Posts Tagged ‘IGT’

Testy Tuesday – 50 DMA Spectacular!

You've gotta love those trend lines.

Chart people sure love them and we love chart peopel because they are SOOOOOOOO predictable and predictable behavior is behavior we can bet on and that makes us happy.  Today we'll be seeing the 50-day moving averages on the Dow, the NYSE and the Russell all tested at the same time – what happens next will tell us a lot about this rally.  

As I pointed out to our Members in our Live Chat Room this morning, though we may be past our bounce levels and though we are now challenging the 50 dmas, we still have 3 of 5 of our Must Hold levels red on the Big Chart – that's not too impressive.  Consider what a 50-day moving average is.  It means that, over the last 50 days, half the time the index has been above the line and half the time it's been below – so how impressive should it be to see the index back in the middle?

SPY 5 MINUTENonetheless, Chart People believe it's some mystical symbol that gives them a rally signal and half the time they are right – so the religion of TA continues to prosper!  As you can see from Dave Fry's SPY chart from yesterday, 75% of yesterday's gain came on no volume as we gapped up in the Futures and the rest of the day's trading was one of the lightest of the year.  

The reason I like Dave is because he's one of the only TA people who actually pay attention to volume and this volume is total BS.  Still, it's enough to stampede the retail suckers back in and God bless them because they throw money at us to sell them the things we liked when they were out of favor.

In May and June, for example, we compiled a Buy List for our Members, which had 29 trades we liked for the rest of 2014.  Here's a few that we are done with already:

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Spike In IGT Shares Positive For Put Sellers

Shares in International Game Technology (Ticker: IGT) jumped more than 9.0% to a near six-month high of $17.00 on Wednesday morning after Italian company GTECH S.p.A. agreed to acquire the maker of slot machines for around $4.7B in cash and stock and the assumption of $1.7B in net debt. According to a joint press release issued by the companies, IGT and GTECH will combine to form a new holding company (NewCo) in the UK.

The sharp move in the share price and effective floor on the price of the underlying following the deal may be boon for one large options market participant who appears to have sold roughly 100,000 of the Aug 13.0 strike put options on IGT last Tuesday at a premium of $0.20 each. The put seller pocketed $2 million in premium by selling the contracts and keeps the full amount of premium in the event the August expiry puts expire worthless with shares above $13.00 next month. Terms of the deal provide IGT shareholders with an aggregate value of $18.25 per IGT share, comprising $13.69 in cash plus 0.1819 ordinary share of NewCo, and well above the $13.00 striking price on the sold put options. Open interest in the contracts currently stands 92,415 contracts and the largest of any series available on IGT.

Chart – Heavy volume in Aug 15 ’14 13.0 strike puts on 7/08/14


Toppy Tuesday – S&P 1,950 Edition

SPX WEEKLYHere we go again!  

As you can see from Dave Fry's S&P chart, we're back in the top of the channel on a Tuesday and I will refer you to April 1st's "Triple Top Tuesday" and December 31st's "Terminal Tuesday" – both of which were points we thought the market was topping out before.  

Actually, in both cases, we did have a mild pullback, but nothing that broke the trend – so far.

Back in that December post, we were playing gold (/YG) bullish at $1,185 to finish the year, based on our premise of MORE FREE MONEY in 2014 keeping the markets afloat.  We also went bullish on SHLD at $40, which is like $30 post-spit.  

In the April post, it was our 3rd try at 1,880 on the S&P and we had just cashed out our Income Portfolio and I we lost $10 betting the Nasdaq would be above 4,200 at April expirations on a TQQQ spread (now 4,350 – so bad timing) but our support held and kept the damage to a minimum.  We also (in the morning post) called for selling the AAPL Jan $450 puts for $5.90 to pay for those spreads and AAPL just split 7:1 so those are now the $64.29 puts at .25.  7 x .25 = $1.75 so up $4.15 (70%) already on that play.  

RUT WEEKLYWe also had bullish trade ideas for HOV, CHL, FCX, ABX and RIG – right in the morning post!  Our best play, however, was shorting the Russell Futures (/TF) at 1,180 in Member Chat at 10:53 – as that was the beginning of an $9,000 per contract pullback on that index – all the way back to 1,090 (where we went long).  

