Posts Tagged ‘GFI’

LinkedIn Weekly Calls Active As Shares Rally To Highest In Three Months


Today’s tickers: LNKD, MW & GFI

LNKD - LinkedIn Corp. – Shares in the professional social-networking site operator jumped 6% to a three-month high of $113.89 in the first half of the trading session after the Internet stock was raised to 'buy' from 'hold' with a share price target of $142.00 at Jefferies. Traders snapping up weekly calls on the stock this morning appear to be climbing aboard the bullish-bandwagon, positioning for additional near-term gains in the price of the underlying shares in the back half of this week. Volume in the weekly contracts is heaviest at the Sep. 07 '12 $115 strike where upwards of 3,100 calls changed hands against open interest of 543 positions. It looks like most of the $115 calls were purchased for an average premium of $0.47 apiece, thus preparing buyers to profit at expiration in the event LNKD shares exceed the average breakeven price of $115.47. Upside calls are also in play at the Sep. 07 '12 $120 strike, with roughly 460 of the contracts purchased this morning for an average premium of $0.15 each. Some bullish positions initiated yesterday and Friday are already seeing substantial paper profits given the big upside move in the shares today. Upside call buyers who picked up around 700 of the Sep. 07 '12 $110 strike call during the prior two trading sessions paid between $0.60 and $0.75 apiece for most of the contracts. Premium on the $110 weekly calls has increased five-fold since then from roughly $0.75 each on Tuesday to $4.10 per contract as of 12:15 p.m. ET on Wednesday.

MW - The Men’s Wearhouse, Inc. – Options on men’s clothing retailer, Men’s Wearhouse, are active ahead of the company’s second-quarter earnings report after the close this afternoon. Shares in the name are up 0.90% at $31.80 as of 12:35 p.m. ET, and at least one strategist is positioning for further gains in the share price in the near term. The…
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Campbell Soup Co. Put Options Heat Up As Shares Cool


Today’s tickers: CPB, GFI & DD

CPB - Campbell Soup Co. – Put options on the food products company are active this morning after Campbell Soup Co. said full-year sales growth for 2012 will likely be at the lower end of its prior forecast. Shares in the maker of soup, sauces and beverages are down 1.4% on the day at $32.38 as of 12:10 p.m. in New York. Put buying in the September expiry suggests some options market participants may be preparing for shares in CPB to extend losses after the company reports fourth-quarter earnings on September 4th. Most of the contracts in play appear to have been purchased by one strategist given the identical timing of transactions in the Sept. $31 and $32 strikes. Lighter volume in the Sept. $32 strike put indicates around 180 contracts were purchased for an average premium of $0.39 each, while more than 900 puts were purchased at the Sept. $31 strike for a premium of $0.39 each. The $31 puts may be profitable in the event shares in CPB drop 5.5% to breach the average breakeven price of $30.61 at expiration.

GFI - Gold Fields Ltd. – Heavy call buying in Gold Fields Ltd. indicates one or more traders are positioning for shares in the gold mining company to rise during the next few months. Shares in the gold producer are currently up 0.65% on the day at $12.13 as of 12:30 p.m. on the East Coast. Trading traffic in Gold Fields options is heaviest in the Oct. $12 strike call, which has changed hands more than 18,000 times so far today versus open interest of 858 contracts. It looks like most of the calls were purchased for an average premium of $0.85 apiece by strategists eyeing a 6%-plus move to the upside above the breakeven price of $12.85 by October expiration. The company is scheduled to report second-quarter earnings ahead of the opening bell on August 23rd.…
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Short Strangle Strategist Suggests Range-Bound Shares for China Fund

Today’s tickers: FXI, GFI, MCO, KWK, GME, JDSU & SVU

FXI – iShares FTSE/Xinhua China 25 Index Fund – A large-volume short strangle enacted on the FXI, an exchange-traded fund that tracks the price and yield performance of the FTSE/Xinhua China 25 Index – an index designed to mirror the performance of 25 of the largest and most liquid Chinese companies, implies one big options player expects shares of the underlying fund to train within a specified range through May expiration. Shares of the FXI are down more than 4% to $42.12 as of 12:15 pm (ET). The strangle-player sold 25,000 calls at the May $44 strike for a premium of $0.93 each, and sold 25,000 puts at the lower May $42 strike for $1.09 apiece. Gross premium pocketed on the transaction amounts to $2.02 per contract. The investor responsible for the short strangle keeps the full $2.02 premium received today as long as the FXI’s share price remains with the range of $42.00 to $44.00 through expiration day next month. The short position in both call and put options exposes the trader to losses in the event that shares rally above the upper breakeven price of $46.02, or if shares slip beneath the lower breakeven price of $39.98, ahead of May expiration. Options implied volatility is up 11.4% to 30.82% as of 12:20 pm (ET).

