Posts Tagged ‘GRMN’

Call Options Change Hands On Garmin

Options on Garmin Ltd. (Ticker: GRMN) are more active than usual today amid sharp declines in the price of the underlying. Options volume on Garmin is roughly three times the stock’s average daily reading just 90 minutes into the session, with more than 3,600 contracts traded so far today versus average volume of around 1,100 contracts. Shares in the maker of navigation devices fell more than 6.0% this morning to $56.78 after the stock was downgraded to ‘underperform’ from ‘sector perform’ at Pacific Crest.
Much of the volume in GRMN options is in August expiry call options, perhaps as some traders position for shares in the name to rebound in the near term. The most traded series is the Aug 60.0 strike call, with volume topping 1,600 calls in play versus open interest of 411 contracts. Time and sales data suggests most of the 60.0 calls were likely purchased at an average premium of $1.34 each. Buyers of the call options may profit at expiration next month if shares in Garmin rally more than 7.0% over the current price of $57.10 to exceed the average breakeven point at $61.34. Garmin reports second-quarter earnings on July 30th prior to the opening bell.


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Bearish Bets On Garmin Pay Off For Some Traders As Shares Lose Footing

 

Today’s tickers: GRMN, CELG & GSK

GRMN - Garmin, Ltd. – Bearish options were changing hands on Garmin this morning after the provider of navigation devices and GPS technology reported lower-than-expected fourth-quarter earnings and provided full year 2013 guidance below the consensus estimate. Shares in Garmin fell more than 11% at the start of the session to a new 52-week low of $34.65. Put buying on the stock ahead of Garmin’s fourth-quarter report this morning generated substantial overnight profits for one or more traders today. Open interest in the Mar. $38 strike puts increased 650 contracts following Tuesday’s trading session, and a look back at time and sales data for the $38 puts indicates most of the contracts were purchased for an average premium of $1.46 each. The sharp post-earning pullback in the price of the underlying now finds the Mar. $38 strike puts changing hands at $3.65 each, or more than twice the amount traders paid for the contracts on Tuesday. Meanwhile, options traders initiating bearish positions on Garmin today looked to the Mar. $34 strike, exchanging more than 1,400 puts versus open interest of 672 contracts. It looks like most of the $34 puts were purchased for an average premium of $0.64 apiece. Put buyers may profit at expiration next month should Garmin’s shares slip another 4% to trade below the average breakeven price of $33.36, the lowest level for GRMN shares since October 2011.

CELG - Celgene Corp. – Shares in the maker of cancer drugs are up sharply on Wednesday after the company announced it will buy back $600 million in stock from an unnamed investment bank during the next three months. In June, the biotechnology company approved a $2.5 billion stock buyback program. CELG shares are up better than 2.5% on the day to stand at $103.04 as of 11:35 a.m. ET, after earlier rallying to a record-high of $103.69. Upside call buying on the stock today suggests some options traders are looking for shares in Celgene to extend gains during the next…
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Bulls Eye Whirlpool Call Options

 

Today’s tickers: WHR, AIG & GRMN

WHR - Whirlpool Corp. – Shares in the maker of home appliances rallied as much as 4.6% today to a new 52-week high of $88.79 after U.S. housing starts rose to the highest level since June 2008. The stock has been on a tear since the start of summer, trading up more than 60% since the end of June, and some options traders appear to be positioning for the rally to continue in the near term. Bullish players looked to the Nov. $90 and $92.5 strikes, snapping up roughly 1,000 of the $90 strike call for an average premium of $2.80 each, and purchasing around 375 calls up at the $92.5 strike price for an average premium of $1.95 apiece this morning. Call buyers stand ready to profit at expiration next month should Whirlpool’s shares rally another 4.5% and 6.4% to top average breakeven prices of $92.80 and $94.45, respectively. Traders snapping up WHR calls may also be looking ahead to the company’s third-quarter earnings report, scheduled for release prior to the opening bell next Tuesday.

AIG - American International Group, Inc. – A large put spread initiated on insurer, AIG, this morning may be the work of one strategist locking in gains on the stock on the heels of a more than 35% rally in the price of the shares since June 4th. AIG’s shares are currently up 1.6% on the day to stand at $36.93 as of 1:00 p.m. ET. The single-largest transaction in options on the insurer today, the purchase of a 13,550-lot Jan. 2013 $32/$37 bear put spread at a net premium of $1.46 per contract, profits from- or provides protection against- limited declines in the share price through January expiration. The trade makes money if shares in AIG decline 3.8% from the current level to breach the effective breakeven price of $35.54, with maximum potential gains of $3.54 per contract in the event of…
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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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Private Equity Chatter Drives Bullish Activity In HOT Call Options

