Posts Tagged ‘FMCN’

Takeover Offer Drives Up Volume In Focus Media Options

 

Today’s tickers: FMCN, GME & PLCE

FMCN - Focus Media Holding Ltd. – Shares in the operator of China’s largest lifestyle targeted interactive digital media network jumped 13% to $26.46 on news the company received a preliminary takeover offer of $27.00 per ADR share from a private equity group that includes FountainVest Partners and Carlyle Group LP. The initial rally has cooled somewhat, but options traders targeting Focus Media Holding Ltd. calls this morning are positioned to benefit from further upside in the shares this month and next. August expiry options are most active as the trading week gets underway, with the bulk of the volume changing hands at the $24 strike. More than 7,600 of the Aug. $24 strike calls have traded so far and it appears most of the in-the-money contracts were purchased for an average premium of $1.90 each. The $23 strike call, also squarely in-the-money at present, was purchased more than 3,100 times earlier today for an average premium of $2.90 apiece. August $25 and $26 strike calls have traded upwards of 1,000 times each as of 11:30 a.m. in New York. Trading traffic in Focus Media calls spread to the Sept. $26 and $27 strikes as more than 1,000 contracts were snapped up at each strike at average premiums of $1.65 and $0.99 apiece, respectively. Reports of the takeover offer have lifted options volume on the stock above 50,000 contracts before midday, more than five times Focus Media’s 90-day average daily options volume of 9,191 contracts.

GME - GameStop Corp. – Put options on GameStop Corp. are active today ahead of the company’s second-quarter earnings report prior to the opening bell on Thursday. Shares in the name are up 0.90% on the session at $17.90 as of 11:40 a.m. ET. The stock has had a rough first half of the year, however, down 30% since January. Put buying on the name this morning suggests some strategists are wary the price…
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Green Mountain Shares Anything But Robusta As Stock Slips To Fresh Record Lows

 

Today’s tickers: GMCR, PBI & FMCN

GMCR - Green Mountain Coffee Roasters, Inc. – Shares in Green Mountain Coffee Roasters fell as much as 8.95% this morning to a fresh all-time low of $21.06 after grocery chain operator, Kroger Co., said it plans to sell private label coffee pods for Green Mountain’s Keurig single-cup brewing machine. GMCR’s patent on the K-cups expires in September. Green Mountain’s shares have lost 80.0% of their value since September 2011, when the stock touched an all-time high of $115.98. Options traders expecting shares in GMCR to extend losses snapped up puts on the Waterbury, Vermont-based coffee company. Short-term bearish bets are building in the June $21 strike put where some 2,500 lots were purchased for an average premium of $0.53 apiece. Strategists positioning for a more severe pullback in the price of the underlying picked up roughly 2,000 puts at the July $17 strike for an average premium of $0.66 each. Traders long the $17 strike put stand prepared to profit at expiration next month should shares in Green Mountain tumble 22.4% from today’s low of $22.06 to breach the average breakeven price of $16.34. Not all of the action in GMCR options is bearish today; some strategists appear to be buying out-of-the-money calls that could pay off if shares in GMCR stage a near-term rebound.

PBI - Pitney Bowes, Inc. – Heavier than usual options activity on Pitney Bowes pushed the provider of end-to-end mail stream solutions onto our ‘hot by options volume’ market scanner this morning, with the day’s volume up near 17,000 lots versus the stock’s average daily volume over the past 90 days of 6,713 contracts. Shares in PBI are currently down 1.0% to stand at $14.14 in early-afternoon trading. Almost all of the volume is in the July $13 strike put where more than 16,600 contracts changed hands against open interest of 4,205 contracts. It looks like most of the puts were sold for…
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Full Throttle Friday – Dollar Dive Does Bears In

Oh what fun this is! 

Now the ECB is lending the IMF about $200Bn, which the IMF can lever up to lend Eurozone countries another $500Bn and that's before the Fed and the BOJ and all the other partners in World Crime get together and pump even more money in.  Nothing gives the old Futures a shot in the arm like MORE FREE MONEY and, interestingly enough, the ECB handing out cash Boosts the Euro, now over the $1.35 line.  

