Posts Tagged ‘HNT’

Quicksilver Resources, Inc. Options Activity Jumps Late in Session

Today’s tickers: KWK, MCCC, EWZ, NSC, HNT, EFA, JNJ, GT & LVS

KWK – Quicksilver Resources, Inc. – The independent oil and natural gas company’s shares recovered late in the session, adding 0.50% to stand at $12.18 as of 3:07 pm (ET), after commencing the trading day in the red by 0.30% to touch an intraday low of $11.75. Options investors all but ignored Quicksilver until this afternoon when both puts and calls in the July contract started to change hands. Roughly 10,000 puts were exchanged at the July $11 strike for an average premium of $0.44 apiece. Simultaneously, investors traded about the same number of calls at the higher July $13 strike for an average premium of $0.79 each. It looks like some options strategists populating KWK are selling strangles on the stock because they expect shares to trade within a specified range through expiration. Strangle-sellers pocket an average gross premium of $1.23 per contract, and keep the full amount received as long Quicksilver’s shares trade within the $11.00 to $13.00 range through expiration day. Investors short the strangle face losses should shares rally above the upper breakeven price of $14.23, or if shares slip beneath the lower breakeven point at $9.77 ahead of expiration. Other options strategists may be utilizing the same strike prices in the July contract to enact bullish risk reversals. Investors employing the risk reversal likely sold the July $11 strike puts in order to offset the cost of buying the July $13 strike calls. Average net premium paid for the transaction amounts to $0.35 per contract and positions traders to make money as long as Quicksilver’s shares rally 9.60% to exceed the average breakeven price of $13.35 by October expiration.

MCCC – Mediacom Communications Corp. – Shares of the firm engaged in the development of cable systems serving smaller U.S. cities are flat on the day at $6.28 in late afternoon trading. MCCC popped onto our ‘hot by options volume’ market scanner earlier in the session after one options investor exchanged a chunk of 4,000 calls on the stock in the October contract. The calls traded to the middle of the market at the October $7.5 strike for a premium of $0.25 apiece. The investor may be buying the contracts, in which case he is bullish on Mediacom and expects shares to rally sharply ahead of expiration in five months time. A long call…
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Bearish Put Butterfly Spread Materializes on Emerging Markets Fund

Today’s tickers: EEM, GE, PXD, STI, VLO, UPS, RF, NWL, HNT & FFIV

EEM – iShares MSCI Emerging Markets Index ETF – A contrarian options trader established a large-volume bearish put butterfly spread in the June contract this afternoon even though shares of the emerging markets exchange-traded fund, which looks for investment results that correlate to the price and yield performance of the MSCI Emerging Markets index (an index designed by MSCI as an equity benchmark for international stock performance), are trading 0.65% higher to $41.47 as of 2:30 pm (ET). The massive pessimistic play yields maximum benefits to its owner if shares of the underlying stock plummet more than 15.50% from the current price to $35.00 by June expiration. The investor enacted the butterfly by purchasing 20,000 puts at the June $31 strike for a premium of $0.24 apiece [wing 1] in conjunction with the purchase of another 20,000 puts at the higher June $39 strike for $1.41 each [wing 2]. Finally, the body of the butterfly spread involved the sale of 40,000 puts at the central June $35 strike for a premium of $0.58 apiece. The net cost of the ‘fly amounts to just $0.49 per contract. Therefore, the bearish player is positioned to reel in maximum potential profits of $3.51 per contract – total net profits of $7.02 million – should shares of the underlying fund slip to $35.00 by expiration day. Shares of the EEM must surrender at least 7% of their current value by June expiration in order for the investor to breakeven at $38.51. The transaction is a very efficient way for this investor to establish a pessimistic stance on the emerging markets fund because maximum potential gains trump maximum possible losses on the position. The parameters of the butterfly spread represent a reward-to-risk ratio of more than 7-to-1.

GE – General Electric Co. – The diverse conglomerate’s shares are standing 0.30% higher on the day at $16.55 with one hour remaining in the trading session. General Electric’s shares have rebounded 6.30% in the past month since dipping to $15.57 on February 12, 2010, but one big options strategist is positioning for continued bullish momentum in the price of the underlying stock through expiration in May. The optimistic investor initiated a large-volume bullish risk reversal play by shedding 20,000 puts at the June $15 strike for an average premium of $0.37 apiece, spread against…
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Sprint Straddle Implies Limited Movement through November for Shares

Today’s tickers: S, VOD, ENER, KFT, FDX, HNT & FXI

S - A sold straddle in the November contract on Sprint today suggests that at least one investor is hoping to see shares settle at $4.00 when options expire in just over two months. The stock has surrendered 1.5% of its value to stand at the current price of $3.75. The short straddle was established at the November 4.0 strike through the sale of 10,000 calls for 40 cents apiece and the sale of 10,000 puts for 60 cents apiece. The gross premium pocketed by the investor amounts to one dollar per contract and is retained in full as long as shares rise to $4.00. The short call and put positions will result in losses for the straddle-seller if shares of Sprint surpass the breakeven point to the upside at $5.00, or if the stock falls beneath the breakeven point to the downside at $3.00, by expiration in November. – Sprint Nextel Corp. –

