Posts Tagged ‘IVN’

Butterflies, Straddles and Spreads, Oh My!

Today’s tickers: HRS, EWZ, RSH, PNRA, IVN, LO & DOW

HRS – Harris Corp. – A three-legged bullish play on the international communications and information technology company that serves government and commercial markets around the world indicates one option strategist expects shares of the underlying stock to rally significantly by expiration day in February 2011. Harris Corp.’s shares are up 0.95% at $44.46 just before 2:30 pm (ET), but earlier in the session rallied as much as 1.8% to an intraday high of $44.84. HRS shares moved higher on news the firm recently won a number of large contracts. One such contract is a 30-month, $25-million contract under the Network-Centric Solutions contract vehicle, which requires Harris to upgrade network infrastructure at 15 National Guard sites. Harris Corp. popped up on our ‘hot by options volume’ market scanner in the first half of the trading day following the implementation of a three-legged bullish transaction. The investor responsible for the trade essentially sold puts to finance the purchase of a debit call spread. In doing so, the trader sold 1,500 puts at the February 2011 $35 strike for a premium of $1.75 per contract, purchased 1,500 calls at the February 2011 $45 strike for a premium of $4.65 each, and sold 1,500 calls at the higher February 2011 $55 strike for premium of $1.20 apiece. The net cost of the transaction amounts to $1.70 per contract. Thus, the options player is poised to profit as long as Harris Corp.’s shares rally 5.00% over the current price of $44.46 to surpass the effective breakeven point at $46.70 by expiration day. The investor walks away with maximum potential profits of $8.30 per contract if HRS shares surge 23.7% to trade above $55.00 by February 2011 expiration. The short put stance at the February 2011 $35 strike implies the investor is happy to have 150,000 shares of the underlying stock put to him at $35.00 each should the puts land in-the-money by expiration day.

EWZ – iShares MSCI Brazil Index Fund – An investor itching for a rally in shares of the Brazil ETF purchased a bullish call butterfly spread in the August contract this afternoon. Shares of the EWZ, an exchange-traded fund designed to correspond to the price and yield performance of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil Index, fell 1.05% to trade at…
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Counting the Silver, FedEx Bulls and Industrial Bears

Today’s tickers: IVN, FDX, XLI, HGSI, FXI, VIP, XLP & NOK

IVN - Shares of the international mineral exploration and development company surged 20% during the trading session to reach an intraday high of $10.66. The Canadian stock was fueled by reports which revealed that changes to Mongolia’s laws will help the company to complete an investment agreement on the Oyu Tolgoi copper-gold project in the near future. One investor, who had positioned himself to profit from a rally in Ivanhoe, was seen banking gains today by selling to close a long call position. It appears he originally purchased some 17,000 calls for an average premium of 90 cents each around July 30, 2009. Today he shed all 17,000 contracts for a premium of 2.05 apiece. The investor has realized approximate gains of 1.15 per contract for a total of $1,955,000. Bullish activity was seen at the March 2010 15 strike price where it looks like investor purchased 5,000 calls for one dollar apiece. Traders long the calls will profit if shares rally another 50% to breach the breakeven price of $16.00 by expiration next year. – Ivanhoe Mines Limited –

FDX - Bullish action on FedEx this afternoon boosted the firm onto our ‘most active by options volume’ market scanner with the stock trading more than 0.5% higher to $68.40. Traders shed 8,500 put options at the October 60 strike price to take in an average premium of 1.03 per contract. The full premium will be retained by these individuals as long as the puts land out-of-the-money at expiration. Investors are happy to accept the 1.03 premium in exchange for bearing the risk that the stock slips lower, and falls beneath the breakeven point to the downside at $58.97. Losses begin to accumulate for traders if FedEx trades at a price lower than the breakeven point by expiration in October. We note that the stock has remained above $60.00 since July 16, 2009. – FedEx Corp. –

XLI - The industrials exchange-traded fund has risen less than 1% to stand at $25.50. One investor took hold of a large chunk of put options on the XLI by purchasing 40,000 puts at the September 24 strike price for 25 cents apiece. This trader may be bearish, in which case he aims to amass profits to the downside if the XLI declines beneath $23.75 by expiration next month. Alternatively, the investor may have purchased…
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Qualcomm – Rally in sight, but not just yet