This is, of course, FANTASTIC for our Monday trade ideas, which were:  

 

  • FAS Dec $48/55 bull call spread at $3, selling the $40 puts for $2.40 for net .60 on the $7 spread. 5 in the WCP on that one.  (Now net $4.95 – up 725%)

  • FXE Dec $132/135 bull call spread at $1.20, selling the $129 puts for $1.10 for net .10 on the $3 spread.  (Now $1.45, up net 1,350%)

  • JPM Jan $25 puts can be sold for $1.20 (Now .65 – up 45%)

  • AA 2013 $7.50 puts can be sold for $1.28 (Now $1.05 – up 18%)

  • VLO June $17 puts can be sold for $2.05 (Now $1.40, up  32%)

  • Gasoline (/RB) futures at $2.55 (Now $2.62 – up $2,940 per contract)

Now I know that these are the kind of results you get every week so, whatever you do – don't subscribe to our Newsletter!  Why would you want these ideas EMailed to you every morning before the market opens?  If they make you money, then you have to pay taxes and paying taxes is evil, right?  Premium Membership is sold out but you wouldn't want to get trade ideas live during market hours anyway.  Less than $2 per day, however, gets you our Annual PSW Report Membership and you are able to read our full posts every morning, as soon as they are published.  

Speaking of Premium Memberships, congrats
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Virgin Media bulls bank profits and build new positions

Today’s tickers: VMED, EWZ, HAL, FMCN, VIX, SEED, GLD, CMCSA, SEED, LDK & USG

VMED – Virgin Media, Inc. – Virgin-bulls banked profits and established new positions on the telecommunications company this afternoon amid a 1% increase in shares to $16.54. One investor initiated the closing purchase of 10,000 put options that were originally sold short for an average premium of 68 cents apiece back on October 16, 2009. Today the trader closed out the position by buying the puts for just 15 cents each. Net profits on the trade amount to 53 cents per contract for a total of $530,000. The same investor is likely responsible for putting on a similar bullish strategy in the March 2010 contract. The March 15 strike had 10,000 puts sold short for one dollar per contract. The sale of the put options implies the trader expects shares of VMED to remain above $15.00 through expiration in March. Finally, optimism spread to the March 17.5 strike where 2,685 calls were purchased for an average premium of 1.45 apiece. Call-buyers amass profits if shares of VMED rally another 15% over the current price to breach the breakeven point at $18.95 by expiration day in March. Option implied volatility is currently 8.5% lower to 42.40%.

EWZ – iShares MSCI Brazil Index ETF – A bullish risk reversal on the EWZ in the January 2010 contract indicates investors are positioning for a rally in shares over the next couple of months. Shares of the fund are trading 1.5% higher to $76.28 this afternoon. Traders sold 5,500 puts at the January 77 strike for an average premium of 4.90 apiece in order to finance the purchase of 5,500 calls at the same strike for 3.35 each. The bullish reversal yields a net credit of 1.55 per contract. Investors retain the full 1.55 credit if shares of the Brazil Index ETF trade above $77.00 by expiration in January. Additional profits accumulate to the upside above the $77.00 breakeven price. The 1.55 credit also acts as a buffer against losses to investors in case shares fail to rise up to the strike price described. Investors short the put options stand ready to have shares of the underlying stock put to them at an effective price of $75.45 each if the put options land in-the-money by expiration.

HAL – Halliburton Co. – Near-term bearish option plays on the oil and gas…
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Volatility Up at Dow Chemical as Investors Feast on Options

Today’s tickers: DOW, XLF, FMCN, MAR, CAT, S & MOT

DOW - The manufacturer of chemicals, plastic materials, and other specialized products jumped onto our ‘most active by options volume’ market scanner this afternoon amid a more than 7% rally in shares to $25.30. Option traders displayed bullish tendencies as investors exchanged nearly two call options to each put traded on the stock. The near-term September contract had traders buying up both calls and puts. Bullish call buying occurred at the now in-the-money September 25 strike where more than 6,100 calls were picked up for an average premium of 33 cents each. More optimistic individuals purchased some 1,100 calls at the higher September 26 strike for 27 cents premium. Investors also locked in gains by buying 4,300 puts at the September 24 strike for 25 cents each. An additional chunk of 5,600 puts were scooped up at the higher September 25 strike for 56 cents apiece. Investors purchasing the puts probably hold long positions in the underlying stock. Finally, the October 26 strike was also targeted by bullish traders who bought about 2,000 calls for 85 cents per contract. The intraday shift in option implied volatility on DOW suggests investors are anticipating greater fluctuation in the price of the underlying shares. Volatility increased 12% during the session, rising up to a high of 51.5% from an intraday low of 46%. – The Dow Chemical Co. –

