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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Zero Hedge

Rabobank: Is It Possible The Fed Is So Stupid It Doesn't Understand What It Is Doing

Courtesy of ZeroHedge View original post here.

By Michael Every of Rabobank

Warning: May contain crisis

I am lucky in that I don’t have a serious food allergy, such as to peanuts. I fully grasp just how dangerous these can be to those that unfortunately do, and why we need clear food labels to show if there is even a trace of nuts. Having said that, I always find it ironic that when I get given the standard packet of peanuts on a plane, it is labelled: “Warning: may contain nuts”. Are there people who might not know that peanuts contain nuts? Appa...



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Phil's Favorites

The Martian

 

The Martian

Courtesy of Scott Galloway, No Mercy/No Malice@profgalloway

I often write about platforms (iOS, Amazon Marketplace, etc.) as they are a source of value creation and power. The platform of unprecedented wealth creation is the free market of capitalism. The global adoption of markets has corresponded with the greatest expansion of prosperity in human history. But similar to tech platforms, free markets are neither naturally occurring nor immune to collapse. The “free” market can fail.

Live from New York

This Saturday at 11:29 pm ET, we’ll witness the lat...



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Digital Currencies

NFTs are much bigger than an art fad - here's how they could change the world

 

NFTs are much bigger than an art fad – here's how they could change the world

Homes fit for zeroes (and ones). Julien Tromeur

Courtesy of James Bowden, University of Strathclyde and Edward Thomas Jones, Bangor University

Sotheby’s has become the latest establishment name in art to dive into NFTs (non-fungible tokens) through its collaboration with anonymous ...



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Biotech/COVID-19

India COVID crisis: four reasons it will derail the world economy

 

India COVID crisis: four reasons it will derail the world economy

India is the fifth largest economy in the world. Deepak Choudhary/Unsplash

Courtesy of Uma S Kambhampati, University of Reading

The second wave of the pandemic has struck India with a devastating impact. With over 300,000 new cases and 3,000 deaths across the country each day at present, the total number of deaths has just passed the 200,000 mark – that’s about one in 16 of all COVID deaths across the world....



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Chart School

Yellen can not stop the dollar decline

Courtesy of Read the Ticker

Printing money results in a lower currency, so long as the currency does not fall too fast.

Previous Post: US Dollar Forecast - Weakness

Here are the very strong fundamentals for a lower US dollar: 

(a) US inflation exploding.
(b) Massive US twin deficits.
(c) Better conditions in Europe.

However French election worries in 2022 Q1 and Q2 may provide US dollar strength (via European weakness) after Christmas, but this strength may come after a low in the DXY near $84.  

It looks like Yellen knows a down swing in the US dollar is near because ...

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Politics

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

 

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

Over the past few decades, hundreds of millions of Chinese citizens have become part of the middle class. AP Photo/Ng Han Guan

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

China’s large and impressive accomplishments over the past four decades have spurred scholars and politicians to debate whether the decline of the West – including the ...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Kimble Charting Solutions

Will Historic Selloff In Treasury Bonds Turn Into Opportunity?

Courtesy of Chris Kimble

Long-dated treasury bonds have been crushed over the past year, sending ETFs like TLT (20+ Year US Treasury Bond ETF) spiraling over 20%.

Improving economy? Inflation concerns? Perhaps a combination of both… interest rates have risen sharply and thus bond prices have fallen in historic fashion.

Today’s chart looks at $TLT over the past 20 years. As you can see, the recent decline has truly been historic. $TLT’s price has swung from historically overbought highs to oversold lows.

At present, the long-dated bond ETF ($TLT) is trading 7.8% below its 200-...



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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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