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…
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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
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Phil's Favorites

Johnson & Johnson vaccine suspension - what this means for you

 

Johnson & Johnson vaccine suspension – what this means for you

Vials of the Johnson & Johnson vaccine to prevent COVID-19. The use of this particular vaccine has been halted temporarily. Justin Tallis/AFP via Getty Images

Courtesy of William Petri, University of Virginia

The Centers for Disease Control and Prevention and the Food and Drug Administration on April 13, 2021 halted use of the one-dose Johnson & Johnson COVID-19 vaccine that has been given to 6.8 million people in the U.S. The pause is...



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Biotech/COVID-19

Johnson & Johnson vaccine suspension - what this means for you

 

Johnson & Johnson vaccine suspension – what this means for you

Vials of the Johnson & Johnson vaccine to prevent COVID-19. The use of this particular vaccine has been halted temporarily. Justin Tallis/AFP via Getty Images

Courtesy of William Petri, University of Virginia

The Centers for Disease Control and Prevention and the Food and Drug Administration on April 13, 2021 halted use of the one-dose Johnson & Johnson COVID-19 vaccine that has been given to 6.8 million people in the U.S. The pause is...



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ValueWalk

UK's First-Time Buyers See House Prices Climb

By Jacob Wolinsky. Originally published at ValueWalk.

First-time buyers paying as much as £73k more to get on the ladder since the market reopened

Q1 2021 hedge fund letters, conferences and more

The Climbing Cost Of Houses For First Time Buyers

Research by the new build snagging and defect management experts, ...



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Zero Hedge

Trading Bonds In Venezuela? Bring A Gunman And Cash

Courtesy of ZeroHedge View original post here.

The Venezuelan bond market - described by Bloomberg as one of the 'tiniest and almost certainly the most primitive' in the world - is also one of the most dangerous.

Based in Caracas where Nicolas Maduro's socialist government is 'ever so slowly freeing up the battered economy' for capitalistic endeavors, the US dollar has become the defacto currency. Yet, there's no electronic method to electronically transfer USD from one bank to another - which mean...



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Digital Currencies

Coinbase Sets Reference Price At $250, Well Below Last Private Market Trade

Courtesy of ZeroHedge

Ahead of tomorrow's much-anticipated direct listing of massive crypto-exchange Coinbase, Nasdaq has just announced the company's so-called Reference Price at $250.

On April 14, 2021, the Class A common stock of Coinbase Global, Inc. is expected to list on Nasdaq through a Direct Listing using the ticker “COIN”.

Because this security has not previously traded on any listing market and has no prior day's closing price, Regulation SHO Rule 201 will not apply to the security until its second day of trading on Nasdaq.

As a Direct Listing, COIN will be in a regulatory halt until ...



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Kimble Charting Solutions

Semiconductor Red Hot Performance Tests 20-Year Breakout Level

Courtesy of Chris Kimble

Will the “Red Hot” semiconductor index cool off or get even hotter due to the shortage of chips?

This chart looks at the Semiconductor Index on a monthly basis over the past quarter-century. No doubt the trend is up as it has created a series of higher lows and higher highs since 2009.

Fibonacci extension levels were applied to the 1996 lows and the 2000 highs. Currently, the index is testing the 261% extension level, while at the top of the rising channel as momentum is at the highest level since the 2000 highs.

The rare chip shortage coul...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The Biden Yellen team have made their play, and it is not US dollar friendly.

Janet Yellen speech named "International Priorities — Remarks to The Chicago Council on Global Affairs" (here) can be summed to (via Luke Gromen) :


The US is accelerating a move away from "subjugating the US middle and working class to support the USD", to "subjugating the USD to support the US middle and working classes".



Well the above is true, but as we all know large US deficits and the trend of the US dollar are joined at the hip, and that trend is down '...

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Politics

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

 

For autocrats like Vladimir Putin, ruthless repression is often a winning way to stay in power

Russian police officers beat people protesting the jailing of opposition leader Alexei Navalny, Jan. 23, 2021 in Moscow. Mikhail Svetlov/Getty Images)

Courtesy of Shelley Inglis, University of Dayton

Russian dissident Alexei Navalny, sick with a cough and ...



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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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