Posts Tagged ‘GAP’

Bulls Find Lululemon Call Options Irresistible as Shares Soar

Today’s tickers: LULU, IRM, GAP, SNDK, STI & DFS

LULU - Lululemon Athletica, Inc. – Shares of the yoga clothing and accessories maker stretched and lengthened up to new all-time highs yet again today, attracting bullish options players more than willing to flex their call-buying muscles in the December and January 2011 contracts. LULU’s shares jumped more than 8.95% to secure an intraday- and new all-time high of $69.25 in the final thirty minutes of the trading week. The Canadian company’s shares have been unstoppable, rallying an incredible 167.5% to today’s high from a 52-week low of $25.75 on February 5, 2010. Shares are up 1,490.8% since March 6, 2009, when the stock touched down at an all time low of $4.33 a share at around the same time the S&P 500 Index hit rock-bottom in the most recent economic recession. Investors unwilling to stand in the way of such a driving force picked up call options on Lululemon to position for additional share price gains going forward. Traders purchased some 1,100 in-the-money calls at the December $65 strike for an average premium of $2.67 each. Call buyers at this strike profit if LULU’s shares exceed the average breakeven price of $67.67 through December expiration. Other bullish players sold roughly 1,650 puts at the December $65 strike to pocket premium of $1.08 per contract. Put sellers keep the full premium received on the transaction as long as shares trade above $65.00 through expiration in one week. Investors short the puts are happy to have shares of the underlying stock put to them at an average price of $63.92 a share in the event that the puts land in-the-money at expiration. Bullish players skipped to the January 2011 contract to purchase out-of-the-money calls, as well. Investors bought more than 1,000 January 2011 $70 strike calls for an average premium of $2.21 each. Uber-bullish players picked up another 2,000 calls at the higher January 2011 $75 strike at an average premium of $1.19 a-pop. Call…
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Humana Call Options Fly Off the Shelves as Shares Hit New 2-Year High

 Today’s tickers: HUM, SIGA, ALXN, CBS, REP & GAP

HUM - Humana Inc. – Call options on the health benefits company are in high demand this afternoon with shares of the underlying stock trading higher by 3.15% to arrive at $53.85 in the final hour of the session. Shares rallied as much as 3.965% earlier today to secure a new 2-year high of $54.27. An analyst at Wedbush said earlier that health insurers may wind up reporting a better third quarter than previously forecast. Additionally, she mentioned Humana is her top pick for a health insurer that’s most likely to top Wall Street estimates in the third quarter. Humana is scheduled to report results ahead of the opening bell on November 1, 2010. Activity in November contract calls indicates one big player sees today’s rally in Humana’s shares extending through to expiration day next month, post-earnings. It looks like the bullish investor purchased 14,176 calls outright at the November $55 strike for an average premium of $1.425 per contract. The call buyer makes money if HUM’s shares rally another 4.8% over the current price of $53.85 to surpass the average breakeven point to the upside at $56.425 ahead of expiration. Options implied volatility on HUM is up 11.6% to arrive at 32.71% with 35 minutes remaining in the session.

SIGA - SIGA Technologies, Inc. – Shares of the bio-defense company jumped 52.7% today to an all time high of $13.07 on reports the firm won a U.S. government contract worth up to $2.8 billion to supply its smallpox antiviral drug. The stock is currently up 42.75% at $12.22 heading into the close. Options traders initiated bullish stances on the stock right out of the gate this morning in order to position for continued appreciation in the price of SIGA’s shares. Investors picked up approximately 1,200 in-the-money calls at the October $12 strike for an average premium of $0.44 apiece, and are poised to profit should shares exceed $12.44 through expiration on Friday. Nearly 1,000 calls were…
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Delta-Neutral Trade Suggests Guarded Optimism on Ventas Ahead of Q2 Earnings

Today’s tickers: VTR, BIDU, WAT, DHI, LCC, ODP, GAP & ISLN

VTR – Ventas, Inc. – Shares of the REIT with a portfolio of seniors housing and healthcare properties in the U.S. and Canada rallied as much as 2.04% this afternoon to reach an intraday- and new 52-week high of $51.57. Ventas popped up on our ‘hot by options volume’ market scanner in the second half of the trading session after one cautiously optimistic investor bought a large amount of stock in combination with a delta neutral put spread in the August contract. The transaction shows guarded optimism by one investor ahead of the firm’s second-quarter earnings report scheduled for release ahead of the opening bell on Wednesday morning. The options strategist paid a premium of $1.05 per contract for an 8,500-lot August $40/$50 debit put spread with a .32 delta tied to the purchase of 272,000 Ventas shares at $51.37 each. The investor is hoping to see shares rally to new highs following earnings, but has shelled out extra premium in order to get long downside protection in case Ventas’ shares decline.

