Posts Tagged ‘IPG’

Bullish Strategies Abound as Market Posts Gains

 Today’s tickers: IPG, UPS, ATML, CBS, CHL, CAVM, ROST & WL

IPG - Interpublic Group Companies, Inc. – Long-term bullish trading in Interpublic Group LEAPs indicates one strategist is preparing for the price of the underlying stock to climb substantially higher by expiration day in January 2012. Shares of the advertising and marketing services firm rose 4.80% to $10.46 by 2:50 pm ET. The options strategist appears to have enacted a delta neutral transaction, buying 210,000 shares of the underlying stock at $10.40 each, spread against the sale of 5,000 calls at the January 2012 $12.5 strike for an average premium of $0.975 apiece on a 0.42 delta. The sale of the calls can be considered a financing mechanism as well as a potential exit strategy on the long position in shares. The investor could wind up having the shares called from him at $12.50 each in the event that at expiration IPG’s shares exceed $12.50. In this case, the trader would realize gains of 32.625% on the rally in shares from the reduced purchase price of $9.425 a share up to $12.50 a share. Interpublic’s overall reading of options implied volatility is down 3.4% at 40.65% one hour before the final bell. The marketing services provider announces its third-quarter results before the market opens on October 29, 2010.

UPS - United Parcel Service, Inc. – A sizeable near-term bullish transaction involving 23,000 call options and a large chunk of UPS shares caught our eye today. Shares of the world’s largest package delivery company, which announced Friday it plans to raise the non-contractual UPS Freight rate by 5.9% starting October 18, are currently up 3.20% to stand at $68.25 as of 2:30 pm ET. It looks like the investor responsible for the transaction established a covered call on the stock to position for the price of the underlying shares to continue higher ahead of October expiration. The trader purchased approximately 322,000 shares at $67.57 each and sold 23,000 calls at a premium of $0.19 apiece on…
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Options on Halliburton Get Messy

Today’s tickers: HAL, IPG, AMGN, BP, COF, FXI, OMX, NEM & FSLR

HAL – Halliburton Co. – Making sense of options activity on oil company, Halliburton Co., this afternoon is difficult due to the chaotic and seemingly pattern-less trading taking place on the stock. Investors exchanged more than 200,000 contracts on HAL by 3:00 pm (ET), which represents approximately 37% of total existing open interest on the stock of 541,062 contracts. Frenzied options trading was catalyzed by news the firm is assisting in ongoing investigations regarding the oil spill in the Gulf of Mexico as HAL reportedly provided a variety of oilfield services to Deepwater Horizon rig, which is the rig that caught fire and sank last week. Options volume and options implied volatility on Halliburton jumped while its shares slipped 6.3% to $31.26. The surge in demand for option contracts on the stock, coupled with uncertainty regarding possible repercussions stemming from HAL’s connection to the situation in the Gulf of Mexico, lifted the overall reading of options implied volatility 25.4% to 44.13% as of 3:25 pm (ET). Trading activity is heaviest in the May contract with decent volume building in both call and put options. Some bearish investors bracing for continued share price erosion purchased about 2,200 puts at the lowest available strike – the May $25 strike price – for an average premium of $0.16 apiece. Buying interest in put options was also apparent at the May $26 strike where 1,800 puts were picked up for an average premium of $0.20 each. May $29 strike puts were the most heavily trafficked as more than 16,700 contracts changed hands by 3:22 pm (ET), versus previously existing open interest of just 2,743 contracts at that strike. But, the put action was certainly not one-sided as investors took to buying and selling the contracts, with buyers gaining the right to sell the stock at $29.00, and sellers receiving an average premium of $0.81 per contract in exchange for bearing the risk of having shares of the underlying stock put to them at $29.00. Similar two-way trading traffic in calls took place at out-of-the-money strike prices as some traders threw in the towel on bullish stances expiring in May. Meanwhile, contrarian players purchased out-of-the-money calls, perhaps to prepare for a potential rebound in the price per share ahead of expiration next month.

