Posts Tagged ‘GES’

Guess Puts Active Ahead Of Q3 Earnings

GES – Guess? Inc. – Shares in apparel and accessories retailer Guess are trading lower on Wednesday ahead of the company’s third-quarter earnings report after the closing bell. Options changing hands on the stock during morning trading indicates some traders are bracing for shares to potentially drop to the lowest level since early-October by December expiration. The stock currently trades down 2.0% on the day at $33.24 just before 11:30 a.m. EST.

Around 1,700 of the Dec $29 strike put options have changed hands on GES so far today, more than two times the open interest level at that strike of 780 contracts. Time and sales data suggests most of the $29 puts were purchased at a premium of $0.40 each, positioning buyers to make money if shares in Guess drop 14% from the current price of $33.24 to breach the breakeven point at $28.60 by December expiration.

Options volume on the retailer is roughly five times the average daily level ahead of the company’s earnings release, with volume currently up above 5,400 contracts versus average daily volume of around 1,060 contracts. 

HPQ – Hewlett-Packard Co. – Options on HP are active today, with the price of the underlying stock climbing as much as 4.3% to a new 52-week high of $28.70 during morning trading. Overall options volume on Hewlett-Packard, currently hovering near 55,000 contracts as of the time of this writing, is more than 75% of the stock’s average daily volume of around 70,000 contracts. Trading in calls on the stock is far outpacing that of puts, with the call/put ratio hovering near 5.0 as of 11:20 a.m. EST. 


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Call Buyers Eye Rebound In Guess? Shares

 

Today’s tickers: GES, SBUX & LOPE

GES - Guess?, Inc. – Contrarian options trades initiated on apparel retailer, Guess?, Inc., this morning look for shares in the name to rebound during the next five months. The stock is down sharply on Friday, trading 4.7% lower on the session at $24.67 as of 11:15 a.m. ET, after the company announced Thursday the resignations of its CFO and COO. The price of the underlying earlier slumped 10.4% to a fresh three-year low of $23.20 amid news of the executive resignations and after a number of analysts cut ratings and share price targets on the stock. Options players positioning for Guess shares to recover next year purchased more than 6,000 calls at the Mar. 2013 $26 strike this morning for an average premium of $1.47 per contract. Call buyers stand ready to profit at expiration in March should shares in the specialty retailer rally 11% over the current level of $24.67 to top the average breakeven price of $27.47. Shares in GES last traded above $27.47 at the end of September. Guess?, Inc. is scheduled to report third-quarter earnings at the end of the month.

SBUX - Starbucks Corp. – Shares in the retailer of specialty coffee, beverages and snacks are soaring this morning after the company reported better-than-expected fourth-quarter earnings on Thursday after the bell and raised its quarterly dividend by 24% to $0.21 a share. Starbucks shares increased as much as 11.4% in the first half of the trading session to $51.94, the highest level since mid-September. Some options traders appear to be gearing up for continued gains in the price of the underlying next week by purchasing weekly calls that expire next Friday. Bullish players snapped up more than 320 of the Nov. 09 ’12 $52 strike calls for an average premium of $0.39 apiece. Volume in these weekly options is heaviest up at the Nov. 09 ’12 $52.5 strike call, where more than 2,000…
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Put Action Portends Potential Pullback In Delta Air Lines

 

Today’s tickers: DAL, GES & AGU

DAL - Delta Air Lines, Inc. – Options on the Atlanta, Georgia-based airline were among the most actively traded as measured by volume this morning after a large block of bearish puts changed hands in the first hour of the trading session. Shares in Delta Air Lines are sliding on a down day for the broader market, trading 4.0% lower at $9.15 as of 12:10 p.m. ET. Volume in Delta options was heaviest at the Dec. $8.0 strike, where upwards of 11,500 puts traded against previously existing open interest of 3,299 contracts. It looks like 9,110 of the $8.0 strike puts traded in a block and appear to have been purchased along with the remainder of the overall volume at a premium of $0.48 per contract. The sizable stake in DAL puts may represent outright bearish positioning on the airline through the end of the calendar year, or could be a hedge to protect the value of an existing position in the underlying shares. Profits, or downside protection, kick in if shares in Delta plunge 18% from the current price of $9.15 to breach the effective breakeven point at $7.52 by December expiration. Shares in Delta Air Lines, Inc. last traded below $7.52 in November 2011.

GES - Guess?, Inc. – Bulls buying front-month calls on Wednesday afternoon ahead of Guess, Inc.’s second-quarter earnings report were crushed today after the retailer revealed declining same-store sales and lowered estimates for full-year earnings and revenue. Shares in Guess reacted to the disappointing report by dropping 20% to an intraday low of $26.73. The largest increase in September expiration call option open interest overnight was in the $36 strike contracts, which rose by 904 lots to 1,406 contracts. A review of time and sales from Wednesday afternoon shows the purchase of approximately 850 of the Sep. $35 calls for a premium of $0.95 apiece just after 12:20 p.m. ET. Less than 24…
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Bullish Player Fancies Luxury Hotel Options

