Posts Tagged ‘HNZ’

GameStop Bear Positions For Post-Earnings Pullback

Today’s tickers: GME, FTR, SUN & HNZ

GME - GameStop Corp. – The remainder of the trading week is unlikely to be all fun-and-games for shareholders in GameStop Corp., according to bearish trading in its put options this morning. Protective or perhaps outright bearish positioning in GME options arrives just in time for the world’s largest video game retailer’s third-quarter earnings report due out ahead of the opening bell on Thursday. It looks like the buyer of a debit put spread in the front month is prepared for shares in GME to head lower following the release. Shares in the world’s largest video game retailer are currently down 3.0% to stand at $23.90 as of 11:50 AM in New York. The investor responsible for most of the volume in GameStop Corp. options in the first half of the trading session on Tuesday purchased a 1,000-lot Nov. $23/$24 put spread for a net premium of $0.30 per contract. The trader makes money if shares in GME settle below the effective breakeven price of $23.70 at expiration this week. Maximum potential profits of $0.70 per contract are available to the put player in the event that shares in the video game retailer drop 3.75% from the current price of $23.90 to settle below $23.00 at expiration.

FTR - Frontier Communications Corp. – Options traders appear to be bulking up on bearish positions in Frontier Communications for the second consecutive day this week, with shares in the Stamford, Connecticut-based company sliding 2.3% lower to $5.43 by 11:15 AM ET on Tuesday. The stock also fell 2.3% on Monday to close at $5.57. Investors positioning for the stock to continue to drop within the next few months are accumulating sizable positions in the closest-to-the-money strike put available in the February contract. It looks like one investor snapped up more than 4,500 puts at the Feb. 2012 $5.0 strike for a premium of $0.35 each in the first 30 minutes of the trading session. The put buyer may profit at expiration next year if shares in Frontier fall 14.4% to breach the effective breakeven point on the downside at $4.65. Bearish trading in the same Feb. 2012 $5.0 strike put occurred in the final 10 minutes of trading on Monday, as well. It appears one investor purchased a block of 5,000 of the put options for a premium of $0.30 apiece yesterday. Both positions, which may or may not…
continue reading


Tags: , , ,




Strangles and Straddles Pop Up in Mexico ETF

 Today’s tickers: EWW, JNPR, SLXP & HNZ

EWW - MSCI Mexico Investible Market Index Fund – Large prints in call and put options on the Mexico ETF caught our eye this morning with shares in the EWW, an exchange-traded fund designed to correspond to the price and yield performance of publicly traded securities in the aggregate in the Mexican market, trading 0.55% lower on the session at $61.92 as of 12:30pm in New York. It looks like one or more big options traders sold a straddle in the front month and initiated a short strangle in the March contract. The straddle-strategist looked to the February $62 strike to sell 15,000 calls for a premium of $1.13 each, and sold the same number of in-the-money puts at that strike for a premium of $1.43 apiece. Gross premium pocketed on the transaction amounts to $2.56 per contract. The investor keeps the full amount of premium received as long as shares settle at $62.00 and both the call and put options expire worthless at expiration. Some portion of premium is safe in the investor’s wallet as long as shares in the EWW do not stray too far above or below the $62.00 level. But, the short stance in both call and put options at that strike expose the trader to losses in the event that shares rally above the upper breakeven price of $64.56, or slip beneath the lower breakeven point at $59.44, before the options expire next month. In longer-dated options, a sizeable 7,000-lot strangle involving March $61 strike puts and March $63 strike calls was sold for a gross premium of $3.16 per contract. The investor responsible for the strangle walks away with the full amount of premium pocketed on the transaction if shares in the EWW trade within the boundaries of the strike prices described through expiration day in March. Premium received erodes down to zero and gives way to losses should shares in the ETF exceed the upper breakeven price of $66.16, or if shares trade below the lower breakeven point at $57.84, ahead of expiration in a couple of months time. Strangle and straddle sellers may benefit from subsiding levels of implied volatility as well as…
continue reading