Today’s tickers: HOT, QCOM, XRT & GRMN

HOT - Starwood Hotels & Resorts Worldwide Inc. – Call options on the owner and operator of brand-name, upscale, full service hotels, including W®, Westin® and Le Meridien®, are changing hands at a rapid clip this morning. Shares in the hotel and leisure company rallied sharply on Wednesday, rising as much as 7.7% to an intraday high of $52.05 in the first half of the session. HOT calls may be active on renewed private equity takeover chatter, according to flyonthewall.com. Indeed, it does seem many players populating Starwood options today are positioning for the price of the underlying to rally substantially by year end. Trading traffic is heaviest at the Nov. $55 strike, where more than 10,400 calls changed hands against open interest of 1,974 contracts. It looks like most of these call options were purchased for an average premium of $0.60 per contract. Bulls long the calls profit at expiration if shares in Starwood Hotels rally another 6.8% over today’s high of $52.05 to surpass the average breakeven price of $55.60. Call volume is heavy in the December contract, as well. Traders appear to have purchased more than 1,300 calls at the Dec. $55 strike for an average premium of $1.39 each, and picked up another 760 call options up at the Dec. $57.5 strike at an average premium of $0.73 a-pop. Higher-strike call buyers may profit at December expiration in the event that HOT’s shares jump 11.9% to exceed the average breakeven point on the upside at $58.23. Investors have exchanged more than 27,000 option contracts on the stock as of 11:30 am in New York.

QCOM - Qualcomm, Inc. – Large prints in Qualcomm call and put options appear to be the work of an investor putting the strangle-hold on the stock heading into the company’s fourth-quarter earnings report after the close of trading today. The short strangle benefits the trader most if the stock trades within a range of $50.00 and $52.50 at expiration in a couple of weeks. Shares in QCOM rose 2.8% to $51.55 in the first half of the session. It looks like the strangle-strategist sold 10,000 calls at the Nov. $52.5 strike for a premium of $1.70 each, and sold 10,000 puts at the lower Nov. $50 strike at a premium of $1.50 apiece. Premium pocketed on the position amounts to $3.20 per contract. The investor may keep the…
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H&R Block Put Options in Play as Shares Drop

Today’s tickers: HRB, XRT, GRMN, HAL, F, MWW & BK

HRB - H&R Block, Inc. – Investors are bulking up on H&R Block put options this afternoon following reports the provider of tax services acquired tax-preparation firm 2SS Holdings for $287 million in cash. HRB’s shares dropped like a rock today, falling as much as 10.445% during the session to hit an intraday low of $12.26. Options traders basically ignored the existence of H&R Block calls and instead focused their efforts on buying up bearish put contracts across several expiries. More than 7.95 put options changed hands on HRB for each single call option in play on the stock as of 3:15 p.m. in New York trading. The sharp increase in demand for put options and the rapid descent in the price of the underlying shares fueled a 33.3% rise in the overall reading of options implied volatility on the stock to 70.39% late in the trading day. Pessimistic players picked up 5,600 now in-the-money puts at the October $12.5 strike for an average premium of $0.24 each. These contracts expire tomorrow, but investors may make money if HRB’s shares trade below the average breakeven price of $12.26 ahead of expiration. Put volume is most significant in the November contract. It looks like investors picked up 9,300 puts at the November $10 strike at a premium of $0.38 each, coveted another 10,300 contracts at the November $11 strike for premium of $0.57 apiece, and purchased approximately 2,500 puts at the November $12 strike for a premium of $0.81 a-pop. Volume in put options generated at each of the strikes described outweighs previously existing open interest at each one many times over. Put players may be scrambling to secure downside protection on existing positions in the underlying shares, or could be enacting outright bearish bets on the stock. HRB’s shares are down 9.50% at $12.39 with 35 minutes remaining in the trading session.…
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Phil's Favorites

Disney teams up with Secret Cinema - watching movies will never be the same again

 

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Courtesy of ZeroHedge View original post here.

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Courtesy of Chris Kimble

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Courtesy of Benzinga

Pre-open movers

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Biotech & Health

Could coronavirus really trigger a recession?

 

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Coronavirus seems to be on a collision course with the US economy and its 12-year bull market. AP Photo/Ng Han Guan

Courtesy of Michael Walden, North Carolina State University

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The Technical Traders

SPY Breaks Below Fibonacci Bearish Trigger Level

Courtesy of Technical Traders

Our research team wanted to share this chart with our friends and followers.  This dramatic breakdown in price over the past 4+ days has resulted in a very clear bearish trigger which was confirmed by our Adaptive Fibonacci Price Modeling system.  We believe this downside move will target the $251 level on the SPY over the next few weeks and months.

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Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Courtesy of Read the Ticker

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Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

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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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