Posts Tagged ‘EMR’

Options Player Takes to Beazer Homes USA

Today’s tickers: BZH, CPB, EMR & RENN

BZH - Beazer Homes USA, Inc. – Shares in the designer and builder of single- and multi-family homes increased as much as 5.7% today to $3.53, joining other homebuilding companies in a sector rally ahead of May new home sales data due out on Thursday morning. One options player populating Beazer Homes this afternoon constructed what appears to be a long-term bullish bet on the stock. It looks like the investor sold 3,000 puts at the January 2012 $3.0 strike for a premium of $0.42 each in order to purchase 3,000 calls up at the February 2012 $4.0 strike at a premium of $0.52 apiece. Net premium paid to get long the calls amounts to $0.10 per contract and positions the trader to make money should Beazer’s shares surge 16.15% over today’s high of $3.53 to surpass the effective breakeven price of $4.10 at February expiration. Shares in BZH last traded above $4.10 on June 1. The stock is currently down more than 43% off its January 14th 52-week high of $6.23. Beazer Homes USA reports third-quarter earnings before the market opens on August 2.

CPB - Campbell Soup Co. – Demand for put options on the food products manufacturer jumped this morning after analysts at Goldman Sachs reportedly recommended buying July $33 strike puts on the chicken noodle soup maker ahead of the company’s analyst day. The sharp increase in put activity on the stock sent Campbell’s overall reading of options implied volatility up 34.4% to 16.55% by 12:05pm in New York. Shares in CPB currently trade 0.60% lower on the day at $34.01. The July $33 strike put is by far the most active this afternoon, with more than 7,400 puts having changed hands against previously existing open interest of just 576…
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Lifting the Axle

Today’s tickers: AXL, PALM, POT, XLF, EMR, AA, & BIIB

AXL – Shares of the Tier 1 supplier of parts and components to the automotive industry have rallied more than 8.5% to a whopping $2.78 today. The improvement in the stock, since touching down to just 26 cents on March 9, 2009, prompted one uber-bullish investor to enact a call spread in the October contract. The trader seems to have determined that the $300 million cut in AXL’s second- and third-quarter revenue streams, felt in the wake of its bankruptcy-brethren GM and Chrysler, will have been replenished by the fall. The summer shutdowns by the automakers are certainly painful for the time being as the two behemoths account for 90% of AXL’s annual revenue. Hoping for a ridiculous turnaround in circumstances, the investor initiated the purchase of 10,000 calls at the October 5.0 strike price for a premium of 40 cents apiece which were spread against the sale of 10,000 calls at the higher October 7.5 strike for about 15 cents each. The net cost of the transaction amounts to 25 cents and yields maximum potential profits of 2.25. Shares will need to grow with the tenacity of the Hulk in order to rally more than 169% over the next five months. – American Axle & Manufacturing Holdings, Inc.

PALM – Put options on the mobile devices company were favored by option investors on the scene today amid a share price decline of 3% to $13.22. One trader targeted the July contract in order to initiate a bearish ratio put spread. The transaction involved the purchase of 2,800 puts at the in-the-money July 14 strike puts for a premium of 2.82 per contract spread against the sale of 5,600 puts at the lower July 10 strike for about 70 cents apiece. The net cost of the pessimistic play on PALM amounts to 1.42 and yields maximum potential profits of 2.58 to the trader if shares decline down to $10.00 by expiration. Profits begin to amass if shares fall another 5% to the breakeven point at $12.58 by expiration next month. Option implied volatility has ramped up significantly over the past couple of days from 93% at the start of Thursday to the current reading of 112% ahead of the release of The Pre tomorrow. – Palm, Inc.