Today’s tickers: QCOM, GT, IVN, AMGN, C, GFI, HMY, SQNM & GE

QCOM – Qualcomm Inc. – Things might be looking better for Qualcomm – but not just yet according to one large option trade that went through earlier today. An investor sought protection in the April contract for fear that shares would be below $35.00 when the contract expires and turned the cost of the premium into a credit by selling January 2010 expiration puts at the same strike. The strategy assumes that the shares will not break through the strike price as the second quarter begins, in which case the investor gets paid out for every penny below $35.00 the share are at that time. But ahead the investor’s core assumption is that shares will shift ahead of $35.00 when next year begins, rendering the sold put options worthless. Today Qualcomm is trading a shade higher at $33.75.

GT – The Goodyear Tire & Rubber Company – Shares of the manufacturer of tires and rubber products have fallen by 5% to $4.57 today. Perhaps the continued decline stems from the downgrade GT received on Monday to ‘underweight’ from ‘hold’ by a KeyBanc analyst, who cited challenges such as global sales declines, and rising costs related to pension and raw materials. Despite the downgrade and today’s decline in share price, one investor established a bullish play on the stock. At the April 7.5 strike price, 10,000 calls were purchased for 10 cents each. Should there by a rally in shares before expiration, this trader will see premiums grow richer at the 7.5 strike, and could then potentially sell the calls to profit. There is a delta of 0.13 on the trade, thus there is a 13% chance that these calls will land in-the-money by April. The current share price would need to experience an increase of 66% in order to surpass the breakeven point on the trade located at $7.60. Whether the shares can breach the breakeven point or not, this investor can still capitalize on today’s position with even a slight rally in shares by selling premium.

IVN – Ivanhoe Mines Limited – The international mineral exploration and development company’s shares have rallied by 3% to stand at $4.59. IVN caught our attention when it edged onto our ‘hot by options volume’ market scanner. Calls were in demand in the June contract, where over 12,300 calls were purchased…
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Zero Hedge

The Tight Rope Market

Courtesy of ZeroHedge View original post here.

Authored by Sven Henrich via NorthmanTrader.com

None of us can know where markets would be trading without the Fed’s constant massive liquidity injections, but now that the bubble recognition has gone mainstream (BloombergFT) and acknowledged by at least one Fed president (Kaplan) I think it’s fair to say: Lower, much l...



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The Technical Traders

Using the copy-paste formula in the Forex market

Courtesy of Technical Traders

In Forex there are many techniques available to boost up the profit factors. However, as there are millions of people trying to make a profit it is not easy to get the right tricks. There are many brokers offering high leverage trading account to the interested traders. They also provide useful insight into the market so that the traders can make a decent profit. In fact, some brokers often sell signals to their clients so that they can start earning money in the early stage of their careers.

At present, this method has earned a huge following as many investors don’t like to spend time staring at the chart. In this article, we are going to try to bust the myth about this infamous technique...



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Phil's Favorites

The War on All Fact People

 

David Brin shares an excerpt from his new book on the GOP's relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: ...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the GOP's relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: ...



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Chart School

SP500 Kitchin Cycle Review

Courtesy of Read the Ticker

The biggest known news date in the next 18 months is the US Election. The biggest unknown news date is when the US believes it is in a economic recession.

The Kitchin Cycle is still working.

We must conclude the major 900 period low is now in, and we are now in a up swing, which may top out ate 2020 or late 2021. Any future top out may only generate a 10% to 20% correction, of course this can be deemed very mild. This is expected, but the expected does always play out. 

Rolling the dice to get '7' does not always work. Post US elections seasonal's aligned with a poor start of the decade seasonal trends, add on high global recession risk, add on a stock market slump tends to occur in the years ending 9,1,2,3,4 (like 1973, 1...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Citigroup lifted Caterpillar Inc. (NYSE: CAT) price target from $145 to $170. Caterpillar closed at $147.87 on Thursday.
  • UBS cut Twitter Inc (NYSE: TWTR) price target from $37 to $35. Twitter shares closed at $34.19 on Thursday.
  • Morgan Stanley boosted the price target for Yum! Brands, Inc. (NYSE: YUM) from $113 to $118. Yum! Brands closed at $102.16 on Thursday.
  • Jefferies lifted the price target on Ventas, Inc. (NYSE: ...


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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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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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