Tags: , , ,




Demand for Puts Pops at Regions Financial as Shares Slide Lower

Today’s tickers: RF, YHOO, ORLY, CTV, HNZ, STX, SMH & GT

RF - Regions Financial Corp. – Bears are piling into put options on Regions Financial Corp. today after Fitch Ratings cut Alabama’s biggest lender by two levels to –BBB, citing concerns the firm may post additional losses. Regions’ credit rating was also downgraded two notches to Ba3 from Ba1 at Moody’s yesterday. Shares have been hammered lower over the past four weeks, and today declined as much as 7.22% to touch an intraday- and new 52-week low of $5.14. Today’s low of $5.14 marks a 46.5% decline since October 21, 2010, when shares touched an intraday high of $7.53. Investors expecting shares to extend losses over the next several months purchased large numbers of put options on the stock. Bearish players picked up at least 9,000 puts at the December $5.0 strike for an average premium of $0.28 each and purchased approximately 10,000 puts at the lower December $4.0 strike at an average premium of $0.20 apiece. Lower-strike put buyers are positioned to profit should Regions’ shares slide another 26% below today’s intraday low point of $5.14 to breach the effective breakeven point on the downside at $3.80 by expiration day in December. Pessimism spread to the January 2011 $4.0 strike where another 3,800 put options were coveted at an average premium of $0.20 a-pop. The surge in demand for put options coupled with growing uncertainty regarding the fate of RF’s shares going forward helped lift the stock’s overall reading of options implied volatility 27.4% to 90.77% by 3:50 pm in New York.

YHOO - Yahoo!, Inc. – Shares in Yahoo! are up 5.35% to $17.01 as of 2:40 pm in New York, but earlier rallied as much as 6.315% to hit an intraday high of $17.17. Call options on…
continue reading


Tags: , , , , , , ,




Visa, Inc. Call Options Fly Off the Shelves

Today’s tickers: V, AXP, GIS, HNZ, AFFY, REV, AA & ORCL

V – Visa, Inc. – Frenzied call buying ensued on global payments network, Visa, Inc., this afternoon with the price of the underlying shares rallying as much as 8.76% to secure an intraday high of $83.79. Visa’s shares are currently up a more modest 4.90% to stand at $80.82 as of 3:10 pm (ET). The sharp rally in Visa’s share price likely stems from news that U.S. politicians reached an agreement on the regulation of interchange/”swipe” fees on credit and debit card transactions. Investors flooded the near-term July contract on Visa, Inc. to initiate bullish stances on the stock. Options traders expecting continued upward movement in the price of Visa’s shares by July expiration picked up approximately 6,800 calls at the July $85 strike for an average premium of $1.41 each. Investors long the July $85 strike calls make money only if shares of the underlying stock trade above $86.41 ahead of expiration day next month. Buying interest spread to the higher July $90 strike where some 4,300 calls were purchased at an average premium of $0.46 each. Call buyers at this strike price accrue profits if the firm’s shares surge 11.9% from the current price of $80.82 to trade above the average breakeven point to the upside at $90.46 by July expiration day. Finally, investors honed in on the July $95 strike to take ownership of 1,300 calls for an average premium of $0.19 per contract. Options players populating Visa, Inc. this afternoon displayed a clear preference for bullish calls on the stock by exchanging more than 2.3 call options to each single put contract in play thus far in the session. But, some optimistic individuals utilized puts to take a near-term bullish stance on Visa. Investors sold at least 1,400 puts at the July $80 strike to receive an average premium of $2.81 per contract. Put sellers keep the full premium pocketed on the transaction as long as Visa’s shares exceed $80.00 through expiration day next month. Investors short the puts are apparently happy to have shares of the underlying stock put to them at an effective price of $77.19 each in the event the puts land in-the-money at expiration.

AXP – American Express Co. – The global payments company appeared on our ‘most active by options volume’ market scanner this afternoon after one options strategist initiated…
continue reading


Tags: , , , , , , ,




Long-term Put Play on Intel Provides Protection through 2011

Today’s tickers: INTC, FXI, UFS, TM, BRK.B, X, QCOM, MCO, APC, COST, HNZ & DLTR

INTC – Intel Corp. – Shares of chip-making giant, Intel Corp., dipped lower in early trading, but rebounded this afternoon to stand 0.75% higher on the day at $20.15. Long-term protective positioning in the January 2011 contract on the stock suggests cautious optimism by Intel-option traders. One investor purchased a put spread by picking up 5,000 in-the-money puts at the January 2011 $22.5 strike for a premium of $4.05 each, marked against the sale of 5,000 puts at the lower January 2011 $12.5 strike for $0.35 apiece. The net cost of the transaction amounts to $3.70 per contract. The trader responsible for the spread is likely long shares of the underlying stock. The spread, in this scenario, serves as an insurance policy on the value of the underlying position should Intel’s shares slip beneath the effective breakeven price of $18.80 in the next year to expiration. The investor is protected even if shares of the semiconductor chip producer collapse down to $12.50 by January of 2011.

