Posts Tagged ‘ILMN’

Bulls Sweet On PepsiCo Calls As Shares Rise

 

Today’s tickers: PEP, BYI & ILMN

PEP - PepsiCo, Inc. – Options on global beverage and snack food giant, PepsiCo, Inc., are humming with activity this morning after the company posted first-quarter earnings that handily beat analyst expectations. Overall volume in PEP options is roughly three times the average daily level for the stock as of 11:00 a.m. ET. Shares in the world’s largest snack maker jumped 5.8% in the early going to a record high of $83.45. Fresh interest in upside call options on Pepsi indicates some traders are positioning for shares in the name to extend gains this year. The July $85 strike calls have traded 1,600 times so far today versus open interest of 964 contracts. It looks like traders purchased most of the volume for an average premium of $1.10 each. Looking ahead to October expiration, traders stepped in to buy calls at the $85, $87.5, $90 and $95 strikes. The Oct. $90 strike is most active, with some 1,400 calls changing hands against open interest of just 11 contracts. Call buyers paid an average premium of $0.53 apiece for the $90 calls, and may profit at October expiration in the event that PepsiCo’s shares surge 8.5% over today’s high of $83.45 to surpass the average breakeven price of $90.53.

BYI - Bally Technologies, Inc. – The maker of slot machines and other gaming devices popped up on our ‘hot by options volume’ market scanner this morning due to heavier than usual trading in the May expiry puts. Front month put buyers may be bracing for shares in Bally to pull back following the company’s third-quarter earnings report after the close next Thursday. The stock is down 1.0% at $47.25 this afternoon, after yesterday sinking to the lowest level in one month. May $45 strike puts traded more than 3,400 times during the first half of the trading session against open interest of 125 contracts. Time and sales data indicates most of the puts were purchased for an average premium of $0.95 each. Traders…
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Traders Beef Up On Herbalife Options As Shares Extend Losses

 

Today’s tickers: HLF, ILMN & WSM

HLF - Herbalife, Ltd. – Options on Herbalife continue to change hands at a clip on Thursday, one day after Pershing Square Capital Management founder, Bill Ackman, announced a short position in the stock that sent shares in the marketer of weight management products down as much as 15% during trading on Wednesday. The stock extended losses today, sliding 8% in the early going to $34.33, the lowest level since February 2011. Upwards of 71,000 put and call options have changed hands on Herbalife as of 12:55 p.m. ET, with around 1.5 puts changing hands on the stock for each single call option in play. Some traders appear to be positioning for shares in the name to hit lower lows by the end of this week, while others establish contrarian bets on the name that benefit from a pop in the price of the underlying during the next 24 hours. Bears anticipating a sharp drop in shares of Herbalife in the very near term appear to be buying out-of-the-money puts across several strike prices in the December expiry. Meanwhile, call buying at the Dec. $35, $37.5 and $40 strikes looks for the stock to rebound substantially by expiration.

ILMN - Illumina, Inc. – Shares in biotechnology company, Illumina, Inc., jumped 9.25% this morning to a new 52-week high of $57.00 on unconfirmed reports that Swiss drug maker, Roche Holding AG, may be in talks to purchase Illumina at a substantially sweetened price of $66.00 a share or $8.1 billion. San Diego, California-based Illumina’s shares have rallied more than 80% since the start of the year on speculation the provider of DNA sequencing technology may be acquired. Options volume on Illumina is up sharply on the session, with some 14,000 contracts in play on the stock as of midday in New York, versus average daily options volume of around 2,200 lots. A number of strategists appear to be buying upside calls on the takeover chatter, snapping up in- and out-of-the-money calls in the December and January expiries. The Dec. $55 and…
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Strangle Strategist Targets MSG Ahead of LeBron James’ Decision

