Posts Tagged ‘GG’

Bullish Player Goes for Second Helping of Kraft Call Options

Today’s tickers: KFT, GG, AEO & STEC

KFT - Kraft Foods, Inc. – Retail-therapy may be less attractive today following disappointing reports from industry giants such as The Gap, Inc., but options traders are still managing to enhance bullish spirits by turning to food instead. Kraft Foods popped up on our scanners today due to heavy trading traffic in June contract call options. It looks like one player is extending optimism on the stock, having purchased call options on Kraft five weeks prior, on April 15. Shares in Kraft Foods increased as much as 1.3% this afternoon to touch an intraday and new 52-week high of $35.44. It appears the investor purchased June $34 strike calls five weeks ago for an average premium of $0.40 per contract when shares in the name were hovering around $33.29. Kraft’s shares rallied 6.45% in the past five weeks to touch today’s new 52-week high, but the value of the June $34 strike calls has increased more than three-fold during the same time period. Some 7,000 call options at the June $34 strike were sold today for an average premium of $1.46 each. If we assume the call seller and buyer are one and the same, net profits on the position amount to $1.06 per contract. Next, it looks like a fresh batch of roughly 7,000 call options were purchased up at the higher June $36 strike for an average premium of $0.25 per contract. Profits on the fresh bullish stance kick in at expiration next month as long as Kraft’s shares rally another 2.3% to exceed $36.25 within the next six weeks. Other bullish players purchased some 1,400 in-the-money calls at the June $33 strike for an average premium of $2.44 each. Another strategist appears to be ditching a bearish position on Kraft Foods by unraveling a ratio put spread in the September contract. Options implied volatility on Kraft trimmed 3.5% to stand at 31.33% this afternoon.…
continue reading


Tags: , , ,




Emerging Markets ETF Options Fly

Today’s tickers: EEM, GG, ARUN & XLI

EEM - iShares MSCI Emerging Markets Index ETF – Options volume on the EEM has topped 525,000 contracts in the first two hours of the trading session after one big emerging-markets bull banked substantial profits on a previously established position, and extended his optimistic view on the fund through May expiration. Shares in the EEM are down one penny on the session to stand at $49.86 as of 11:15am in New York. It looks like the strategist accumulated upside exposure on the ETF during the month of March, buying a 100,000-lot April $50/$52 call spread for an average premium of $0.20 per contract on March 8th and 9th, when shares in the fund were hovering around $43.89. The subsequent 13.5% rise in the price of the underlying since the transaction was initiated lifted premium on the calls, allowing the options trader to sell the 100,000-lot call spread for $0.46 per contract this morning. The call-spreader pockets average net profits of $0.26 per contract, or around $2.6 million, on this leg of the transaction. Next, the EEM-optimist constructed a fresh debit call spread in the May contract, buying 100,000 calls at the May $51 strike at a premium of $0.80 each, and selling the same number of calls at the higher May $53 strike for a premium of $0.22 a-pop. Net premium paid to initiate the transaction amounts to $0.58 per contract. Thus, the trader is poised to profit in the event that shares in the EEM rally 3.4% over the current price of $49.86 to surpass the effective breakeven point— and a new 52-week high— of $51.58 by expiration day next month. Maximum potential profits of $1.42 per contract, or $14.2 million, are available to the investor should shares in the ETF surge 6.3% to trade above $53.00 by May expiration. Finally, the sale of two sizable chunks of in-the-money April contract call options generated big gains for another EEM-bull this morning. It looks like the…
continue reading


Tags: , , ,




Stampede of Bulls into Goldcorp Calls as Shares Hit Two-Year Highs

Today’s tickers: GG, LINE, IYR & YHOO

GG - Goldcorp, Inc. – Shares of the gold mining company are trading up at their highest in more than 2 years, and a number of options traders are betting Goldcorp’s shares have more room to run in the near term. Call options on GG are in high demand, with more than 3.1 calls changing hands on the stock for each single put option in action today. Shares in the name are currently up 3.5% at an intraday- and new 2-year high of $49.50. Investors expecting the price of the underlying to continue to move higher picked up more than 1,750 calls at the March $50 strike for an average premium of $0.84 apiece. Traders exchanged more than 6,600 calls up at the March $52.5 strike versus previously existing open interest of just 537 contracts. The majority of the calls, or roughly 4,500 contracts, were purchased at the March $52.5 strike for an average premium of $0.29 a-pop. Call buyers at this strike start making money if shares in Goldcorp rally another 6.6% over today’s high of $49.50 to surpass the average breakeven point at $52.79 by March expiration. Options implied volatility on the gold mining company increased 8.0% to 30.88% by 12:45pm.