BIDU – Baidu, Inc. – The Chinese-language internet search provider’s shares jumped 3.6% to an intraday high of $80.87 today after the firm received an upgrade to ‘buy’ from ‘neutral’ with an increased target share price estimate of $92.00 from $69.00 at UBS. Shares were also lifted higher on news Baidu is in talks with mobile phone makers to discuss use of the firm’s search box on devices sold in China. The price of the underlying stock is currently up 2.05% on the day to arrive at $79.67 as of 3:00 pm (ET). Options players itching for continued appreciation in the price of the underlying shares through the end of this month purchased weekly call options on the stock that are set to expire on July 30. Investors picked up 1,000 calls at the July $80 strike for an average premium of $1.48 each. Call buyers at this strike make money if Baidu’s shares rally another 2.3% to trade above the average breakeven price of $81.48 by expiration day. Optimistic individuals looking for BIDU’s shares to hit a new 52-week high before the week is through purchased some 2,100 call options at the higher July $85 strike for an average premium of $0.29 a-pop. Shares must increase at least 7.05% in order for July $85 strike call…
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Bull Buys Call Spread as Arena Pharmaceuticals’ Shares Soar

Today’s tickers: ARNA, CQB, GAP, KWK, MCD & FL

ARNA – Arena Pharmaceuticals, Inc. – Shares of the clinical-stage biopharmaceutical company shot up 10.7% today to an intraday high of $5.89, inspiring one options strategist to purchase a debit put spread in the October contract. Arena’s shares have increased significantly since an FDA advisory panel said it does not recommend rival Vivus’ obesity drug, Qnexa, receive FDA approval. The bullish options investor prepared for continued upward movement in Arena’s shares by purchasing 3,000 now in-the-money calls at the October $5.0 strike for a premium of $2.45 each, and selling the same number of calls at the higher October $7.0 strike at a premium of $1.45 apiece. The net cost of the transaction amounts to $1.00 per contract. Thus, the trader is prepared to make money should the biopharmaceutical firm’s shares rally 1.85% over the current price of $5.89 to trade above the effective breakeven price of $6.00 by October expiration day. The investor walks away with maximum potential profits of $1.00 per contract if Arena’s shares surge 18.85% to exceed $7.00 by expiration. In the nearer-term September contract, another bullish player opted to sell 2,700 puts at the September $2.0 strike to take in an average premium of $0.30 per contract. The put seller keeps the premium received on the transaction as long as Arena’s shares trade above $2.00 through expiration day in September. Options implied volatility on ARNA is higher by 14.1% to 101.05% as of 2:55 pm (ET).

CQB – Chiquita Brands International, Inc. – Call buying on the international marketer and distributor of bananas and fresh produce continues today with shares of the underlying stock trading higher by 3.15% to stand at $13.10 as of 1:20 pm (ET). Bullish traders started to buy November $12.5 strike calls yesterday afternoon as Chiquita’s shares rallied nearly 5.5% to end Thursday afternoon at an intraday high of $12.72. The company’s shares continued their ascension today, inspiring investors to build up bullish stances on the stock ahead of the second-quarter earnings report next Thursday. Investors purchased approximately 3,000 calls at the November $12.5 strike by 1:25 pm (ET) for an average premium of $1.73 apiece. Call buyers make money if Chiquita’s shares increase another 8.6% to surpass the average breakeven point at $14.23 by November expiration. Traders buying the calls on Thursday have a clear first-mover advantage because they paid an…
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Bears Binge on Put Options as Diamond Offshore Drilling, Inc. Shares Nosedive

Today’s tickers: DO, GAP, RIG, WMS, IMA, BAX, IGT, CAT, CCJ, CVS & WM

DO – Diamond Offshore Drilling, Inc. – Shares of the world’s largest U.S. deep-water oil driller fell as much as 7.6% to an intraday low and new 52-week low of $54.70 after businessinsider.com reported the firm’s Ocean Saratoga rig is leaking crude into the Gulf of Mexico. Goldman Sachs’ ratings cut of Diamond Offshore shares to ‘sell’ from ‘neutral’, as well as a downgrade to ‘underperform’ from ‘market perform’ with a 12-month target share price of $54.00 at FBR Capital Markets, also helped drive the stock lower today. Bearish options investors populated the stock with pessimistic plays, buying near-term put options and selling calls in the June contract. Traders expecting Diamond’s shares to continue to decline purchased 1,200 now in-the-money puts at the June $58.63 strike for an average premium of $4.07 apiece. Investors holding these contracts profit if shares trade beneath the average breakeven price of $54.56 by June expiration. Buying interest spread to the lower June $54.88 strike where 1,100 puts were picked up for an average premium of $2.26 each. Another 1,100 puts were purchased at the June $53.63 strike for a premium of $1.82 per contract. Finally, uber-bearish players coveted 1,600 put options at the lower June $49.88 strike by paying an average premium of $0.92 apiece. Shares of the underlying stock must plunge 10.5% from the current intraday low of $54.70 before June $49.88 strike put buyers start to garner profits beneath the average breakeven price of $48.96. Investors not expecting Diamond’s shares to rally ahead of June expiration sold short 1,300 calls at the June $61.75 strike to pocket an average premium of $0.61 per contract. The premium is safe in call-sellers’ wallets as long as shares of the underlying stock trade below $61.75 through expiration day. Options implied volatility on Diamond Offshore Drilling is up 15.1% to 59.94% as of 3:10 pm (ET). Earlier implied volatility surged roughly 18% to 61.42%, DO’s highest reading of volatility in at least one year.