Today’s tickers: MSG, MOS, LUV, ILMN, GHDX, FCN, KBH, LCC & CSX

MSG – Madison Square Garden, Inc. – Speculation as to which team will acquire the larger-than-life LeBron James continues to mount ahead of the basketball superstar’s Thursday night announcement on ESPN. One options investor put uncertainty in the marketplace to good use by purchasing a strangle on Madison Square Garden, Inc., the fully-integrated sport, entertainment and media business, which, among other things, owns and operates sports franchises including the New York Knicks. MSG’s shares are currently up 1.5% to $20.58 as of 2:50 pm (ET), but earlier surged 5.4% to an intraday high of $21.36. MSG edged onto our ‘hot by options volume’ market scanner after the trader purchased a long strangle in the July contract. The investor appears to be positioning for a dramatic shift in the price of the underlying shares ahead of July expiration. The options strategist purchased a 2,000-lot strangle, buying 2,000 calls at the July $22.5 strike for a premium of $0.60 apiece, and buying 2,000 puts at the lower July $20 strike for a premium of $0.50 each. The net cost of the transaction amount to $1.10 per contract and prepares the strangle-player to benefit nicely as long as MSG’s shares take off running in either direction. Profits are available to the investor if shares rally straight through the current 52-week high on the stock of $22.95 to trade above the effective upper breakeven price of $23.60. If LeBron James were to join the NY Knicks it has been said the value of the MSG franchise will increase significantly. The strangler will certainly benefit if the Knickerbockers turn out to be James’ new teammates because MSG shares are likely to soar. Conversely, the options strategist is poised to profit to the downside should shares trade below the lower breakeven price of $18.90 ahead of expiration day. Perhaps the investor is expecting shares of the underlying stock to suffer if LeBron ends up with a different team. Either way, the investor responsible for the strangle strategy is positioned to benefit from a wayward shift in the price of the underlying stock. But, the trader will lose the full premium paid, $1.10 per contract in this case, if shares trade within the confines of the strike prices described at expiration. Finally, the investor may profit if implied volatility on MSG, which is currently up…
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Orphan Drugs Are Good! BioMarin & Illumina

Courtesy of Pharmboy

 

A rare disease, sometimes known as an orphan disease, is any disease that is not common. Typically, a rare disease has such a low prevalence in a population that a physician in a busy general practice would not expect to see more than one case a year. Most rare diseases are genetic–present throughout the person’s entire life, even if symptoms do not appear immediately. However, many rare diseases appear early in life, and about 30% of children with rare diseases die before reaching their fifth birthdays.

No single cutoff number has been agreed upon for which a disease is considered rare. A disease may be considered rare in one part of the world, or in a particular group of people, but still be common in another. In the United States of America, the Rare Disease Act of 2002 defines rare disease strictly according to prevalence, as any disease or condition that affects less than 200,000 persons in the United States, or about 1 in 1,500 people.

BioMarin’s (BMRN) core business and research is in enzyme replacement therapies for orphan diseases. They are the first company to provide therapeutics for mucopolysaccharidosis type I (MPS I), by manufacturing Aldurazyme (commercialized by Genzyme Corporation). BioMarin is also the first company to provide therapeutics for Phenylketonuria (PKU)

As of 2005, BioMarin commercialized arylsulfatase B (Naglazyme) as an enzyme replacement therapy for the treatment of mucopolysaccharidosis VI (MPS VI), and in 2007 a drug version of tetrahydrobiopterin (Kuvan), the first medication-based intervention to treat phenylketonuria.

On 11/30/09, BioMarin announced that the FDA has granted orphan drug designation for 3,4-diaminopyridine (3,4-DAP), amifampridine phosphate, for the rare autoimmune disease Lambert Eaton Myasthenic Syndrome (LEMS). 3,4-DAP has previously received orphan drug designation in the E.U. Also, in October 2009, the Committee for Medicinal Products for Human Use of the European Medicines Evaluations Agency adopted a positive opinion recommending approval of amifampridine phosphate for LEMS. If approved by the European Commission, amifampridine phosphate will be the first approved treatment for LEMS, thereby conferring orphan drug protection and providing ten years of market exclusivity in Europe.


