Posts Tagged ‘EXEL’

Bearish Bets On Jefferies Spot-On As Shares Extend Losses

Today’s tickers: JEF, MS & EXEL

JEF - Jefferies Group, Inc. – Disappointing third-quarter results released earlier in the week initially failed to take the wind out of Jefferies Group’s sails, as evidenced by a more than 2.5% rally in its shares by lunchtime on Tuesday. We observed bearish put buying taking place on the stock in the midst of Tuesday’s rally, and noted that one strategist was positioning for the stock to surrender those gains and then some by October expiration. Lo and behold, shares in the investment bank reversed course by the close of trade on Tuesday, and have continued to slide in the days since.

The stock has fallen 15.0% in the past 48 hours alone, while losses since the start of 2011 are now up around 55.0%. One post-earnings report put buyer purchased roughly 3,100 of the October $14 strike puts on Tuesday for an average premium of $0.75 each. These contracts currently command an asking price of $2.80 each. The decline in open interest in the Oct. $14 put to 1,706 by Thursday suggests some profit taking may have occurred yesterday when shares in Jefferies Group shaved 5.4% off their opening price of $13.58. The investor may have received as much as $1.35 per contract by selling-to-close part of the original position on Wednesday. Overnight gains on the sale could have amounted to roughly 80.0%.

Fresh bearish positioning in Jefferies put options this morning may mean the worst is yet to come. Investors expecting declines in the price of the underlying to extend through November expiration snapped up more than…
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Xyratex’s Earnings Forecast Inspires Bullish Options Activity

Today’s tickers: XRTX, EXEL, PBR, F, BPOP, ALTH, RIG, MYL, HIG & SYMC

XRTX – Xyratex, Ltd. – Shares of the provider of data storage and network technology surged 13.7% at the start of the trading session to a new 52-week high of $19.25 after the firm said it anticipates earnings per share of at least $1.10 in the second quarter. The company’s earnings forecast is significantly greater than the consensus estimate of $0.76 per share. The wear-and-tear of the trading session parsed some of the early-morning rally, but Xyratex’s shares are still up 9.50% to $18.56 as of 2:45 pm (ET). Bullish investors prepared for continued appreciation in the price of the underlying by purchasing 1,100 calls at the June $20 strike for an average premium of $1.49 apiece. Call-buyers at this strike profit only if shares surge 15.8% from the current price of $18.56 to exceed the effective breakeven point at $21.49 by expiration day in June. Options traders exchanged 5,025 contracts on the stock during the trading day, which is nearly on par with total existing open interest on XRTX of 5,656 contracts.

EXEL – Exelixis, Inc. – Bullish options trading tactics were employed on the biotechnology company this afternoon as the firm’s shares surged 11.7% to an intraday high of $6.78. It looks like one investor sold 5,000 puts short at the November $5.0 strike price to take in an average premium of $0.40 per contract. The put seller keeps the full premium received on the transaction as long as shares of Exelixis trade above $5.00 through expiration day in November. By selling the put contracts, the investor implies he is willing to have shares of the underlying stock put to him at an effective price of $4.60 each in the event that the put options land in-the-money at expiration. The jump in options activity on the stock and the shift in share price lifted the overall reading of options implied volatility on Exelixis 42.2% to 82.1% in the final hours of the trading week.

PBR – Petroleo Brasileiro SA – A debit call spread enacted on Brazilian oil and gas company, Petroleo Brasileiro, suggests one investor is positioning for continued bullish movement in the price of the underlying stock through July expiration. PetroBras’ shares rallied 1.9% late in afternoon trading to stand at $45.35 as of 2:30 pm (ET). The optimistic options trader purchased 2,500…
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Savient calls in play at heady volatility readings

