Posts Tagged ‘HES’

Options Suggest Rough Seas Possible For Carnival; Rallies In Sight For Hess, Sunoco

 

Today’s tickers: CCL, HES & SUN

CCL - Carnival Corp. – A debit put spread initiated on cruise operator, Carnival Corp., may be a protective strategy or, perhaps, an outright bearish bet that shares in the name will sink following the company’s second-quarter earnings report next Tuesday. Shares in Carnival are up 1.0% at a near six-month high of $34.16 as of 10:50 a.m. ET, bringing the stock’s week-to-date gains up to 8.75%, on optimism slumping oil prices is positive for the cruise industry. It looks like one trader prepared for the shares to potentially reverse gains purchased a 2,000-lot July $30/$32 put spread for a net premium of $0.50 per contract. The position makes money, or provides downside protection, in the event that Carnival’s shares slide 7.8% to breach the effective breakeven price of $31.50. Maximum potential gains available on the spread amount to $1.50 per contract should the price of the stock drop 12.2% to $30.00 within the next five weeks to expiration.

HES - Hess Corp. – The global integrated energy company popped up on our scanners early in the trading session on Wednesday after a sizable three-legged spread was initiated in the November expiry options. It looks like one strategist is selling out-of-the-money puts to reduce the cost of taking a bullish stance on the stock. Shares in Hess are today lower by 0.90% at $43.54 as of 11:30 a.m. in New York. The largest transaction in HES options so far today was constructed with the sale of 2,000 puts at the Nov. $37.5 strike against the purchase of a 2,000-lot Nov. $45/$52.5 call spread done at a net premium outlay of $0.03 per contract. Profits are available on the trade if shares in Hess Corp. rally 3.4% to surpass the effective breakeven point on the upside at $45.03 by expiration. The strategist stands to make as much as $7.47 per contract in the event that HES stock price soars 21.0%…
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Bulls Snap Up Forest Labs Calls, While Bears Take A Shot At Beam

Today’s tickers: BEAM, FRX, HES & SMG

BEAM - Beam, Inc. – The bourbon maker’s shares slipped 0.40% to $49.85 in early-afternoon trade, but may not rally much ahead of December expiration, by the looks of call selling in the front month. Though the holiday season, and perhaps market turmoil, may spur some to reach for the Jim Beam bottle or pass the Courvoisier, at least one investor is taking a bearish stance on the liquor producer. It looks like the investor sold more than 660 calls at the Dec. $50 strike to pocket premium of $1.10 apiece. The trader keeps the full amount of premium received as long as shares in Beam, Inc. fail to rally above $50.00 at expiration day next month. If the investor holds no position in the stock, the naked-short stance in calls could result in losses to the upside in the event that BEAM’s shares rally 2.5% over the current price to surpass the upper breakeven point at $51.10 by December expiration. Shares in Beam, Inc. topped $51.10 as recently as November 15, the same day the stock peaked at $51.35, its highest point since the company started trading as BEAM, formerly Fortune Brands (FO), on the New York Stock Exchange.

FRX - Forest Laboratories, Inc. – Shares in the drug maker are up 1.4% at $29.41 this afternoon, and it looks like a number of options traders are positioning for the price of the underlying to extend gains in the next few months. Investors gearing up for a Forest Labs rally exchanged more than 4,400 calls at the Dec. $30 strike against open interest of just 99 contracts. It appears most of the contracts were purchased for an average premium of $0.60 each, by bullish players who may profit at expiration next month should shares in FRX increase another 4.0% to trade above the average breakeven point at $30.60. Call options accumulation spread to the Dec. $31 and $32 strikes, where another 230 and 200 contracts were snapped up at premiums of $0.31 and $0.15 each, respectively. Bullish sentiment on the pharmaceuticals firm spread to the Jan. 2012 $31 strike, where traders picked up 2,100 calls for an average premium of $0.93 a-pop. Investors long the calls make money if shares in Forest Labs surge 8.6% to surpass the average breakeven price of $31.93 at expiration next year. January 2012 contract call options expire several days after…
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Bullish Risk Reversal Player Eyes Hess Corp.

