Posts Tagged ‘HAS’

Caterpillar Put Spread Preps For Further Downside Next Week

 

Today’s tickers: CAT, HAS & INTC

CAT - Caterpillar, Inc. – Shares in the world’s largest manufacturer of construction and mining equipment are getting some relief today, trading up 1.5% at $80.84 this morning as U.S. stocks snap a six-day losing streak. Caterpillar’s shares, hit hard in recent months on concerns of a global slowdown, are down 30% off the February 24th 52-week high of $116.94. Trading traffic in options with one week remaining to expiration suggests, however, that the rally in CAT’s shares may be short lived and the shares have further to fall in the near term. It looks like one trader purchased a 1,500-lot July $72.5/$77.5 bear put spread for a net premium of $0.71 per contract. The spread positions the strategist to profit in the event shares in Caterpillar slide 5% to breach the effective breakeven price of $76.79, with maximum possible profits of $4.29 per contract available given a 10% pullback in the stock by expiration. Shares in CAT last traded below $72.50 back in October 2011. The company is scheduled to report second-quarter earnings ahead of the open on July 25th.

HAS - Hasbro, Inc. – Put options are in play on game maker Hasbro this morning ahead of the company’s July 23rd second-quarter earnings report. U.S. stocks are broadly moving higher today, enjoying their biggest gains of the month thus far, but Hasbro failed to join in the rally with its shares trading 1.1% lower on the day at $32.52 as of 11:50 a.m. in New York. Traders positioning for further downside in the stock purchased 1,500 puts at the Aug. $32.5 strike for a premium of $1.33 apiece. Put buyers stand prepared to profit should the price of the underlying decline another 4.2% to breach the average breakeven point at $31.17 by August expiration. Bearish options are also in play at the Aug. $30 strike, with around 1,000 puts purchased at an average premium of $0.45 each.…
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Which Way Wednesday: Through the Roof or Smashed into a Thousand Pieces?

 

GRANDPA JOE: But this roof is made of glass. It’ll shatter into a thousand pieces. We’ll be cut to ribbons!

WILLY WONKA: Probably

Is today going to be the day?  After pressing against our breakout levels for a week, today do we should finally have the gas to get over the top or will our Must Hold levels keep acting like a solid barrier?  Oddly enough, I was asking the same question on August 30th, when I asked if we were "Breaking Higher or Dressing Windows?"   My comment from that morning works for today as well:  

No way to slow down.  That line from Tull’s "Locamotive Breath" keeps playing in my head as I look at these rumor-driven markets and contemplate that we MUST keep going higher – or we will fall.  On the whole, that’s not generally a winning long-term investing premise BUT – it does so happen to be the entire principal on which space travel is based so let’s not discount it entirely.   

Willy Wonka understood stock market physics, there had to be enough power to get through that overhead resistance or it was going to be a very painful test of the top (like the one we had in August).  Since our July dip, we’ve come back for another try at our Must Hold lines 4 times but the volume has been substantially lower than it was in July, leading us to believe it is only TradeBots, and not Oompa Loompas, who are buying this market. 

Can TradeBots alone give
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Put Selling Ensues On Harry Winston Diamond Corp.

Today’s tickers: HWD, HAS & VSH

HWD - Harry Winston Diamond Corp. – Fresh prints in Harry Winston Diamond Corp. puts drove options volume in the front month above the prevailing level of overall open interest on the stock in the first half of the trading session. Shares in the specialist diamond company fell as much as 2.9% today to $10.36, bringing total declines in the stock up to roughly 43% since the end of May. The company was scheduled to present at the Telsey Advistory Group 2nd Annual Fall Consumer Conference just after 9:00 am EDT this morning.

One or more put players exchanged some 4,150 puts at the October $10 strike against zero open positions. It looks like most of the put options were sold for an average premium of $0.35 a-pop. Investors selling the contracts keep the full amount of premium as long as shares in Harry Winston exceed $10.00 through expiration next month. Heavy put selling pushed implied volatility on the Oct. $10 puts down more than 25% in early-afternoon trade. Shares in HWD have traded above $10.00 for more than one year, but did slip to as low as $9.61 in August 2010. Sellers of the puts likely expect shares in the miner of rough diamonds to resist above $10.00 through October expiration, and are happy to pocket available premium on the options in exchange for bearing the risk that the stock hits fresh lows in the next few weeks. Traders short the puts may have shares of the underlying stock put to them at an effective price of $9.65 each should the options land in-the-money at expiration day. Options implied volatility on the stock dropped 17.5% to 54.47% by 12:20 pm in New York.…
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Long-Term Bull Eyes Upside Potential at Fidelity National Information Services