FXI – iShares FTSE/Xinhua China 25 Index Fund – Shares of the exchange-traded fund, which invests in twenty-five of the largest and most liquid Chinese companies, are down 0.75% to $38.27 with just under one hour remaining in the trading session. FXI’s share price has declined nearly 15% in the past few weeks, from a 2010 high of $44.53 on January 6, 2010, down to an intraday low today of $37.89. One option trader’s actions in the March contract today suggest he has had enough of the downturn, and is looking for a sharp rebound by expiration in two months. The investor initiated a three-legged combination play using both calls and puts on the fund. It appears the main portion of the trade is a ratio-bullish risk reversal involving the sale of 5,000 deep in-the-money put options at the March $41 strike for a premium of $3.66 each, spread against the purchase of 10,000 calls at the same strike for $0.70 apiece. The purchase of 10,000 puts at the March $35 strike for $0.85 each rounded out the third leg of the transaction. The investor pockets a net credit of $0.56 per contract on the trade, which he keeps if shares rally up to $41.00 by expiration. Additional profits accrue to the upside if shares bounce 7.15% higher to…
continue reading


Tags: , , , , , , , , , , ,




Retail Reversal Combination Grabs Attention on XRT

Today’s tickers: XRT, MGM, DE, GLD, UUP, NWL, HNZ, EWZ, UNH, OSTK & STEC

XRT – SPDR S&P Retail ETF – A three-legged transaction in the December contract on the retail exchange-traded fund reveals bearish sentiment by one investor. Shares of the XRT are trading nearly 1% higher today to $34.60. It looks like the trader sold call options in order to offset the cost of buying a put spread. The put spread involved the purchase of 5,000 puts at the December 33 strike for a premium of 1.07 apiece, marked against the sale off 5,000 puts at the lower December 30 strike for approximately 37 cents each. The sale of 5,000 calls at the higher December 36 strike knocked another 87 cents per contract off the total price of the bearish play. The investor more than offset the cost of buying the spread and thus receives a net credit of 17 cents per contract. The full credit is retained by the trader as long as shares of the XRT remain below $36.00 through expiration. Additional profits may accumulate if shares dip below $33.00, while maximum potential gains of 3.00 per contract require that shares trade down to $30.00.

MGM – MGM Mirage, Inc. – Shares of the casino resort operator slipped 2.5% lower to $9.40 today but one options optimist initiated a bullish play on the stock in the March 2010 contract. It appears the trader put on a ratio call spread by buying one in-the-money call option for every three out-of-the-money calls sold. The investor purchased 10,000 calls at the deep in-the-money March 7.0 strike for 3.20 apiece and simultaneously sold 30,000 calls at the higher March 12 strike for 1.05 each. The net cost of the transaction is reduced to just one nickel per contract. The investor probably does not expect shares to rally through $12.00 by expiration because he is short 20,000 calls at that strike price in the March contract. Shares of MGM last traded above $12.00 on October 14, 2009.

DE – Deere & Co. – A large bearish butterfly spread appeared in the March 2010 contract on the agricultural equipment maker. The transaction indicates one investor is positioning for significant declines in the price of DE shares by expiration. Shares are down 1% to $46.76 with just under 90 minutes remaining in the trading day. The investor purchased the upper wing of the…
continue reading


Tags: , , , , , , , , , ,




Lights back on in Vegas

Today’s tickers: MGM, DFS, MOS, WFR, LVS, XHB, KFT & HNZ

MGM MGM Mirage, Inc. – Shares of the biggest casino owner on the Las Vegas Strip have skyrocketed by more than 42% to $13.41 amid reports from the company that occupancy has recovered and convention cancellations have lessened. More than 112,000 option contracts on the stock traded today with a number of bullish plays by investors looking for continued strength in its share price. The company also received an upgrade by – surprise, surprise – Bank of America/Merrill Lynch to ‘buy’ after also upgrading fellow casino giant, Las Vegas Sands Corp., as well. Early bird investors were able to buy call options that have since landed in-the-money during the rally at the May 12.5 strike price for an average premium of just 83 cents. Now (post 2pm EST) getting long of those same calls cost 1.75 apiece. More optimistic traders looked to the May 15 strike where more than 8,000 calls were traded. At least 3,000 of those calls were purchased for about 38 cents each earlier today. However, the premium has since increased to the current ask price of 65 cents. Option implied volatility on the stock is currently at 150% down from 200% recorded last Thursday.

DFS Discover Financial Services – The credit card issuer and electronic payment services firm is up by less than 1% to $9.02. Option investors were observed buying bullish call options on the stock despite concerns over weaker earnings for the first-quarter across the board for credit card issuers. At the May 10 strike price traders exchanged calls about 15,000 times with more than 8,300 contracts bought at an average premium of 24 cents each. Optimism spread to the June contract where about 3,400 puts were shed at the June 7.5 strike for a VWAP of 43 cents. The June 10 strike witnessed the purchase of 3,500 calls for about 72 cents apiece. The most bullish individuals discovered calls available for the taking at the July 12.5 strike price where some 1,100 were coveted for 33 cents per contract. The more than 29,900 contracts traded on the stock today represent 54% of the existing open interest on DFS of 55,244 lots.

