Posts Tagged ‘EWC’

Option Traders Try Their Luck with Out-of-the-Money Calls on MGM Mirage

Today’s tickers: MGM, EWC, EWZ, DHI, XLF, GLW, TRA, CF, PHM, GFI & EBAY

MGM – MGM Mirage, Inc. – Shares of casino resort operator, MGM Mirage, rallied 5.25% this afternoon to $9.62. Option traders expecting shares to rally significantly in the next 12 months bought call options in the January 2011 contract. Approximately 20,000 calls were purchased at the January 2011 20 strike for an average premium of 70 cents per contract. Investors break even on the calls if MGM’s shares more than double by expiration. Shares must rally at least 115% to the breakeven price of $20.70 in order for call-buyers to begin to accumulate profits.

EWC – iShares MSCI Canada Index ETF – The exchange-traded fund, which mirrors the performance of publicly traded securities in the Canadian market, attracted pessimistic option players. The bearish risk reversal established on the fund contrasts with the nearly 1.5% rally in shares of the underlying to $26.30 during the session. It appears one investor sold 12,500 calls at the June 27 strike for a premium of 1.60 each, spread against the purchase of the same number of calls at the lower June 26 strike for two dollars premium apiece. The net cost of the reversal amounts to 40 cents per contract. Profits on the trade – assuming the investor holds no underlying stock position – accrue if shares of the EWC slip beneath the breakeven point to the downside at $25.60 by expiration in June 2010.

EWZ – iShares MSCI Brazil Index ETF – A number of bullish trades on the Brazil exchange-traded fund today suggest shares of the EWZ are set to rally in the first few months of the new year. Shares edged 1.5% higher during the trading day to stand at $73.21. Optimistic traders employed a number of different option strategies in order to position for bullish movement in the price of the underlying stock. One trader initiated a risk reversal in the January contract by selling 6,000 puts at the January 72 strike for 1.80 each, spread against the purchase of 6,000 in-the-money calls at the same strike for 2.70 apiece. The cost of getting long the call options is reduced to 90 cents per contract for the reversal player. Profits on the position amass above the breakeven price of $72.90. Another option bull unfurled the wings of a butterfly spread in the March contract. The trader…
continue reading


Tags: , , , , , , , , , ,




Human Genome Sees Modest Bullish Plays After Analyst Predicts Surge

Today’s tickers: HGSI, BRCM, AAP, VIX & EWC

HGSI– Shares of the biopharmaceutical company have reached a new 52-week high today, rising 7.5% to $16.00, surpassing the old high for the past year of $15.72 attained on August 4, 2009. Helping to boost shares was the reiteration of an ‘outperform’ rating on the stock and a target price of $30.00 by analysts at Leerink Swann today. Bullish option trades were observed on HGSI this morning with call activity outweighing that of puts by a factor of more than 3-to-1. One investor initiated an optimistic play by purchasing 1,500 calls at the September 16 strike price for a premium of 1.59 apiece. He reduced the cost of getting bullish by spreading the purchase against the sale of 1,500 calls at the higher October 17.5 strike for 1.46 per contract. The net cost of the transaction amounts to just 13 cents and provides the investor with an effective exit strategy by expiration in October if the stock should surpass $17.50. If the trader chooses to take delivery of the underlying shares by exercising the calls in September, and shares rise above $17.50 by expiration in October, he will ultimately bank profits of 1.37 per contract or a total of $205,500 by having the shares called away from him. – Human Genome Sciences, Inc.

BRCM – The producer of semiconductors for wired and wireless communications appeared on our ‘most active by options volume’ market scanner after investors began hoarding put options in the September contract. Shares of BRCM are currently lower by more than 2% to stand at $26.62. Perhaps bracing for further near-term declines, traders picked up some 3,000 puts at the in-the-money September 28 strike price for a premium of 2.25 apiece. Additional downside protection was picked up at the now in-the-money September 27 strike where 5,000 puts cost an average 1.58 each. Finally, the most bearish traders purchased 5,000 puts at the lower September 25 strike price for a premium of 80 cents per contract. Investors long the out-of-the-money put options must see shares of BRCM decline another 9% before profits begin to amass beneath the breakeven point to the downside at $24.20. – Broadcom Corp.

