Posts Tagged ‘EWH’

Investor Optimism Apparent in Yahoo! Options Action

Today’s tickers: YHOO, PG, MWW, PWER, IYR, HRB, ANF, CSC & EWH

YHOO – Yahoo!, Inc. – The online media company made an appearance on our ‘most active by options volume’ market scanner after one investor initiated a long-term bullish stance on the stock. Yahoo’s shares increased 1.10% to stand at $14.56 by 3:05 pm (ET). Optimism on the operator of one of the most heavily trafficked Internet destinations was perhaps inspired by words from the firm’s CFO, Tim Morse, who intends to end the company’s pattern of poor M&A decisions. Morse addressed Yahoo’s history of overpaying for acquisitions and later selling those assets at a disadvantageous price by announcing plans to improve the company’s return on invested capital to 18% to 24% in 2013 from approximately 5% in 2009. One optimistic options trader opted to purchase a plain-vanilla debit call spread on Yahoo! in order to position for share price appreciation through expiration in January 2011. The investor picked up 5,000 in-the-money calls at the January 2011 $14 strike for a premium of $1.92 apiece, and sold the same number of calls at the higher January 2011 $17.5 strike for a premium of $0.58 each. Net premium paid to establish the spread amounts to $1.34 per contract. Thus, the bullish trader makes money if Yahoo’s shares rally 5.35% to trade above the effective breakeven point on the spread at $15.34 by expiration day in January 2011. The investor exits with maximum potential profits of $2.16 per contract if the online media company’s shares surge 20.2% over the current price of $14.56 to trade above $17.50 by expiration.

PG – The Proctor & Gamble Co. – Investor demand for call options on the global provider of branded packaged consumer goods surged during afternoon trading with options participants exchanging more than 4.4 calls on the stock to each single put option in play thus far in the session. PG’s shares rallied 1.7% to $61.85 by 3:30 pm (ET). It looks like bullish players expecting Proctor & Gamble’s shares to trade at a new 52-week high by August expiration purchased at least 17,900 calls options at the August $65 strike for an average premium of $0.21 per contract. Call buyers are poised to profit should shares of the underlying stock jump 5.4%, surpass the stock’s current 52-week high of $64.10, and trade above the average breakeven price of $65.21 by August expiration.…
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Put Volume Explodes on iShares MSCI Hong Kong Index ETF

Today’s tickers: EWH, HPQ, M, GLD, LCC, KRE, BBY, WAG & DYAX

EWH – iShares MSCI Hong Kong Index Fund – The EWH popped onto our ‘most active by options volume’ market scanner today after one investor traded 70,000 put options on the fund. Shares of the ETF are up 0.25% this afternoon to stand at $16.22. It appears the trader shed 35,000 puts at the January 14 strike for 10 cents apiece in order to partially offset the cost of purchasing 35,000 puts at the June 14 strike for 65 cents each. The net cost of the protective play amounts to 55 cents per contract. The nearer-term short put position in the January contract implies the investor does not expect shares to dip below $14.00 by expiration in less than two months. The investors stands ready to have a whopping 3,500,000 shares of the underlying put to him at $14.00 apiece in the event that the put options do land in-the-money. The long put position in the June 2010 contract suggests the trader is already long the stock. He is most likely extending downside protection on the underlying position for the next seven months before expiration. Shares of the EWH would need to fall 17% from the current price in order for downside protection to kick in beneath the breakeven point at $13.45. We note that shares of the fund have traded above $14.00 since July 15, 2009.