 Today’s tickers: FIS, AXL, PGN, HAS, GDX & MYL

FIS - Fidelity National Information Services – A three-legged options combination play on the global provider of banking and payments technology solutions, processing services and information-based services, indicates one strategist is long-term bullish on Fidelity National Information Services. Shares in FIS are currently up 0.20% to stand at $28.55 in the final 20 minutes of the session. The transaction positions the investor to attain maximum possible profits in the position if FIS shares break well above the current 52-week high of $30.78 on the stock. The options player sold 1,105 puts at the January 2012 $22.5 strike for an average premium of $1.03 each in order to offset the cost of buying the same number of January 2012 $30 strike calls at an average premium of $2.23 apiece, marked against the sale of 1,105 calls at the higher January 2012 $32.5 strike for an average premium of $1.05 a-pop. Net premium paid to initiate the three-legged spread amounts to $0.15 per contract. Thus, the options trader stands ready to make money should FIS shares surge 5.6% over the current price of $28.55 to exceed the average breakeven point to the upside at $30.15 ahead of expiration day next January. Maximum potential profits of $2.35 per contract are available to the trader should shares in Fidelity National Information Services jump 13.8% to trade above $32.50 before the contracts expire in 2012.

AXL - American Axle & Manufacturing Holdings, Inc. – Shares of the auto parts manufacturer shot up as much as 9.0% this afternoon to secure an intraday high of $15.25 by 3:40pm in New York trading on unconfirmed takeover chatter. Rumors that Magna International Inc. may place a $23 to $25 cash bid for AXL spurred a rally in the price of the American Axle’s shares and drove speculators to options in the name. Additionally, analysts at JPMorgan Chase & Co. reportedly rated AXL at ‘overweight’ and said shares could move into the upper-teens in the next…
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Insider Scoop

Economic Data Scheduled For Tuesday

Courtesy of Benzinga

  • The Johnson Redbook Retail Sales Index for the latest week is schedule for release at 8:55 a.m. ET.
  • San Francisco Federal Reserve Bank President Mary Daly is set to speak at 4:30 p.m. ET.
  • Federal Reserve Board of Governors Vice Chairman for Supervision Randal Quarles will speak in Salt Lake City, Utah at 6:00 p.m. ET.

Posted-In: Economic DataNews Economics ...



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Phil's Favorites

"Make It Stop"

 

“Make It Stop”

Courtesy of 

Every time the stock market falls, no really, every single time, a friend of mine texts me the same thing: “Make it stop.” And every time I tell him the same thing- “You should hope stocks go a lot lower.”

For people still contributing to their retirement accounts, they shouldn’t fear lower prices, they should pray for them.

Let’s look at a real world hypothetical example.

I sorted all twenty-year rolling returns for the S&P 500 and plucked returns near the median. Stocks had nearly identical compound annual growth rates in the ...



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Zero Hedge

Nomura: Global Equity Sentiment "Has Managed To Avoid 'The Panic Zone'"... For Now

Courtesy of ZeroHedge View original post here.

US equity markets are excitedly recovering last week's losses as hope once again washes across global markets that lower rates, fiscal recklessness will save the world. The explicit driver of the bounce is yet another short-squeeze - the second biggest since the start of 2019.

Source: Bloomberg

The last time we saw a bounce like this was the first days of June, when - again - a heavy oversold reading going into a barrage of Fed speakers prompted m...



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Kimble Charting Solutions

Transports 10-Year Bullish Trend Being Tested! Rally Time or Breakdown?

Courtesy of Chris Kimble

Is the DJ Transportation Index presenting a rare buying opportunity? The broad market most likely hopes so!

Transports have spent the majority of the past decade creating a series of higher lows. This pattern has created rising channel (1), which started back in 2009.

Transports have created a bearish divergence to the S&P 500 over the past 20-months, as they have created lower highs, while the S&P has done the exact opposite.

The softness in Transports has the testing its May lows and the 10-year rising channel to start out the week at (2). While testing...



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The Technical Traders

August 19 Turn Date is Tomorrow - Are You Ready?

Courtesy of Technical Traders

Our August 19 breakdown prediction from
months ago has really taken root with many of our followers and readers.  We’ve been getting emails and messages from
hundreds of our followers asking for updates regarding this prediction.  Well, here is the last update before the
August 19th date (tomorrow) and we hope you have been taking our
research to heart. 

First, we believe the August 19 breakdown
date will be the start of something that could last for more than 5 to 12+
months.  So, please understand that our
predicted date is not a make-or-break type of scenario for traders.  It means that we believe this date...



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Lee's Free Thinking

The Treasury Supply Drumbeat Has Begun

Courtesy of Lee Adler

The beat goes on. The US Treasury announced a 30 year TIPS issue today, bringing net new Treasury supply for the month so far to $119 billion. 

Here are the details:

Term and Type: 29-Year 6-Month TIPS

Reopening: Yes

Offering Amount: 7 Billion

Announcement Date: 08/15/2019

Auction Date: 08/22/2019

Issue Date: 08/30/2019

Maturity Date: 02/15/2049

PDF | XML

Supply will pound the financial markets to a pulp as far as the eye can see. Those who are currently panicking to buy Treasuries at these ...



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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.

More from RTT Tv

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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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.

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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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