Posts Tagged ‘HSY’

Options Traders Don Aeropostale Options Ahead of Earnings

Today’s tickers: ARO, HSY, QLGC & HEK

ARO - Aeropostale, Inc. – Investors are initiating bullish positions on the teen retailer ahead of the company’s first-quarter earnings report on Thursday after the close. Shares in Aeropostale are up 1.25% at $21.41 as of 11:50am, rallying in sympathy with teen apparel company Abercrombie & Fitch Co. following ANF’s better-than-expected earnings report. One options strategist expecting Aeropostale’s shares to extend gains over the next few months sold 9,900 puts at the July $19 strike for a premium of $0.40 each, and purchased the same number of calls up at the higher July $23 strike at a premium of $0.75 apiece. Net premium paid to initiate the bullish play amounts to $0.35 per contract. The trader responsible for the transaction profits at expiration as long as shares in ARO surge 9.1% over the current price of $21.41 to exceed the effective breakeven price of $23.35. Of course, the investor could unravel the position ahead of expiration. He could exit the trade profitably should some catalyst – such as an earnings surprise to the upside – send shares and call premium higher, and put premium lower. The short stance in put options suggests the trader is willing to have shares put to him at $19.00 should the puts land in-the-money at expiration. While the investor runs the risk of having the stock put to him at expiration, it seems the financing received to reduce the cost of buying the calls is worth this risk as ARO’s shares have not traded beneath $19.00 since April 2009. Meanwhile, other bullish players engaged in plain-vanilla call buying, picking up some 3,200 calls at the July $26 strike for an average premium of $0.20 per contract. Call buyers make money if shares in Aeropostale jump 22.4% to top the average breakeven price of $26.20 at expiration in July. The clothing company’s shares were up above $26.20 as recently as April 21, 2011.…
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Investor Removes Comcast Strangle to Bank Profits

Today’s tickers: CMCSA, HSY, GLD, ORCL, XRT, ERTS, FXI, PFE, SII & JCP

CMCSA – Comcast Corp. – A large-volume short strangle established at the beginning of the month on the entertainment and communications services firm was unraveled today, yielding one investor a nice chunk of change heading into the weekend. Comcast’s shares are up 1% to $15.89 in afternoon trading. It appears the trader originally sold roughly 35,000 calls at the July $17 strike for a volume-weighted average premium of $0.74 apiece in combination with the sale of 35,000 puts at the July $14 strike for a premium of $0.74 each. The original transaction likely occurred on February 4, 2010, and yielded a gross premium of $1.48 per contract to the trader. Today the investor purchased-to-close the short strangle, buying back the calls at a reduced premium of $0.60 each, and buying the put options for $0.56 apiece. The trader paid a gross premium of $1.16 to close out the short stance. Therefore, the investor walks away with net profits of $0.32 per contract for a grand total of $1.120 million. It is important to note, however, that the trader left a great deal of money sitting on the table. Comcast’s shares are still trading within the boundaries of the $14/$17 strike prices required for maximum profit potential. The investor would have accumulated profits of $1.48 per contract – a total of $5.180 million – if CMCSA shares remained range-bound and if the trader held the position through expiration. Perhaps this individual unraveled the strangle in anticipation of greater volatility in the price of the underlying stock going forward.

HSY – The Hershey Company – Bullish investors satisfied sugar cravings this afternoon by devouring Hershey call options. Shares of the chocolatier rallied 2.70% to $39.88 today. Option traders picked up 1,600 calls at the March $41 strike for a premium of $0.47 apiece. The higher March $42.5 strike attracted greater volume with more than 5,300 calls purchased for a premium of $0.23 per contract. Higher-strike call buyers are positioned to accumulate profits if Hershey’s share price exceeds its current 52-week high of $42.25, attained back on July 23, 2009, by expiration next month. These optimistic individuals profit if shares increase 7.15% from the current price to surpass the effective breakeven point on the calls at $42.73.