Today’s tickers: SVNT, WFC, EEM, MCO, XHB, EXEL, GDX & HIG

SVNT– The specialty biopharmaceutical company’s shares have slipped 2% throughout the trading day to $5.78. The slight decline has not deterred some investors from establishing covered calls in anticipation of the potential approval of Savient’s novel biological drug treatment for failure gout patients. The firm’s biologics license application is set for review before the Arthritis Advisory Committee appointed by the FDA on June 16, 2009. Option traders were seen making some interesting plays on the stock ahead of judgment day. One investor purchased 5,000 calls at the near-term June 7.5 strike price for a premium of 1.05 apiece spread against the sale of 5,000 calls at the July 10 strike for a premium of 50 cents each. The spread cost the investor 55 cents. Such a strategy has a number of possible outcomes contingent upon the decision of the advisory committee. We note that the committee is scheduled to convene just a couple of days before the June 19th expiration of the June 7.5 calls. In the event that the drug, KRYSTEXXA ™, is approved the investor is likely expecting the June 7.5 calls to land in-the-money allowing him to take delivery of the underlying shares. Once long the stock, he has an effective exit strategy in place because of writing the calls today. He will have amassed gains of 44% on the stock if shares rise through $10.00 by expiration. Pure covered call writers also targeted the July 10 strike price where another 7,000 calls were sold and likely tied to a long stock position. The sky-high implied volatility reading of 272% for the near-term June 7.5 strike calls will likely compress after the review has yielded a decision on the gout drug. Thus, traders will be singing a more melancholy tune in the event that the drug does not receive approval and the call premium plummets.  - Savient Pharmaceuticals, Inc

WFC– Shares have reversed direction this afternoon to rise more than 1.5% to $24.50 after spending the majority of the day in the red. We noticed some traders stocking up on protective put options in the July contract at multiple strike prices. The most bearish of investors picked up 15,500 put options at the July 15 strike price for an average premium of 30 cents each. Higher up at the July 19 strike, some 20,000 puts
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Zero Hedge

Hong Kong Protests Go Global: China Demands Investigation After Lam's Justice Minister Wounded In London

Courtesy of ZeroHedge View original post here.

Chinese officials slammed American lawmakers who are advancing a bill designed to protest Hong Kong's quasi-independent status guaranteed by the legal handover agreement between the British and the Chinese, but the US isn't the only major western power that's creating problems with the increasing dangerous situation in Hong Kong.

Hong Kong's Justice Minister Teresa Cheng took a nasty tumble last night during a confrontation with pro-democracy sympathizers who came out to protest her presence in London. ...



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Phil's Favorites

Fed's Powell Says Forensic Work Ongoing on Liquidity Crisis; This Chart Shows Why He's Worried

Courtesy of Pam Martens

Stock Price of Deutsche Bank, Lincoln Financial and Goldman Sachs Since                  September 17, 2019 When the Fed Began Pumping Money Into Wall Street

By Pam Martens and Russ Martens: November 15, 2019 ~

Yesterday, for the second day in a row, the Chairman of the Federal Reserve, Jerome Powell, gave testimony and took questions before a Congressional Committee. On Wednesday it was the Joint Economic Committee; yesterday i...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Insider Scoop

New Jersey Back Tax Bill Creates More Uncertainty For Uber, But Industry Remains Strong

Courtesy of Benzinga

New Jersey’s order that Uber Technologies Inc (NYSE: UBER) must pay more than $600 million in back taxes, interest and penalties for drivers the state considers employees instead of contractors creates more uncertainty for the ride-hailing company.

But despite the new ruling, along with a class action suit in New Jersey that “adds to the regulatory...



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The Technical Traders

What happens To The Global Economy If Oil Collapses Below $40 - Part II

Courtesy of Technical Traders

In the first part of this research article, we shared our ADL predictive modeling research from July 10th, 2019 where we suggested that Oil prices would begin to collapse to levels near, or below, $40 throughout November and December of 2019.  Our ADL modeling system suggests that oil prices may continue lower well into early 2020 where the price is exp...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Kimble Charting Solutions

Silver Testing This Support For The First Time In 8-Years!

Courtesy of Chris Kimble

Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!

This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.

Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the bre...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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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:

 

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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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