Posts Tagged ‘HOT’

Starwood Hotels Call Options Heat Up As Shares Extend Gains

 

Today’s tickers: HOT, VMW & ANR

HOT - Starwood Hotels & Resorts Worldwide, Inc. – Upside call buying on one of the world’s largest hotel and leisure companies today indicates some options traders are positioning for shares in Starwood Hotels & Resorts Worldwide to continue moving higher during the next couple of weeks. Shares in Starwood are up better than 2% this afternoon to stand at $54.09 as of 12:25 p.m. ET. The stock has been trending higher in recent weeks, up 7.7% since mid-November, following a sharp 18% pullback from a six-month high of $61.09 in September down to as low as $50.42 on November 15th. Options players preparing for shares in Starwood Hotels to continue to gain ground in the near term purchased 2,000 calls at the Dec. $55 strike for an average premium of $0.30 apiece. Call buyers may profit at expiration in the event that HOT’s shares rally another 2.2% over the current price of $54.09 to exceed the average breakeven point at $55.30 at December expiration. Overall options volume on the stock today is noteworthy, with nearly 9,000 contracts in play versus the Starwood’s average daily options volume of around 2,300 contracts. The bulk of the trading traffic is in upside calls, driving the call-to-put ratio up to 19-to-1 in the first half of the trading session.

VMW - VMware, Inc. – Shares in the provider of cloud infrastructure solutions are moving higher on Thursday, currently up 1.6% on the day at $91.76 just after midday on the East Coast. Bursts of front-month put buying on VMware this morning suggests one or more strategists may be locking in recent gains in the price of the underlying. Shares in the name have increased roughly 13% since the end of October. Volume in VMW options is heaviest at the Dec. $85 strike, where upwards of 5,500 puts changed hands against open interest of 1,869 contracts. It looks like most of the volume was purchased at the start of the session for an average premium of $0.95 apiece. Put buyers may be hedging long…
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Options Combo Play Portends Youku Pullback Next Week

Today’s tickers: YOKU, SWHC & HOT

YOKU - Youku Inc. – Shares in the largest video-sharing website in China have been going gangbusters since the start of the New Year, but a stock and option combination play on Youku Inc. this morning suggests fortunes may reverse when the Beijing-based Company reports fourth-quarter results next week. The stock has rallied 60.0% year-to-date, gaining 4.6% in today’s session to touch an intraday high of $25.90. At first glance, the large 9,231-lot Mar. $28/$30 debit call spread purchased for a premium of $0.45 per contract on YOKU looks like a bullish bet on the Internet stock. However, the sale of 120,003 shares of the underlying stock at $25.40 each linked to the call spread on a 13 delta paints a different picture. Rather than a bet YOKU will extend its run up, the call spread appears to be a hedge against that outcome. The bearish player is limiting losses faced on the upside while positioning to profit on the short stock leg of the transaction if shares in the video-sharing site slump going forward. YOKU reports earnings on Wednesday of next week after the close.

SWHC - Smith & Wesson Holding Corp. – Gun manufacturer, Smith & Wesson Holding Corp., reported better-than-expected third-quarter earnings and raised full year net sales guidance after the bell on Thursday, sending shares in the name up as much as 25.0% to an intraday- and fresh 2-year high of $7.09 this morning. It looks like some options strategists who initiated bullish positions on the stock earlier in the week are making a killing today. One trader appears to be taking profits and establishing a new bullish stance on Smith & Wesson in the April expiry calls. Open interest patterns suggest the options player originally picked up 500…
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Private Equity Chatter Drives Bullish Activity In HOT Call Options

Today’s tickers: HOT, QCOM, XRT & GRMN

HOT - Starwood Hotels & Resorts Worldwide Inc. – Call options on the owner and operator of brand-name, upscale, full service hotels, including W®, Westin® and Le Meridien®, are changing hands at a rapid clip this morning. Shares in the hotel and leisure company rallied sharply on Wednesday, rising as much as 7.7% to an intraday high of $52.05 in the first half of the session. HOT calls may be active on renewed private equity takeover chatter, according to flyonthewall.com. Indeed, it does seem many players populating Starwood options today are positioning for the price of the underlying to rally substantially by year end. Trading traffic is heaviest at the Nov. $55 strike, where more than 10,400 calls changed hands against open interest of 1,974 contracts. It looks like most of these call options were purchased for an average premium of $0.60 per contract. Bulls long the calls profit at expiration if shares in Starwood Hotels rally another 6.8% over today’s high of $52.05 to surpass the average breakeven price of $55.60. Call volume is heavy in the December contract, as well. Traders appear to have purchased more than 1,300 calls at the Dec. $55 strike for an average premium of $1.39 each, and picked up another 760 call options up at the Dec. $57.5 strike at an average premium of $0.73 a-pop. Higher-strike call buyers may profit at December expiration in the event that HOT’s shares jump 11.9% to exceed the average breakeven point on the upside at $58.23. Investors have exchanged more than 27,000 option contracts on the stock as of 11:30 am in New York.

QCOM - Qualcomm, Inc. – Large prints in Qualcomm call and put options appear to be the work of an investor putting the strangle-hold on the stock heading into the company’s fourth-quarter earnings report after the close of trading today. The short strangle benefits the trader most if the stock trades within a range of $50.00 and $52.50 at expiration in a couple of weeks. Shares in QCOM rose 2.8% to $51.55 in the first half of the session. It looks like the strangle-strategist sold 10,000 calls at the Nov. $52.5 strike for a premium of $1.70 each, and sold 10,000 puts at the lower Nov. $50 strike at a premium of $1.50 apiece. Premium pocketed on the position amounts to $3.20 per contract. The investor may keep the…
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Where Did All the Volatility Go?