GLD – SPDR Gold Trust ETF – Shares of the gold exchange-traded fund,…
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Analyst Upgrade Fuels Bullish Option Plays on Iron-Ore Giant Vale

Today’s tickers: VALE, MBT, FXI, NWL, CSE, VZ, XLV, CBY, HSY & SYMC

VALE – Vale S.A. – Shares of the world’s largest producer of iron-ore surged 2.75% in afternoon trading to stand at $31.18 after the firm received an upgrade to ‘overweight’ from ‘equal weight’ with a target share price of $39.00 at Barclays Capital. Indications of like-minded optimism are apparent in today’s option trading patterns on the stock. It looks like one investor initiated a put credit spread in the March contract. The bullish transaction involved the sale of 5,000 puts at the March $31 strike for a premium of $1.67 apiece, spread against the purchase of 5,000 puts at the lower March $28 strike for an average premium of $0.66 each. The credit spread results in a net credit of 1.01 per contract to the investor, who keeps the full premium received if VALE’s shares trade above $31.00 through expiration in March. The width of the spread indicates maximum potential losses on the trade of $1.99 per contract if shares of the iron-ore maker slump to $28.00 ahead of expiration.

MBT – Mobile Telesystems OJSC – The Russian provider of wireless communication services appeared on our ‘hot by options volume’ market scanner this afternoon due to near-term bullish options activity. Optimistic option plays fit neatly with the current 3.5% rally in shares of the underlying to $52.25 today. Traders sold 2,500 puts at the February $47.5 strike for a premium of $0.70 per contract, while the same number of calls were purchased at the higher February $55 strike for about $1.05 apiece. Another chunk of 2,500 puts were shed at the March $40 strike for approximately $0.33 each. All three transactions indicate bullish sentiment on Mobile Telesystems. If the trades are perhaps the work of one individual, the three-legged combination creates a clear directional play. In such a case, the investor will have paid a net $0.02 per contract for the calls by selling short the put options as described above. The long call stance positions the trader – in this example – to accrue profits if shares of MBT rally another 5.30% to surpass the effective breakeven price of $55.02 by expiration next month. We note that shares of the firm traded as high as $55.71 on October 21, 2009.

FXI – iShares FTSE/Xinhua China 25 Index Fund – Shares of the FXI, which invests assets…
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Option Bulls Covet Coal-Calls on ACI

Today’s tickers: ACI, MGM, EWJ, HSY, YHOO, TIE & GLD

ACI - Far-term option bulls were not discouraged from establishing optimistic positions on the coal producer today despite the nearly 2% decline in shares during the trading session to $17.84. Investors looking for shares to rally significantly by the start of 2010 purchased 2,000 calls at the January 23 strike for an average premium of 70 cents apiece. ACI would need to rally 33% higher for individuals long these calls to breakeven at $23.70 by expiration. Option traders also picked up 2,000 calls at the April 2010 22 strike for 1.50 per contract. Finally, curious call spreads appeared in the January 2011 contract. The trades were a bit blurred but it seems likely that the activity represents a ratio call spread. If this is the case, the investor responsible for the trade purchased about 3,000 calls at the January 30 strike for 1.40 each. These contracts were spread against the sale of some 6,000 calls at the higher January 35 strike for 93 cents premium. The trader receives a net credit of 46 cents on the transaction. He will retain the full credit and add to that amount if shares rally higher than $30.00 by expiration. Maximum potential profits on the spread amount to 5.00 (excluding the credit received today), achieved in the event that shares of ACI surge a whopping 96% from the current price by expiration in January 2011. – Arch Coal, Inc. –

MGM - The casino operator attracted bullish bets by option traders today amid a more than 7.5% rally in shares to $10.13. Notable near-term call interest was apparent at the September 11 strike price where more than 7,100 lots exchanged hands. Approximately 5,500 of the contracts were purchased for an average premium of 23 cents apiece. Investors long the calls will begin to accrue profits if shares of MGM can rise 11% higher to surpass the breakeven point at $11.23 by expiration in less than two weeks. Traders clearly favored MGM calls over puts during the session as evidenced by the call-to-put ratio of more than 3-to-1 on the stock today. – MGM Mirage, Inc. –