VOD - The telecommunications company appeared on our ‘hot by options volume’ market scanner after investors used put options to get bullish on the stock in the January contract. VOD received an upgrade to ‘buy’ from ‘hold’ at Investec, which perhaps spurred the more than 2.5% rally in shares during the trading session to $22.66. Traders expecting continued upward momentum in the stock were seen selling approximately 5,300 puts short at the January 22.5 strike price for an average premium of 1.72 apiece. Investors will retain the full amount of premium received if shares of VOD remain higher than $22.50 through expiration. Individuals short the put options bear the risk of having shares of the underlying put to them at an effective price of $20.78. Shares of VOD would be put to the traders if the put options land in-the-money with shares trading beneath $22.50. – Vodafone Group PLC –

ENER - Shares of the energy firm have surged more than 21% during the session to $12.64 prompting bullish call buying action in the front month. Some investors targeted the now in-the-money September 11 strike where 4,000 calls were picked up for an average premium of 61 cents each. Traders holding these call options have already begun to accumulate profits of approximately 1.03 because shares are currently trading above the effective breakeven point on the transaction at $11.61. Nearly 6,000 calls were coveted at the higher September 12.5…
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Smithfield bulls like hogs

Today’s tickers: SFD, LTD, XLF, HNT, AIG, KEY, WMB & CSX

SFD Smithfield Foods, Inc. – Shares of the hog producer, pork processor, and beef processor have surged upwards by 6% to $10.50. Analysts in recent weeks used high feed prices and sluggish sales as reason enough to slash targets on food-producing companies, while there had also been concern on Smithfield’s ability to meet some forthcoming debt covenants. Corn prices have eased from $4.18 to $3.82 per bushel since the start of the month. Pork sales are also sensitive to the economy’s fortunes and sales have eased as consumers switch to cheaper grain-based foodstuffs and so perhaps today’s rally is based on expectations of a return to traditional consumption habits. Option investors crowded into the call-corral hoping that shares would continue to rise through expiration in June. The May 12.5 strike price had more than 7,200 calls purchased for 34 cents per contract while the June 12.5 strike witnessed some 2,300 calls coveted for 89 cents apiece. In order for these calls to land in-the-money, shares would need to continue to climb by another 19% from the current price. Option implied volatility has spiked to 102% from the value recorded at the start of the traded day of 77%.

LTD Limited Brands, Inc. – The specialty retailer of such brands as Victoria’s Secret and Henri Bendel has experienced a share price rally of 2% to stand at $10.88. LTD edged onto our ‘hot by options volume’ market scanner after one investor picked up a hefty chunk of puts in the August contract. Perhaps this bearish investor expects retailers to struggle through the summer months as consumers exchange their rally-caps for thrift-caps. This trader purchased 17,800 puts at the August 10 strike price for a premium of 1.25 per put option. It is possible that this trader is long the stock and is therefore utilizing the put options as downside protection should shares relapse over the next six months. The puts would begin to yield profits if shares were to decline by expiration, beginning at the breakeven share price of $8.75.

XLF Financial Select Sector SPDR – Shares of the financials ETF are slightly higher today by about 0.5% to $10.65. As usual, the fund was one of the top tickers on our ‘most active by options volume’ market scanner. One interesting trade we observed took place in the September…
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Phil's Favorites

Inducing consumer paralysis: how retailers bury customers in an avalanche of choice

 

Inducing consumer paralysis: how retailers bury customers in an avalanche of choice

Three decades of behavioural experiments show consumers given too many choices are more likely to make a bad or no choice. www.shutterstock.com

Courtesy of Robert Slonim, University of Sydney

Do you think you are paying more than you should for energy, banking, insurance, internet and phone services? You are not alone, and you are probably right.

Companies offer a growing number of deals that supposedly enable you to choose what is best for you. Every basic economics textbook tells us greater choice should deliver cheaper prices. But in reality this isn’t necessarily the case. ...



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Insider Scoop

Baird: Broadcom Lowers Full-Year Revenue Outlook On High Channel Inventory

Courtesy of Benzinga.

Broadcom Inc (NASDAQ: AVGO) lowered its full-year revenue guidance, dispelling hopes of a recovery in the back half of the year, according to Baird.

The Analyst

Tristan Gerra maintained an Outperform rating on Broadcom and reduced the price target from $300 to $280.

The Thesis

Earlier ...



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Zero Hedge

Hong Kong Rocked By Biggest March Yet After Extradition Bill Pulled; Millions Demand Lam Resign

Courtesy of ZeroHedge. View original post here.

Despite City Executive Carrie Lam's major concession to the protest movement - that is, the (not really) 'indefinite' suspension of the extradition bill that catalyzed the protests - a planned protest march went ahead as scheduled on Sunday, marking the second consecutive Sunday of street protests in Hong Kong.

...



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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Kimble Charting Solutions

Gold Bugs Index Attempting 8-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble.

Are Gold Bugs fans about to receive positive news they haven’t had in years? Possible!

This chart looks at the Gold Bugs Index (HUI) on a weekly basis over a couple of decades. The index has spent the majority of the past 20-year inside of rising channel (1).

The index hit the top of the channel in 2011, where it peaked and started creating a series of lower highs for the past 8-years, which has formed line (2).

The index is now kissing the underside of falling resistance and the underside the 2016/2017 lows at (3).

Joe Friday Just The Fa...



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Chart School

Silver Review

Courtesy of Read the Ticker.

The folks in the federal reserve will debase the US dollar currency to an extreme degree silver will finally lift off the floor.. 

Note: Readers should re watch the silver back screen news video, here.

The following video looks at price action and Wyckoff logic.

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Chart in video

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If gold moves, silver wi...

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Digital Currencies

Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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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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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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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