XLF - A large-volume bearish reversal caught our eye on the financials exchange-traded fund as shares of the underlying spent the better part of the trading session in the red. However, the XLF has recovered this afternoon to stand more than 0.5% higher at $14.63. The massive options reversal enacted in the October contract suggests at least one trader does not expect to see the fund climb much higher over the next five weeks. The transaction involved the sale of 35,000 calls at the October 15 strike for 39 cents apiece spread against the purchase of 35,000 puts at the lower October 14 strike for 49 cents per contract. The net cost of getting long the puts amounts to just 10 pennies each. It is likely the investor responsible for the spread holds a long position in the underlying stock. If this is indeed the case, he has established downside protection that would kick in if shares of the XLF fell beneath the breakeven point…
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Phil's Favorites

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Biotech & Health

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Zero Hedge

China Adopts 'Cultural Revolution-Style' Social Controls To Crush Outbreak As Death Toll Nears 2,000

Courtesy of ZeroHedge View original post here.

Summary:

  • Taiwan reports 1st coronavirus death
  • Hubei reports 1,933 new cases, 100 deaths
  • Hubei health officials report 1,933 new cases, 100 new deaths
  • Taiwan taxi driver who died from virus carried passengers from mainland, Hong Kong, Macau
  • Singapore reports 3 more cases
  • Total cases aboard 'Diamond Princess' climbs to 355 as US prepares to evacuate citizens
  • Indonesia says 6 passengers from Westerdam cruise ship tested negative
  • There are now at least 68,500 cases worldwide, and at least 1,665 de...


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Members' Corner

How to Stop Bill Barr

 

How to Stop Bill Barr

We must remove this cancer on our democracy.

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



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The Technical Traders

Is The Technology Sector Setting Up For A Crash? Part I

Courtesy of Technical Traders

One thing that continues to amaze our research team is the total scale and scope of the Capital Shift which is taking place across the globe.  For almost 5+ years, foreign investors have been piling into the US stock market chasing the stronger US dollar and continued advancement of US share prices. It is almost like there is no other place on the planet that will allow investors to pool capital into such a variety of strong assets while protecting against foreign capital risks.  Yet the one big question remains – when will a price reversion event hit the US stock
market?

So many researchers, even our team of researchers, believe we have found the keys to unloc...



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Kimble Charting Solutions

Joe Friday Says Germany (DAX) Could Rally 30%, Happy Valentines Day For The Bulls!

Courtesy of Chris Kimble

German DAX Index “weekly” Chart

The German DAX is one of the more important global stock market indices, as it represents the largest economy / market in the Euro Zone.

So it would be a real treat for the bulls to see this stock market index breakout as we celebrate Valentine’s Day.

The facts, Ma’am. Just the facts; The German DAX looks to have formed a bullish ascending triangle over the past 3 years and it is currently attempting to breakout above the top at (1)....



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Insider Scoop

Nissan Shares Tumble To Decade Low After Q3 Earnings Miss

Courtesy of Benzinga

The shares of Nissan Motor Co. Ltd. (OTC: NSANY) dropped to a decade low on Thursday after the company missed third-quarter earnings estimates and significantly cut its annual forecast for the financial 2019 year.

What Happened

Nissan, on Thursday, reported a net loss o...



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ValueWalk

Russell 2000 Index (RUT) hits an almost one-month high

By Gorilla Trades. Originally published at ValueWalk.

Ad the Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q4 2019 hedge fund letters, conferences and more

Russell 2000 Index (INDEXRUSSELL: RUT) Outperforms Large-Cap Benchmarks

While the overnight session was nothing short of scary stocks held on to most of yesterday's gains and small-caps even extended their winning streak. The Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, finishing higher for the fourth day in a row while outperforming the large-cap benchmarks, and since the Volatility...



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Chart School

Dow theory warning from the Utilities Index

Courtesy of Read the Ticker

Charles Dow died in 1902, and the investors should thank him for his ever lasting Dow Theory Analysis.

Carrying on this blog theme looking at the Utility stocks. Previous post.
Dow Jones Utility index could trade like the FANGs
Formula for when the Great Stock Market Rally ends



You can learn about Dow Theory here

This post is concerned wi...

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Digital Currencies

Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat's Tom Lee

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin is primed for average gains of almost 200% over the next six months, one of its best-known supporters has told mainstream media. 

...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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