EWJ - The EWJ jumped onto our ‘most active by options volume’ market scanner this afternoon after one investor juggled massive chunks of calls on the stock. Shares of the exchange-traded fund are currently up 0.5% to $10.18. The trader…
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PepsiCo sees large put volume

Today’s tickers: PEP, XLY, ITT, PFE, HUM, HSY, ERTS & NTRS

PEP PepsiCo, Inc. – The global beverage, snack, and food company’s shares have rallied by more than 1% to stand at $49.75. PEP popped onto our ‘most active by options volume’ market scanner after a large volume bullish transaction was observed in the October contract. One optimistic individual targeted the October 50 strike price and sold 30,000 puts for a premium of 4.20 apiece out of some 35,000 puts sold in total at the strike. There is no existing open interest at the October 50 strike, and thus, the trade represents short selling in anticipation that shares will rise beyond $50.00 by expiration in October. This could also represent a covered put strategy (short stock and sold puts) indicating the investor’s expectation that shares might fall further. At expiration if shares are below the strike the investor would have stock put to him at $50.00 but the premium from the puts effectively reduces that price to $45.80.

XLY Consumer Discretionary Select Sector SPDR – Shares of the ETF have risen by about 0.5% to $22.60 as the ticker edged onto our ‘most active by option volume’ market scanner this afternoon due to one investor who established a ratio put spread in the June contract. It appears that this trader is looking for downside protection on the fund and so bought 12,500 puts at the June 22 strike price for 1.30 apiece spread against the sale of 25,000 puts for 65 cents at the June 20 strike price. The put spread was initiated at no cost the trader given the premium of the respective puts. If shares should decline all the way to $20.00 by expiration this individual will have reeled in the maximum profit of 2.00 possible on the trade. Profits will begin to amass to the downside at any share price below $22.00. Despite carrying a net short put position below a share price of $20.00 losses would not accrue unless shares slipped beneath $18.00, but would rise penny-for-penny thereafter.

ITT ITT Corporation – Shares of the multi-industry company engaged in the design and manufacture of engineered products have remained relatively flat for the day and currently stand at $40.73. ITT appeared on our ‘hot by options volume’ market scanner after one investor initiated a sold straddle in the July contract. It appears that the straddle was…
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AutoNation benefiting from shifts in consumer trend

Today’s tickers: AN, GD, HSY, MSFT & NOK

AN – AutoNation Inc. – Shares of the automotive retailer have lifted 6% today to $10.33, a price that represents a more than 160% increase over the 52-week low of $3.97 established just as the broad market reached its weakest point for 2008 in November. AutoNation continues to thrive in this depressed economic environment, whereas the big four automakers are left struggling in vain to avoid the descent to bankruptcy. AN has captured a sweet spot in the auto industry given that consumers continue to require automobiles for transportation purposes, but are currently without the means to purchase new vehicles. And so AutoNation welcomes cash-strapped consumers to its franchises, while big-auto laments the loss of customers, which it so desperately needs. Interestingly, CEO Mike Jackson, reported that demand for highly fuel-efficient autos and hybrid vehicles has fallen off a cliff given the decline in the price of gasoline, and now AN’s lots are chock-full of the cars. Perhaps if gasoline prices rally and consumers once again remember the long-run cost savings hybrids accrue, the hybrid vehicles will once again fly off the shelves. AN popped onto our ‘hot by options volume’ market scanner today after some interesting trades were established in the March and April contracts. At the March 10 strike price, 10,000 puts were sold for 40 cents each while at that same strike, 5,000 calls appear to have been purchased for 90 cents apiece. It also looks like these two trades were connected to the purchase of 2,500 calls at the April 10 strike price for 1.45 per contract, as well as the purchase of 2,500 calls at the April 12.5 strike for 45 cents each. We believe that the puts were sold as a vehicle to finance the purchase of calls as this investor seeks further upside on AN. The March 10 calls are already in-the-money as of today, but shares would need to rally by an additional 21% in order for the April 12.5 calls to land in-the-money by expiration. The investor appears to feel confident that the shares will remain above $10.00 at expiration.

