Posts Tagged ‘GIS’

Bearish Signals Appear in Japan ETF Options

 Today’s tickers: EWJ, GIS, XING & DLTR

EWJ - iShares MSCI Japan Index Fund – A couple of bearish options trades on the EWJ caught our eye today with shares in the fund dropping nearly 2.0% at the start of the session to an intraday low of $10.42. Shares in the ETF pared some of the morning’s losses this afternoon, and currently stand 0.95% lower on the day at $10.53. The price of the underlying shares at $10.53 represents a 13.0% recovery off of the EWJ’s post-earthquake low of $9.24. One investor appears to have taken a medium-term bearish stance on the fund by selling calls to offset the cost of buying put options. The trader sold 14,250 calls at the June $11 strike for a premium of $0.31 each, and purchased the same number of puts at the lower June $10 strike at a premium of $0.44 apiece. Net premium paid for the spread amounts to $0.13 per contract. The investor profits if the EWJ’s shares decline 6.3% in the next few months to slip beneath the effective breakeven point to the downside at $9.87 by June expiration. Meanwhile, substantial volume in April contract calls today appears to be the work of an investor taking down one leg of a bullish risk reversal initiated last Tuesday. Around 105,000 calls sold today at the April $11 strike for a premium of $0.08 per contract. Most of the volume at that strike likely represents the closing sale of some 102,500 calls that were originally purchased last week. The original transaction involved the sale of 102,500 puts at the April $8.0 strike for a premium of $0.10 each, against the purchase of the same number of calls at the April $11 strike at a premium of $0.14 apiece. Perhaps the trader is less optimistic about the prospects for a near-term rebound in the price of the underlying fund today than he was eight days ago. Over 260,000 option contracts have changed hands on the EWJ as of 1:30pm in New York.…
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Visa, Inc. Call Options Fly Off the Shelves

Today’s tickers: V, AXP, GIS, HNZ, AFFY, REV, AA & ORCL

V – Visa, Inc. – Frenzied call buying ensued on global payments network, Visa, Inc., this afternoon with the price of the underlying shares rallying as much as 8.76% to secure an intraday high of $83.79. Visa’s shares are currently up a more modest 4.90% to stand at $80.82 as of 3:10 pm (ET). The sharp rally in Visa’s share price likely stems from news that U.S. politicians reached an agreement on the regulation of interchange/”swipe” fees on credit and debit card transactions. Investors flooded the near-term July contract on Visa, Inc. to initiate bullish stances on the stock. Options traders expecting continued upward movement in the price of Visa’s shares by July expiration picked up approximately 6,800 calls at the July $85 strike for an average premium of $1.41 each. Investors long the July $85 strike calls make money only if shares of the underlying stock trade above $86.41 ahead of expiration day next month. Buying interest spread to the higher July $90 strike where some 4,300 calls were purchased at an average premium of $0.46 each. Call buyers at this strike price accrue profits if the firm’s shares surge 11.9% from the current price of $80.82 to trade above the average breakeven point to the upside at $90.46 by July expiration day. Finally, investors honed in on the July $95 strike to take ownership of 1,300 calls for an average premium of $0.19 per contract. Options players populating Visa, Inc. this afternoon displayed a clear preference for bullish calls on the stock by exchanging more than 2.3 call options to each single put contract in play thus far in the session. But, some optimistic individuals utilized puts to take a near-term bullish stance on Visa. Investors sold at least 1,400 puts at the July $80 strike to receive an average premium of $2.81 per contract. Put sellers keep the full premium pocketed on the transaction as long as Visa’s shares exceed $80.00 through expiration day next month. Investors short the puts are apparently happy to have shares of the underlying stock put to them at an effective price of $77.19 each in the event the puts land in-the-money at expiration.

AXP – American Express Co. – The global payments company appeared on our ‘most active by options volume’ market scanner this afternoon after one options strategist initiated…
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Chinese ETF sees more call option action

Today’s tickers: FXI, XL, AIG, WYE, EEM, JAVA, GIS, BK, SLM & C

FXI iShares FTSE/Xinhua China 25 – Shares are up by approximately 1.5% to stand at $27.96. The Chinese ETF appeared on our ‘most active by options volume’ market scanner after one investor purchased 40,000 in-the-money calls at the March 27 strike price for an average price of 55 cents per contract. The investor snagged the chunk of calls at a low premium earlier today relative to the current premium on the calls of 1.35. It looks like this trader offset the cost of the purchase by selling 40,000 calls at the April 30 strike price for a premium of 63 cents. Thus, he pockets a credit of 8 cents on the trade. As long as shares remain above $27 by Friday, this investor will have the right to collect 4,000,000 shares of the underlying stock at the strike price. But, by selling the calls in April this trader has capped upside gains at a maximum of 3.0 if shares happen to rally to $30 by expiration. The sale effectively provides him with an exit strategy in April.

