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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Zero Hedge

China Delivers Advanced Frigate To Pakistan Navy

Courtesy of ZeroHedge View original post here.

By Joe Saballa of The Defense Post

China has delivered a second Type 054A/P frigate to the Pakistan Navy, providing a further boost to Islamabad’s maritime defense.

Named the PNS Taimur, the frigate is reportedly equipped with cutting-edge weapons and sensors to support maritime surveillance and combat missions.

It also has the latest combat management and electronic warfare systems, making it suitable in multi-threat environments.

Commissioning Ceremony of ...



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Chart School

Gold Stocks Review

Courtesy of Read the Ticker

Gold miners do well when gold is higher, and borrowing and gasoline costs are lower.

Lets start with a question: Why do governments own gold?

1) The need it to support their economy during an energy crisis. If their currency is collapsing oil producers will not take fiat for settlement, but they will accept gold.
2) While the US prints money the purchasing power of the US dollar is declining, hence gold is a hedge.

A particular market action which forces traders to move gold higher is when oil moves higher while the US dollar falls. This means the US dollar is losing purchasing power against oil, therefore gold will go higher as the demand for (1) above explodes. Some history, gold moved higher sharply in these years 2007, 2011, 2016, 2020. All ...

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ValueWalk

These Are The Ten Best-Performing Inverse Equity Funds

By Aman Jain. Originally published at ValueWalk.

Inverse funds are instruments that use various derivatives to benefit from the decline in the value of the underlying security. These funds could be of many types, such as those investing in debt, equity and more. In this article, we will be talking about Inverse Equity funds. These funds aim to generate returns that match an inverse fixed multiple of short-term returns of an equity index. Let’s take a look at the 10 best-performing Inverse Equity funds.

Ten Best-Performing Inverse Equity Funds

We have referred to the past one year return data (from money.usnews.com) of the ...



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Phil's Favorites

'A revolutionary ruling - and not just for abortion': A Supreme Court scholar explains the impact of Dobbs

 

‘A revolutionary ruling – and not just for abortion’: A Supreme Court scholar explains the impact of Dobbs

Anti-abortion protestors celebrate the overturning of Roe v. Wade outside the US Supreme Court on June 24. Olivier Douliery/AFP via Getty Images

Morgan Marietta, UMass Lowell

The Supreme Court’s decision to reverse 50 years of constitutional protection for the right to get an abortion is more than 200 pages long. ...



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Politics

'A revolutionary ruling - and not just for abortion': A Supreme Court scholar explains the impact of Dobbs

 

‘A revolutionary ruling – and not just for abortion’: A Supreme Court scholar explains the impact of Dobbs

Anti-abortion protestors celebrate the overturning of Roe v. Wade outside the US Supreme Court on June 24. Olivier Douliery/AFP via Getty Images

Morgan Marietta, UMass Lowell

The Supreme Court’s decision to reverse 50 years of constitutional protection for the right to get an abortion is more than 200 pages long. ...



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Kimble Charting Solutions

Oil Stocks Counter-Trend Rally Over Should Support Break, Says Joe Friday

Courtesy of Chris Kimble

For over 2 years, all crude oil prices did was go higher… and higher. And consumers have been feeling this pain as the gas pump.

Well, this month crude oil prices turned sharply lower joining the broad based commodities selloff. Could this be the start of a long awaited pullback? If so, oil related stocks and sectors would likely also turn lower.

It’s that day of the week, so let’s turn to Joe Friday for “The facts, Ma’am. Just the facts.”

Today’s chart is a long...



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Digital Currencies

Scams and cryptocurrency can go hand in hand - here's how they work and what to watch out for

 

Scams and cryptocurrency can go hand in hand – here’s how they work and what to watch out for

The anonymous nature of cryptocurrency transactions is ideal for con artists. seksan Mongkhonkhamsao/Moment via Getty Images

Courtesy of Yaniv Hanoch, University of Southampton and Stacey Wood, Scripps College

When one of our students told us they were going to drop out of college ...



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Biotech/COVID-19

At last, COVID-19 shots for little kids - 5 essential reads

 

At last, COVID-19 shots for little kids – 5 essential reads

Millions of U.S. children between the ages of 6 months and 4 years will soon be eligible for COVID-19 shots. FatCamera/E+ via Getty Images

Courtesy of Amanda Mascarelli, The Conversation

For many parents of kids under age 5, a safe and effective COVID-19 vaccine could not come soon enough. A full year and a half after shots first became available for adults, their wait is nearly over.

On June 17, 2022, the Food and Drug Administration ...



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Promotions

Phil: Be the House Not the Gambler at the Fintech Conference in Vegas

 

Phil gave an excellent, educational presentation called "Be the House Not the Gambler: Using Stock Options to Significantly Boost Your Portfolio Performance" at the FinTwit Conference hosted by Lupton Capital and Benzinga on May 14 in Las Vegas. The video is set to start playing at 5:30:45, when Phil takes the stage (but you can see previous presentations by backtracking).

AGENDA 
9:00 AM Opening Remarks with Jonah Lupton, Entrepreneur & Investor
9:05 AM Wagging the Dog: How to Profit From Derivative Driven Moves in the Market with Steven Place, Founder, Investingwithoptions.com
10:00 AM The MarketWebs & The Path of Least Resistance, Christian Fromhertz, CEO, The Tribeca Trade Group
10:55 AM Fireside Chat with Gareth Mann, Founder & CEO, AlphaStream & Spencer Israel, Executive Producer, Benzinga
11:25 AM Sponsor Pitch: Carolyn Bao, VP of Marke...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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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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