US inflation exploding.
(b) Massive US twin deficits.
(c) Better conditions in Europe.

However French election worries in 2022 Q1 and Q2 may provide US dollar strength (via European weakness) after Christmas, but this strength may come after a low in the DXY near $84.  

It looks like Yellen knows a down swing in the US dollar is near because ...

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Politics

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

 

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

Over the past few decades, hundreds of millions of Chinese citizens have become part of the middle class. AP Photo/Ng Han Guan

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

China’s large and impressive accomplishments over the past four decades have spurred scholars and politicians to debate whether the decline of the West – including the ...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Kimble Charting Solutions

Will Historic Selloff In Treasury Bonds Turn Into Opportunity?

Courtesy of Chris Kimble

Long-dated treasury bonds have been crushed over the past year, sending ETFs like TLT (20+ Year US Treasury Bond ETF) spiraling over 20%.

Improving economy? Inflation concerns? Perhaps a combination of both… interest rates have risen sharply and thus bond prices have fallen in historic fashion.

Today’s chart looks at $TLT over the past 20 years. As you can see, the recent decline has truly been historic. $TLT’s price has swung from historically overbought highs to oversold lows.

At present, the long-dated bond ETF ($TLT) is trading 7.8% below its 200-...



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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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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. Contact Ilene to learn about our affiliate and content sharing programs.