As you can see from Dave's Russell chart, we're just playing a channel with our trades – it's really not that complicated.  Yesterday the Russell hit 1,180 and – guess what – we shorted it again!  Now you are catching on to our "secret" strategy!  

Already this morning the Russell Futures are down to 1,170, which is +$1,000 per contract from 1,180 but our…
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The Buy List – 20 Great Trade Ideas for the Rest of 2014 (Members Only)

INDU WEEKLYWhat a rally!  

While stocks certainly aren't "cheap" by any measure, we've been able to identify 20 that are still good values.  We've been compiling this list and going over trade ideas for playing them in our Tuesday Webinars since May 13th and, of course, we've been posting them in our Live Member Chat rooms, so this is just a review to consolidate our trade ideas.  

We cashed in our Long-Term Portfolio last week at what we thought was a top but so far – so wrong on that call!  Since it's up 19% in just 6 months, we're not going to cry about missing the last 400-point move on the Dow (2.5%) – we'll just have to look ahead to deploying our cash again, following the same strategy that was so successful in the first half of the year, which was, essetially, our "7 Steps to Consistently Making 20-40% Annual Returns" system:

As we did in building our Long-Term Portfolio, we're not going to rush in and buy everything.  We will do exactly what we did in January where, following our Fall Buy List, we simply added stocks from our list whenever they became cheap.  While our Members are able to pick up our trade ideas as they are released, we don't always add them to our virtual portfolios right away.  As with the first half's Long-Term Portfolio, we will track every entry and exit in both our Live Weekly Webcasts, as well as in our Live Member Chat Room and alerts will be sent to our subscribers (you can join here, Basic and Premium Members get full access).  

Our picks were originally grouped by industry sectors but, for reference purposes, I'm going to list them alphabetically below – these are the original trade ideas (the Webinar dates where we discussed our picks are next to the symbol), most are still playable but some have already taken off :

ABX (5/28) we featured in our June 3rd post - obviously one I like.  If you don't want to buy the stock for $15.90 (and we NEVER pay retail at PSW!), then you can sell the 2016 $15 puts for $2.05,
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Which Way Wednesday – Breaking Out or Breaking Down?

Three out of five indexes look very good!  

The same can be said about a dog with three legs and no tail, I suppose.  So, the question is, is the market a dog in a nice sweater or whatever the metaphor would be for something where 3 healthy guys drag two dead guys around and win the race.  

Hmmm, I guess there is no metaphor for that – BECAUSE IT'S RIDICULOUS, isn't it?  A healthy market looks like a healthy market and this does NOT look like a healthy market.  

You can ignore Russia invading Ukraine, you can ignore China's exploding debt bubble, you can ignore collapsing German Investor Confidence, you can ignore Japanese Inflation, you can ignore all the stuff we already talked about in this morning's news alert – but that's not going to make it go away!  

SPY 5 MINUTEYes, we made new highs yesterday but look at the crap volume.  The volume on the Friday after Thanksgiving (half a day) was 55M on SPY, the volume on Dec 26th was 63M and New Year's Eve was 86M – that's how ridiculous yesterday's volume was.  

We're still in the pattern of the market rising on low volumes and selling off on high volume, which is simply the way the Banksters pump up their holdings into the opens and then dump them on what few retail suckers are participating into the closes.

You can hear their media puppets ramping up the rhetoric at the same time, wagging their fingers at the retail investors and telling them they are "missing" the rally.  Why weren't they saying that when the markets were 50% cheaper?  Why not when they were 25% cheaper?  No, only at a market top does the Corporate Media tell you to BUYBUYBUY because their masters already bought their fill and now they need someone to hold the bag.  Same as it ever was.  

[image]Check out the front page of Mr. Murdoch's Wall Street Journal, nothing about Russia and they spin the Administration's attempt to boost Housing as a positive when it's actually a reaction…
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Visa Options Active As Stock Said To Join The Dow 30

V – Visa Inc. – Shares in the electronic payments and technology company are on the rise today, gaining as much as 3.3% to hit a one-month high of $184.40 on news the company, along with Goldman Sachs Group Inc. and Nike Inc., will replace Hewlett-Packard Co., Bank of America Corp and Alcoa Inc. in the Dow Jones Industrial Average later this month. Shares in Visa are up approximately 40% since this time last year, but trade roughly 6.0% below the record high of $196.00 secured back on July 25th.

