Posts Tagged ‘FTI’

Heavy Action In BP Call Options With Earnings On The Horizon

 

Today’s tickers: BP, RSH, FTI & MYGN

BP - BP PLC – Far out-of-the-money call options on BP saw heavier-than-usual activity on Tuesday afternoon, with shares in the oil company trading up 1.3% at $44.70 as of 12:30 p.m. in New York. Fresh prints in March expiry calls may represent low-cost, low-probability bullish bets that shares in BP will rally sharply by expiration. BP is scheduled to release fourth-quarter earnings ahead of the opening bell on February 7, one week from today. Options traders exchanged more than 3,000 call options at the Mar. $49 strike against open interest of 621 contracts. The majority of the calls appear to have been purchased for an average premium of $0.22 apiece. Like-minded strategists snapped up some 3,500 calls at the higher Mar. $50 strike at an average premium of $0.11 each. Investors long the calls may profit at expiration in March in the event that BP’s shares soar 10.1% and 12.1% to exceed average breakeven prices of $49.22 and $50.11, respectively. Overall trading in BP options players are heavily favoring calls on the name over puts today, with more than 4.2 calls changing hands on the stock for each single put option in early-afternoon trade.

RSH - RadioShack Corp. – Shares in consumer electronics retailer, RadioShack Corp., plunged 30.0% to $7.15 on Tuesday after the Company revealed lower-than-anticipated preliminary fourth-quarter earnings and suspended stock buybacks. The breath-taking drop in the price of the underlying shares spurred some options traders to ready themselves for a potential rebound in the next few weeks. Call buyers looked to the Feb. $7.0, $8.0 and $9.0 strike calls, buying around 1,600, 3,200 and 235 contracts at each strike, respectively, this morning. Investors long the calls may have picked up the…
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Dollar Bull Throws in the Towel Following Employment Report

Today’s tickers: UUP, FTI, ZRAN & NDAQ

UUP - PowerShares DB US Dollar Bullish Fund – A sea change in attitude toward the dollar following today’s weaker-than-expected employment report inspired one options player to cut and run from a large bullish position in the US Dollar Bullish Fund this morning. Shares of the UUP, an exchange-traded fund that tracks the performance of the dollar index, are down 1.00% to arrive at 22.93 just before 11:30 am. It looks like the trader originally purchased a massive position in March 2011 24 strike calls to gain exposure to a rising dollar, or alternatively to defend against dollar appreciation, ahead of the Fed’s decision to roll out a second round of quantitative easing. The investor appears to have purchased 105,500 calls at the March 2011 24 strike back on October 27, 2010, at a premium of $0.34 apiece. Since the calls were purchased, the fund rose approximately 3.8% from 22.65 up to this week’s high of 23.52. In hindsight, the trader would have been better advised to act ahead of Friday’s employment data release as he did when he initially purchased the calls ahead of the Fed announcement. Premium on the March 2011 24 strike calls stood at an average of $0.48 each on Tuesday when the UUP touched its intraweek high of 23.52. The plunge in the value of the dollar today combined with the adverse effects of eroding time value on the contracts pushed premium on the calls down significantly. The investor received just $0.24 per call option on the sale of all 105,500 contracts today. Net losses on the closing sale amount to $0.10 each. We do not know whether the options were tied to an underlying position or if the initial long call position was intended as a hedge against a strengthening dollar. These are important factors that would likely change the interpretation of the activity observed on the UUP this morning.…
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Put Player Portends Additional Declines in iShares MSCI EAFE Index ETF

Today’s tickers: EFA, FTI, FBR & TYC

EFA – iShares MSCI EAFE Index Fund – Shares of the EFA, an exchange-traded fund created to yield investment results that correspond to the price and yield performance of the MSCI EAFE Index – an index designed as an equity benchmark for international stock performance with stocks from Europe, Australasia and the Far East, declined as much as 1.65% in the first half of the trading session to touch an intraday low of $50.00. One options investor was seen bracing for continued bearish movement in the price of the underlying fund through October expiration. The trader purchased a plain-vanilla put spread, buying 10,000 puts at the October $50 strike for premium of $2.31 apiece, and selling the same number of puts at the lower October $45 strike at a premium of $0.86 each. The net cost of the pessimistic play amounts to $1.45 per contract. The put spreader is prepared to make money – or realize downside protection should he hold a large position in shares of the fund – if the ETF’s shares trade below the effective breakeven price of $48.55 by expiration day. Maximum potential profits of $3.55 per contract are available to the investor if the EFA’s shares plunge 10% to settle below $45.00 at October expiration. Options implied volatility on the fund is higher by 6.8% to stand at 29.77% as of 11:55 am ET.

FTI – FMC Technologies, Inc. – The global provider of technology solutions for the energy industry popped up on our ‘hot by options volume’ market scanner in the first half of the trading day after one options investor initiated a ratio put spread in the January 2011 contract. FTI’s shares are currently down 2.05% to stand at $61.00 as of 12:10 pm ET. The put player appears to have purchased 1,000 puts at the January 2011 $55 strike at a premium of $3.95 apiece, and sold 2,000 puts at the lower January 2011 $45 strike for an average premium of $1.30 each. The net cost of the spread amounts to $1.35 per contract. Profits start to accumulate for the ratio spreader if shares of the underlying stock plummet 12.05% from the current price of $61.00 to breach the effective breakeven point on the trade at $53.65 by expiration day next year. The investor stands ready to amass maximum potential profits of $8.65 per…
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GDWheee Friday – Could be a Wild Ride!