IPG – Interpublic Group of Cos., Inc. – Advertising and…
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Ford Call Options Gone Wild as Bulls Populate January 2011 Contract

Today’s tickers: F, IPG, MBI, DAL, XLF, XHB, CROX, GME, BBBY & NVTL

F – Ford Motor Co. – Yesterday we reported on a short strangle play, which implied the automaker’s shares would likely remain within the realm of $10.00 to $12.00 for the next six months to expiration in June 2010. Today we observed bullish options activity in the January 2011 contract, which points to significantly higher shares for Ford in the next twelve months. The stock rallied again today, gaining 2% to reach a new 52-week high of $11.60 with just under 30 minutes remaining in the session. Bullish indications came in the form of a call spread and plain-vanilla call buying strategies. It looks like one investor purchased a large chunk of 50,000 calls at the January 2011 $17.50 strike for an average of $0.58 apiece. The trader responsible for the transaction benefits from this position only if Ford’s shares explode 56% over the current price to surpass the breakeven point at $18.08 by next January. The parameters of the call spread also implies a significant increase in shares of the motor company by 2011, but the nature of the spread limits upside profit potential, whereas the plain-vanilla call buyer’s profits are potentially limitless. The investor responsible for the spread selected the more conservative January 2011 $15 strike to purchase approximately 6,000 calls for an average premium of $1.06 per contract. The other half of the debit spread involved the sale of the same number of calls at the higher January 2011 $22.50 strike for about $0.20 each. The net cost of the bullish play amounts to $0.86 per contract and positions the investor to accrue profits above the breakeven price of $15.86. Maximum potential profits of $6.64 per contract are available to the trader if Ford’s shares rally a whopping 94% from the current value to $22.50 by expiration in January of 2011.

IPG – Interpublic Group of Companies, Inc. – A long straddle strategy initiated on the advertising and marketing company implies one investor expects greater volatility in the price of the underlying through expiration in February. The inherent nature of the long straddle suggests shares of IPG may swing dramatically in the next few weeks. Interpublic’s shares are currently off 2.5% to stand at $7.27 in afternoon trading. The straddle-player purchased about 2,000 puts at the February $7.50 strike for an average premium of…
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More Profits on Urban Outfitters

Today’s tickers: URBN, URE, IPG, WDC, JPM, STEC & ATHR

URBN– The clothing-haven for hipsters jumped to the top of our ‘hot by options volume’ market scanner this afternoon after one Urban-bear was observed taking profits in the January 2010 contract. It appears that this individual originally established a 40,000 lot put spread on July 22, 2008, at a net cost of 4.50. The trader partially unraveled the spread on November 13, 2008, leaving open interest of approximately 28,000 lots at each of the strike prices involved in the spread. Today he has once again targeted his urban-hunting ground to go in for the kill by closing out the position completely. The January 15 strike price saw 26,500 put options purchased for a premium of 1.19 apiece spread against the sale of 26,500 deep in-the-money puts at the January 30 strike for 10.04 per contract. The gross premium realized on this leg of the trade amounts to 8.85. Subtracting the 4.50 paid to initially purchase the bearish put spread yields profits of 4.35 or approximately $11,527,500. – Urban Outfitters, Inc.

URE– The bruised and battered real estate ETF has deflated more than 4.5% today to $3.50. In just a few short days, it will have been one full year since the fund was trading a staggering 841% higher at $32.94. One investor, who has no doubt witnessed the plunge in the price of the underlying over the course of the year, has taken a bearish stance on the stock today. This individual looks to have sold short 25,500 puts at the July 3.0 strike price for a premium of 15 cents per contract or $382,500. If the price of the URE falls beneath $3.00 by expiration, the trader appears happy to have the underlying shares put to him at an effective price of $2.85 each. Otherwise, he retains the full premium received on the transaction if the puts land out-of-the-money by the third Friday of next month. – ProShares Ultra Real Estate

IPG – Shares of the advertising and marketing services firm have declined more than 2% today to stand at $5.53. Despite the current erosion in the price of the underlying, one option trader was observed getting bullish on the stock through expiration in October. Hoping for a significant recovery in shares, the investor purchased 31,500 calls at the October 7.5 strike price for an average premium of
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Cisco lower ahead of earnings: Put selling noted

Today’s tickers: CSCO, NYT, DRYS, INTC, VIX, MON, USB, CROX, IPG, ELN, & WFC

CSCO Cisco Systems, Inc. – Shares are off slightly by less than 1% to $19.42 ahead of earnings expected for release from the company this Wednesday. We observed a rash of put selling in the June and July contracts, a bullish sign from option investors on the stock. The in-the-money June 20 strike price saw some 4,700 puts sold for a premium of 1.40 apiece while the in-the-money July 20 strike also had about 4,500 puts sold for 1.61 per contract. Finally, the deeper in-the-money July 21 strike had some 4,400 puts shed for a rich premium of 2.23 apiece. Perhaps put-sellers see Cisco rebounding through the summer months.