MOS The Mosaic Company – The producer of potash and animal feed has experienced a rally in shares of more than 4% to $46.04 amid rumors reported by one news…
continue reading


Tags: , , , , , , ,




 
 
 

Phil's Favorites

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.  

...

more from Ilene

Promotions

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.  

...

more from Promotions

Zero Hedge

Futures Spike After Germany Yanks "Debt Break": Berlin To "Temporarily Suspend" Limit On Public Borrowing

Courtesy of ZeroHedge View original post here.

The Germans may have opposed closing borders in response to the outbreak in Italy, but it appears Berlin is planning to do something about the outbreak.

According to reports, the Germans are stepping up to suspend Berlin's longstanding constitutional "debt break" and deliver the fiscal stimulus for which economists have been begging.

To try and prevent a full-blown recession ...



more from Tyler

Biotech & Health

World economy flashes red over coronavirus - with strange echoes of 1880s Yellow Peril hysteria

 

World economy flashes red over coronavirus – with strange echoes of 1880s Yellow Peril hysteria

Courtesy of John Weeks, SOAS, University of London

As the novel coronavirus pandemic continues to unfold, travel restrictions are being imposed around the world. China is the main target, with various countries including Australia, Canada and the US placing different restrictions on people who have travelled through the country ...



more from Biotech

Insider Scoop

Benzinga Pro's Top 5 Stocks To Watch For Wed., Feb. 26, 2020: DIS, SPCE, BYND, SDC, JCP

Courtesy of Benzinga

Benzinga Pro's Stocks To Watch For Wednesday

  • Disney (DIS) - The company announced Bob Iger will step down as CEO, to be replaced by Bob Chapek. Iger will assume the role of Executive Chair through 2021. Disney shares were down about 2% on the news. 
  • Virgin Galactic (SPCE) - Shares were down 4% following Q4 results. The company reported a nearly $73 million loss on sales of under $530K. The stock is probably one of the most popular stocks on Wall Street right now: about 15 million shares trade per day on average; on Tuesday, ahead of the earnings report, about 41 million shares traded. Virgin Galactic was about a $6 billion market-cap company ...


http://www.insidercow.com/ more from Insider

Kimble Charting Solutions

Dow Industrials Reversal Lower Could Be Double Whammy for Stock Bulls!

Courtesy of Chris Kimble

Dow Jones Industrial Average “monthly” Chart

The Dow Industrials have spent the past 70 years in a wide rising price channel marked by each (1). And the past 25 years have seen prices test and pull back from the upper end of that channel.

The current bull market cycle has seen stocks rise sharply off the 2009 lows toward the upper end of that channel once more.

In fact, the Dow has been hovering near the topside of that price channel for several months.

But just as the Dow is kissing the top of this channel, it might be creating back-to-back “monthly” bearish ...



more from Kimble C.S.

The Technical Traders

Yield Curve Patterns - What To Expect In 2020

Courtesy of Technical Traders

Quite a bit of information can be gleaned from the US Treasury Yield Curve charts.  There are two very interesting components that we identified from the Yield Curve charts below.  First, the bottom in late 2018 was a very important price bottom in the US markets.  That low presented a very deep bottom in the Yield Curve 30Y-10Y chart.  We believe this bottom set up a very dynamic shift in the capital markets that present the current risk factor throughout must of the rest of the world.  Second, this same December 2018 price bottom set up a very unique consolidation pattern on the 10Y-3Y Yield Curve chart.  This pattern has been seen before, in late 1997-1998 and late 2005-2008.

...

more from Tech. Traders

Chart School

Oil cycle leads the stock cycle

Courtesy of Read the Ticker

Sure correlation is not causation, but this chart should be known by you.

We all know the world economy was waiting for a pin to prick the 'everything bubble', but no one had any idea of what the pin would look like.

Hence this is why the story of the black swan is so relevant.






There is massive debt behind the record high stock markets, there so much debt the political will required to allow central banks to print trillions to cover losses will likely effect elections. The point is printing money to cover billions is unlikely to upset anyone, however printing trillions will. In 2007 it was billions, in 202X it ...

more from Chart School

Members' Corner

Threats to democracy: oligarchy, feudalism, dictatorship

 

Threats to democracy: oligarchy, feudalism, dictatorship

Courtesy of David Brin, Contrary Brin Blog 

Fascinating and important to consider, since it is probably one of the reasons why the world aristocracy is pulling its all-out putsch right now… “Trillions will be inherited over the coming decades, further widening the wealth gap,” reports the Los Angeles Times. The beneficiaries aren’t all that young themselves. From 1989 to 2016, U.S. households inherited more than $8.5 trillion. Over that time, the average age of recipients rose by a decade to 51. More ...



more from Our Members

Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

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

When bitcoin was trading at the dizzying heights of almost US$2...



more from Bitcoin

ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



more from ValueWalk

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 ...



more from Lee

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.