 Today’s tickers: HES, NOK, AES & NBG

HES - Hess Corp. – The energy company appeared on our scanners this morning after one options strategist initiated a bullish risk reversal in the February 2011 contract. Shares in Hess Corp. are currently down 0.45% to arrive at $75.82 as of 12:40pm. It looks like the investor responsible for the transaction sold 2,500 puts at the February 2011 $65 strike for a premium of $0.53 each, in order to buy the same number of calls at the higher February 2011 $85 strike at a premium of $0.55 apiece. The investor paid a net $0.02 per contract for the risk reversal. This strategy is a far cheaper method of gaining upside exposure for a Hess-bull than buying calls outright. Premium on the calls will appreciate if shares rally sufficiently ahead of expiration day, and the investor may be able to book profits by selling the calls at a higher premium whether or not they land in-the-money. The short stance in puts indicates this individual expects shares to remain above $65.00. He appears to be more than willing to bear the risk of having 250,000 shares of the underlying stock put to him if the puts land in-the-money at expiration because of the cost savings that put selling provides for the bullish stance. Hess Corp. shares are currently trading just below their 52-week high of $76.54, attained during trading on Wednesday. The bullish risk reversal suggests the investor is positioning for Hess Corp.’s shares to hit new highs in the next couple of months to expiration. Shares must rally at least 12.1% over the current price of $75.82 in order for the February 2011 $85 strike calls to land in-the-money before they expire in February.

NOK - Nokia Corp. – Options traders are picking up both call and put options on the mobile telecommunications company today in the February 2011 contract. It looks like investors are expecting shares to move ahead of expiration day in February. Shares in Nokia Corp.…
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New Bank of America CEO Gets Thumbs Up From Investors

Today’s tickers: BAC, HES, SII & DHI

BAC – Bank of America – A New Year and a fresh start in the corner office for incumbent CEO Brian Moynihan at Bank of America. Comments from his maiden voyage speech at a conference today noted that banks had over lent and consumers had taken on too much debt. It’s time to get back to work and as a responsible lender Mr. Moynihan wants to take the lead and do the right thing. His point that the worst of the crisis is now behind us in the context of credit seems to have been taken to heart by investors surrounding BAC’s shares today lifting it 3.9% to $15.65. Option investors appear to have taken profits on January call options at the $14 and $15 strikes instead favoring the $16/$19 strikes to play a bullish call spread combination. Volume patterns suggest the sale of around 33,000 call options for three cents at the upper strike while the $16 calls appear to have been purchased for around 18 cents thus lowering the breakeven at this point to a further rally of 3.1%. Investors also appeared to sell 22,000 puts expiring this month at the $15 strike – a sustained rally would render these worthless at expiration. Puts expiring February at the same $15 strike were also ditched at a premium of 73 cents, while option implied volatility remained unchanged at 37%.

HES – Hess Corp. – A New Year jump in commodity prices was largely inspired by a sustained bout of cold weather sending crude oil prices on the rise above $80. Shares in oil companies rose with those at Hess up 4% at $62.92, while one long-term option bull appeared to purchase 6,750 bullish call options using the January 2011 expiration. The $75 strike price traded at an average price of $4.60 per contract implying a break even share price at expiration of $79.60, requiring an annual rise for shares at Hess of 26.5% from its current level.

SII – Smith International Inc. – Oil services provider, Smith international is also higher by 2.8% today at $27.92 while our scanners picked up unusual options volume. We’re missing one data point to completely and accurately identify this trading strategy, but we think we get the gist. The option combination involved the purchase of puts expiring in April at the $23 strike where an investor…
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Masco options bearish ahead of earnings

Today’s tickers: MAS, HES, WHR, ORCL, NVAX, BMRN, TIVO & OI

MAS Masco Corporation – The manufacturer and distributor of home improvement and building products has experienced a share price decline of more than 2% to $9.85 ahead of its earnings report scheduled for release after the market closes today. One option investor took a decidedly bearish stance on the stock by selling short 10,000 calls at the May 10 strike price for an average premium of 69 cents per contract. On the put side, some 2,700 contracts were purchased for an average of 24 cents apiece at the May 7.5 strike price as investors appear to be looking to profit from continued downward movement in shares by expiration in May. In order to profit to the downside, shares would need to continue to fall by another 26% from the current price to breach the breakeven point at $7.26.

