Posts Tagged ‘GRA’

Tiffany Puts In Play Ahead Of Earnings; Options Suggest Upside In Chemical Cos.

 

Today’s tickers: TIF, GRA & DOW

TIF - Tiffany & Co. – Options on Tiffany & Co. are more active than usual today, the final day to trade the contracts ahead of the luxury jewelry retailer’s second-quarter earnings report scheduled for release prior to the opening bell on Monday. Shares in Tiffany are off their lows of the session, down 0.25% at $58.30 as of 11:40 a.m. ET. The stock has struggled in 2012 on concerns luxury spending will slow; a strong run in the first three months of the year marked by a year-to-date high of $74.20 in March evaporated in the second quarter amid European debt crisis concerns and China growth worries. The pullback picked up steam in May after Tiffany cut its full year guidance for sales and profits, with the stock touching down at a 52-week low of $49.72 at the end of June. Tiffany’s shares have improved off the June low, but one options play on the stock this morning suggests the shares could slip again following earnings. It looks like one strategist purchased 900 puts at the Sep. $55 strike and sold 1,800 puts at the lower Sep. $50 strike, all for a net premium outlay of $0.70 per contract. The position makes money if shares in Tiffany fall 7% from the current level to breach the effective breakeven price of $54.30, with maximum potential profits of $4.30 available on the spread should shares plunge 14% to settle at $50.00 by expiration next month. The options trader could be hedging a long position in the stock prior to the earnings report on Monday, or placing an outright bearish stance on the luxury retailer. If the stock rallies on better-than-expected results next week, the trader may lose the full amount of premium paid to establish the position.

GRA - W.R. Grace & Co. – A large options combination spread initiated on specialty chemical producer, W.R. Grace & Co., this morning…
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Bearish Player Foresees Fall From W.R. Grace & Co.

Today’s tickers: GRA, BAC, XEC & UNT

GRA - W.R. Grace & Co. – Bearish activity in options covering the producer of specialty chemicals and materials today suggests shares in W.R. Grace & Co. may extend losses through the end of 2011, and into the New Year. GRA’s shares today trade 3.5% lower on the session at $34.26. The stock has fallen 34.7% since July 26, when shares were trading up at a more than 10-year high of $52.50. One options player expecting shares to continue to head south for the winter purchased a 530-lot Jan. 2012 $22.5/$32.5 put spread for a net premium of $2.95 per contract. The investor may be taking an outright bearish stance on the stock, or could be building up downside protection to hedge a long position in the underlying shares. The spread positions the trader to profit should GRA’s shares drop 13.75% from the current price of $34.26 to breach the effective breakeven point to the downside at $29.55 by January expiration. Maximum potential profits of $7.05 per contract pad the investor’s wallet if shares in W.R. Grace & Co. plunge 34.3% to trade below $22.50 at expiration in 2012. Options implied volatility on the stock is up 9.9% at 66.67% just before 12:20 pm ET. The company’s Senior VP and CFO, Hudson La Force, is scheduled to present at the 2011 KeyBanc Capital Markets Basic Materials & Packaging Conference in Boston tomorrow, as well as at the Credit Suisse Chemicals and Ag Science Conference in New York City on Thursday.

BAC - Bank of America Corp. – Shares in Bank of America Corp. rallied earlier in the session, perhaps signaling markets are eager to learn more about CEO Brian Moynihan’s Project New BAC. The stock turned negative in early-afternoon trade, but continues to outperform…
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Investors Feed on Darden Restaurants Call and Put Options Ahead of Earnings

 Today’s tickers: DRI, AKS, GRA & GMXR

DRI - Darden Restaurants, Inc. – Options strategists are feasting on near-term call and put options on the operator of eateries such as Red Lobster and Olive Garden ahead of the firm’s second-quarter earnings report, which is scheduled for release before the market opens on Tuesday. Shares in Darden Restaurants rallied as much as 1.6% during the session to touch an intraday high of $50.67. The impending earnings announcement as well as increased demand for options on the stock lifted Darden’s overall reading of options implied volatility 12.0% to 33.20% as of 12:40pm in New York. Investors expecting shares to shatter the current 52-week high of $50.83 by January 2011 expiration scooped up in-the-money call options. It looks like bulls purchased roughly 2,000 now in-the-money calls at the January 2011 $50 strike for an average premium of $1.92 per contract. Call buyers are prepared to profit should shares in Darden Restaurants jump 2.5% over today’s high of $50.67 to surpass the average breakeven price on the calls at $51.92 by January expiration day. Meanwhile, traders wary that shares of the underlying stock may slip following earnings picked up roughly 1,800 puts at the same January 2011 $50 strike for an average premium of $1.76 each. Put buyers at this strike are poised to profit in the event that the restaurant operator’s shares decline 4.8% to trade below the effective breakeven point on the downside at $48.24 by expiration next month.