Attention ladies and gentlemen:

The stock market will soon be leaving the station, please secure all personal items, pull down the safety bar (our Disaster Hedges) and keep all body parts inside ride at all times.  Well you know you can follow all of the safety instructions and STILL get smacked in the face with a black swan (like our friend Fabio, pictured here) which is why we elected to get back to cash ahead of this report.  The markets were just too insane this week and who the heck knows if Europe will still be a Union on Monday or what the GDP number is going to be (but I do think it's a miss). 

Since our biggest weekend fear is financial panic in Europe, our cash US dollars will become more valuable in a crisis and if the market drops, all the better as we can ride back in and do some bargain hunting.  If the market takes off on good GDP and Greece is "fixed" and Spain is "fixed" and Portugal and Ireland are not really a problem (especially for MS and JPM) and the CRIMINAL charges against Goldman look beatable and and the Financial Reform Bill doesn't disrupt the market with a disorderly breakup of the big banks and the Bank of International Settlements Report continues to be ignored and the run on the Greek banks doesn't spread to other STUPID counties – well, then we can BUYBUYBUY because, if all this doesn't matter, then it's very likely that the entire planet Earth could explode but Wall Street will keep ticking higher.

Yep, I can't wait to ride this baby mindlessly higher!  After all, what can go wrong?  BIDU is ONLY $710 a share, BLK is $190, CMP is $76, GOLD is $84, BUCY is $65, FAST is $56, MMM is $90, FOSL $40, F $13.50, DECK $149, SHOO $55, TPX $35, LZB $14, CTB $22, NOG $16, CEO $176, FTI $75, CLB $150, CIB $46, BBD $19, TD $75, BCA $45, BAP $87, ITUB $22, EDU $94, WYNN $93, FFIV $72, CY $14, CREE $77, UPS $70, UNP $78… 

These were stocks I was looking at last week, when I told members I thought it was easier to construct a Sell List than our usual…
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Phil's Favorites

Why do bankers behave so badly? They make too much money to ask questions

 

Why do bankers behave so badly? They make too much money to ask questions

Rudy Balasko/Shutterstock

Courtesy of Mark Crosby, Monash University

Over the past 16 months journalists have been scouring through more than 2,000 Suspicious Activity Reports originally sent by banks to the United States Treasury, before being leaked to Buzzfeed and then passed along to the International Consortium of Investigative Journalists.

The reports relate to more than US$2 trillion in transactions over the period from 2000 to 2017. Some of these transactions will already have been investigated, and may be legitimate. In the case o...



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ValueWalk

Failure Of PPP and Expectations From The Next Relief Package

By Anna Peel. Originally published at ValueWalk.

CARES Act 6 Months Later: Watchdog Coronavirus Economic Stimulus Relief Package Report Spotlights Worst Failures of Trump Administration’s PPP Program That Marginalized Communities of Color, Prioritized the Wealthy

Q2 2020 hedge fund letters, conferences and more

WASHINGTON, D.C. – Government watchdog Accountable.US released its in-depth report on the fai...



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Kimble Charting Solutions

Key Inflation Indicators Facing Big Test In September!

Courtesy of Chris Kimble

Inflation has long been a word that the Federal Reserve uses but the general markets have forgotten about.

Why? Well because it’s been virtually non-existent for years. Key indicators like commodities (i.e. copper) have been in a down-trends and the Materials Sector (XLB) has lagged… until this year.

In today’s chart 3-pack, we take a look at the Equal Weight Commodity Index, ...



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Zero Hedge

Sweden Dominates Drug-Deaths In Europe

Courtesy of ZeroHedge View original post here.

As highlighted by the latest edition of the European Drug Report, Sweden is the country with the most drug-induced deaths per million of the population in Europe.

In 2018, 81 people died per million inhabitants, ahead of the United Kingdom's 76 drug-induced deaths per million. Finland and Ireland jointly had the third-highest death rate with 72 deaths per million.

You will find more infographics ...



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Digital Currencies

The Great Unbanking: How DeFi Is Completing The Job Bitcoin Started

Courtesy of ZeroHedge View original post here.

Authored by Paul De Havilland via CoinTelegraph.com,

While most of us will prefer to forget the horrors of 2020, DeFi may well prove to be the guarantee of a better, more liberated future...

...



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Politics

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

 

'Colossal Backdoor Bailout': Outrage as Pentagon Funnels Hundreds of Millions Meant for Covid Supplies to Private Defense Contractors

"If you can't get a Covid test or find an N95, it’s because these contractors stole from the American people to make faster jets and fancy uniforms."

By Jake Johnson

Secretary of Defense Mark Esper and Chairman of the Joint Chiefs of Staff Army Gen. Mark Milley hold an end of year press conference at the Pentagon on December 20, 2019 in Arlington, Virginia. (Photo: Drew Angerer/Getty Images)

Instead of adhering to congressional inten...



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Biotech/COVID-19

How and when will we know that a COVID-19 vaccine is safe and effective?

 

How and when will we know that a COVID-19 vaccine is safe and effective?

How much longer must society wait for a vaccine? ANDRZEJ WOJCICKI/Getty Images

By William Petri, University of Virginia

With COVID-19 vaccines currently in the final phase of study, you’ve probably been wondering how the FDA will decide if a vaccine is safe and effective.

Based on the status of the Phase 3 trials currently underway, it i...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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