Posts Tagged ‘GM’

Upside Calls In Play On Big Lots

BIG – Big Lots, Inc. – Options volume on broadline closeout retailer Big Lots is roughly 2.5 times the average daily level for the stock, with roughly 7,200 contracts traded as of 11:15 a.m. EST versus the average 2,800 contracts that trade on BIG per day. The most actively traded contracts on Big Lots this morning indicate some traders may be positioning for shares in the name to rally substantially at the start of the New Year.

The Jan ’14 $32.5 strike calls have traded more than 6,500 times against open interest of just 813 contracts. Time and sales data suggests much of the volume was purchased in the early going for an average premium of $0.60 apiece. Buyers of the $32.5 strike calls stand ready to profit at expiration next month should shares in Big Lots rally more than 6.0% over the current price of $31.14 to exceed the breakeven point at $33.10. Shares in BIG fell sharply earlier in the month after the company posted a wider-than-expected third-quarter loss and lowered its full-year earnings forecast; shares in the name are down more than 15% since the December 5th earnings report. 

GM – General Motors Co. – Shares in GM rallied during the first hour of the session, briefly trading up to a fresh record high of $41.85 before retreating into negative territory. The stock is currently down 0.50% on the day at $41.22 just before 11:00 a.m. EST.

Among GM options contracts set to expire at the end of this week, the 20 Dec ’13 $40.5 strike puts attracted the most volume near the open. Upwards of 3,500 of the $40.5 strike puts changed hands against open interest of 1,778 contracts, with most of the volume purchased at a premium of $0.15 each at around the same time that the price of GM shares were pushing toward the highest level of the day. The subsequent dip in the price of the underlying this morning has nearly doubled the asking premium on the $40.5 strike weekly puts to $0.28 each as of the time of this writing.

The 20 Dec ‘13 $40.5 puts may be profitable at expiration this week if shares in General Motors slip 2.1% from the current level to trade below the breakeven point at $40.35. 


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Best Buy Co. Calls In Focus

BBY – Best Buy Co., Inc. – Weekly options changing hands on Best Buy this morning suggest some traders are looking for shares in the consumer electronics retailer to continue higher during the next few trading sessions. Shares in BBY, up better than 200% since this time last year, are trading 2.0% higher on the day at $41.36 as of midday in New York trading.

Fresh interest in upside call options expiring at the end of this week are active today, with the Dec 06 ’13 $42 strike options attracting the most volume. Around 1,900 of the $42 weekly calls have traded thus far in the session against open interest of 161 contracts. One strategist appears to have purchased around half of the volume at a premium of $0.56 each just before 11:00 a.m. EST this morning. The calls make money at expiration if shares in BBY rally another 2.9% over the current price of $41.36 to exceed the breakeven point at $42.56. Traders are also homing in on the Dec 06 ’13 $43.5 and $44 strike calls, with around 430 and 750 contracts exchanged thus far in the session, respectively. 

GM – General Motors Co – Shares in GM are on the rise today, up 1.0% at $39.15 as of 11:20 a.m. EST, after earlier rallying 1.7% to touch a new 52-week high of $39.39. Trading in the regular December options on the automaker this morning suggest one strategist is positioning for shares in the name to extend gains during the next few weeks.

It looks like one trader initiated a one-by-two ratio call spread on the stock, a strategy that looks for limited gains in the price of the underlying through December expiration. The trader appears to have purchased 920 calls at the Dec $39 strike at a premium of $1.10 each and sold twice as many of the Dec $41 strike calls at an average premium of $0.345 apiece. The net cost of the ratio spread amounts to $0.41 per contract and positions the strategist to profit in the event that GM’s shares exceed the breakeven price of $39.41. Maximum potential profits of $1.59 per contract are available on the spread if shares in the automaker rise 4.1% to settle at $41.00 at expiration later this month. Shares in GM are up more than 50% since this time last year. 