GAP – Great Atlantic & Pacific Tea Co., Inc. – Investors bought put options on the operator of conventional supermarkets, combination food and drug stores and discount food stores today with shares of the underlying stock trading lower by 4.45% to stand at $4.08 as of 2:38 pm (ET). Pessimistic traders expecting GAP’s shares to continue to decline…
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Testy Tuesday Morning

Wow – what a lot of work to get back to last Tuesday's high! 

As usual, the vast majority of gains came in pre-market trading and the rest came in light-volume, early morning trading while the rest of the day was dominated by every buyer finding a willing seller for 75% of the day's volume.  We saw what happened on Thursday when someone big wants to sell and there are no buyers so we'll see how long the bull's luck (manufactured or otherwise) will hold out as we begin to get economic data along with some early earnings reports.

The Ag sector popped 2% yesterday ahead of tonight's earings from MOS with MON checking in tomorrow morning so we'll see how wise those last-minute bets were in short order.  SONC also has earnings tonight and we like those guys long-term.  SONC makes a decent buy/write candidate as you can buy the stock for $10.29 and sell June $10 puts and calls for $2.25 for a net entry of $8.04 with a very nice 24% profit if called away at $10 and an average entry of $9.02 (a 12% discount) if more stock is put to you below $10 in June. 

FDO and WOR also report tomorrow morning.  FDO will be interesting but a weak dollar probably hurt them last quarter.  Tomorrow night we hear from BBBY, BLUD, OHB and Sonic competitor RT, who seem a bit pricey at $7.50.  Thursday we get our first real builder, LEN along with STZ and TXI.  After the bell on Thursday we hear from APOL, CRI and SCHN with GBX and PSMT on Friday.  AA officially kicks of earnings season next Monday with GAP, INFY, KBH, BGG, SCHW, SHFL, INTC and JPM highlighting the reporters. 

We have plenty of data this week including Factory Orders and Pending Home Sales at 10 am along with December Auto Sales throughout the day (did you get a new car for Christmas?).  Tomorrow is jobs day, with the ADP Report and Challenger Job Cuts ahead of the bell followed by ISM Services (yesterday's ISM was a nice beat) and, of course, Crude Inventories at 10:30 which are unlikely to sustain $82 oil (USO Jan $40 puts for .80 are a good way to play this)We talked about the other stuff yesterday so I won't repeat it – suffice to say
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Phil's Favorites

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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ValueWalk

Have Technology Stocks Peaked? Texas Instruments At A Tipping-Point

By Pierre Raymond. Originally published at ValueWalk.

The Broad Market Index was up 2.27% last week and 55% of stocks out-performed the index.

Q3 2020 hedge fund letters, conferences and more

Another light week for SEC filings as we wait for the December 8th deadline for companies to report fiscal quarters ending in October. These are mostly retailers and their appearance this week will mark the end of update for the third quarter.

Average sales growth is low and still falling. The proportion of companies recording a sales growth increase was 32%; up from 25% last quarter. This might mark the low point in...



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Zero Hedge

Thanksgiving Weekend Marks Busiest Air Travel Days Since March

Courtesy of ZeroHedge

Sunday on Thanksgiving weekend was the busiest air travel day since March, marking what finally appears to be the first step back toward normalcy for the travel industry.

On Sunday, 1,176,091 people were screened at U.S. airports, according to the Transportation Security Administration. It is yet another record for travelers at the airport since the pandemic hit, indicating that most people appear to be ready to get back to normal life. 

This number beat out the day before Thanksgiving, where 1,070,967 people crossed TSA checkpoints. It marked the fourth time in the past week and a half where air travel numbers were over 1 million, according to ...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Kimble Charting Solutions

Will Silver Price Reversal Bring Another Historic Decline?

Courtesy of Chris Kimble

Precious metals caught lightning in a bottle for the first 7 months of the year, with Gold notching new all-time highs and Silver making to multi-year highs in August. But both have reversed lower since peaking in August and investors should pay attention.

It might be nothing… or it might be something! Especially for Silver, which didn’t follow Gold’s lead in making all-time highs.

Today’s chart is a long-term “monthly” chart of Silver. As you can see, it was hi-yo Silver for the first 7 months ...



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Politics

Mythmakers: The Men Who Created Donald J. Trump

 

Mythmakers: The Men Who Created Donald J. Trump

Mark Burnett, Jeff Zucker, and the Trustwashing of a Fake President

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

...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Friday, 12 June 2020, 08:06:43 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Interesting (2)



Date Found: Saturday, 13 June 2020, 12:27:02 AM

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Comment: Recession Forecasts Time Frame



Date Found: Monday, 15 June 2020, 11:07:52 PM

...

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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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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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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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