Posts Tagged ‘HTZ’

Hertz Investors Hurting As Stock Tumbles On Revised Annual Forecast

HTZ – Hertz Global Holdings Inc. – Investors in car rental company Hertz Global Holdings Inc. are taking it on the chin today, with shares in the name sliding as much as 13% in the early going to a three-month low of $22.47. Shares fell after Hertz lowered its full year 2013 earnings and revenue guidance, primarily due to weaker than expected U.S. airport car rentals, according to a press release issued by the company.  

October expiry put options changing hands on the stock this morning indicates one or more traders are bracing for shares in the name to weaken further in the near term. Around 2,000 of the Oct $23 strike puts appear to have been purchased, most of the contracts at a premium of $1.00 each. Put buyers make money at expiration next month if shares in HTZ decline 2.0% from today’s low of $22.47 to breach the breakeven point on the downside at $22.00. Shares in Hertz last traded below $22.00 in April. 

CAG – ConAgra Foods, Inc. – Shares in the provider of Chef Boyardee, Hunt’s and other branded consumer food products are in negative territory on Thursday morning, off 0.25% at $30.37 as of 10:45 a.m. ET. The stock has been hit hard in recent weeks, currently down more than 18% from a multi-year high of $37.28 reached at the beginning of August.

Trading in ConAgra call options this morning, however, suggests some strategists may be positioning for the price of the underlying to rebound during the final months of 2013. The most traded options contracts on CAG thus far in the session are the Dec $32 strike calls, with volume topping 5,500 contracts versus open interest of 1,615 contracts. Time and sales data suggests most of the volume was purchased within 15 minutes of the opening bell at a premium of $0.55 each. Call buyers may profit at December expiration in the event that ConAgra’s shares rally 7.0% over the current price of $30.28 to exceed the breakeven point at $32.55. 


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Bullish Positions Take Shape Ahead Of Walgreen Co. Earnings

Today’s tickers: WAG, IO, HTZ & NBR

WAG - Walgreen Co. – Shares in the largest U.S. drugstore chain may rally sharply heading into the New Year, according to one options player dabbling in Jan. 2012 contract call options this morning. The buyer of a sizable bull call spread may be using the position to prepare for Walgreen’s shares to pop after the company reports first-quarter earnings ahead of the opening bell on December 21. The stock currently trades flat on the session at $34.01 as of 11:45 AM in New York. It looks like the trader purchased a roughly-3,000 lot Jan. 2012 $35/$39 call spread for an average net premium of $1.06 per contract. The investor stands ready to profit at expiration next year as long as shares in Walgreen Co. increase 6.0% to exceed the average breakeven price of $36.06. Maximum potential profits of $ are available to the call-spreader if the drug retailer’s shares soar 14.7% to trade above $39.00 at expiration in January. Walgreen’s shares last traded above $39.00 at the beginning of August.

IO - ION Geophysical Corp. – The provider of seismic solutions and equipment to the global energy industry rallied in sympathy with shares in Mitcham Industries (MIND), which jumped to a new 52-week high today after reporting better-than-expected third-quarter earnings after the close on Tuesday. ION’s shares are up 1.8% to stand at $6.82 as of 12:20 PM in New York. At least one options trader is taking advantage of the positive day for ION’s shares by picking up bearish put options on the cheap. It looks like the investor purchased more than 3,000 puts at the Dec. $6.0 strike for a premium of $0.10 each. These same options would have cost the trader $0.50 each less than one week ago. The bearish position may yield profits…
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Bullish Player Takes Profits, Injects Fresh Optimism in Sanofi-Aventis Options

Today’s tickers: SNY, DELL, HTZ & GT

SNY - Sanofi-Aventis – The French drug manufacturer popped up on our ‘hot by options volume’ market scanner this morning after one strategist extended bullish sentiment on the stock. Shares in Sanofi-Aventis rallied earlier in the session, but currently stand 0.35% lower on the day at $39.55 as of 11:30am in New York. The vaccines division of the pharmaceutical company, Sanofi Pasteur, said today it has received approval from the U.S. Food & Drug Administration (FDA) for its intradermal microinjection delivery system of its influenza vaccine, Fluzone. The vaccine was previously approved for intramuscular administration, but Sanofi said it plans to have the Fluzone Intradermal vaccine available to U.S. healthcare providers in time for the 2011-2012 influenza season. The bullish options trader responsible for nearly all of the day’s volume appears to be taking profits off the table on a previously established long call position. It looks like the investor originally purchased 2,000 calls at the May $37 strike for an average premium of $1.025 back on April 14 when shares in SNY were hovering around $37.54. Since the calls were purchased, shares in Sanofi rallied as much as 8.6% to touch a new 52-week high of $40.75 last Wednesday. Although shares are currently off last week’s high, the bullish trader was still able to rake in substantial profits on the long calls stance, selling all 2,000 of the May $37 strike calls this morning at a premium of $2.45 apiece. Net profits on the sale amount to $1.425 per contract. Next, the trader extended bullish sentiment on the drug maker, buying 2,000 fresh calls out at the June $40 strike for a premium of $0.40 per contract. The investor profits on the new batch of call options if shares in SNY increase 2.15% over the current price of $39.55 to surpass the effective breakeven point to the upside at $40.40 by expiration in June.…
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Hartford Financial Services Group Call Options in High Demand