AKS - AK Steel Holding Corp. – Options activity on the steel producer today suggests one strategist expects shares in AK Steel Holding Corp. to remain range-bound over the next six months to June 2011 expiration. AK Steel’s shares fell as much as 3.4% during the first half of the trading session to touch down at an intraday low of $15.72. The steel maker’s shares rallied sharply at the end of last week, rising 14.3% from Wednesday’s closing price of $14.42 to Friday’s high of $16.48. But, the sale…
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Phil's Favorites

WeWork's Unraveling Is Another Indictment of Wall Street's Universal Bank Model

Courtesy of Pam Martens

Adam Neumann, Founder of WeWork

WeWork is just one more in a long series of Wall Street scandals that prove that the universal banking model is little more than a thinly-disguised wealth transfer system from the pockets of average Americans to the 1 percent.

Just two months ago WeWork’s two lead Wall Street underwriters, JPMorgan Chase and Goldman Sachs, were planning to offer WeWork’s shares to the public investor at a valuation in excess of $47 billion. Now we are learning that the company may run out of money next month and has an actual valuation of $8 billion or less.

WeWork’s founder, Adam Neumann, w...



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Zero Hedge

Under Armour CEO Plank Steps Down One Year After #MeToo Crisis 

Courtesy of ZeroHedge View original post here.

Under Armor's stock is up several percent in pre-market trading after Kevin Plank, founder/CEO of the apparel company, is stepping down after more than two decades. Chief Operating Officer Patrik Frisk will replace Plank, effective Jan. 01, reported CNBC

Plank will take a more passive role in daily operations in 2020, will transition to executive chairman and brand chief.

"Patrik is the right person to serve as Und...



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Insider Scoop

Roku To Purchase Dataxu For $150M In Cash And Roku Shares

Courtesy of Benzinga

Roku, Inc. (NASDAQ: ROKU) has entered into an agreement to acquire Boston-based Dataxu, a demand-side platform, for $150 million in cash and Roku shares.

Dataxu provides marketers with an automated bidding and self-serve software to manage ad campaigns progr...



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The Technical Traders

Indexes Struggle and TRAN suggests a possible top

Courtesy of Technical Traders

Nearing the end of October, traders are usually a bit more cautious about the markets than at other times of the year. History has proven that October can be a month full of surprises.  It appears in 2019 is no different. Right now, the markets are still range bound and appear to be waiting for some news or other information to push the markets outside of the defined range.

We still have at least one more trading week to go in October, yet the US markets just don’t want to move away from this 25,000 to 27,000 range for the Dow Industrials. In fact, since early 2019, we have traded within a fairly moderate price range of about 3200 points on the YM – a rotation...



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Kimble Charting Solutions

Apple Bullish Breakout Suggesting Tech Follows In Its Path?

Courtesy of Chris Kimble

Is Apple sending a bullish message to the overall Tech market? Sure could be

Apple (AAPL) is working on a breakout above last year’s highs at (1), after creating a series of higher lows over the past year.

Tech ETF QQQ has been a similar-looking pattern to Apple over the past few months, as it is near old highs while creating higher lows.

Is Apple’s upside breakout suggesting that QQQ will follow in its footsteps and breakout?

Str...



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Digital Currencies

Five hurdles blockchain faces to revolutionise banking

 

Five hurdles blockchain faces to revolutionise banking

Shutterstock

Courtesy of Markos Zachariadis, Warwick Business School, University of Warwick

Blockchain is touted as the next step in the digital revolution, a technology that will change every industry from music to wast...



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Chart School

Gold Stocks Review

Courtesy of Read the Ticker

Gold stocks are swinging back forth between the range, and a break out swing higher is due. Gold stocks are holding a near perfect Wyckoff accumulation pattern. All should get ready to play this sector. Yet we must recognize that gold stocks are a one of the most crazy rides at the stock market fair, so play very carefully.

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GDX PnF chart from within the video

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Important channels around the HUI.
...

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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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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...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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