Posts Tagged ‘HANS’

Investor Targets Monster Gains in Hansen Options… Again

Today’s tickers: HANS, SPRD, MR & APO

HANS - Hansen Natural Corp. – The maker of brand name energy drink Monster® and other beverages popped up on our scanners this morning due to heavy call option activity in the September contract. It looks like one investor is taking profits on a previously established position and extending bullish sentiment on the stock by rolling calls up to a higher strike price. We reported a similar strategy in Hansen Natural Corp. calls back on June 20. It’s possible the transaction observed this morning is the work of the same investor swooping in once again to harvest gains as shares in HANS extend a monster-rally. Hansen Natural Corp.’s shares increased as much as 2.2% today to secure a record high of $80.85. The stock has increased more than 112% in the past 52-weeks alone. Turning our attention back to options-land, it appears the trader sold 10,000 calls at the September $80 strike at a premium of $5.80 apiece. Open interest suggests the calls were originally purchased 5,000 contracts at a time, on June 16 and June 20, for an average premium of around $2.45 each. The sale of the calls for $5.80 a-pop today suggests the trader reeled in average net profits of $3.35 per contract. The bullish strategy on Hansen Natural Corp. seems to be working like a charm, and the investor responsible for the action shows no signs of fatigue. It looks like the trader picked up 10,000 fresh calls at the September $90 strike for an average premium of $2.35 per contract. The investor may eventually roll out of this position too, but if held to expiration, the bullish player stands ready to make money on the new stance if shares rally another 14.2% over today’s record high to exceed the effective breakeven price of $92.35. Hansen Natural Corp. reports second-quarter earnings after the final bell on August 4. Shares in the drink maker spiked roughly 11.5% following the company’s positive earnings surprise…
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Bullish for Hansen’s Monster drinks

Today’s tickers: HANS, SWKS & DGX

HANS - Hansen Natural Corp. – Earlier in the month the manufacturer of fruit juice and smoothies handsomely beat Wall Street’s earnings estimate by 20%. The distributor of Monster energy drink said international sales were doing well especially in Europe. During the past 12 months its share price has performed as a good bellwether for its revenue growth with shares jumping from $40 to $73.79 ahead of quarter one results. Before that one savvy investor showed up in the options market using calls at the $75 strike in an effort to profit from better times ahead. The investor paid $1.80 for 5,000 calls reserving the right to pay a fixed $75 to buy the stock ahead of expiration in September. It appears today that the investor is pushing his expectations higher following an accurate call last month. Spread trading in the name today shows the sale of those calls at a stimulated premium of $4.18 for a healthy 132% gain as the investor rolls in to the $80 strike at a $2.60 premium in the same calendar month today.

SWKS - Skyworks Solutions Inc. – A warning from an analyst at Deutsche Bank on Monday exacerbated a retreat from the sky for wireless chip-maker, Skyworks. Its options were among the most actively traded on Monday with almost four puts trading for each call in action. Yet the picture wasn’t entirely bearish. Deutsche Bank warned that its channel research left it concluding that when the credits roll out for Apple’s iPhone 5 in the fall, the Skyworks logo will be conspicuous by its absence. And as if the loss of sales wasn’t enough, Deutsche Bank warns that according to the outcome of meetings with its Asian contacts, the company has aggressively entered a price war to…
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Demand for FedEx Corp. Calls Jumps

Today’s tickers: FDX, XRT, FRX & HANS

FDX - FedEx Corp. – Shares of the delivery services firm increased as much as 3.4% in the first half of the trading session to secure an intraday high of $90.49 after it was upgraded to ‘outperform’ from ‘neutral’ with a target share price of $111.00 at Credit Suisse. The positive ratings change and subsequent rally in the price of the underlying shares spurred demand for near-term call options. Bullish players expecting FedEx to extend gains purchased at least 2,800 now in-the-money calls at the December $90 strike for an average premium of $2.13 a-pop. Call buyers are poised to profit should FedEx Corp.’s shares increase another 1.80% over today’s high of $90.49 to exceed the average breakeven price of $92.13 ahead of December expiration. More than 5,800 calls changed hands at the December $90 strike versus previously existing open interest of 4,243 lots at that strike. Options strategists also exchanged 1,400 calls at the higher December $95 strike by 1:15 pm in New York trading. The surge in demand for near-term call options on FDX lifted the stock’s overall reading of options implied volatility 5.9% to 29.91% this afternoon.