Today’s tickers: HIG, EW, GENZ, AWK, STEC, DELL, HTZ, DBRN & OVTI

HIGHartford Financial Services Group, Inc.Call options on the insurance and financial services firm are flying off the shelves today with shares trading higher by as much as 2.95% to tie down an intraday high of $22.99. As of 2:20 pm ET, more than 14.1 calls have changed hands on HIG for each single put option in action on the stock thus far in the session. The sharp increase in demand for calls bumped up the insurer’s overall reading of options implied volatility 26.4% to today’s high of 56.57%. While some investors populating HIG are selling calls, the majority of calls traded were purchased by traders positioning for continue appreciation in the price of the underlying shares. Near-term optimists picked up roughly 7,500 calls at the September $23 strike for an average premium of $0.50 each. Call buyers at this strike make money if HIG’s shares rally above the average breakeven price of $23.50 by expiration day next Friday. Other bulls purchased some 4,600 calls at the September $24 strike for premium of $0.23 each. Another 2,800 calls were scooped up at the higher September $25 strike at an average premium of $0.16 a-pop. More than 10,800 calls changed hands at the September $26 strike versus previously existing open interest of just 3,300 lots. The vast majority of those calls, some 7,000 contracts, traded to the middle of the market at a premium of $0.12 apiece. Bullish sentiment on the insurance company spread to the October $24 strike where some 2,000 calls were coveted at an average premium of $0.76 each. Investors holding these contracts stand ready to accumulate profits if HIG’s shares jump 7.7% over today’s high of $22.99 to exceed the average breakeven price of $24.76 by October expiration. An additional 2,000 calls were picked up at the October $25 strike for premium of $0.70 a-pop. Traders long the calls make money if shares surge 11.8% to trade above $25.70 ahead of expiration day next month. Options traders exchanged more than 66,700 contracts on Hartford Financial Services Group by 2:30 pm ET.

EW – Edwards Life Sciences Corp. – The provider of products and technologies created to treat advanced cardiovascular disease popped up on our ‘hot by options volume’ market scanner after…
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Kaleidoscope of Butterflies Lie in Wait for Goldman Sachs Rebound

Today’s tickers: GS, BAC, AEA, QDEL, DUK, HTZ, EFA, MAR, PXD & WLP

GS – Goldman Sachs Group, Inc. – Bullish options strategists touting butterfly wings were once again enticed by the sweet nectar of potential profits hinging on Goldman Sachs’ shares ability to continue to climb out of the hole created by the drama and uncertainty surrounding the SEC’s suit against the investment banking firm. Goldman’s shares are up 2.36% in late afternoon trading at $156.65, but the stock realized a 4.9% rebound in its shares from Tuesday’s intraday low of $150.15, to an intraday high of $157.45 during the current session. We observed bullish butterfly plays on Goldman Sachs each day this week suggesting investors are pre-ordering their tickets on the rebound-boat so as not to miss out on profits to the upside. Tuesday’s call-fly engaged the October 160/175/190 strikes while Monday’s butterfly spread involved the May 150/160/170 strikes. Today, butterflies parked themselves in the June contract, buying approximately 8,000 calls at the June $165 strike for a premium of $4.66 each [wing 1] and purchasing roughly 8,000 calls at the higher June $185 strike for $0.88 apiece [wing 2]. The body of the butterfly centered at the June $175 strike where some 16,000 calls were shed for an average premium of $1.99 a-pop. Average net premium paid for the spread amounts to just $1.56 per contract. The investor or investors holding the bullish stance stand ready to accrue maximum potential profits of $8.44 per contract should GS shares surge up to $175.00 by expiration day. The transaction is a very efficient way to act on bullish sentiment because maximum loss potential – $1.56 per contract in this case – is scant when compared to potential profits which are 5.4 times greater. Profits start to amass if Goldman’s shares rally 6.33% from the current price of $156.65 to breach the average breakeven price of $166.56 ahead of June expiration. Finally, not all optimistic options players selected the butterfly spread strategy. A long-term bullish trader targeted the October contract to enact a plain-vanilla debit call spread. The investor picked up 3,000 in-the-money calls at the October $155 strike for a hefty average premium of $16.50 apiece, and sold the same number of calls at the higher October $180 strike for $6.55 each. The net cost of the call spread amounts to $9.95 per contract, and yields maximum potential profits…
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Mega Earnings Monday – 1,000 Reports This Week!