HPQ – Hewlett-Packard Co. – Medium-term bullish trading graced the global technology company’s February 2010 contract despite a 1% decline in HPQ shares this afternoon to $49.06. A risk reversal by one option player suggests shares could increase significantly by expiration in February. The trader sold 12,000 puts at the February 40 strike for an average premium of 27 cents apiece, and bought the same number of calls at the higher February 60 strike for 8 pennies each. The transaction yields a net credit of 19 cents per contract. The investor retains the full credit as long as HPQ’s shares remain above $40.00 through expiration day. Additional profits accumulate if the stock surges 22% higher than the current price to surpass the $60-level. The long call position probably serves more as a stop loss, or insurance policy, on the trade in the unlikely event that shares do jump more than 22% in the next three months. The reversal was more likely…
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Zero Hedge

$100 Oil Is A Distinct Possibility

Courtesy of ZeroHedge. View original post here.

Authored by Nick Cunningham via Oilprice.com,

An oil price spike is starting to look increasingly possible, with a rerun of 2008 not entirely out of the question, according to a new report.

The outages from...



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ValueWalk

Kase Learning Shorting Conference: Limited-Time Offer

By Jacob Wolinsky. Originally published at ValueWalk.

Shorting Conference: Limited-time offer for my newsletter subscribers!

We had an incredibly positive response to our inaugural Kase Learning Shorting Conference back in May. Many attendees capitalized on some of the fantastic actionable short ideas presented that day.

On Monday, December 3, we’ll be hosting our second Shorting Conference at the NY Athletic Club. We’re also going to be livestreaming the entire day if you cannot attend in person.

...



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Phil's Favorites

10 Years and 10 Lessons from the Financial Crisis

 

10 Years and 10 Lessons from the Financial Crisis

Courtesy of Cullen Roche, Pragmatic Capitalism 

10 years. It feels like yesterday. Then again, sometimes when I look at the economic data it feels like it never even happened. Whether you feel like the crisis is a distant memory or still lingering I think we can all agree that these kinds of big events serve as important lessons for understanding how we will navigate the future. So, 10 years later, here are 10 big lessons I take away from the financial crisis:

  1. Fear wins in the short-term and loses in the long-term. This is probably the number one lesson from the crisis. Human beings have been making tremendous progress for thousands of years. The fina...


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Kimble Charting Solutions

Canadian Dollar Attempting Bullish Breakout

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Since 2011, the Canadian Dollar has been hit hard, losing nearly a third of its value, while creating a series of lower highs and lower lows.

After declining nearly 30% into the lows of 2016, the Canadian Dollar has been attempting to change its long-term trend as it has created a series of higher lows inside of rising channel (2).

Over the past few months, rising support has been tested several times. Currently, it is attempting to break above falling resistance at (3), inside of the rising cha...



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Insider Scoop

10 Biggest Price Target Changes For Tuesday

Courtesy of Benzinga.

  • Morgan Stanley raised NuVasive, Inc. (NASDAQ: NUVA) price target from $55 to $77. NuVasive shares closed at $68.40 on Monday.
  • Citigroup cut the price target for Lam Research Corporation (NASDAQ: LRCX) from $216 to $177. Lam Research shares closed at $154.74 on Monday.
  • Stifel Nicolaus boosted the price target on Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) from $130 to $136. Alexion Pharmaceuticals shares closed at $128.51 on Monday Monday.
  • ...


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Chart School

Weekly Market Recap Sep 23, 2018

Courtesy of Blain.

More saber rattling between China and the U.S. did little to distract the market.

On Tuesday, President Donald Trump reiterated his hard-line stance on China during a news conference with Polish President Andrzej Duda and said the U.S. had “no choice” but to levy another $267 billion in duties on China. That would come on top of announced tariffs on about $200 billion in Chinese goods announced late Monday.  China responded with tariffs of 5% to 10% on $60 billion worth of U.S. products that will take effect Sept. 24, and said it may introduce more measures if the U.S. goes ahead with higher tariffs.

This seems to be the prevailing thought process, ...



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Members' Corner

Why obvious lies still make good propaganda

 

This is very good; it's about "firehosing", a type of propaganda, and how it works.

Why obvious lies still make good propaganda

A 2016 report described Russian propaganda as:
• high in volume
• rapid, continuous and repetitive
• having no commitment to objective reality
• lacking consistency

...

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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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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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