LINE - Linn Energy LLC – The oil and natural gas company popped up on our scanners this morning due to options activity in the July contract. The spread appears to be the work of an investor positioning for shares to hit a new 52-week high ahead of expiration. Shares in Linn Energy LLC are down slightly by 0.33% to stand at $38.70 in early afternoon trade. It looks like the strategist responsible for the transaction sold 2,000 puts at the July $36 strike for a premium of $1.15 per contract…
continue reading


Tags: , , ,




Option Strategies and Spreads Suggest Good Times on the Horizon for JPMorgan

 Today’s tickers: JPM, GG, CVA & RSH

JPM - JPMorgan Chase & Co. – Bullish sentiment on JPMorgan is alive, well and flourishing by the looks of transactions taking place in April contract call and put options this afternoon. Shares in the name are down 1.7% at $44.69 as of 1:00pm in New York, but some strategists are positioning for the stock to rally during the next few months. JPM-bulls are taking advantage of the dip in the price of the underlying, and seem little concerned the latest buzz regarding a lawsuit filed in December of last year, alleging the company knew of, but failed to report, fraudulent activity perpetrated by Bernard Madoff. A three-legged transaction involving the sale of 4,500 April $52 strike puts and the sale of the same number of April $49 strike calls, reduced the cost of buying 4,500 calls at the April $45 strike to just $0.27 per contract. The investor responsible for the transaction starts to make money if shares in the financial services firm rise 1.3% to surpass the effective breakeven price of $45.27 ahead of April expiration. Maximum potential profits of $3.73 per contract are available to the trader in the event that JPM’s shares surge 9.6% in the next three months to trade above $49.00 by expiration day. Meanwhile, it looks like other bulls are buying the April $46/$49 call spread, around 9,000 times, for an average premium of $1.11 per contract. Debit call-spreaders stand prepared to profit should shares increase 5.4% to trade above the average breakeven share price of $47.11 before the calls expire in April. Investors could walk away with maximum potential profits of $1.89 per contract if the price of the underlying stock jumps 9.6% to exceed $49.00 by April expiration day.

GG - Goldcorp, Inc. – Investors placed medium-term bullish bets on the gold producer today in order to position for significant appreciation in the price of the underlying stock over the next few months. Shares in the gold mining company pared…
continue reading


Tags: , , ,




Call Options Fly Off the Shelves at Gannet Co.

 Today’s tickers: GCI, XRT, GCI, JCP, TSN, GG & CVS

GCI - Gannett Co., Inc. – Call options on the publishing giant are in high demand today with shares of the underlying stock rising as much as 8.3% to an intraday high of $13.64. Gannett’s shares took off after the Wall Street Journal reported the company, along with the New York Times and News Corp., are looking to offer software apps for Samsung’s Galaxy tablet. Investors have thus far exchanged more than 6.25 calls on the stock for each single put contract in play as of 3:15 pm ET in New York trading. Near-term bullish players picked up some 5,300 now in-the-money calls at the October $13 strike for an average premium of $0.58 a-pop. Investors long the calls make money if the USA Today publisher’s shares exceed the average breakeven price of $13.58 by October expiration. Optimism spread to the higher October $14 strike where more than 6,100 call options changed hands. At least 1,500 of those contracts were purchased for an average premium of $0.42 each, while the bulk of the remaining volume traded to the middle of the market. Uber-bulls looked out to the November $15 strike to purchase approximately 2,500 calls at an average premium of $0.41 apiece. Call buyers at this strike are prepared to profit if GCI’s shares jump 5.645% over today’s high of $13.64 to exceed the average breakeven point at $15.41 by expiration day next month. Options implied volatility on Gannet Co. jumped 16.6% to 60.43% in late afternoon trading.

XRT - SPDR S&P Retail ETF – A sizeable put spread initiated on the XRT, an exchange-traded fund designed to replicate the performance of the S&P Retail Select Industry Index, could be the work of an investor bracing for a pullback in the price of the underlying fund ahead of January 2011 expiration. Shares of the fund increased 1.45% during the final trading day of the week to touch an intraday high of $43.02. The put player purchased…
continue reading


Tags: , , , , ,




Delta Air Lines Receives Contrarian Bullish Combo Play

Today’s tickers: DAL, AKAM, GG & IYR

DAL – Delta Air Lines, Inc. – One contrarian investor initiated a three-legged bullish options combination play on Delta Air Lines today with shares of the underlying stock trading lower by 6.25% on the day at $10.65 as of 12:55 pm ET. It looks like the trader is betting Delta’s shares are not likely to fall much lower ahead of expiration in January 2011. The investor sold 4,000 puts at the January 2011 $10 strike for premium of $1.17 each, shed another 4,000 puts at the lower January 2011 $9.0 strike for premium of $0.80 apiece, and finally purchased 4,000 calls at the higher January 2011 $12.5 strike at a premium of $0.98 a-pop. The transaction yields a net credit of $1.00 per contract to the investor, which he keeps in full as long as the airline’s shares exceed $10.00 through expiration day. The long stance in call options implies the potential for additional profits to be made should DAL’s shares surge 17.4% over the current price of $10.65 to surpass the $12.50-level ahead of expiration in January. If shares continue to descend, however, the investor could wind up having a total of 800,000 shares put to him in the event both chunks of puts at the January 2011 $10/$9.0 strikes land in-the-money at expiration.

