Posts Tagged ‘IR’

Traders Nibble At Diamond Foods Call And Put Options As Shares Sell Off

Options brief will resume December 12, 2012.

Today’s tickers: DMND, IR & SCHW

DMND - Diamond Foods, Inc. – Shares in Diamond Foods fell more than 11% on Monday morning to an intraday low of $13.12 following the company’s fourth-quarter earnings release after the closing bell on Friday. The stock last month slipped to $12.85, the lowest level since the company revealed it must restate two years of earnings, lost its bid to purchase the Pringles brand, and replaced top executives. Options on the maker of Emerald nuts and other consumer food products are far more active than usual today, with some positions looking for shares in the name to slump to fresh lows and others preparing for a near-term rebound in the price of the underlying. The put-to-call volume is hovering around 2-to-1 just after midday in New York, and the bulk of trading traffic is in the weekly contracts. Traders exchanged more than 3,350 of the Dec. 14 ’12 $13.5 strike puts this morning, buying most of the contracts for an average premium of $0.58 apiece. The $13 strike weekly put options attracted heavy volume as well, with some 1,700 lots in play versus zero open positions. Traders buying the $13 strike contracts paid an average premium of $0.34 per contract in the early going, and stand ready to profit at expiration in the event that Diamond’s shares decline 6% from the current price of $13.48, to trade below the breakeven point at $12.66. Meanwhile, fresh interest in the Dec. 14 ’12 $13.5 strike calls today indicates some traders may profit from a near-term pop in the share price. Upwards of 3,900 of the $13.5 strike calls have changed hands as of 12:30 p.m. ET, and it appears much of the volume was purchased for an average premium of $0.40 apiece. Call buyers make money if shares in Diamond Foods settle above the average breakeven price of $13.40 at expiration.

IR - Ingersoll-Rand PLC – Options volume on industrial machinery maker, Ingersoll-Rand, rose well above the stock’s daily average this morning due to heavy trading…
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EBay Options Volume Up Ahead Of Earnings

 

Today’s tickers: EBAY, IR & PLD

EBAY - eBay, Inc. – Options on eBay, Inc. are active today as traders await the Company’s first-quarter earnings report due out after final bell. Shares in the provider of secure online payment services and online marketplaces are off slightly, trading 0.15% lower on the session at $36.03, as of 12:20 p.m. in New York. Signs some traders are prepping for a potential post-earnings report pullback in the price of eBay’s shares cropped up roughly 15 minutes into the trading day. Put volume at the May $34 strike exceeds 8,000 contracts versus just 322 previously existing positions, with most of the puts having been purchased this morning for an average premium of $0.78 apiece. Put buyers may be taking an outright bearish stance on the stock, or could be hedging long positions in the shares prior to the earnings release. Traders buying put options outright profit at expiration if EBAY shares drop 7.8% to breach the average breakeven price of $33.22. Overall options volume on the stock is approaching 45,000 contracts in early-afternoon trade, which is roughly 2.5 times EBAY’s 90-day average options volume read at 17,320. Call options are more active than puts at present, with around 1.25 call options trading for each single put option in play.

IR - Ingersoll-Rand PLC – Options volume on the provider of industrial and security technologies and products is up sharply today, with some 9,500 contracts in play this afternoon versus the stock’s 90 day average volume of 958 contracts. The bulk of the trading traffic is in the front month calls ahead of the Company’s first-quarter earnings report on Friday morning. Shares in Ingersoll-Rand are currently up 0.60% at $40.31 as of 12:45 p.m. ET. April $41 strike calls are seeing the heaviest…
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FedEx Corp. Options Point To Near-Term Share Price Pullback

Today’s tickers: FDX, IR, XLK & CSTR

FDX - FedEx Corp. – Bearish activity cropped up in FedEx Corp. call and put options within minutes of the opening bell this morning. Shares in the provider of transportation, e-commerce and business services are down 1.9% to stand at $75.59 as of 11:40 am ET, with less than one week to go before the Memphis, Tennessee-based company is scheduled to report first-quarter earnings. Yesterday, FedEx rival, UPS, reaffirmed its full year earnings guidance, but warned of difficult economic conditions and anemic growth. Traders positioning for shares in FedEx to extend losses, and possibly dip to new 52-week lows ahead of October expiration, initiated a few different bearish strategies in the first half of the session. Plain-vanilla put buying ensued at the Oct. $77.5 strike, where roughly 1,900 in-the-money puts were purchased for an average premium of $4.07 apiece. Investors long the puts profit at expiration next month if shares in FDX slide 2.85% from the current price of $75.59 to breach the effective breakeven point on the downside at $73.43.