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Orphan Drugs Are Good! BioMarin Pharmaceuticals

Orphan Drugs Are Good! BioMarin Pharmaceuticals

Courtesy of Pharmboy

Sick child visited at

A rare disease, sometimes known as an orphan disease, is any disease that is not common. Typically, a rare disease has such a low prevalence in a population that a physician in a busy general practice would not expect to see more than one case a year. Most rare diseases are genetic--present throughout the person’s entire life, even if symptoms do not appear immediately. However, many rare diseases appear early in life, and about 30% of children with rare diseases die before reaching their fifth birthdays.

No single cutoff number has been agreed upon for which a disease is considered rare. A disease may be considered rare in one part of the world, or in a particular group of people, but still be common in another. In the United States of America, the Rare Disease Act of 2002 defines rare disease strictly according to prevalence, as any disease or condition that affects less than 200,000 persons in the United States, or about 1 in 1,500 people.

BioMarin’s (BMRN) core business and research is in enzyme replacement therapies for orphan diseases. They are the first company to provide therapeutics for mucopolysaccharidosis type I (MPS I), by manufacturing Aldurazyme (commercialized by Genzyme Corporation). BioMarin is also the first company to provide therapeutics for Phenylketonuria (PKU)

As of 2005, BioMarin commercialized arylsulfatase B (Naglazyme) as an enzyme replacement therapy for the treatment of mucopolysaccharidosis VI (MPS VI), and in 2007 a drug version of tetrahydrobiopterin (Kuvan), the first medication-based intervention to treat phenylketonuria.

On 11/30/09, BioMarin announced that the FDA has granted orphan drug designation for 3,4-diaminopyridine (3,4-DAP), amifampridine phosphate, for the rare autoimmune disease Lambert Eaton Myasthenic Syndrome (LEMS). 3,4-DAP has previously received orphan drug designation in the E.U. Also, in October 2009, the Committee for Medicinal Products for Human Use of the European Medicines Evaluations Agency adopted a positive opinion recommending approval of amifampridine phosphate for LEMS. If approved by the European Commission, amifampridine phosphate will be the first approved treatment for LEMS, thereby conferring orphan drug protection and providing ten years of market exclusivity in Europe. BMRN expects to meet with the FDA in early 2010 to determine the necessary regulatory path for
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Hi-Ho Long-Term Silver Bulls!

Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV – iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT – iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL – Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options…
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Profit-Taking on Illumina, Inc. Options Illuminated

Today’s tickers: ILMN, USB, CCJ, BSX, VMED, SPY, GME & QSFT

ILMN – Illumina Inc. – The biotechnology firm’s shares slipped 3% today to $42.48. Profit-taking by one investor pushed the ILMN ticker symbol onto our ‘hot by options volume’ market scanner. It appears the trader originally sold 5,000 puts short at the November 35 strike for 95 cents apiece back on September 22, 2009. Today, the investor closed out the short position by buying the put options back for 25 cents each. Net profits enjoyed on the closing purchase amount to 70 cents per contract for a total of $350,000. Next, the investor reestablished a short put position by selling 5,000 puts at the November 40 strike for an average premium of 1.12 apiece. The full 1.12 premium may be fully pocketed by the trader if shares of ILMN remain higher than $40.00 through expiration.

USB – US Bancorp. – Options activity in the near-term November contract suggests at least one investor anticipates greater volatility in the price of USB shares through expiration. Shares of the financial holding company edged 1% lower this afternoon to $23.56. A long strangle play took place through the purchase of approximately 2,000 puts at the November 23 strike for an average premium of 65 cents each, and the purchase of 2,000 calls at the November 24 strike for about 73 cents apiece. The strangle cost the investor a net 1.38 per contract to implement. The transaction may prove to be profitable to the trader if shares of USB either shift above the upper breakeven point at $25.38, or if the stock moves beneath the lower breakeven price of $21.62, by expiration day. Volatility on USB rose 13% from an intraday low of 31% to a high of 35.5%.