GD – General Dynamics Corp. – Over the course of the last six months, shares at defense contractor, General Dynamics have fared badly falling from around $95 to $35 per share. You can blame the broad macro environment or you can focus on…
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Phil's Favorites

Rogue science strikes again: The case of the first gene-edited babies

 

Rogue science strikes again: The case of the first gene-edited babies

Chinese scientists led by He Jiankui claimed they used CRISPR to modify human embryos that eventually were born as twin girls. AP Photo/Mark Schiefelbein

Courtesy of G. Owen Schaefer, National University of Singapore

The idea of scientists tinkering with the genes of babies was once the provenance of science fiction, but now it’s apparently entered the realm of reality: On Nov. 26, Chinese scientist He Jiankui reported the historic live births of ...



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Zero Hedge

Plastic Apocalypse: Dangerous Microplastics Invade Alps To Artic, Found In Fresh Snow

Courtesy of ZeroHedge

A new study has revealed that high levels of microplastics have been detected in some of the most remote regions of the world.

The discovery, published in the journal Science Advances, is the first international study on microplastics in snow, conducted by the Alfred Wegener Institute in Germany.

Melanie Bergmann, the lead scientist, and her team of researchers found microplastics from the Alps to the Arctic contained high levels of the plastic fragment, raises questions about the environmental and health implications of potential exposure to airborne plastics....



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Insider Scoop

Heavy Volume Drives Low-Float Stock Plus Therapeutics Up 200%

Courtesy of Benzinga

Plus Therapeutics Inc (NASDAQ: PSTV) is the latest and one of the most extreme recent examples of the powerful combination of low float and heavy trading volume.

Plus shares traded higher by more than 215% on Friday. The biotech stock more than tripled after the company reported ...



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Lee's Free Thinking

Long Term Stock Market Chart Perspective

Courtesy of Lee Adler

After a big day like yesterday, I like to get a little long term stock market chart perspective. (Yes, this stilted verbiage is for search engine optimization ).

We do that with a monthly bar chart, which I update when relevant in Lee Adler’s Technical Trader. That’s in addition to the regular daily bar/cycle charts covering the past year, and a weekly cycle chart covering the past 4 years.

I wrote on July 14, in reference to the price and indicator patterns on the weekly chart:

The market has overshot a 3-4 year cycle projection in terms of both price and time. There are no long term projections. A 4 year cycle high is ideally due now. A 4 ye...



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Kimble Charting Solutions

S&P About To Decline 14%, Catching Up With The Crude Oil Declines?

Courtesy of Chris Kimble

This chart looks at the performance of the S&P 500, Crude Oil and the Yield on the 10-Year note over the past 4-months.

Crude Oil has declined around 14% more than the S&P during this time frame. Yields have declined, even more, around 36%. The is a huge spread between these assets over this short of a time period.

A few importa...



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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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The Technical Traders

Global Central Banks Move To Keep The Party Rolling - Part III

Courtesy of Technical Traders

This section of our multi-part article regarding current and past central bank actions, we are going to attempt to look at key elements of the past and present to highlight what we believe may turn out to be an incredible “setup” in the global markets. 

This setup is almost like a complex chess game where two skilled players battle for control and near the end of the game, one player is left with the King, a Rook, and a Pawn while the other player has a dramatic advantage with stronger chess pieces.  Yet, as the game continues, the weaker player is able to remove one or two of the stronger players key pieces and move his pawn to his opponent’s side to r...



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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.

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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