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Credit Suisse Call Options In Play On A Down Day For Financial Stocks

 

Today’s tickers: CS, GM & TXT

CS - Credit Suisse Group – Call options changing hands on global financial services firm, Credit Suisse Group, this morning look for shares in the name to rally in the near term, perhaps following the Zurich, Switzerland-based company’s first-quarter earnings report one week from today. Shares in CS are down 4.6% on the session to stand at $27.50 just after midday in New York. The May $28 strike calls are seeing the most volume, with upwards of 2,700 lots in play versus open interest of 341 contracts. It looks like most of the volume was purchased at a premium of $0.75 apiece, thus positioning buyers to profit in the event that the price of the underlying increases 4.5% to settle above the breakeven price of $28.75 at expiration. Yesterday afternoon the May $29 strike calls also traded more than 2,500 times, with the bulk of those contracts purchased for $0.75 each. Upside call buyers may lose the full amount of premium paid for the options contracts should the rally in CS shares fail to materialize by May expiration. Though shares have surrendered approximately 10% of their value since touching a 52-week high of $30.40 on February 2nd, the stock continues to trade up 70% off the 52-week low of $16.09 reached back in August of 2012.

GM - General Motors Co. – Shares in General Motors are in negative territory today, down 1.5% at $29.03 as of 12:35 p.m. ET, amid a down day for U.S. stocks. It looks like some traders may be taking advantage of the dip in GM’s shares to initiate bullish bets on the stock ahead of the company’s first-quarter earnings report on May 2nd. Call options on the automaker are outpacing puts, with the call/put ratio hovering around 3.5 in early afternoon trading. Sizable volume in the June $31 and $33 strike calls caught our eye, though volume at both strikes is lighter than existing open interest levels. It looks like traders purchased around 4,000 calls at…
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Cheap Upside Calls Change Hands On General Motors Co.

 

Today’s tickers: GM, FRAN & FDO

GM - General Motors Co. – Trading traffic in weekly options on General Motors today indicates some traders are positioning for shares in the automaker to rise to the highest level since Valentine’s Day during the next couple of trading sessions. Shares in GM are near their highs of the day, up 2.0% at $28.67 as of 11:40 a.m. in New York. The most actively traded weekly contracts as measured by volume on Wednesday morning are the Mar. 22 ’13 $29 strike call options, with upwards of 4,500 contracts in play versus zero open positions. It looks like most of the calls were purchased at a premium of $0.05 apiece. Call buyers stand ready to profit at expiration later this week should shares in GM rally another 1.3% to settle above the average breakeven point at $29.05. Traders long the calls at $0.05 per contract have seen the value of the contracts double this morning, with the options currently changing hands at $0.11 each as of 11:45 a.m. ET. Bullish bets are also on the rise at the April $29 strike, with around 900 calls purchased for an average premium of $0.49 per contract. Shares in General Motors are down roughly 2.5% since the start of 2013.

FRAN - Francesca’s Holdings Corp. – Shares in Francesca’s jumped 10.5% to $29.80 on Wednesday morning after the retailer of women’s apparel and accessories reported better-than-expected fourth-quarter earnings after the close on Tuesday. The sharp move in the price of the underlying shares sparked heavy options activity on the stock today, with volume topping 4,500 lots by midday on the East Coast versus average daily volume of around 1,600 contracts. Most of the activity is in April and May expiry put options, with some traders positioning for shares in Francesca’s to potentially pullback in the near term. The April $25 strike put options traded 1,300 times on Wednesday morning, and appear to have been mostly purchased at an average premium of $0.45 each. Similarly, the…
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General Motors Co. Call Buying In High Gear As Shares Extend Rally

 

Today’s tickers: GM, PBR & DIS

GM - General Motors Co. – Shares in the largest U.S. automaker are popping on Wednesday after the company reported third-quarter earnings that handily beat analyst expectations. The stock is up better than 8% just before midday in New York to stand at $25.15. Traders expecting shares in GM to extend gains heading into the weekend snapped up weekly calls that have two full trading sessions remaining to expiration. The most active weekly calls are the Nov. 02 ’12 $25 strike contracts, which have changed hands more than 2,800 times against open interest of 369 lots. It looks like most of the $25 calls were purchased earlier this morning for an average premium of $0.22 per contract, thus positioning buyers to profit should GM’s shares exceed the average breakeven price of $25.22 at expiration this week. Intraday gains in the price of the underlying have benefited early-bird call buyers, with premium on the $25 strike contracts now up more than 115% since this morning to arrive at $0.48 per contract. Meanwhile, options players who purchased upside calls at the end of last week are seeing substantial paper profits on their positions today. Bullish traders appear to have purchased around 1,000 calls at the Nov. 02 ’12 $23.5 strike for an average premium of $0.48 apiece last Friday. Today these deep in-the-money call options are changing hands at around $1.70 each as of 12:00 p.m. ET, a more than three-fold increase in value.