Options volume on Visa rose to more than twice the average daily level, with 24,800 contracts exchanged by 3:40 p.m. in New York. Fresh interest building in weekly calls on Visa today suggests some traders are positioning for shares in the name to extend gains during the next few sessions. The most traded weekly contracts are the Sep 13 ’13 $185 calls, with around 1,900 lots in play versus open interest of 267 contracts. Time and sales data suggests most of the $185 calls were purchased at an average premium of $1.08 apiece. Buyers of the $185 calls stand ready to profit at expiration in the event that Visa shares rally another 1.0% over today’s high of $184.19 to exceed the average breakeven point at $186.08. The Sep 13 ’13 $190 calls are also changing hands this afternoon with around 940 lots traded against open interest of 84 contracts. Most of the $190 calls appear to have been purchased at an average premium of $0.26 each.  

IGT – International Game Technology – Traders appear to be snapping up front month call options on the maker of electronic gaming equipment today, with shares in International Game Technology trading up as much as 7.2% during…
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True Religion Falls Apart At The Seams After Earnings


Today’s tickers: TRLG, KR & IGT

TRLG - True Religion Apparel, Inc. – Disappointing fourth-quarter earnings and weaker-than-expected 2012 guidance from high-end apparel maker, True Religion, saw shares down as much as 25.0% this morning to $27.57. The sharp pullback in the price of the underlying is a true kick in the pants for some traders holding bullish options, as the value of their positions tumbled overnight. One hard-hit strategy, a bull call spread initiated at $1.50 per contract yesterday afternoon, is practically worthless today. It looks like the trader purchased a 1,000-lot Feb. $37/$41 call spread for a net premium outlay of $1.50 per contract, looking for maximum possible profits of $2.50 per contract provided True Religion’s shares settled above $41.00 by February expiration. As of the close of trading on Thursday, with shares in TRLG at $36.80, the stock would have needed to rally % for the spread to yield maximum gains to the investor. But, with shares now sharply lower, the price of the underlying must soar nearly 40.0% to $38.50 in order for the trader to at least break even on the position. The trader takes maximum possible losses of $1.50 per contract on the spread if shares fail to rally above $37.00 by expiration next week. Meanwhile, investors that purchased bearish or protective put options heading into the earnings report saw the value of their positions soar. One such trade, the purchase of around 500 Feb. $31 puts for an average premium of $0.70 each at the end of January, is up big today. Investors buying the now deep in-the-money puts this morning paid an average premium of $3.22 per contract this morning, or nearly five times as much. Finally, investors positioning for shares in True Religion to extend losses ahead of February expiration snapped up some 500 puts at the $26 strike and another 140 puts at the $25 strike, at average premiums of $0.34 and $0.13 apiece, respectively.…
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Crowd Forms Around Clorox Call Options

Today’s tickers: CLX, IGT, EBAY & NVLS

CLX - Clorox Co. – Bullish options activity on the manufacturer and marketer of a range of consumer goods jumped this afternoon with shares in Clorox Company rising 5.6% to $71.94. Clorox has been the subject of takeover chatter on several occasions over the years, which in the past tended to drive up the price of the underlying as well as call volume and options implied volatility. No rumors have come to our attention today, but shares are soaring, calls are in high demand and implied volatility is up sharply by 82.6% to arrive at 25.20% by 1:55 pm ET. Options traders are piling into Clorox calls to buy into the rapid rise in the price of the underlying. Volume is heaviest at the July $70 strike where more than 4,200 now deep in-the-money calls changed hands against open interest of 2,322 contracts. Most of the calls at this strike were purchased by first-responders for an average premium of just $0.40 each. The huge run-up in volatility and rally in share price has lifted premium on the July $70 strike calls up to $1.90 each this afternoon. Bulls tacked August contract calls, as well. Traders purchased the majority of the 1,285 calls exchanged at the August $72.5 strike for an average premium of $0.44 a-pop. Investors long the calls profit in the event that shares exceed the average breakeven price of $72.94 through August expiration. Shares in Clorox Co. reached their current all-time high of $72.43 back on February 11. The maker of bleach and Burt’s Bees® personal care products reports fourth-quarter earnings ahead of the opening bell on August 3.