Most of the volume in FedEx options was generated by one strategist, who initiated a three-legged bearish spread straight out of the gate this morning. It looks like the investor sold 2,500 calls at the Oct. $85 strike in order to purchase the 2,500-lot Oct. $67.5/$75 put spread. The transaction cost the trader a net premium of $0.90 per contract. The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares. Profits are available to the trader should shares in FDX drop 2.0% to breach the effective breakeven price of $74.10 by expiration day. The investor may walk away…
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Bulls Head For Developed Markets ETF

Today’s tickers: EFA, HAL, VIAB, IR, EXPD, GE, CCL, V, & XRX

EFA – The exchange-traded fund representing stocks from Europe, Australasia, and the Far East attracted more than passing glances by bullish option traders today. The fund is currently higher by 1.5% to stand at $44.75. One optimistic individual appears to have sold 10,000 calls at the near-term July 46 strike price for 12 cents apiece in order to purchase 10,000 calls at the August 48 strike for 40 cents each. Rolling up to a higher strike cost the investor a net 28 cents per contract. Shares of EFA must rally through the breakeven point at $48.28 before the trader can reel in profits on the transaction. Bullish sentiment spread to the September contract where it appears that one trader initiated a covered call. The investor looks to have bought shares of the fund and concurrently shed 2,000 calls at the September 49 strike price for 58 cents per contract. The premium received for writing the calls reduced the price of getting long the stock to about $44.09 (assuming shares were trading at $44.67 at the time of execution). The short call position provides an effective exit strategy for the investor who will have shares of the fund called away from him in the event that the September 49 calls land in-the-money by expiration. Should this occur, the trader will have enjoyed gains of 11% on the rise in the price of the ETF. – iShares MSCI EAFE Index ETF

HAL – The oil and gas company jumped onto our ‘most active by options volume’ market scanner after a large chunk of puts were purchased in the January 2010 contract. Shares of the Houston, Texas-based firm are higher by 2% today to $19.29. Approximately 35,000 in-the-money put options were scooped up at the January 22 strike price for an average premium of 4.45 apiece. Perhaps the investor responsible for the transaction is long the stock and is looking to protect his position from potential downward movement in HAL through expiration in January. In this case the trader is hoping for the value of the stock to appreciate and would be considered bullish. On the other hand, the transaction could represent bearish speculation by an investor aiming to amass profits beneath the breakeven point to the downside at $17.55 by the start of 2010. – Halliburton Company

VIA B
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Politics

Ignoring Warnings His Election Lies Could Get People Killed, Trump Posts 46-Minute Rant Full of 'Unhinged' Falsehoods

 

Ignoring Warnings His Election Lies Could Get People Killed, Trump Posts 46-Minute Rant Full of 'Unhinged' Falsehoods

"Georgia elections director yesterday: Trump's rhetoric is going to get people killed. Trump today: here's 46 minutes of unhinged conspiracy theories."

Courtesy of Jake Johnson, Common Dreams

Activists march through the city of Detroit on November 7, 2020 to denounce President Donald Trump's false claims of voter fraud. (Photo: Adam J. Dewey/NurPhoto via Getty Images)

Just days...



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Phil's Favorites

Ignoring Warnings His Election Lies Could Get People Killed, Trump Posts 46-Minute Rant Full of 'Unhinged' Falsehoods

 

Ignoring Warnings His Election Lies Could Get People Killed, Trump Posts 46-Minute Rant Full of 'Unhinged' Falsehoods

"Georgia elections director yesterday: Trump's rhetoric is going to get people killed. Trump today: here's 46 minutes of unhinged conspiracy theories."

Courtesy of Jake Johnson, Common Dreams

Activists march through the city of Detroit on November 7, 2020 to denounce President Donald Trump's false claims of voter fraud. (Photo: Adam J. Dewey/NurPhoto via Getty Images)

Just days...



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ValueWalk

Both Parties Are Getting Closer To A Covid Stimulus Deal

By Gorilla Trades. Originally published at ValueWalk.

Commenting on a future Covid-19 stimulus deal today’s trading Gorilla Trades strategist Ken Berman said:

Q3 2020 hedge fund letters, conferences and more

The steep drop towards the end of the session shows that stocks could be vulnerable to negative catalysts following November’s lofty gains. Even though the S&P 500 and the Nasdaq both hit new record highs today, the rally lacked momentum, and Pfizer’s concerning announcement was enough to erase the major indices’ gains.

The surprisingly positive stimulus developments...



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Zero Hedge

Stocks Plunge After Pfizer Cuts Vaccine Rollout Target By Half Due To "Supply Chain Obstacles"

Courtesy of ZeroHedge

US stocks tumbled during the final hour of trading Thursday as Pfizer revealed that it expects to ship half the number of vaccines this year, raising new questions about the optimistic projections and expectations for the pace of vaccinations.

The company cited supply chain delays tied to the fact that the company has found raw materials in early production that did not meet its standards.

It still expects over 1bln doses rolled out in 2021

"Scaling up the raw material supply chain took longer than expected," a company spokeswoman said. "And it's important to highlight that the outcom...



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Kimble Charting Solutions

Dow Industrials Test Super Breakout Price Level!

Courtesy of Chris Kimble

The Dow Jones Industrial Average has survived several market scares over the past 5 decades, including the 1987 crash (Black Monday), Tech Bubble, Financial Crisis, and Coronavirus crash.

In a very noisy, news-driven world, sometimes it pays to simply zoom out on the charts and stop thinking about trading every headline.

Today’s chart is a “quarterly” chart of the Dow Jones Industrial Average (spanning the past 50 years). It includes some relevant Fibonacci price levels for active investors to consider; we apply Fibonacci to the quarterly lows of 1974 and the lows of 2003 and 2009 (that being 100%)....



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Chart School

Gold Chart Review

Courtesy of Read the Ticker

Gold swing trade is due, lets review some charts to see if it is a viable move.

The seasonal period of gold is now upon us, gold should advance for the next 3 months.

Gold Gann Angle Chart ...



Gold Channel Chart .. close up!



 

Gold Channel Chart
 


Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Ang...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

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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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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