PBR - Petrobras Brasileiro SA – Bearish traders are bulking up on short-dated put options on Brazilian oil and gas company, Petrobras, this morning, with shares in the name down more than 5.2% at $21.21 on Wednesday. Buyers of put options with two full trading sessions to go before expiration appear to be positioning for shares in the world’s largest deep-water oil driller to extend declines. Traders positioned to potentially profit from further selling pressure in PBR…
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Garmin Options Signal Shares Due North; Buyers Of Primero, GM Calls See Gains

 

Today’s tickers: GRMN, PPP & GM

GRMN - Garmin, Ltd. – Options activity on the maker of GPS-enabled products and navigation devices suggests one or more traders are positioning for shares in Garmin to increase in the near term. Upside call buying initiated in early trading on Friday morning may be a profitable strategy should shares in the name rise ahead of the company’s third-quarter earnings report on October 31st. Shares in GRMN are up 0.90% at midday in New York to stand at $42.95. Volume in front-month calls is heaviest at the Oct. $44 strike, where more than 1,000 contracts changed hands against open interest of 252 positions. It looks like most of the call options were purchased this morning for an average premium of $0.47 apiece, thus preparing buyers to profit in the event of an additional 3.5% move higher in the price of the underlying to $44.47 by expiration in two weeks time. Overall, options on Garmin are more active than usual. Volume has just ticked above 4,500 contracts as of 12:10 p.m. ET, roughly four times the stock’s average daily options volume of 1,118 contracts.

PPP - Primero Mining Corp. – Shares in precious metals producer, Primero Mining Company, jumped nearly 50% to a fresh multi-year high of $7.92 this morning on news of a favorable tax ruling from Mexican authorities. The sharp move in the price of the underlying shares sparked heavier than usual activity in Primero Mining options this morning, with overall volume approaching 1,500 contracts as of 12:15 p.m. in New York, versus average daily options volume of 124 contracts on the stock. Traders positioning for shares to extend gains picked up more than 100 calls at the Oct. $7.5 strike for a premium of $0.20 apiece. Call buyers profit at expiration in two weeks as long as shares in PPP settle above $7.70. Bullish traders also purchased around 90 of the Nov. $7.5 strike calls for an…
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Monday Market Movement – Trying to Get Bullish

We are still trying to get more bullish.

Over the weekend we set a new, higher set of levels for our Big Chart on the assumption that our breakout levels hold up and our new Must Hold lines become Dow 13,600 (not there yet), S&P 1,360, Nasdaq 3,000, NYSE 8,000 and Russell 800, which means it's now up to the Dow and Nasdaq to continue to show leadership if we're going to be having a rally good enough to get us to add our next 10 bullish plays.

I already added 2 aggressive upside trade ideas on XLF and SPY in the weekend post and last week we already looked at WFR, X, BAC, GLW, BBY, CHK, AAPL, AA, and BA but we also added a new Long Put List (Members Only), which had 19 stocks that we thought were good downside horses to ride if, per chance, we fail to hold 3 of our 5 breakout levels.  

It shouldn't be too much to ask – IF this is a real bull market.  We've been extremely skeptical up to this point and, Fundamentally, I still have my doubts but Technically, we can't keep fighting the tape so were drawing a line in the sand for Mr. Market to cross and, if it does so, we're happy to play along.  If it fails to do so, however, well – we've already made those bets!  

Our aggressive take on the Dow is the result of analyzing the 5 components that were replaced since the crash with MO and HON thrown out for BAC and CVX in Feb of 2008, AIG replaced by KFT in Sept 2008 and C and GM replaced by CSCO and TRV in June 2009, causing a massive distortion in the index, meaning 16,000 is the old 15,000, possibly even lower:  

The Nasdaq is similarly distorted by AAPL, who are up 500% since 2009 and when a stock that is 11.5% of an index is up 500%, that stock alone causes the index to go up 57.5%, which is why we now call it the AAPLdaq.  The AAPLdaq itself is "only" up 100%, which means the ENTIRE rest of the index is lagging with a 42.5% contribution – those who tell you that tech is somehow loved again are fooling themselves
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Jobs Report Drives Heavy Trading Traffic In Ford, General Motors Options

 

Today’s tickers: F, GM, MAS & GILD

Options commentary to resume on Thursday February 9th.