NYT The New York Times Company – The media company has experienced a share price surge of more than 8.5% to $5.87 amid reports that the New England newspaper, The Boston Globe, is safe for now as NYT has not filed its intention to close the newspaper. NYT appeared on our ‘hot by options volume’ market scanner late in the trading day as one investor appears to have sold 5,000 in-the-money puts at the July 7.5 strike price for a premium of 2.12 apiece in order to fund a bull call position in the October contract. The put premium helped fund the purchase of 15,000 calls at the October 10 strike for about 37 cents each. The trade yields a net credit of about 1.01 to the investor given the richer put premium received on the sale (1*2.12 – [3* 0.37] = 1.01). NYT plans to continue talks with its unions in order to avoid closing The Globe. The deadlines for negotiations have been extended to Sunday.

DRYS DryShips, Inc. – Shares of the shipping company have gained 13% to arrive at the current share price of $9.35. The drybulk carrier received a target share price increase to $12.00 from $10.00 by an analyst at Jeffries & Co. as well as an upgrade to ‘outperform’ at Oppenheimer. Bulls hungry for a continued near-term rally on DRYS picked up 12,500 call options at the May 11 strike price for an average premium of 25 cents apiece. The overall tone on the Greek fleet was optimistic as investors showed their preference for call options by trading calls more than five times to every put option in play. It…
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Phil's Favorites

Facebook begins to shift from being a free and open platform into a responsible public utility

 

Facebook begins to shift from being a free and open platform into a responsible public utility

Facebook CEO Mark Zuckerberg prepares to testify on Capitol Hill. AP Photo/Andrew Harnik

Courtesy of Anjana Susarla, Michigan State University

When Facebook recently removed several accounts for trying to influence the 2018 midterm elections, it was the company’s latest move acknowledging the ...



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Zero Hedge

Death Of A Nation: Drug Overdose Deaths Jump To Record 72,000 Last Year

Courtesy of ZeroHedge. View original post here.

The Centers for Disease Control (CDC) estimates drug overdose deaths based on a current flow of mortality data from the National Vital Statistics System has just reached a record of 71,568 Americans in 2017. That is a 6.6 percent jump in overdose deaths over 2016 and represents a rapid deterioration of America’s inner core: The middle class.

More than 40,000 Americans...



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Digital Currencies

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

 

Bitcoin's rollercoaster ride reflects the biggest issue facing cryptocurrencies: regulation

Shutterstock

Courtesy of Brian Lucey, Trinity College Dublin and Shaen Corbet, Dublin City University

The rollercoaster of cryptocurrency pricing is on the downward slope again. Bitcoin has fallen by a quarter in the past month, with other...



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ValueWalk

The Top 10 Wildest Campaigns Of 2018: Starboard's Stake In Symantec

By ActivistInsight. Originally published at ValueWalk.

This week’s column is a continuation of our 10 “wildest campaigns” of 2018. Find the first part here.

Q2 hedge fund letters, conference, scoops etc

Free-Photos / PixabayTop 10 Wildest Campaigns Of 2018

5. How often does an activist win a proxy contest without support from either of the two main proxy advisory firms? (...



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Kimble Charting Solutions

Small Caps attempting 20-year breakout, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

The Russell 2000 trend remains solidly higher, as it has created a series of higher lows and higher highs inside of rising channel (1) over the past 25-years.

Small caps have been an upside leader in 2018, as they are very near all-time highs.

We applied Fibonacci extension levels to the 2007 highs and 2009 lows at each (2).

Joe Friday Just The Facts Ma’am- Small caps are attempting a dual breakout at (3). 

This is a price point that small-cap bulls would LOVE to see strength and a breakout take place, as monthly momentum is lofty.

...

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Insider Scoop

Walmart Posts Standout Quarter, But Raymond James Downgrades On Flipkart Costs

Courtesy of Benzinga.

Related WMT 10 Biggest Price Target Changes For Friday Headlights On Deere: Mixed Results As Company Cites H...

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Biotech

Nanomedicine could revolutionise the way we treat TB. Here's how

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

 

Nanomedicine could revolutionise the way we treat TB. Here's how

Nanomedicine could scupper the need for TB patients to take multiple daily tablets with toxic side effects. Daniel Irungu/EPA

Courtesy of Sarah D'Souza, University of the Western Cape and Admire Dube, University of the Western Cape

Tuberculosis is one of the world’s ...



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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

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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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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All About Trends

Mid-Day Update

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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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