What a crazy week this is going to be!

Pre-Market we're hearing from BLK, CAT (are we building stuff?), EXP, HTZ, HUM, LO, TUES and TZOO and later we will hear from BSX, CHH, OLN, RSH, RCII, TXN (major) and my "friendbuddypal" Cramer's TSCM (if they are not delayed).  Revenues at The Street have crept back up this year in a recovery that pretty much mirrors the market.  The company does pay a nice 2.6% dividend, which works out to a nice $200,000 bonus on Jimmy's 2.1M shares (6.7% of the company) so you know that bonus will be a priority for the company.  Cramer was BUYBUYBUYing his own stock at $2.41 in January but sadly they have no options to hedge…  They might make a nice pick-up after earnings if they disappoint and head back to $3 or less.

I'm full of useful information on hundreds of stocks right now because I've been researching our new Buy List but I'm not pleased with what I've been seeing so far and this week's tidal wave of earnings, with 1,000 companies reporting means we're in no hurry to dip our toes in the water.  I told Members this morning I should probably be working on a Sell List, as it's much easier to find companies I want to short than ones I want to buy.  Even in the Weekly Wrap-Up, we featured a 1,900% downside hedge on the Russell to offset the 566% plays and other bullish plays we've begun to reluctantly take, just so we don't feel too silly in this runaway market. 

If you have never watched Jim Cramer discussing the sleazy, manipulative ways he used to game the markets – you really must take 10 minutes and watch this video, where Jim explains how any immoral bastard with $10M can yank the entire futures market around at will.  He prefaces one of his favorite strategies with "this is blatantly illegal but.. I think it's really important… these are things you MUST do on a day like today and if you are not doing it, maybe you shouldn't be in the game."  Are you playing the game or are you being played? 

The biggest game ever played may be unwinding as we speak.  Bloomberg reports that foreign-exchange profits from carry trades are disappearing as differences in central
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Zero Hedge

The FAANMG Capex And R&D Budget Is Rapidly US Government Defense Spending

Courtesy of ZeroHedge View original post here.

Authored by Adam Virgadamo, Morgan Stanley equity strategist

Wrapping up our annual gathering this past week, three common themes across regions and sectors stood out. As 2020 unfolds, we’ll have more to say on these topics, but in the meantime, here are the broad outlines of our dialogue.

Disruption: Few themes are as evergreen as identifying disruptors and the disrupted, so it was no surprise that we spent much of our day on the subject. Our ideas around the poster children for disruption – e-commerce and the retail...



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Digital Currencies

The Road To Retirement: Millennials Put Their Faith In Bitcoin But Goldman Says Go With Gold

Courtesy of ZeroHedge View original post here.

"Drop Gold" - the ever-present tagline of Grayscale's Bitcoin Trust TV commercial - appears to be working its magic on a certain cohort of society.

2019 has seen assets under management in GBTC soar...

Source: Bloomberg

And for Millennials, according to the lates...



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Phil's Favorites

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid world view. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and seductive partisan propaganda media ...



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Kimble Charting Solutions

Gold Miners Indicator Attempting Multi-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble

Are Gold Mining stocks about to be sent a bullish signal they haven’t received in years? Possible says Joe Friday.

This chart looks at the Senior Miner/Junior miner (GDXJ/GDX) ratio over the past few years. Historically when the ratio is heading up, miners tend to do very well.

The ratio has created a series of lower highs just below the falling line (1), since the summer of 2016. The ratio is currently testing the strong falling resistance line and the June 2019 highs at (2).

Joe Friday Just The Facts Ma’am; If the ratio succeeds in a double breakout at (2), it sends miners a long-awaited bullish message.

...

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Insider Scoop

Scott Galloway Calls For Twitter's Board To Replace 'Part-Time CEO' Jack Dorsey Amid Africa Move Plans

Courtesy of Benzinga

A shareholder in Twitter Inc. (NASDAQ: TWTR) and New York University business professor wrote an open letter Friday to the company's board calling for the replacement of CEO Jack Dorsey.

What To Know

Scott Galloway, who owns more than 330,000 shares of Twitter stock a...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 

Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices.

The cycle below shows prices are ready to move in the months ahead (older chart re posted).


Click for popup. Clear your browser cache if image is not showing...



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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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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

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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