GFI – Gold Fields Ltd. – Shares of the gold mining company are down more than 5.2% to $12.35 today, but bullish options trading on the stock suggests one trader is itching for a rebound in the price of the underlying shares by July expiration. Gold Fields received an upgrade to ‘outperform’ from ‘sector perform’ earlier in the week at RBC Capital. The optimistic individual sold 7,000 calls at the July $15 strike for a premium of $0.20 apiece in order to partially finance the purchase of the same number of in-the-money calls options at the April $12 strike for $0.90 each. The net cost of getting long the near-term in-the-money options amounts to $0.70 per contract. The parameters of this transaction somewhat mimic those of a covered call strategy. This is because the in-the-money calls in the April contract – assuming shares are able to resist slipping beneath $12.00 through the end of the trading session – allow the investor to take ownership of shares of the underlying stock at an effective price…
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Iron Condor Nesting in Brazil Index ETF

Today’s tickers: EWZ, CVX, WFC, GFI, SU, MA, ZION, DAL, AMAG & JWN

EWZ – iShares MSCI Brazil Index ETF – An iron condor options strategy employed in the February contract on the EWZ implies one investor expects the underlying share price of the fund to stagnate ahead of expiration in two weeks. Shares of the exchange-traded fund, which generally correspond to the price and performance of publicly traded securities in the Brazilian market, are down 5% today to $64.37. Today’s decline merely adds salt to the wounds – The Brazil index ETF has taken a severe beating in the past few months, falling 20.5% since attaining a 52-week high of $80.93 back on December 3, 2009. The iron condor, a strategy utilized by option traders anticipating little movement in the underlying share price, is perhaps one investor’s way of indicating the worst is over and a bottom is close at hand. The iron condor’s construction is essentially the combination of two strangles, or alternatively can be thought of as two credit spreads. On the call side, the investor pockets a net credit of $0.09 per contract by selling 10,000 calls at the February $71 strike for $0.13 apiece, spread against the purchase of 10,000 calls at the higher February $74 strike for $0.04 each. As for the puts, the trader receives a net credit of $0.26 per contract on the sale of 10,000 puts at the February $59 strike for $0.44 each, marked against the purchase of 10,000 puts at the lower February $56 strike for $0.18 apiece. Therefore, the combined credit enjoyed on the iron condor amounts to $0.35 per contract. Maximum retention of the $0.35 credit, or total monetary profits of $350,000, is contingent upon the underlying share price at expiration. EWZ shares must trade within a range of $59.00 to $71.00 in order for the investor to walk away with maximum profits. The investor holding the iron condor is exposed to significant losses if his ‘neutral’ prediction is wrong. Maximum loss potential on the transaction of $2.65 per contract is far greater than the $0.35 credit received for undertaking such risk. But, apparently this trader is confident that shares of the underlying stock will move sideways – at least through February expiration. Perhaps this confidence stems from the fact that losses do not amass to the upside unless shares rebound 10.85% to surpass the upper breakeven…
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Option Traders Try Their Luck with Out-of-the-Money Calls on MGM Mirage

Today’s tickers: MGM, EWC, EWZ, DHI, XLF, GLW, TRA, CF, PHM, GFI & EBAY

MGM – MGM Mirage, Inc. – Shares of casino resort operator, MGM Mirage, rallied 5.25% this afternoon to $9.62. Option traders expecting shares to rally significantly in the next 12 months bought call options in the January 2011 contract. Approximately 20,000 calls were purchased at the January 2011 20 strike for an average premium of 70 cents per contract. Investors break even on the calls if MGM’s shares more than double by expiration. Shares must rally at least 115% to the breakeven price of $20.70 in order for call-buyers to begin to accumulate profits.