XL XL Capital Limited – Shares of the property and casualty insurance firm have rallied 7.5% to $4.43 on the heels of AIG’s surge today. One investor looking for further upside gains purchased 6,400 calls at the March 5.0 strike price for 13 cents apiece. If shares can continue to rebound in this fashion and rise by 12% from its current price, then this trader would begin to profit at the breakeven share price of $5.13.

AIG American International Group – Outrage at $165 million in bonuses paid out to employees of the firm’s financial products division while taking in TARP funds at the same time apparently could not detract from AIG’s share price, which is soaring upwards by 40% to $1.35. While government appointed CEO Edward M. Liddy is getting reamed out at the Congressional hearings today, options investors have been busy trading calls across multiple contracts. Traders were heavily favoring the call side and skewed the call-to-put ratio to more than 4.5 calls to every put in action today. At the April 3.0 strike price, optimists picked up 3,700 calls for 10 cents each. Despite the huge rally today, shares would need to continue upwards by another 129% in order to reach the breakeven point at $3.10 by…
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Phil's Favorites

What's unconscious bias training, and does it work?

 

What's unconscious bias training, and does it work?

Courtesy of Calvin K. Lai, Washington University in St Louis

A Starbucks manager in Philadelphia called the police on two black men on April 13, leading to their arrest. The two men, who had been waiting for a friend at the store, were released without being charged.

Starbucks has since apologized and announced it will close more than 8,000 of its stores in the United States to provide “racial bias” training for its 175,000 ...



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Zero Hedge

Apple Slides After Taiwan Semi Blames "Very High-End Smartphone" For Unexpectedly Poor Guidance

Courtesy of Zero Hedge

In the latest confirmation that earnings from Apple are set to disappoint, perhaps bigly, overnight, the world's largest semiconductor producer, Taiwan Semiconductor, reported disappointing guidance, with management blaming a "very high-end smartphone" prompting renewed questions about the collapse in global iPhone demand.

The market wasted no time to price in the ongoing decline in demand for $1000+ iPhones and Taiwan Semi ADRs fell more than 5% in pre-market trading while Apple, Nvidia and AMD are all down ~2% in sympathy; this followed weakness in European chip stocks like AMS -3.7%, STMicro -2.2%, and Dialog Semi -1.9%.

...



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Insider Scoop

30 Stocks Moving In Thursday's Mid-Day Session

Courtesy of Benzinga.

Gainers
  • AGM Group Holdings Inc. (NASDAQ: AGMH) shares jumped 27 percent to $7.9992 after rising 26 percent on Wednesday.
  • OpGen, Inc. (NASDAQ: OPGN) shares climbed 23.4 percent to $2.58. OpGen completed rapid testing clinical trial in Colombia and expanded international operations.
  • PLx Pharma Inc. (NASDAQ: PLXP) gained 15.6 percent to $4.449.
  • Monaker Group, Inc. (NASDAQ: ...


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Chart School

Short Opportunity Negated

Courtesy of Declan

Well, that didn't last long.

The shorting opportunities which offered themselves yesterday didn't last the morning; morning gaps held beyond the first half-hour of trading and bar a small sell-off into the close markets finished higher and above key moving averages and trading channels.

The Dow created a breakout which now offers a potential long play. Stops go on a loss of 24,600. Technicals finished with a new long 'buy' trigger in Stochastics.
 


The S&P finished above the 3-week ...



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Digital Currencies

Only 0.04% Of Taxpayers Are Reporting Any Bitcoin Gains To The IRS

Courtesy of Zero Hedge

With the US tax deadline just one day away, crypto investors who traded actively during the market's run-up and inevitable meltdown should have a lot of activity to report to the IRS.

But according to a survey conducted by Credit Karma, only a handful of people who have filed their taxes using Credit Karma's tools have reported bitcoin holdings or holdings of some other cryptocurrency - fewer than 100 out of a total of 250,000 filers, or a whopping 0.04% in total.

In all likelihood, this means that (tens of) thousands of bitcoin traders are refusing to pay the IRS, either betting on the anonymity of the blockchain to conceal th...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Biotech

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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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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OpTrader

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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Promotions

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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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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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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