Posts Tagged ‘HWD’

Bulls Bubbly On PepsiCo, Marathon Petroleum Bears Bank Profits

Today’s tickers: PEP, MPC, HWD & PWR

PEP - PepsiCo, Inc. – The global food and beverage company saw heavy call action on Wednesday after the New York Post reported that the company’s board is divided on the subject of possibly splitting up the company, and that PepsiCo CEO, Indra Nooyi, may be close to making two large international acquisitions. PEP shares are up 2.0% at $65.79 as of 12:05 PM ET. Notable bullish interest is building in the Dec. $67.5 strike call, where is appears a number of strategists are positioning for shares in Pepsi to continue to climb. Investors exchanged more than 11,600 calls at the Dec. $67.5 strike against open interest of 4,317 contracts. Traders appear to have purchased the majority of the calls for an average premium of $0.51 apiece. Call buyers stand prepared to profit should shares in PepsiCo rally another 3.4% to surpass the average breakeven point on the upside at $68.01 by expiration day next month. Shares in PEP last traded above $68.01 back on July 20.

MPC - Marathon Petroleum Corp. – Shares in the largest Midwest oil refiner dropped like rock Wednesday morning, but it looks like the sharp decline today comes as no surprise to some options strategists who appear to have snapped up puts on Marathon Petroleum Corp. earlier this week. Refiners’ shares retreated as the spread between WTI and Brent oil narrowed, a sign that profit margins at these companies may decline. Marathon’s shares are off their lows of the session but remain deeply in the red, down 6.7% at $34.52 as of 11:30 AM in New York. Investors prepared to profit from Marathon Petroleum’s pain purchased put options on Monday and Tuesday for a fraction of their cost today. It looks like traders picked up roughly 3,500 puts at the Nov. $37.5 strike for an average premium of $1.60 this week, as well as purchased more than 3,000 puts at the lower Nov. $35 strike at an average premium of $0.67 a-pop. Today, premium required to buy downside protection is substantially higher. The Nov. $37.5 strike puts currently cost $3.70 per contract, while the Nov. $35 strike puts cost $1.05 each. Put selling initiated at both of these strikes in the first hour of the trading session this morning suggests traders may be taking quick profits off the table.

HWD - Harry Winston Diamond Corp. – One bullish options play on Harry Winston…
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Put Selling Ensues On Harry Winston Diamond Corp.

Today’s tickers: HWD, HAS & VSH

HWD - Harry Winston Diamond Corp. – Fresh prints in Harry Winston Diamond Corp. puts drove options volume in the front month above the prevailing level of overall open interest on the stock in the first half of the trading session. Shares in the specialist diamond company fell as much as 2.9% today to $10.36, bringing total declines in the stock up to roughly 43% since the end of May. The company was scheduled to present at the Telsey Advistory Group 2nd Annual Fall Consumer Conference just after 9:00 am EDT this morning.

One or more put players exchanged some 4,150 puts at the October $10 strike against zero open positions. It looks like most of the put options were sold for an average premium of $0.35 a-pop. Investors selling the contracts keep the full amount of premium as long as shares in Harry Winston exceed $10.00 through expiration next month. Heavy put selling pushed implied volatility on the Oct. $10 puts down more than 25% in early-afternoon trade. Shares in HWD have traded above $10.00 for more than one year, but did slip to as low as $9.61 in August 2010. Sellers of the puts likely expect shares in the miner of rough diamonds to resist above $10.00 through October expiration, and are happy to pocket available premium on the options in exchange for bearing the risk that the stock hits fresh lows in the next few weeks. Traders short the puts may have shares of the underlying stock put to them at an effective price of $9.65 each should the options land in-the-money at expiration day. Options implied volatility on the stock dropped 17.5% to 54.47% by 12:20 pm in New York.…
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Litany Of Woes Sparks Renewed Bearish Options Trades On Inverse ETF

 
Today’s tickers: SH, CLX, NABI & HWD

SH - ProShares Short S&P 500 – Bearish investors are scooping up calls on the ProShares Short S&P 500 ETF this morning with 95% of stocks in the U.S. benchmark Index trading in the red today. Shares in the SH, an exchange-traded fund designed to correspond to the inverse of the daily performance of the S&P 500 Index, are up 1.45% to arrive at $41.55 as of 12:00 pm on the East Coast. Investors exchanged more than 8,000 calls at the August $44 strike against previously existing open interest of 2,231 contracts. It looks like most of the calls were purchased for an average premium of $0.25 a-pop. Perhaps call buyers are hedging long exposure to the index, or snapping up the calls to take an outright bearish stance on the near-term performance of the Index. The ongoing debt crisis in Europe, mind-numbing squabbling amongst U.S. lawmakers tasked with raising the debt ceiling, and concerns the economic recovery continues to soften are weighing down equities today. Signs that any of these factors are worsening could send the S&P 500 Index lower to the delight of call buyers. Investors holding the August $44 strike calls profit if shares in the SH rise 6.5% to exceed the effective breakeven price of $44.25 by expiration next month. The SH last traded above $44.25 back in December 2010, when the S&P 500 Index was hovering around 1243. Meanwhile, traders casting doubt on the likelihood of a sharp correction in the Index through August expiration sold around 1,500 calls at the August $45 strike to pocket an average premium of $0.15 each. Call sellers keep the full amount of premium as long as the contracts expire worthless at expiration next month.