EWC – iShares MSCI Canada Index ETF – The exchange-traded fund, which mirrors the performance of publicly traded securities in the Canadian market, attracted pessimistic option players. The bearish risk reversal established on the fund contrasts with the nearly 1.5% rally in shares of the underlying to $26.30 during the session. It appears one investor sold 12,500 calls at the June 27 strike for a premium of 1.60 each, spread against the purchase of the same number of calls at the lower June 26 strike for two dollars premium apiece. The net cost of the reversal amounts to 40 cents per contract. Profits on the trade – assuming the investor holds no underlying stock position – accrue if shares of the EWC slip beneath the breakeven point to the downside at $25.60 by expiration in June 2010.

EWZ – iShares MSCI Brazil Index ETF – A number of bullish trades on the Brazil exchange-traded fund today suggest shares of the EWZ are set to rally in the first few months of the new year. Shares edged 1.5% higher during the trading day to stand at $73.21. Optimistic traders employed a number of different option strategies in order to position for bullish movement in the price of the underlying stock. One trader initiated a risk reversal in the January contract by selling 6,000 puts at the January 72 strike for 1.80 each, spread against the purchase of 6,000 in-the-money calls at the same strike for 2.70 apiece. The cost of getting long the call options is reduced to 90 cents per contract for the reversal player. Profits on the position amass above the breakeven price of $72.90. Another option bull unfurled the wings of a butterfly spread in the March contract. The trader…
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Potash Attracts Option Plays as Shares Increase

Today’s tickers: POT, EWZ, USO, C, NTRI, GFI, AUY, AA, & WYE

POT - Shares of the Canadian producer of potash rallied more than 5% during the trading session to break through the $90.00-level. The stock tempered this afternoon, however, and stands just 2.5% higher for the day at $87.89. We observed interesting bullish plays take place in the December contract. One investor established a 2,000-lot buy-write strategy, also known as a covered call. The covered call involved the purchase of shares of the underlying stock for approximately $90.74, and the simultaneous sale of 2,000 call options at the December 110 strike for a premium of 1.80 per contract. The cost of buying the stock is reduced by the value of the premium received on the sale of the calls, resulting in an effective price per share of $88.94. Additionally, the short call position serves as an exit strategy for the trader if shares of POT trade above $110.00 by expiration. If the December 110 strike calls land in-the-money, the investor will likely have the underlying shares called from him, and he will be left with net profits of 24% on the rally in the stock. The other strategy employed by POT-lovers this afternoon was a call spread. Investors purchased 5,000 calls at the December 115 strike for 1.25 each, and sold 5,000 calls at the higher December 120 strike for 85 cents premium apiece. – Potash Corp. of Saskatchewan, Inc. –

EWZ - Shares of the Brazil exchange-traded fund are slightly higher this afternoon by less than 0.5% to stand at $69.58. Option traders expecting continued bullish movement in the price of the fund initiated optimistic plays across several contracts. One nearer-term indication of bullish sentiment is a call spread in the November contract. The trade likely involves the purchase of 2,000 calls at the November 71 strike for a premium of 3.23 apiece, spread against the sale of 2,000 calls at the higher November 77 strike for one dollar each. The net cost of the transaction amounts to 2.23 per contract. Thus, maximum potential profits of 3.77 are available in the event that shares of the EWZ rally 11% to $77.00 by expiration next month. Plain-vanilla call buying is another tactic employed by bullish investors today. Some 2,500 calls were purchased at the March 2010 80 strike for a premium of 2.70 each. Finally, 1,000 calls were coveted by…
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Qualcomm – Rally in sight, but not just yet

Today’s tickers: QCOM, GT, IVN, AMGN, C, GFI, HMY, SQNM & GE

QCOM – Qualcomm Inc. – Things might be looking better for Qualcomm – but not just yet according to one large option trade that went through earlier today. An investor sought protection in the April contract for fear that shares would be below $35.00 when the contract expires and turned the cost of the premium into a credit by selling January 2010 expiration puts at the same strike. The strategy assumes that the shares will not break through the strike price as the second quarter begins, in which case the investor gets paid out for every penny below $35.00 the share are at that time. But ahead the investor’s core assumption is that shares will shift ahead of $35.00 when next year begins, rendering the sold put options worthless. Today Qualcomm is trading a shade higher at $33.75.