HES Hess Corporation – Shares of the global energy company have dipped by more than 3% to $54.34. Despite the share price erosion, option traders have been getting bullish on the stock by jumping into calls in the May contract. The May 65 strike price had more than 6,100 calls purchased for an average premium of 53 cents apiece while the May 70 strike attracted a smaller volume of some 1,800 calls picked up for 30 cents each. We are not certain of the motivation for the increased option activity on the stock today, but we did notice one news report which stated that Credit Suisse posited Hess Corp. was unlikely to be acquired by Exxon. Option implied volatility on the stock jumped as high as 61% today up from the closing value on Friday of 51%.

WHR Whirlpool Corporation – The home appliances manufacturer has jumped more than 8.5% to stand at $44.28 per share. Earlier in the day shares were up 20% – the biggest intraday climb for WHR in at least 29 years – after the company reported first-quarter earnings that beat analyst expectations. The company has cut costs as well as curtailed a post-retirement benefit plan which added about 84 cents to earnings surprising the street which had anticipated a loss of 18 cents per share for the company. Whirlpool also reported that it expects to earn a profit of between 3 to 4 dollars for 2009. Option traders gobbled up the bearish breakfast and were…
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Zero Hedge

The Tight Rope Market

Courtesy of ZeroHedge View original post here.

Authored by Sven Henrich via NorthmanTrader.com

None of us can know where markets would be trading without the Fed’s constant massive liquidity injections, but now that the bubble recognition has gone mainstream (BloombergFT) and acknowledged by at least one Fed president (Kaplan) I think it’s fair to say: Lower, much l...



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The Technical Traders

Using the copy-paste formula in the Forex market

Courtesy of Technical Traders

In Forex there are many techniques available to boost up the profit factors. However, as there are millions of people trying to make a profit it is not easy to get the right tricks. There are many brokers offering high leverage trading account to the interested traders. They also provide useful insight into the market so that the traders can make a decent profit. In fact, some brokers often sell signals to their clients so that they can start earning money in the early stage of their careers.

At present, this method has earned a huge following as many investors don’t like to spend time staring at the chart. In this article, we are going to try to bust the myth about this infamous technique...



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Phil's Favorites

The War on All Fact People

 

David Brin shares an excerpt from his new book on the GOP's relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: ...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the GOP's relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: ...



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Chart School

SP500 Kitchin Cycle Review

Courtesy of Read the Ticker

The biggest known news date in the next 18 months is the US Election. The biggest unknown news date is when the US believes it is in a economic recession.

The Kitchin Cycle is still working.

We must conclude the major 900 period low is now in, and we are now in a up swing, which may top out ate 2020 or late 2021. Any future top out may only generate a 10% to 20% correction, of course this can be deemed very mild. This is expected, but the expected does always play out. 

Rolling the dice to get '7' does not always work. Post US elections seasonal's aligned with a poor start of the decade seasonal trends, add on high global recession risk, add on a stock market slump tends to occur in the years ending 9,1,2,3,4 (like 1973, 1...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Citigroup lifted Caterpillar Inc. (NYSE: CAT) price target from $145 to $170. Caterpillar closed at $147.87 on Thursday.
  • UBS cut Twitter Inc (NYSE: TWTR) price target from $37 to $35. Twitter shares closed at $34.19 on Thursday.
  • Morgan Stanley boosted the price target for Yum! Brands, Inc. (NYSE: YUM) from $113 to $118. Yum! Brands closed at $102.16 on Thursday.
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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

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,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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.

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