Posts Tagged ‘EMN’

Bullish Options Trades Give Eastman Chemical, Solutia Deal Thumbs-Up

Today’s tickers: EMN, SOA & OSK

EMN - Eastman Chemical Co. – Investors cheered the deal announced by Eastman Chemical Co. and Solutia, Inc., sending shares in both companies up sharply on Friday. Eastman will reportedly pay $3.38 billion for Solutia, the largest takeover in the diversified chemicals space in more than two years. EMN’s shares are currently up 6.0% to stand at $49.93 as of 11:30 a.m., and have rallied nearly 25.0% since the start of the New Year. Options activity on Eastman following news of the deal suggests some strategists expect shares in the manufacturer of chemicals, plastics and fibers to extend gains in coming months. Investors are favoring call options on EMN, exchanging more than 2.3 calls on the stock for every one put option in play. Call volume is heaviest in the March expiry, more specifically at the $50 and $52.5 strike prices. Nearly 3,000 calls have changed hands at the Mar. $50 strike against open interest of 379 positions. It looks like most of these contracts were purchased for an average premium of $3.10 each, thus positioning buyers to profit in the event that Eastman’s shares rally another 6.3% to surpass the average breakeven price of $53.10 by expiration. Bullish activity spread to the higher Mar. $52.5 strike, where investors appear to have purchased more than 1,000 calls at an average premium of $1.42 apiece. Higher-strike call buyers may profit at March expiration if shares in the chemical producer surge 8.0% to exceed the average breakeven price of $53.92. Eastman’s shares last traded above $53.92 back in May 2011. The Company reported fourth-quarter and full year earnings after the closing bell yesterday.

SOA - Solutia, Inc. – Shares in St. Louis, Missouri-based Solutia, Inc. jumped 43.0% to an…
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Call Buyers Converge On Rubbermaid

 

Today’s tickers: NWL, RIMM & EMN

NWL - Newell Rubbermaid, Inc. – Big prints in Newell Rubbermaid call options pushed the consumer products provider onto our ‘hot by options volume’ market scanner this morning. The burst of call options activity on the stock appears to be largely driven by one or more traders positioning for the price of the underlying to appreciate in the next couple of months. Shares in Rubbermaid are currently down 0.75% to stand at $17.23 as of 1:15 PM in New York. The Company is scheduled to report fourth-quarter earnings before the market opens on January 27. In-the-money call buying at the February $17 strike this morning, where some 550 calls were picked up for a premium of $0.90 each, was followed minutes later by the purchase of a large block of 10,000 calls at the Mar. $18 strike at a premium of $0.65 apiece. All told, more than 12,600 calls have changed hands at the Mar. $18 strike against open interest of just 156 contracts. Traders long these call options may profit at expiration in March if shares in Rubbermaid surge 8.2% to surpass the effective breakeven price of $18.65. We note that, while the block of 10,000 calls do not appear to be tied to any transaction in the underlying shares today, it’s possible the buyer is short the stock and using the long calls to hedge delta. The interpretation of the transaction would, in that case, change from bullish to bearish as the short stock position yields profits if shares in Rubbermaid decline. Finally, fresh put positions established at the Mar. $17 strike, where around 1,100 contracts were purchased at an average premium of $0.92, suggests some traders are poised to potentially profit should the price of the underlying stock pullback ahead of expiration day.…
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Phil's Favorites

Why do so many people fall for fake profiles online?

 

Why do so many people fall for fake profiles online?

Do you want to be friends with this person? Sasun Bughdaryan

Courtesy of Arun Vishwanath, University at Buffalo, The State University of New York

The first step in conducting online propaganda efforts and misinformation campaigns is almost always a fake social media profile. Phony profiles for nonexistent people worm their way into the social networks of real people, where they can spread their falsehoods. But neither social media companies nor technological innovations offer reliable ways to iden...



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Zero Hedge

Just How Low Can Iran's Oil Exports Go?

Courtesy of ZeroHedge. View original post here.

Authored by Tsvetana Paraskova via Oilprice.com,

Iran’s oil exports started to fall noticeably in August as key customers in Asia began to curtail oil purchases to either comply with the U.S. efforts to bring Iranian exports to zero, or to win waivers with the U.S. Administration.

...



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ValueWalk

Jeremy Seigel: Buy Moar Stocks

By Jacob Wolinsky. Originally published at ValueWalk.

Jeremy Siegel, professor of finance at The Wharton School, discusses the “incredible strength” of the markets.

H/T Dataroma

Seigel: Markets Show US And China Can’t Have A Full Trade War

Q2 hedge fund letters, conference, scoops etc

Transcript

I just finished my class here at Wharton and I inherited who's a who's afraid of the big bad Trump. Clearly the stock market is I mean you know you thought tariffs are g...



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Kimble Charting Solutions

King Dollar Created Multi-Year Topping Pattern?

Courtesy of Chris Kimble.

The currency markets often play a role in asset management for investors. And one key asset that pays close attention to the US Dollar is Gold (and precious metals). Could a near-term trend change be in store for the US Dollar… and its counterpart, the Euro? Precious metals bulls would love to see the US Dollar topping and the Euro bottoming.

In the chart below, you can see that the two currencies are showing similar reversal patterns – a traditional head and shoulders top for the US Dollar Index and an inverted head and shoulders bottom for the Euro.

BUT, they need to confirm these pattern by breaking down / up.

It’s worth noting that NOTHING has been proved so far, but the potential of both creating longer-term reversal patterns is there and traders should stay tuned.

US D...



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Insider Scoop

Morgan Stanley Bullish On Amazon's New Automated Stores

Courtesy of Benzinga.

Related AMZN Stitch Fix Falls After Piper Jaffray Downgrade; Analyst Says 'Smallest Hint Of Pressure' Could Threaten Valuation ...

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Digital Currencies

Mania to Mania

 

Mania to Mania

Courtesy of 

“Russell rarely played the stock market and had little investing experience when he put around $120,000 into bitcoin in November 2017.”

This comes from a CNN money article, Bitcoin crash: This man lost his savings when cryptocurrencies plunged. From January 2017 through the peak in early 2018, Ethereum gained 16,915%.

Any time you have something go vertical, you just know that some peopl...



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Chart School

Weekly Market Recap Sep 16, 2018

Courtesy of Blain.

Slow and steady drip up all this past week in a very quiet news environment.  A gap down top open the day Tuesday (which was recovered quickly) and a gap up Thursday (which held) were the highlights!

The latest on TRADE WARS!(tm):

Tuesday, news hit that China vowed to retaliate and plans to ask the World Trade Organization next week for permission to impose sanctions on the U.S. for Washington’s noncompliance with a ruling in a dispute over U.S. dumping duties, Reuters reported. That’s part of a dispute that goes back to 2013.

“Trade wars are certainly a concern, but I don’t know that they’re a one...



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Members' Corner

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

 

Adding this article to Members Corner, in case anyone wants to share their opinions on Nike and Kaep, or on divisiveness in general. Also see "A Warning From Europe: The Worst Is Yet to Come" and "What’s behind the current wave of ‘corporate activism’?" ~ Ilene

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

Courtesy of Simon Chadwick, University of Salford and ...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

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

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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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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