CLX - Clorox Co. – A sizable ratio put spread on the maker of cleaning supplies and Hidden Valley Ranch Dressing indicates one strategist is positioning for limited bearish movement in the price of the underlying shares through August…
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Zero Hedge

An American Horror Story: Rabobank On The Recession Of 2020

Courtesy of ZeroHedge View original post here.

Authored by Philip Marey via Rabobank,

Summary
  • While the outlook for 2020 remains sketchy, heavily dependent on non-economic factors, we now expect GDP to fall by 6% in 2020.

  • With a slowdown in February and a sharp contraction of the economy in March, we expect GDP growth in Q1 to be negative (-5% quarter on quarter at an annualized rate).

  • However, the most extreme economic growth figure is likely to be Q2 GDP growth with the lockdown continuing through at least April and l...



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Phil's Favorites

The PhilStockWorld.com Weekly Webinar - 04-08-2020

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here.

 

Major Topics:

00:01:34 - Checking on the Markets
00:04:32 - Current News
00:31:34 - LEVI
00:35:08 - AMZN
00:39:26 - Mark Mahaney's Stock Coverage
00:43:00 - Public Transportation & Disinfecting
00:48:08 - Petroleum Status Report & OPEC
01:00:24 - COVID-19 Update | WYNN
01:16:00 - Portfolio Projection: Income Portfolio
01:17:23 - FUTURES
01:18:49 - Earnings Portfolio
01:19:27 - STP | LTP
01:22:52 - S&P 500
01:30:05 - AAPL
01:34:15 - VIX
01:36:00 - M
01:42:56 - VIAC
01:47:02 - XOM
01:50:29 - LB
01:52:44 - IRBT
01:57:48 - Crude Oil WTI
02...



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ValueWalk

Public pensions face liquidity crunch amid volatility

By Michelle Jones. Originally published at ValueWalk.

Public pensions have had weak liquidity for a long time, but the recent volatility has made a bad situation even worse. S&P noted that pensions‘ investment horizons are decades long. As a result, many funds claim that market turmoil doesn’t affect their returns because they have plenty of time to ride out volatility. However, funds with weak liquidity don’t have that luxury in the current volatility.

Q1 2020 hedge fund letters, conferences and more

Public pensions in liquidity stress

S&P Global Ratings analyst Todd Kanaster and team said in a recent report that because of ...



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Biotech/COVID-19

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

 

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

Nurse Shelia Rickman participates in an after-shift demonstration on Monday, April 6, 2020, in Chicago’s Hyde Park neighborhood, after media reports of disproportionate numbers of black people dying from COVID-19 in the city. AP Photo/Charles Rex Arbogast

Grace A. Noppert, University of North Carolina at Chapel Hill

As the COVID-19 epidemic continues to ravage the American public, an unsurprisin...



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Kimble Charting Solutions

Silver/Gold Indicator Creates Largest Bullish Pattern In Decades!

Courtesy of Chris Kimble

Is an important metals indicator sending one of the largest bullish messages in nearly 50-years? Very Possible!

This chart looks at the Silver/Gold ratio on a monthly basis since the mid-1970s. Historically metals bulls want to see the ratio heading up, to send the metals complex a solid bullish message.

The ratio hit the top of the falling channel (A) back in 2011, where it created a large bearish reversal pattern. Since creating the bearish pattern at resistance, the ratio has experienced a significant decline.

9 years after hitting the top of the channel the ratio hit the bottom of the channel at (1) last month, where it looks to have created one of the largest monthly b...



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The Technical Traders

Adaptive Fibonacci Suggests Much Lower Prices Yet To Come - Part I

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system suggests a much deeper price move is in the works and the current price rally will likely end near resistance levels identified by the Adaptive Fibonacci Price Modeling system.  We are posting this research post for friends and followers to help them understand the true structure of price and to allow them to prepare for what we believe will become a much deeper downside price move in the future.

Fibonacci Price Theory teaches us that price moves in waves within up and down price cycles. The recent peak in price, near February 25, 2020, has resulted in a very deep -36% price collapse in the S&P 500 (ES) recently. This dow...



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Chart School

The Big Short movie guides us to what is next for the stock market

Courtesy of Read the Ticker

There is nothing new in WallStreet, it is only the players that change. Sometimes a market player or an event gets ahead of the crowd and WallStreet has to play catch up.

Previous Post Dow 2020 Crash Watch Dow, Three strikes and your out!

It is important to understand major WallStreet players do not want to miss out on a money making moves.  







...

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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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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

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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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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 ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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