F - Ford Motor Co. – The better-than-expected jobs number out this morning revved up investor appetite for automobile stocks, driving shares in Ford Motor Co. up 4.0% to $12.75. Call options on the U.S. automaker are flying off the shelves, with nearly 5 calls in play on the stock for each single put option traded. The single-largest transaction in Ford options appears to be a bull call spread that yields maximum possible profits if the price of the underlying rallies nearly 20.0% during the next few months to expiration. It looks like one trader purchased a 30,000-lot April $14/$15 call spread for a net premium of $0.15 per contract. The position may be profitable at expiration if shares in Ford Motor Co. climb 11.0% to surpass the effective breakeven price of $14.15. Maximum potential profits of $0.85 per contract are available on the spread should shares in the auto manufacturer surge 17.6% to exceed $15.00 by expiration. Overall options volume on Ford is up above 175,000 contracts just before 1:00 p.m. ET.

GM - General Motors Co. – GM’s shares are outperforming fellow U.S. automaker, Ford Motor Co., this afternoon, with the stock trading 8.4% higher on the session at $26.35 as of 12:55 p.m. in New York. Optimism spurred by this morning’s stronger-than-expected jobs report was followed by greater-than-usual options action in the name. A debit put spread in the March expiry, which may be an outright bearish bet…
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Ratio Put Spread Pops Up On Safeway

 

Today’s tickers: SWY, GM & PGR

SWY - Safeway Inc. – The North American retailer of groceries and consumer products reports fourth-quarter earnings five weeks from today, and it appears one options player may be locking in gains in Safeway’s shares should investors lose their appetite for the stock following the report. Shares today rose 1.25% to a six-month high of $21.82, on the heels of a more than 35.0% rally since the end of September. The largest transaction in Safeway options today was the one-by-two ratio put spread initiated in the March expiry in the first half of the trading session. It looks like the investor responsible for the spread purchased 4,100 in-the-money puts at the Mar. $22 strike for a premium of $1.09 each and sold 8,200 puts at the lower Mar. $20 strike at a premium of $0.37 apiece. Net premium required to establish the trade amounts to $0.35 per contract. The sale of twice as many lower-strike put options greatly reduces the cost of the directional play and suggests the investor expects limited bearish movement in the price of the underlying rather than a nosedive in the next couple of months. Profits – or downside protection – kick in if shares in Safeway decline 0.80% to breach the effective breakeven price of $21.65, while maximum possible gains of $1.65 per contract result in the event that shares drop 8.3% to settle at $20.00 at expiration in March.

GM - General Motors Co. – Shares in General Motors are up 0.80% at $24.70 after the Company revealed it sold 9.03 million vehicles globally in 2011, which could earn the Detroit, Michigan-based Company the title of world’s largest automaker by unit sales. One sizable options strategy on GM this morning…
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Will We Hold It Wednesday – Nasdaq 2,603 Edition

Watch the Nasdaq.

That's the index we need to catch up to the Dow now that the S&P is halfway to goal at 1,297 (from our Must Hold line at 1,235).  The Dow is in La La Land, led by MCD (up 31%), IBM (up 26%), PFE (up 24%), HD (up 20%) and KFT (up 20%) while this year's Dogs of the Dow are BAC (down 59%), AA (down 43%), HPQ (down 39%)  and JPM (down 22%).  

While the losers may seem to outweigh the winners, that's not how it works as the Dow is price-weighted so BAC dropping from $14 to $5.50 "only" costs the Dow about 68 points (roughly 8 points for each Dollar), IBMs rise from $145 to $185 added a whopping 320 points.

So a 26% rise in one component and a 59% drop in another nets out to a gain of 252 points!  At the beginning of the year, they had roughly the same market cap ($150Bn) but IBM has gained $70Bn and BAC has lost $100Bn which, of course, translates into a net gain of 2% on the entire Dow – BECAUSE IT IS THE STUPIDEST INDEX ON EARTH!  