IGT - International Game Technology – Options on International Game Technology, which were popular with strategists positioning for shares in the maker of…
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Three-Legged Bearish Tactician Targets iShares Dow Jones U.S. Real Estate Index ETF

Today’s tickers: IYR, NSM, IGT, GFRE, LNC, BHI, ONNN & HPQ

IYR – iShares Dow Jones U.S. Real Estate Index ETF – A three-legged bearish options combination play on the IYR, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Dow Jones U.S. Real Estate Index – an index created to measure the performance of the real estate sector of the U.S. equity market, indicates one big player is bracing for a pullback in shares of the ETF through the end of 2010. Shares of the fund went the way of the market this afternoon and rallied 1.05% to $50.71 with less than one hour remaining in the trading week. The investor sold roughly 10,000 calls at the December $55 strike at an average premium of $1.35 each, purchased about 10,000 puts at the December $50 strike for an average premium of $3.65 apiece, and shed 10,000 puts at the lower December $43 strike at an average premium of $1.43 a-pop. The net cost of the pessimistic play is reduced to $0.87 per contract. The transaction could be a hedge to protect the value of a large position in IYR shares. But, if the spread represents an outright bearish bet on the ETF, the investor is poised to profit should shares dip below the average breakeven price of $49.13 by December expiration. Maximum available profits in this scenario amount to $6.13 per contract if the fund’s shares plummet 15.2% from the current price to trade below $43.00 by expiration day.

NSM – National Semiconductor Corp. – Shares in semiconductor manufacturer, National Semiconductor Corp., earlier slipped 2.05% to touch a new 52-week low of $12.41, but the stock came roaring back to life in afternoon trading, rallying as much as 3.2% to an intraday high of $13.08. The significant shifts in the price of the underlying shares inspired investors to purchase both call and put options on the stock today. Options traders may also be gravitating toward NSM options ahead of the firm’s first-quarter earnings report scheduled for September 9, 2010. Investors heartened by the turn-around in shares purchased approximately 5,800 calls at the November $13 strike for an average premium of $0.85 apiece. Call buyers make money if National Semiconductor’s shares rally another 5.9% over today’s high of $13.08 to trade above the average breakeven price of $13.85 by expiration…
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Investors HOG-Wild for Harley-Davidson, Inc. Options

Today’s tickers: HOG, SKS, MDRX, DFS, NFLX, IGT & DOW

HOG – Harley-Davidson, Inc. – Motorcycle maker, Harley-Davidson, Inc., attracted hoards of options investors during the session with its shares rallying as much as 5.85% in morning trading to secure an intraday high of $27.71. Harley’s shares are currently up a more modest 1.80% to $26.65 just before 12:40 pm (ET). Bullish tactics dominated activity in the June contract, with optimistic traders picking up some 4,300 calls at the June $28 strike for an average premium of $0.52 apiece. Call buyers at this strike price make money only if Harley-Davidson’s shares exceed $28.52 ahead of June expiration. Optimism spread to the higher June $30 strike where 1,100 calls were purchased at an average premium of $0.15 each. The calls are not a profitable acquisition for traders unless Harley’s shares jump more than 13.1% over the current price of $26.65 to exceed the average breakeven price of $30.15 by June expiration day. Investor sentiment is mixed in the July contract. While bulls purchased call options at the July $30 strike for an average premium of $0.82 apiece, bearish traders employed different strategies. It looks like some pessimistic investors essentially opted to sell call options in order to finance the purchase of debit put spreads. These traders appear to have purchased roughly 4,000 puts at the July $25 strike for an average premium of $1.23 each, and sold about the same number of puts at the lower July $20 strike for $0.23 apiece. Additional financing for the bearish spread was provided by the sale of approximately 4,000 calls at the July $30 strike for an average premium of $0.82 each. Thus, the average net cost of the combination play amounts to $0.18 per contract. Investors employing this strategy are prepared to profit should HOG’s shares decline 6.9% to breach the effective breakeven price to the downside at $24.82 by July expiration. Maximum available profits of $4.82 per contract accumulate for bearish individuals if shares of the underlying stock plummet 24.95% from the current price of $26.65 to break through $20.00 by expiration day.