AKAM – Akamai Technologies, Inc. – Bullish players are dominating trading activity in Akamai Technologies’ options this morning due to reports of renewed takeover chatter. Investors expecting AKAM’s shares to climb higher are scooping up call options in the August and September contracts. The firm’s shares are currently up 2.8% on the day to arrive at $45.30 as of 11:30 am ET. Traders purchased at least 4,200 now in-the-money calls at the August $45 strike for an average premium of $0.45 apiece. Call buyers at this strike make money if, by expiration tomorrow, Akamai’s shares exceed the average breakeven price of $45.45. Optimism spread to the September contract where traders picked up 1,100 call options at the September $49 strike for an average premium of $0.69 a-pop. Investors long the September $49 strike calls are positioning for AKAM’s shares to rally to a new 52-week high by expiration day next month. The current 52-week high on the stock is $46.72, but the price of the underlying stock would need to surge 9.7% over the current price of…
continue reading


Tags: , , ,




Trading in Electronic Arts’ Calls Accelerates Ahead of Earnings

Today’s tickers: ERTS, USO, ARMH, BK, JPM, GG, XRT, DF, CAH & PCLN

ERTS – Electronic Arts, Inc. – Call activity on the video game publisher is booming in late afternoon trading ahead of Electronic Arts’ fourth-quarter earnings announcement. Shares of the underlying stock are up 3.3% at $18.85 with 40 minutes remaining in the session. Analysts, on average, anticipate earnings of $0.05 per share on revenue of $835.4 million. Bullish options investors are scrambling to position for Electronic Arts’ share price to rally sharply should the firm’s earnings report beat average expectations. The majority of the call activity on the stock today is centered in the June contract where trading patterns look to be mimicking the parameters of a plain-vanilla debit call spread strategy. Approximately 15,000 calls were likely purchased for an average premium of $0.94 apiece at the June $20 strike. Meanwhile, traders sold about 15,000 calls at the higher June $22 strike for an average premium of $0.36 each. Investors employing this strategy reduce the net cost of buying the closer-to-the-money call options at the June $20 strike price to an average of $0.58 per contract. Maximum potential profits available to pseudo-call spreading traders amounts to $1.42 per contract should shares of the underlying stock surge 16.7% to surpass the $22.00-level by June expiration. Options implied volatility is up 6.9% to 57.12% ahead of the earnings announcement.

USO – United States Oil Fund LP – Shares of the U.S. Oil Fund are currently trading 1.25% lower on the day at $36.77. The USO’s share price of $36.77 is 12.2% below the May high of $41.90 attained back on May 3, 2010. One options investor is positioning for continued bearish movement in the price of the underlying fund through June expiration. The trader purchased a debit put spread, buying 3,000 lots at the June $36 strike for an average premium of $1.27 each, and selling the same number of contracts at the lower June $33 strike for $0.47 apiece. Net premium paid for the pessimistic play amounts to $0.80 per contract. The trader starts to make money if USO shares slip beneath the effective breakeven price of $35.20 by expiration day. Maximum potential profits of $2.20 per contract accumulate for the put-spreader if shares slump 10.25% beneath the current value to breach the $33.00-level by June expiration.

ARMH – ARM Holdings PLC – Optimistic options players initiated debit…
continue reading


Tags: , , , , , , , , ,




Volatility Bursts After Take-Two Reports Smaller Loss and Phil Davis Picks Them

Today’s tickers: TTWO, ORCL, URBN & GG

TTWO - The maker of the “Grand Theft Auto” series of video games surged more than 5.5% during the session to arrive at the current price of $10.75. The software developer reported a loss of 66 cents per share for the third-quarter, which was narrower than the 68 cent loss expected by some analysts. Options action in the December contract appears to be the work of an investor selling volatility by enacting a short straddle. It seems the trader put on the trade by shedding 5,000 calls at the December 10 strike price for a premium of 1.60, and then simultaneously selling 5,000 puts at the same strike, receiving a premium of 1.10 per contract. The gross premium enjoyed on the transaction amounts to 2.70. The trader will retain the full 2.70 premium if shares settle at $10.00 by expiration in December. Because the trader now holds short positions in both calls and puts, he is vulnerable to losses if shares surpass the upper breakeven point at $12.70 by expiration, or if shares slip beneath the lower breakeven price of $7.30. Option implied volatility plummeted from yesterday’s reading of 83% to the current value of 57% following third-quarter earnings for TTWO. – Take-Two Interactive Software, Inc. –