Our Members, of course, know this.  I wrote "DJIA: The Most Useless, Overused Tool on the Planet" back in 2006, when GM was still part of the Dow so no need to rehash it all here other than to mention the fact that a 30-component index has made 5 substitutions in the 5 years since I wrote that article only serve to highlight how ridiculous it is to use the Dow to draw long-term conclusions.  The Dow is manipulated because it's easy to and Uncle Rupert sits with the other Masters of the Universe to decide how to use this headline tool to make things look as good as possible in the US markets.  

 

That's why CSCO and TRV replaced C and GM in June of 2009.  C was at $28.80 and is down a bit, GM went BK from $45 (which would have been a 360-point loss in the Dow) while CSCO was disappointing but essentially flat and TRV is up $20, adding another 160 points so a 520-point swing (5%) on those substitutions alone.  In September
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Phil's Favorites

Rogue science strikes again: The case of the first gene-edited babies

 

Rogue science strikes again: The case of the first gene-edited babies

Chinese scientists led by He Jiankui claimed they used CRISPR to modify human embryos that eventually were born as twin girls. AP Photo/Mark Schiefelbein

Courtesy of G. Owen Schaefer, National University of Singapore

The idea of scientists tinkering with the genes of babies was once the provenance of science fiction, but now it’s apparently entered the realm of reality: On Nov. 26, Chinese scientist He Jiankui reported the historic live births of ...



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Zero Hedge

Trump Administration Considering Issuance Of 50, 100-Year Treasuries

Courtesy of ZeroHedge View original post here.

The last time the US was seriously considering issuing ultra-long dated bonds - those with a maturity of 50 and 100 years - was back in late 2016 and early 2017, when yields were near the record lows hit in recent days. As we reported back in November 2016, shortly after Steven Mnuchin was confirmed as US Treasury Secretary, the former Goldman banker proceeded to roil the bond market when he told CNBC he would look at extending the maturity of future Tr...



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Insider Scoop

Heavy Volume Drives Low-Float Stock Plus Therapeutics Up 200%

Courtesy of Benzinga

Plus Therapeutics Inc (NASDAQ: PSTV) is the latest and one of the most extreme recent examples of the powerful combination of low float and heavy trading volume.

Plus shares traded higher by more than 215% on Friday. The biotech stock more than tripled after the company reported ...



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Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...



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Kimble Charting Solutions

S&P About To Decline 14%, Catching Up With The Crude Oil Declines?

Courtesy of Chris Kimble

This chart looks at the performance of the S&P 500, Crude Oil and the Yield on the 10-Year note over the past 4-months.

Crude Oil has declined around 14% more than the S&P during this time frame. Yields have declined, even more, around 36%. The is a huge spread between these assets over this short of a time period.

A few importa...



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Chart School

Bitcoin 2019 fractal with Gold 2013

Courtesy of Read the Ticker

Funny how price action patterns repeat, double tops, head and shoulders. These are simply market fractals of supply and demand.

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Ref: US Crypto Holders Only Have a Few Days to Reply to the IRS 6173 Letter

Today's news from the US IRS has been blamed for the recent price slump, yet the bitcoin fractal like the gold fractal suggest the market players have set bitcoin up for a slump to $9000 USD long before the IRS news hit the wire.

Get the impression some market players missed out on the b...

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The Technical Traders

Global Central Banks Move To Keep The Party Rolling - Part III

Courtesy of Technical Traders

This section of our multi-part article regarding current and past central bank actions, we are going to attempt to look at key elements of the past and present to highlight what we believe may turn out to be an incredible “setup” in the global markets. 

This setup is almost like a complex chess game where two skilled players battle for control and near the end of the game, one player is left with the King, a Rook, and a Pawn while the other player has a dramatic advantage with stronger chess pieces.  Yet, as the game continues, the weaker player is able to remove one or two of the stronger players key pieces and move his pawn to his opponent’s side to r...



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Digital Currencies

New Zealand Becomes 1st Country To Legalize Payment Of Salaries In Crypto

Courtesy of ZeroHedge View original post here.

Bitcoin and other cryptocurrencies have been on a persistent upswing this year, but they're still pretty volatile. But during a time when even some of the most developed economies in the word are watching their currencies bounce around like the Argentine peso (just take a look at a six-month chart for GBPUSD), New Zealand has decided to take the plunge and become the first country to legalize payment in bitcoin, the FT reports.

The ruling by New Zealand’s tax authority allows salaries and wages to b...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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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...



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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:

 

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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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