Today’s tickers: OEH, GES, TKLC & COH

OEH - Orient-Express Hotels, Ltd. – Shares in the hotel and travel company with a taste for the luxury side of the leisure market slipped 2.15% this afternoon to $10.80, but options activity on Orient-Express Hotels today suggests shares may rebound by the end of the year. It looks like one optimistic investor purchased a call spread in the December contract to position for the stock to rise as much as 15.7% by expiration. Luxury-goods names such as Coach (COH) and Tiffany & Co. (TIF) are soaring today, perhaps the bullish player populating Orient-Express Hotels expects consumers with the funds to afford luxury travel and accommodations to keep their wallets open to the eventual benefit of OEH shares. The trader picked up 5,000 in-the-money calls at the December $10 strike for a premium of $1.90 each, and sold the same number of calls up at the December $12.5 strike at a premium of $0.65 apiece. The net cost of the transaction amounts to $1.25 per contract and positions the investor to profit should shares in Orient-Express Hotels rally 4.2% over the current price of $10.80 to surpass the effective breakeven point on the spread at $11.25 by December expiration day. Maximum potential profits of $1.25 per contract are available to the trader in the event that shares jump 15.7% to trade above $12.50 at expiration. Overall open interest on the stock of 13,566 contracts is largely composed of open put positions, while open positions in OEH calls are relatively few and far between. The 10,000 call options traded in the debit call spread today are substantial compared to previously established call positions and against total open positions on the hotel company. Shares in OEH last traded above $12.50 at the beginning of April.…
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Phil's Favorites

Momentum Monday - Growth Stocks Have COVID and Ivanhoff Lived

 

Momentum Monday – Growth Stocks Have COVID and Ivanhoff Lived

Courtesy of Howard Lindzon

Happy ‘markets closed’ Monday as we pay respects to Martin Luther King Jr.

Last week Ivanhoff had COVID, but the young scrappy man beat it.

We cannot say the same things about growth stocks which continue to struggle from the financial cocktail aftermath of it.

Here is this week’s episode of Momentum Monday. You can watch/listen right here or I have embedded it on my blog below:

Here a I...



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ValueWalk

Trillium Gold Mines (TSXV:TGM): How This Gold Company Might Hedge your Inflation Risk

By Adam Torkildson. Originally published at ValueWalk.

Investors are concerned about inflation and justifiably so. Consumer prices spiked in 2021 to levels not seen in decades in the U.S. and Canada; in fact, for most global economies, 2021 marked a sharp break from what has been an unusually long period of low-to-moderate inflation. Are we headed for a repeat of the 1970s when inflation reached double digits? If your investment does not generate sufficient returns to beat inflation, one thing is certain – inflation can erode the value of your portfolio, even if you maintain positive returns year-over-year. Many younger investors have never faced this invisible drain on their purchasing power.

Historically, gold as an asset class has proved its worth time and time again as an effective hedge against inflation and econ...



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Politics

What Supreme Court's block of vaccine mandate for large businesses will mean for public health: 4 questions answered

 

What Supreme Court’s block of vaccine mandate for large businesses will mean for public health: 4 questions answered

New York City’s vaccine mandates are unaffected by the court ruling. AP Photo/Mary Altaffer

Courtesy of Debbie Kaminer, Baruch College, CUNY

The U.S. Supreme Court on Jan. 13, 2022, blocke...



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Zero Hedge

Ghislaine Maxwell Will No Longer Fight To Keep Epstein 'John Does' Secret; Suspected Of 'Intimate Relationship' With Prince Andrew

Courtesy of ZeroHedge View original post here.

Convicted sex offender and UK socialite Ghislaine Maxwell will no longer appose keeping "vast swaths of information" about her "sex trafficking operation" with Jeffrey Epstein sealed, after accuser Virginia Roberts Giuffre requested they be made public, according to the Daily Mail.

One of Maxwell's lawyer stated in a letter to federal judge Loretta Preska last week that the defense team will no l...



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Chart School

US Dollar Short Term Cycle Peak Near - Update

Courtesy of Read the Ticker

The short term US Dollar cycle peak is upon us, it is time for capital flows to rule the direction of the DXY.



Previous Post: US Dollar Short Term Cycle Peak Near



Capital flows and interest rate differentials move currency around.



If capital flows take over, then they DXY is going into the 80's at least. Of course hiking rates 4 times is easier on the world when the DXY is near 80 rather than 95. A lot if US debt held by emerging markets is at risk otherwise. And yes a lower US dollar in early 2022 helps China out, as it suppo...



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Biotech/COVID-19

What Supreme Court's block of vaccine mandate for large businesses will mean for public health: 4 questions answered

 

What Supreme Court’s block of vaccine mandate for large businesses will mean for public health: 4 questions answered

New York City’s vaccine mandates are unaffected by the court ruling. AP Photo/Mary Altaffer

Courtesy of Debbie Kaminer, Baruch College, CUNY

The U.S. Supreme Court on Jan. 13, 2022, blocke...



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Digital Currencies

The metaverse is money and crypto is king - why you'll be on a blockchain when you're hopping

 

The metaverse is money and crypto is king – why you’ll be on a blockchain when you’re virtual-world hopping

In the metaverse, your avatar, the clothes it wears and the things it carries belong to you thanks to blockchain. Duncan Rawlinson - Duncan.co/Flickr, CC BY-NC

Courtesy of Rabindra Ratan, Michigan State University and Dar Meshi, Michigan State University ...



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Kimble Charting Solutions

Inflation About To Blast Off or Is The Peak In Play?

Courtesy of Chris Kimble

Current data suggests that inflation has been in our everyday lives for several months. And today’s Producer Price Index data was pretty ugly.

BUT… could inflation be peaking?

Today’s chart 2-pack offers a glimpse of why inflation could subside over the near-term.

Here we look at the “monthly” chart of the US Dollar and Euro currencies. It’s pretty easy to see the rising trend channel for the US Dollar and falling trend channel for the Euro. As well, both currencies have formed a wedge pattern, with the US Dollar testing resistance and the Euro testing support.

Shou...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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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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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.
...

http://www.insidercow.com/ more from Insider





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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