ORCL - Investor demand for December contract put options caught our eye this morning amid a 1% decrease in shares of the software company to the current price of $21.79. Perhaps some traders have decided to take cautiously bearish stances on the stock after news reports revealed that the completion of Oracle’s acquisition of Sun Microsystems (JAVA) could be delayed by the European Commission (EC). The commission’s deadline to rule on the deal is this Thursday. However, the EC could launch an investigation that may take as many as four months, according to some reports. Plain-vanilla put buying was employed at the December 21 strike price where about 5,000 lots were picked up for an average premium of 1.30 apiece. Volume at the lower December 20 strike surpassed 19,000 contracts as traders appeared to have purchased 15,000 married put options for an average premium of 95 cents each. The purchase of shares of the underlying stock in conjunction with protective put options suggests that some investors expect the stock to appreciate by expiration in December. The puts provide downside protection on the long position in case shares decline…
continue reading


Tags: , , ,




 
 
 

Zero Hedge

"I'll Die For Hong Kong": Students Transform Campuses Into Armories As Protests Rage For 4th Straight Day

Courtesy of ZeroHedge View original post here.

The situation in Hong Kong went from bad to worse on Thursday, as the unprecedented weekday protests - a violation of the tacit agreement between the pro-democracy movement and the business community not to disrupt weekday commerce -continued for a fourth day on Thursday.

After a squad of HK police officers earlier this week raided the campus of the Chinese University of Hong Kong, but purportedly found nothing, protesters accused them of unjustly harassing students, many of whom are simply trying to get through the semes...



more from Tyler

Phil's Favorites

Disney Did In 1 Day What Took HBO 4 Years: 10 Million Streaming Subscribers

Courtesy of ZeroHedge

Somewhere Netflix and Amazon video are sweating.

Disney announced today that Disney+ has reached a stunning 10 million plus subscribers just 24 hours after its launch yesterday in the U.S., Canada, and Netherlands; the figure surprised analysts who had expected a much slower rollout for Disney to reach that level, although let's just ignore that most of the new "subs" are only there thanks to one of the various free streaming offers (perhaps someone should launch WeStream).

Separately, Apptopia reported 3.2 million mobile app downloads in the first 24 hours, with an estimated 89% of mobile downloads in the U.S., 9% in Canada, and 2% in the Netherlands. In just one day, users spent 1.3 million hours watching it, Apptopia said, more th...



more from Ilene

The Technical Traders

Great Cycles Article PG 9 in TradersWorld Mag - Free

Courtesy of Technical Traders

  1. How to Use Price Cycles and Profit as a Swing Trader
  2. Geodetics and the Affairs of Men – USA, and China
  3. Cosmological Economics
  4. Time Machine
  5. Trading Means Pr...


more from Tech. Traders

Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



more from Bitcoin

Kimble Charting Solutions

Silver Testing This Support For The First Time In 8-Years!

Courtesy of Chris Kimble

Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!

This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.

Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the bre...



more from Kimble C.S.

Insider Scoop

Analysts Upbeat On Skyworks' Fundamentals

Courtesy of Benzinga

Skyworks Solutions Inc (NASDAQ: SWKS) reported better-than-expected fiscal fourth-quarter earnings and revenues, but the stock is slipping in reaction to the year-over-year declines in both metrics.

The Analysts

Bank of America analyst Vivek Arya reiterated an Underperform rating and $92 price target for Skyworks shares. (See his track record ...



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

Chart School

Gold Gann and Cycle Review

Courtesy of Read the Ticker

Gold has performed well, golden skies are here again. In fact it has been a straight line move, and this is typically unusual and a pause can be expected.

It seems the markets are happy again, new highs in the SP500, US 10 year interest rates look to re bound, negative interest may soften. The US FED has reversed their QT and now doing $250BN (not QE) repo. The main point is the FED has stopped QT, and will do QE forever. The evidence now is the FED put is under market risk and the possibility of excessive losses do not exist. 

Point: If in future if there is market risk, the FED will print it's way out of it.
Subject To: In this blog view. The above is so until the amount required rocks confidence in the US dollar as a reserve currency.&n...



more from Chart School

Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



more from Lee

Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




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.

Market Shadows >>