CCJ – Cameco Corp. – The world’s second-largest producer of Uranium experienced a more than 5.5% rally in shares during the trading session to $31.31. Shares in a number of uranium companies rose after an Australian newspaper revealed BHP Billiton Ltd. declared force majeure on uranium and copper sales from its Olympic Dam mine. Force majeure is a contract provision that excuses a supplier from liability due to uncontrollable circumstances. In this case, a BHP mine in South Australia will be out of commission for at least a month due to mechanical difficulties. Investors expecting shares of CCJ to rally higher purchased near-term call options…
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Bullish Motorola Play In Options Action

Today’s tickers: MOT, AXP, JOSB & ILMN

MOT – A large-volume bullish reversal initiated in the October contract on MOT today suggests some investors are positioning for a rally. Currently shares are off by more than 3% to stand to $6.25. Perhaps traders are anticipating that Motorola’s new lineup of phones, based on Google’s Android operating system, will boost sales for the firm. It appears that approximately 15,000 puts were sold at the October 5.0 strike price for 14 cents apiece in order to partially fund the purchase of 15,000 calls at the October 7.0 strike for 34 cents per contract. The net cost of the bullish stance amounts to 20 cents. Thus, shares of MOT would need to rev upward by 15% from the current price to $7.20 in order for investors to profit by expiration. Interestingly, it appears that today’s reversal has been added to similar bullish positioning as seen in the open interest at each of the strike prices described. Today’s activity could be the work of an investor who is merely adding to a position. Or, perhaps we are seeing traders hopping on the bull-bandwagon. – Motorola, Inc.

AXP – The global payments and travel company edged onto our ‘most active by options volume’ market scanner after one bearish trader dug his claws into the August contract. AXP shares are down 1% to $22.75. It appears that the investor has sold 5,000 puts at the deep in-the-money July 25 strike price for 2.54 apiece in order to get long of 7,500 puts at the closer-to-the-money August 23 strike price for 2.03 each. The trader likely took profits on the sale of the near-term put options and proceeded to reestablish a position in protective put options at a lower strike with more time to expiration. – American Express Company

JOSB – The designer of men’s clothing and accessories has surrendered more than 6.5% to stand at $32.44 today. Traders expecting further declines initiated interesting trades involving put options. It appears that about 3,000 puts were sold short at the deep in-the-money July 35 strike price for a premium of 2.19 apiece and spread against the purchase of some 3,000 puts at the more bearish August 30 strike price for 1.39 per contract. The net credit received from the transaction amounts to 80 cents. Writing puts in the near-term July contract leaves traders exposed to
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Zero Hedge

Greatest Economy Ever: Small Businesses Forced To Use GoFundMe To Stay Solvent

Courtesy of ZeroHedge View original post here.

While most people think of GoFundMe as a way to raise money for medical debt, funeral costs or small personal items, things have gone so well for our "greatest economy ever" that it is now being used as a tool by small businesses to raise cash. 

Struggling businesses are now using the site, ranging from comic book stores to drive-in movie theaters, according to the Wall Street Journal. Small businesses h...



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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. You can get all of my trade ideas by ...



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Phil's Favorites

What is an oligarch?

 

What is an oligarch?

Boris Yeltsin shakes hands with Russia’s most powerful businessmen in Moscow. AP Photo

Courtesy of Joel Samuels, University of South Carolina

With the impeachment hearings for President Donald Trump under way, several American diplomats and ...



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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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Insider Scoop

Glass House Group Appoints Graham Farrar As President

Courtesy of Benzinga

Glass House Group, a California-based cannabis and hemp company, earlier this week appointed Graham Farrar as president.

In his new role, Graham will oversee the company’s short and long-term business strategies, budgets and operations, and report up to Glass House Group CEO Kyle Kazan.

A long-time entrepreneur and an original team member of both Sonos (NASDAQ: SONO...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Kimble Charting Solutions

Silver Testing This Support For The First Time In 8-Years!

Courtesy of Chris Kimble

Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!

This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.

Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the bre...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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:

 

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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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