GT – The Goodyear Tire & Rubber Company – Shares of the manufacturer of tires and rubber products have fallen by 5% to $4.57 today. Perhaps the continued decline stems from the downgrade GT received on Monday to ‘underweight’ from ‘hold’ by a KeyBanc analyst, who cited challenges such as global sales declines, and rising costs related to pension and raw materials. Despite the downgrade and today’s decline in share price, one investor established a bullish play on the stock. At the April 7.5 strike price, 10,000 calls were purchased for 10 cents each. Should there by a rally in shares before expiration, this trader will see premiums grow richer at the 7.5 strike, and could then potentially sell the calls to profit. There is a delta of 0.13 on the trade, thus there is a 13% chance that these calls will land in-the-money by April. The current share price would need to experience an increase of 66% in order to surpass the breakeven point on the trade located at $7.60. Whether the shares can breach the breakeven point or not, this investor can still capitalize on today’s position with even a slight rally in shares by selling premium.

IVN – Ivanhoe Mines Limited – The international mineral exploration and development company’s shares have rallied by 3% to stand at $4.59. IVN caught our attention when it edged onto our ‘hot by options volume’ market scanner. Calls were in demand in the June contract, where over 12,300 calls were purchased…
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Phil's Favorites

1984 Is Not The Future

Courtesy of The Automatic Earth.

Jacobello Alberegno The Beast of the Apocalypse 1360-90

The Guardian ran an article yesterday by one of its editors, David Shariatmadari, that both proves and disproves its own theme at the same time: “An Information Apocalypse Is Coming”. Now, I don’t fancy the term apocalypse in a setting like this, it feels too much like going for a cheap thrill, but since he used it, why not.

My first reaction to the headline, and the article, is: what do you mean it’s ‘coming’? Don’t you think we have such an apocalypse already, that we’re living it, we’re smack in the middle of such a thing? If you do...

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Zero Hedge

Mapping The Countries With The Most Billionaires

Courtesy of ZeroHedge. View original post here.

There are roughly 36 million millionaires in the world.

That means if you meet someone from the global population at random, there’s a 1 in 200 chance that they could be a millionaire – this makes for surprisingly good odds.

However, as VisualCapitalist's Jeff Desjardins notes, the billionaire on the other hand is a much rarer breed. According to Forbes, there are just over 2,000 billionaires in existence, making up just 0.00003% of the global population.

Where do these people ...

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Digital Currencies

Bitcoin: Bubble Or Hyperdeflation?

Courtesy of ZeroHedge. View original post here.

Bitcoin flew too close to the sun. Now the eyes of the world are upon the crypto market, with all the consequences that follow...

“30th anniversary of Black Monday, when markets dropped 23% in a day. In crypto we just call that Monday."

- Alexander Tapscott

But, as Incrementum's Demelza Hays and Mark J. Valek show in their latest magnificent Crypto Research report, it all happened as it always has.

Bitcoin reached an all-time high and then predictably it fell again. All c...

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Chart School

Bitcoin Update, demand is present

Courtesy of Read the Ticker.

When a Wyckoff trader looks at a stock chart of price and volume one looks for foot prints of material demand and supply. The current bitcoin chart shows very significant demand prints.

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Sure fundamentals do matter, and so does market timing (entry, stops and exit), here at we believe a combination of Gann Angles, Cycles...

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Connor Browne - FAANG Stocks Dominance

By VW Staff. Originally published at ValueWalk.

They are known as the FAANGs but Facebook, Amazon, Apple, Netflix and Google/Alphabet should also be dubbed the great disruptors. They have created new businesses and destroyed old ones, changing the way we conduct our personal and business lives in the process.

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Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Check out our H2 hedge fund letters here.


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Insider Scoop

BofA: Lyft, Magna Could Be The First Of Many Autonomous Vehicle Partnerships

Courtesy of Benzinga.

Related MGA Benzinga Pro's 5 Stocks To Watch Today Earnings Scheduled For February 22, 2018 ... more from Insider


How your brain is wired to just say 'yes' to opioids

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Members' Corner

Fatal Flaws of our Enlightenment?


David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on many topics including national defense, creativity, and space exploration. He’s also one of the “World’s Best Futurists.” Find David’s books and latest thoughts on various matters at his website and blog. In ...

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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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