Today’s tickers: VIX, EEM, XLU, EWT, AA, ESLR, UNH, HOT & DE

VIX– Summer’s here – you can tell by the fact that volatility is on the wane again that investors are winding down for the summer season. The market’s fear gauge has slipped back again and stands at a level not seen since last September. Today the VIX is trading at 27.45 as most investors see less need to pay higher premiums for protective strategies. Meanwhile, signs of recovery have created the impression that a market rally might feed on itself and has prompted many investors to write options recently. There hope is that as implied volatility erodes the fact that premiums will deflate would afford profits by buying those same options back later. However, the noise coming out of the Chicago Board Options Exchange today is over a July call spread using VIX options that relies on a market swan dive over the coming 41 days before it would earn profits. One trader spent an $850,000 premium on buying 20,000 July calls at the 45 strike while selling the same amount of 55 strike calls, thus lowering the overall premium to 42.5 cents. The VIX hasn’t traded above 40 since April 21 and we’re wondering what this guy knows that no one else does. – CBOE Volatility index

EEM– Shares of the emerging markets ETF have rallied more than 2.5% today to $34.47. The fund has enjoyed a nice run up over the past four months, gaining more than 72% since March 2, 2009, when shares were trading at $19.95. A trade observed in the September contract indicates that at least one investor is crossing his fingers for continued bullish movement in the stock through expiration in September. The trader targeted the now in-the-money September 34 strike price and sold 10,000 puts for 3.10 apiece in order to finance the purchase of 10,000 calls for 2.77 a pop. The investor receives a credit of 33 cents for the transaction. He will add to today’s profits if the EEM can continue to climb higher. – iShares MSCI Emerging Markets Index ETF

XLU – The utilities ETF has experienced a more than 2.5% increase in shares to $28.02. The XLU ticker symbol jumped onto our ‘most active by options volume’ market scanner after one investor sunk his teeth into a chunk of put options in the September contract.
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Zero Hedge

For Bonds, This Is Now The Second Worst Bear Market In 40 Years

Courtesy of ZeroHedge View original post here.

Last December, we predicted that the US was heading for a "titanic taper tantrum" in 2021, to an extent as a result of a sharp drop in bond demand as a result of reduced bond purchases by the Fed but also due to a spike in inflation which would lead to a sharp drop in demand for duration.

So fast forward to this week when the crash in US Treasurys, and especially the belly of the curve led by a plunge in 5Y prices...

...

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ValueWalk

GameStop's Dead Cat Bounce; Munger's Annual Meeting

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors discussing GameStop’s dead cat bounce; stop the speculative and manipulative madness; and Munger’s Daily Journal annual meeting.

Q4 2020 hedge fund letters, conferences and more

GameStop's Dead Cat Bounce

1) The behavior of speculators these days boggles my mind...

Only a few weeks after losing more than 90% of their money as shares of GameStop (GME) – or "GameStink," as I've been calling it – col...



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Phil's Favorites

Wall Street Sends a Message to the Fed: We Have Run Out of Places to Stuff Your Treasuries

Courtesy of Pam Martens

By Pam Martens and Russ Martens: February 26, 2021 ~

The action in the U.S. Treasury market yesterday reminded us of the classic “I Love Lucy” episode at the chocolate factory. As the conveyor belt churns out chocolate balls faster than Lucy and Ethel can handle them, they resort to stuffing them in their mouths, their hats, and their shirts. Lucy remarks: “I think we’re fighting a losing game.” (See video clip below.)

That was the scene in the Treasury market yesterday – ...



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Politics

What is fascism?

 

What is fascism?

A Donald Trump supporter wears a gas mask and holds a bust of him after he and hundreds of others stormed the Capitol building on Jan. 6, 2021. Roberto Schmidt/AFP via Getty Images

Courtesy of John Broich, Case Western Reserve University

Since before Donald Trump took office, historians have debated whether he is a fascist.

As a teacher of World War II history...



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Biotech/COVID-19

How does the Johnson & Johnson vaccine compare to other coronavirus vaccines? 4 questions answered

 

How does the Johnson & Johnson vaccine compare to other coronavirus vaccines? 4 questions answered

The Johnson & Johnson vaccine only requires one dose. Phill Magoke/AFP via Getty Images

Courtesy of Maureen Ferran, Rochester Institute of Technology

Editor’s note: On Tuesday, Feb. 24, the U.S. Food and Drug Administration released the results of its trial of the Johnson & Johnson coronavirus vaccine. The FDA found the vaccine to be safe...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.







Video on the subject.







Charts in the video


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Digital Currencies

Bridgewater Explains When It Will Invest In Bitcoin

Courtesy of ZeroHedge

Two weeks ago, Bridgewater founder Ray Dalio called Bitcoin "one hell of an invention" adding that:

"I expect Bridgewater to soon offer an alt-cash fund and a storehold of wealth fund in order to better deal with the devaluation of money and credit that we consider to be a major risk and opportunity, and Bitcoin won’t escape our scrutiny.”

And now, after significant attention that his comments received, Senior Portfolio Strategist Jim Haskel sits dow...



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Kimble Charting Solutions

Is Rising Inflation About To Hit U.S. Economy In Big Way?

Courtesy of Chris Kimble

Inflation seems to be a thing of the past… but current trading in bond and commodity markets tell us that it could become a thing of the future!

Inflation hasn’t been an issue, or even on our radar, since the 1980s. Sure, the 2007 surge in oil prices offered some concern but the financial crisis killed any thoughts of inflation.

So what’s got us concerned about inflation in 2021?

Today we take a look at long-term charts of two potential inflation indicators: Crude Oil ...



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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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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.  

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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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