AAP – The specialty retailer of automotive parts and accessories edged onto our ‘hot by options volume’ market scanner after one investor established a ratio put spread on the stock. Shares have slipped
continue reading


Tags: , , , ,




 
 
 

Phil's Favorites

Airlines are going bust in droves, so why do so many people try to launch them?

 

Airlines are going bust in droves, so why do so many people try to launch them?

‘Taxi for Flybmi.’ G Tipene

Courtesy of Loizos Heracleous, Warwick Business School, University of Warwick

Yet another airline has collapsed – this time British operation Flybmi, costing almost 400 jobs as hundreds of flights were cancelled at short notice. It is the latest in a ...



more from Ilene

Zero Hedge

Elon Musk Takes Out $50 Million in New Loans, Mortgaging Five Homes

Courtesy of Zero Hedge

We were one of the very first to speculate that Elon Musk had mortgaged 5 of his homes in late January, when we highlighted research by an internet sleuth on Musk's personal financial situation. According to public records cited by Tesla skeptic EVent Horizon and laid out in a timeline on Sutori in late January, Elon Musk looked as though he had leveraged some of his personal real estate.

A follow up report from Bloomberg ha...



more from Tyler

ValueWalk

Ray Dalio Gives 3 Financial Recommendations For Millennials

By Jacob Wolinsky. Originally published at ValueWalk.

Founder, Chairman and Co-Chief Investment Officer of Bridgewater Associates Ray Dalio talks to Julia La Roche in 2018 of Yahoo Finance about the value of savings and investing.

Ray Dalio Gives 3 Financial Recommendations For Millennials

Q4 hedge fund letters, conference, scoops etc

Trans...



more from ValueWalk

Kimble Charting Solutions

Giant Topping Pattern Could Be Forming, Says Joe Friday

Courtesy of Chris Kimble.

The first fact of the day; The long-term trend for tech remains up and the decline into the lows on Christmas Eve DID NOT break this trend!

This chart looks at NDX 100 ETF (QQQ) on a weekly basis over the past 14-years. For the past decade, since the lows in late 2009, QQQ has remained inside of rising channel (1). As you can see the decline into the end of the year lows, did nothing more than test support, which held and a strong rally has followed!

Over the past few months, QQQ could be forming a “Head & Shoulders&...



more from Kimble C.S.

Insider Scoop

Salesforce.com's Q4 Report Should Trigger Higher Valuation, Says Bullish Oppenheimer

Courtesy of Benzinga.

Related CRM Oppenheimer Praises HubSpot's Execution, Downgrades On Valuation Benzinga's Top Upgrade...

http://www.insidercow.com/ more from Insider

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, 02 August 2018, 07:48:20 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: $600 BN interest payments for US gov, print baby print



Date Found: Sunday, 05 August 2018, 09:22:26 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Hire FED interest rates always brings double trouble



Date Found: Monday, 06 August ...

more from Chart School

Digital Currencies

Cryptos Are Surging: Bitcoin, Ethereum Hit One-Month Highs As Institutions Dip Toes

Courtesy of Zero Hedge

Cryptocurrencies are surging while the US equity markets take the day off. Ethereum is up over 18% from Friday's 'close' and the rest of the crypto space is a sea of green. While no immediate catalyst (headline or technical level) is clear, increasing chatter over institutional investors dipping their toes in the space have prompted an extension of the positive trend.

A sea of green...

Source: Coin360

Ethereum is leading the charge follow...



more from Bitcoin

Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

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

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

more from Biotech

Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



more from Our Members

Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



more from M.T.M.

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 ...



more from OpTrader

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




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.

Market Shadows >>