Posts Tagged ‘FTO’

Bearish Player Initiates Ratio Put Spread at Staples

Today’s tickers: SPLS, XCO, THC, FTO, YHOO, ERTS, LNC & GE

SPLS - Staples, Inc. – The supplier of office products popped up on our ‘hot by options volume’ market scanner late in the trading session after one investor initiated a bearish spread in the December contract. Staples’ shares are currently down 0.80% at $20.64 as of 3:15 p.m. in New York. The pessimistic player established a ratio put spread, buying 2,500 in-the-money puts at the December $21 strike for an average premium of $1.185 each, and selling 5,000 puts at the lower December $19 strike at an average premium of $0.39 apiece. The average net cost of the transaction amounts to $0.405 per contract. Thus, the investor is prepared to make money if the price of the underlying stock slips beneath the effective breakeven point on the spread at $20.595 by expiration day in December. Maximum potential profits of $1.595 per contract are available to the ratio-spreader if the office products company’s shares fall 7.945% from the current price of $20.64 to settle at $19.00 at expiration. The investor is vulnerable to losses in the event that Staples’ shares plummet far lower than he expects they will in the next several months. Losses start to accumulate for the trader if shares drop 15.7% lower and trade below the lower breakeven point at $17.405 by expiration day. Staples, Inc. is slated to report third-quarter earnings ahead of the opening bell on November 18, 2010.

XCO - EXCO Resources, Inc. – The oil and natural gas company was visited by one long-term bullish options investor in the second half of the trading session. It looks like the trader is expecting EXCO’s shares to rally significantly by expiration day in March of 2011. Shares of the Dallas, TX-based firm are up 2.05% at…
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Bearish Options Combo Player Mauls Financials ETF

Today’s tickers: XLF, VALE, MSFT, FTO, FITB, BRK B, PPL & GCI

XLF – Financial Select Sector SPDR – A bearish three-legged options combination play initiated on the XLF, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, indicates one big options player expects shares of the underlying fund to decline ahead of August expiration. Shares of the ETF are currently down 0.55% to stand at $14.49 with just under 30 minutes remaining before the closing bell. The pessimistic options strategist appears to have sold call options in order to partially offset the cost of buying a debit put spread. The investor sold 17,500 calls at the August $16 strike for a premium of $0.18 each, purchased 17,500 puts at the lower August $14 strike for a premium of $0.52 per contract, and finally sold 17,500 puts at the August $12 strike for a premium of $0.14 apiece. The net cost of the transaction is reduced to just $0.20 per contract. Thus, the bearish trader is poised to profit if shares of the XLF fall another 4.75% from the current price of $14.49 to breach the effective breakeven price of $13.80 by August expiration. The investor walks away with maximum potential profits of $1.80 per contract – for total gains of $3.150 million – if the price of the underlying fund plummets 17.2% to trade at or below $12.00 by expiration day in August.

VALE – Vale S.A. – Two-opposite minded options strategists initiated spreads on the iron-ore producer today. One of the investors displayed bearish sentiment on the stock by purchasing a plain-vanilla debit put spread, while the other options player put forth an optimistic stance on Vale by enacting a bullish risk reversal. Vale’s shares are up 0.70% to stand at $27.40 as of 3:40 pm (ET). The Vale-bear initiated a debit put spread, buying 7,500 lots at the September $25 strike for a premium of $1.36 apiece, and selling the same number of puts at the lower September $20 strike for $0.40 in premium per contract. The net cost of the transaction amounts to $0.96 per contract and prepares the investor to profit if Vale’s shares fall 12.25% from the current price to breach the effective breakeven point on the spread at $24.04. The put-spreader pockets maximum potential profits of…
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Zero Hedge

Iran Suffers Most Daily Death Toll Since COVID-19 Outbreak Began; NY Adds 3 More States To 'Mandatory Quarantine' List: Live Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • NY releases latest numbers, adds 3 more states to quarantine list
  • Trump touts COVID-19 mortality rate improvement
  • GOP moves to test all convention attendees
  • Worker 'revolt' at University of Georgia
  • Beijing reports 8 foreign cases
  • South Korea reports 40+ new cases
  • Melbourne enters 6-week lockdown
  • India passes 700k cases
  • Iran sees record jump in deaths
  • South Africa tops 200k

* * *

Update (...



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Phil's Favorites

Up and Down

 

Up and Down

Courtesy of 

This stat from @SentimentTrader blew me away:

“The S&P 500 fund, SPY, has been up at least 0.5% for 5 straight days. That’s tied for the longest streak since its inception.”

I wasn’t taken aback because of how strong the markets have been recently, but that streak of five days sounded really small to me. I almost couldn’t believe it was right. But after looking at the data, the shock wore off.

The S&P 500 has gained >0.5% on 28% of all days (going back to 1993), so the likelihood of...



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Biotech/COVID-19

Is the COVID-19 pandemic cure really worse than the disease? Here's what our research found

 

Is the COVID-19 pandemic cure really worse than the disease? Here's what our research found

The economic impact of coronavirus restrictions can also take a human toll. mladenbalinovac via Getty Images

Courtesy of Olga Yakusheva, University of Michigan

The Research Brief is a short take about interesting academic work.

The big idea

The coronavirus pandemic catapulted the country into one of the deepest recessions in U.S. history, leaving millions ...



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ValueWalk

Error-Ridden PPP Data Show Taxpayer Funds Funneled to the Wealthy & Well-Connected

By Anna Peel. Originally published at ValueWalk.

Yesterday, the Trump administration released a limited collection of data about recipients of Paycheck Protection Program (PPP) assistance. The program has been rampantly mismanaged from the start, allowing big businesses and publicly-traded companies to exploit the program with little transparency or oversight. The data released yesterday has been riddled with errors, raising questions about the PPP’s integrity. All the while, actual small businesses – especially those run by people of color – have been left to struggle or close entirely.

Q2 2020 hedge fund...



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Kimble Charting Solutions

Here's Why QQQ and Large Cap Tech Stocks May Rally Another 10%!

Courtesy of Chris Kimble

The long-term trend for large-cap tech stocks remains strongly in place.

And despite the steep rally out of the March lows, the index may be headed 10 percent higher.

Today’s chart highlights the $QQQ Nasdaq 100 ETF on a “monthly” basis. As you can see, the large-cap tech index touched its lower up-trend channel support in March at (1) before reversing higher.

It may now be targeting the top of the trend channel at (2), which also marks the 261.8 Fibonacci extension (based on 2000 highs and 2002 lows). That Fib level is $290 on $QQQ.

If so, this upside target for $QQQ is still 10% above current prices. Stay tuned!

This article was first written ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

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Date Found: Saturday, 14 March 2020, 05:51:16 PM

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Comment: Crash in perspective - its Bad, and not over!



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The Technical Traders

Big Funds to Pull Money OUT of Stocks: 2nd Wave to Hit Economy

Courtesy of Technical Traders

TOPICS IN THIS INTERVIEW:

-Big funds to pull money out of markets.

-Falling dollar to really start to benefit gold

-Gold miners showing signs of life.

-$2,000 gold will change people’s mindsets in gold.

-Gold or silver-backed currency will send metals through the roof.

Get Chris Vermeulen’s Trades – Click Here

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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

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

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

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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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