POT– We observed an interesting use of out-of-the-money puts by one investor on
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Sun bulls still looking for better news using option spreads

Today’s tickers: JAVA, APOL, EWZ, EMR, BBBY, WYNN, CSCO, CBG, GE & AA

JAVA Sun Microsystems, Inc. – Shares continue to slide for the second day after JAVA allegedly rejected IBM’s offer of $9.40 per share because it was too low. Currently, shares have declined by more than 4.5% to $6.26. A couple of contrasting trades caught our attention as one investor played the downside and another looked for upside movement in shares. In the May contract it appears that a ratio put spread was initiated with the sale of 22,000 puts at the May 5.0 strike for 46 cents each spread against the purchase of 11,000 puts at the May 6.0 strike for 89 cents apiece. The investor receives a credit of 3 cents for initiating this trade and stands to make a maximum profit of 103 cents if shares decline to $5.00 by expiration, but would burst apart at the seams should Sun’s shares breach $3.97. Further along in the October contract, a trader hoping to see JAVA rebound put on a bullish call spread which was partially funded by the sale of put options. At the October 5.0 strike price 10,000 puts were sold for a premium of 80 cents apiece. Meanwhile, a bull call spread was established via the purchase of 10,000 calls at the October 7.0 strike for 1.15 each and spread against the sale of 10,000 calls at the October 9.0 strike price for a premium of 40 cents apiece. This optimistic strategy yields the investor a 5 cent credit because the premium enjoyed on the sale of the put options and the sale of the higher strike calls more than offsets the cost of the October 7.0 strike call options. If shares can rally to $9.00 by expiration this fall, the investor stands to gain a maximum profit of 2.00 on the call spread plus the 5 cent premium. The two trades indicate bearishness in the near-term and bullishness as we head towards the concluding months of 2009.

APOL Apollo Group, Inc. – A provider of higher education to working adults, Apollo Group has experienced a 9% drop in shares to $63.17. Apollo’s share price slipped last week after the company warned that its profit margins would likely fail to meet analyst expectations. The recent share price erosion appears to be too severe as APOL still forecasts that it will achieve a 24%…
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Nailed It

 

Nailed It

Courtesy of 

William Bernstein is one of the people I admire most in this industry. He is a true renaissance man, having been a neurologist, financial theorist, money manager, and non-fiction author. If you’ve never read any of his books, I cannot recommend them highly enough. You can check them out here.

Bernstein was on Master’s in Business this weekend with Barry and during their conversation about money, he just absolutely nailed: ...



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Zero Hedge

Zombie Science: Researchers Kept The Brains Of Decapitated Pigs Alive For 36 Hours

Courtesy of ZeroHedge. View original post here.

Authored by Dagny Taggart via The Organic Prepper blog,

Scientists seem to be crossing a lot of boundaries as of late, which begs the question: Just because they can do something, does it mean they should?

Advances in brain-related technology are reaching dystopian levels. ...



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Insider Scoop

Uber To Sell Minority Stake Of Its Autonomous Vehicle Unit To Japanese Consortium

Courtesy of Benzinga.

Uber Technologies is planning to sell a 14 percent stake in its autonomous vehicle unit to existing investor Softbank, Japanese automaker Toyota, and auto parts manufacturer Denso ahead of its much-anticipated initial public offering (IPO), which is expected to happen in May. Though...



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Digital Currencies

5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 18 October 2018, 05:33:01 PM

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Comment: Why The Stock Market Is Heading For Disaster youtu.be/Gubf0A5pHL0



Date Found: Monday, 29 October 2018, 12:55:07 PM

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Comment: Ross Beaty: We Are Star...



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Kimble Charting Solutions

Silver Bear Market Faces Big Price Support Test!

Courtesy of Chris Kimble.

When silver, gold, and the precious metals industry were red-hot bullish in the 2000’s, investors could do no wrong.

You could buy SILVER at just about any price and it would go higher.

In today’s chart, you can see three large green bullish ascending triangles from the 2000’s that lead to big gains. But that was the bull market before the current bear market.

The tables have turned since the 2011 price top. Silver quickly formed a bearish descending triangle and fell another 50 percent when that broke down. This sent a vicious bear mark...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

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

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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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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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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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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