XRT - SPDR S&P Retail ETF – Put players flocked to the retail SPDR to initiate bearish positions on the fund right out of the gate this morning. Shares of the XRT, an exchange-traded fund designed to replicate the performance of the S&P Retail Select Industry Index, fell as much as 2.04% to touch down at an intraday low of $46.48. A sizeable ratio put spread drew our attention to the front month where one investor purchased 5,300 in-the-money puts at the December $47 strike for a premium of $1.45 each, and sold 10,600 puts at the lower December $45 strike at a premium…
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MGM Mirage Losses Inspire Downside Plays in Options

 

Today’s tickers: MGM, ANF, JPM, XLP, XNPT, HANS & SIRI

MGM – MGM Mirage, Inc. – The Las Vegas Strip’s largest casino owner posted a wider-than-expected fourth-quarter loss of $0.25 per share, which underwhelmed analysts anticipating an average loss of just $0.14 a share. Mirage’s shares fell nearly 7% today to $10.85 following the earnings disappointment. One options investor, who does not expect MGM’s luck to change anytime soon, established a medium-term bearish trade on MGM to position for continued downward movement in the price of the underlying stock through June expiration. The trader purchased 2,000 puts at the now in-the-money June $11 strike for a premium of $1.68 apiece, and sold 2,000 puts at the lower June $8 strike for $0.52 each. The net cost of the debit put spread amounts to $1.16 per contract. Maximum available profits of $1.84 per contract accumulate for the pessimistic investor if the casino-operator’s share price slumps another 26.25% lower to $8.00 by expiration day.

ANF – Abercrombie & Fitch Co. – Short straddle plays initiated on clothing company, Abercrombie & Fitch, suggests investors expect ANF-shares to remain range-bound and anticipate lower volatility in the price of the underlying stock through March expiration. Shares of the teen and ‘tween haven for micro-mini jean skirts and pre-destroyed t-shirts rallied 1% to $35.72 today. However, straddle-sellers apparently foresee little movement for shares in either direction from the current value. Investors sold approximately 6,600 puts at the March $35 strike for an average premium of $1.44 apiece in combination with the sale of 6,600 calls at the same strike for $1.46 each. The average gross premium pocketed on the transaction amounts to $2.90 per contract. Traders retain the full premium received today if Abercrombie’s shares settle at $35.00 at expiration. Investors are vulnerable to losses, however, in the event that shares trade outside of the effective breakeven points. Losses accumulate should shares rally above the upper breakeven price of $37.90, or if the stock falls below the lower breakeven point at $32.10, ahead of expiration day in March.

JPM – JPMorgan Chase & Co. – A large-volume ratio call spread enacted on banking institution, JPMorgan Chase, indicates one big options player expects shares of the underlying stock to rally significantly by June expiration. The firm received an upgrade to ‘buy’ from ‘hold’ with a 12-month target share price of $49.00 at Sandler O’Neill today as…
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Phil's Favorites

On TV, political ads are regulated - but online, anything goes

 

On TV, political ads are regulated – but online, anything goes

There are different rules for ads on TV versus online. Goran Petric/Shutterstock.com

Courtesy of Ari Lightman, Carnegie Mellon University

With the 2020 election just a year away, Facebook is under fire from presidential candidates, lawmakers, civil rights groups and even its own employees to provide more transparency on political ads and potentially stop runnin...



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Zero Hedge

Watch: SpaceX's Starship Prototype Dramatically Explodes On Launch Platform

Courtesy of ZeroHedge View original post here.

The first beta test of Elon Musk's "Starship" Mark 1 prototype didn't quite go exactly as planned unless, of course, the plan was for it to explode on the launch pad. The prototype, which was built as a "pathfinder for SpaceX's planned human-rated Starship rocket" literally saw its top explode during a pressurization test on Wednesday, according to CBS and - well, video that shows exactly that. 

Th...



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Digital Currencies

More than 1,000 cryptocurrencies have already failed - here's what will affect successes in future

 

More than 1,000 cryptocurrencies have already failed – here's what will affect successes in future

Gaining currency? Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

Many cryptocurrencies have been launched in the past few yea...



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Kimble Charting Solutions

Junk Bonds About To Send Stocks A Bearish Message?

Courtesy of Chris Kimble

Are junk bonds about to send stocks an important message? It looks like it from this chart!

Junk Bond ETF (JNK) has created a series of lower highs and lower lows over the past couple of years, inside of falling channel (1). When it broke support in early 2018 at (2), stocks struggled to make much upward progress for the next few months.

The rally off support last year saw JNK hit falling resistance a few months ago and some softness has set in. The small decline of late has it testing a series of higher lows at (3).

What JNK does at (3), looks to sen...



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Insider Scoop

PayPal Will Buy Honey Science For $4B

Courtesy of Benzinga

PayPal Holdings Inc. (NASDAQ: PYPL) is acquiring Honey Science Corp for $4 billion.

Honey Science Corp was founded in 2012 and is headquartered in Los Angeles. Honey helps people automatically find online coupons and discounts while ...



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Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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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

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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.

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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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