SKS – Saks, Inc. – Some investors made bullish moves on Saks, Inc. today with shares of the underlying stock up as much as 5.2% in the first half of the trading session to an intraday high of $8.50. The luxury retailer’s share price rose on optimism consumer spending…
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Phil's Favorites

The existential case for ditching Alexa and other AI


The existential case for ditching Alexa and other AI

Robert Couse-Baker/Flickr, CC BY-SA

Courtesy of Brendan Canavan, University of Huddersfield

Alexa’s creepy laugh is far from the most worrying thing about her. This is despite the fact that Amazon’s digital assistant – which allows users to access the internet and control personal organisation tools simply by speaking to the device – has been reported to spontaneously chuckle to herself. We shouldn’t be too concerned about he...

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Zero Hedge

Trader Shares "A Few Ideas For Avoiding A Friday Faceplant"

Courtesy of ZeroHedge. View original post here.

From Bloomberg macro commentator, Richard Breslow

Don’t mistake this as a trade recommendation, but it is all right to do nothing. Trading when you believe you have an edge is when it is time to step in. If you are there, then go for it. But trading merely because things are moving around is a day-trading concept, not an investment thesis.

It’s important to match trading style, objectives and realistic liquidity assumptions to how you view volatility vs risk. They are very much not the same thing. Made even more so if you think the Fed equity put has been eliminated. It hasn&#...

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Insider Scoop

41 Biggest Movers From Yesterday

Courtesy of Benzinga.

  • Odyssey Marine Exploration, Inc. (NASDAQ: OMEX) shares climbed 118.42 percent to close at $8.30 on Thursday after the company disclosed positive Mexico Court Decision nullifying a previous denial of application for Don Diego project.
  • Omeros Corporation (NASDAQ: OMER) shares gained 35.31 percent to close at $15.75. The maker of a cataract surgery drug called Omidria realized a "big win" from Wednesday's release of the U.S. government spending bill, according to Stat News. Specifically, a policy included in the spending bill includes a pass-through exte... more from Insider

Chart School

Bitcoin Cycles Review

Courtesy of Read the Ticker. uses Bartel's logic to find dominant cycles in a time series.

Cycles are present in markets, as shown below the 22 and 40 day cycles on calendar days looks like the best fit. Therefore the chart below suggest we can expect a bitcoin low either now or in a few weeks.

Bitcoin has not been effected by the SP500/Dow sell off which is a very bullish sign, bitcoin may see safe haven money chasing price very soon, add to this the sister coin, litecoin, isgetting ready for wider use with the massive e-commerce payment market (litepay, litepal, atomic swamps, lightening network).

The bitcoin move is not over!


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U.S. Commerce Secretary Wilbur Ross Speaks With CNBC's "Power Lunch" Today

By VW Staff. Originally published at ValueWalk.

WHEN: Today, Thursday, March 22, 2018

WHERE: CNBC’s “Power Lunch”

Following is the unofficial transcript of a FIRST ON CNBC interview with U.S. Commerce Secretary Wilbur Ross on CNBC’s “Power Lunch” (M-F 1PM – 3PM) today, Thursday, March 22nd. Following are links to video from the interview on

]]> Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.


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Digital Currencies

Why accountants of the future will need to speak blockchain and cryptocurrency if they want your money


Why accountants of the future will need to speak blockchain and cryptocurrency if they want your money


Courtesy of Anwar Halari, The Open University

If you haven’t already heard of Bitcoin, you either haven’t been paying attention or you’re a time traveller who just touched down in 2018. Because by now, most of us will have heard of Bitcoin and some of us have even jumped on the bandwagon, investing in cryptocurrencies.

But despite its popularity, many people still don’t understand the technology that underlines it: blockchain. In...

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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)


"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...

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How your brain is wired to just say 'yes' to opioids

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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