Posts Tagged ‘JAG’

Oracle Miss Weighs On Tech Stocks, Spurs Bearish Options Action In Cloud Space

Today’s tickers: ORCL, INFA, LEN & JAG

ORCL - Oracle Corp. – It’s clear from the 14.6% drop in Oracle’s shares to $24.91 today that investors are disappointed with what the Company had to show for its efforts in the prior quarter. The second-largest software maker yesterday posted fiscal second-quarter profits of $0.54 a share on revenue of $8.81 billion, missing average analyst expectations of $0.57 a share on sales of $9.23 billion. Put buying in the weekly options suggest some traders expect the stock to extend losses ahead of the holiday. Overall options volume on Oracle Corp. has surpassed 205,000 contracts just before 1:00 PM ET as strategists looked to initiate a variety of post-earnings stances, from bearish trades looking for more pain on the horizon, to more optimistic positions that point to potential recovery in the name. Though the report may represent a surprise to the downside for many, it looks like one options player may have read the tea leaves accurately ahead of the earnings release. The strategist appears to have sold around 16,500 long-dated Jan. 2013 $35 strike calls on Oracle back on November 22 for a premium of $2.62 apiece when shares in the software giant were trading around $29.00. The purchase of a large number of call options at the Jan. 2013 $35 strike today may mean the investor is taking profits off the table. It appears approximately 16,500 calls were purchased in the first 20 minutes of the session this morning for an average premium of $1.04 each. If the original seller of the contracts did indeed buy to close the short stance in call options today, he or she has exited the bearish position with net profits of around $1.58 per contract.

INFA - Informatica Corp. – Oracle’s big quarterly earnings miss dragged down the tech sector…
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Big Bearish Play in Industrial SPDR ETF Put Options

 Today’s tickers: XLI, PKX, JAG & GKK

XLI - Industrial Select Sector SPDR Fund – A massive put spread on the XLI, an exchange-traded fund that tracks the performance of the Industrial Select Sector of the S&P 500 Index, appears to be the work of a bearish strategist positioning for the price of the underlying fund to pull back. Shares in the ETF are currently down 0.65% to stand at $36.52 as of 11:25pm in New York. The large-volume transaction launched the XLI on to our ‘most active by options volume’ market scanner within the first 30 minutes of the session. It looks like the investor purchased around 31,000 puts at the June $36 strike for a premium of $1.47 each, and sold the same number of puts at the lower June $32 strike at a premium of $0.48 apiece. Net premium paid to initiate the spread amounts to $0.99 per contract. Thus, the options player is poised to profit should shares in the XLI drop 4.1% from the current price of $36.52 to breach the effective breakeven point on the spread at $35.01 by June expiration. Maximum potential profits of $3.01 per contract are available to the investor in the event that the XLI’s shares plunge 12.4% in the next few months to trade below $32.00. Shares have closed above $32.00 since November 17, 2010.

PKX - POSCO – The South Korean manufacturer of steel rolled products and plates popped up on our ‘hot by options volume’ market scanner in the first half of the trading session after one options player dabbled in May contract call options. Shares in POSCO are currently down 1.15% to stand at $113.17 just before 12:20pm in New York. It looks like the investor responsible for nearly all of the options activity on the stock today extended bullish sentiment on PKX by rolling a previously established long call stance up to a higher strike price. The world’s third-largest steel maker by output reportedly said it is considering an increase in…
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Defending Your Virtual Portfolio With Dividends – Q4 (Members Only)

In uncertain markets, dividends can give you a critical investing edge.

As you can see from the chart on the left, just mindlessly investing in dividend-paying stocks can give you more than a 2:1 annual advantage in your investments

Of course, here at PSW, we teach the art of selling options premiums – something that turns virtually any stock into a "dividend" payer.  For example, MSFT is only a small, 2% dividend-payer but a fairly solid cash-machine of a stock that we don't feel is likely to go bankrupt overnight so it makes for a nice safe staple in a long-term virtual portfolio.  But MSFT is also a very poorly-run company that hasn't grown in 20 years but we can make it a much more interesting stock by simply selling covered calls.

For example, in our August edition of Dividend Payers,  we looked at MSFT for $24.23 and we sell the Sept $24 calls for .77.  This lowered our effective basis to $23.46 and selling the call putus in no special danger – we simply agreed to sell MSFT for $24 on expiration day in September (the 17th).

The stock was called away from us, and we made a .54 profit or 2.3% of our net $23.46 cash investment in less than 30 days.  That works out to a 26% annualized ROI and we had an opportunity (as we had expected) to buy the stock again and again at $24 on Oct 4th and 5th and sell the November $24 calls for .90 for a net $23.10 re-entry and ANOTHER 3.8% GAIN if we are called away at $24 or greater on Nov 19th.  Doesn't that beat waiting a whole quarter for your 1% dividend checks?  

Of course, you can optimize all this with timing and we favor stocks that are on sale – this is just a very simple example of how our most basic options strategy can drastically boost your annual returns on any stock in your virtual portfolio.

Let's say you don't want to mess around with MSFT every month.  You could have simply sold the 2012 $22.50s for $4.40 (also suggested in the August post), that dropped your net entry from $24.23 to $19.83…
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Phil's Favorites

Trump gets no special protections because he's president and must release financial records, Supreme Court rules

 

Trump gets no special protections because he's president and must release financial records, Supreme Court rules

Investigators are trying to follow the president’s money, and the Supreme Court just gave them the green light. Alex Wong/Getty Images

Courtesy of Stanley M. Brand, Pennsylvania State University

In a 7-2 decision, the Supreme Court has ruled that President Donald Trump has no immunity, by virtue of being presiden...



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ValueWalk

Second Coronavirus stimulus: how it could affect student loans

By Aman Jain. Originally published at ValueWalk.

The second coronavirus stimulus is largely expected to come sometime later this month. The main talking points so far are stimulus checks and unemployment benefits. Though not much talked about, there is one more segment that lawmakers could focus on with the next coronavirus stimulus, and that is student loans.

Q2 2020 hedge fund letters, conferences and more

How next coronavirus stimulus affects student loans?

The CARES Act, which was passed in ...



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Zero Hedge

Supreme Court Rules Trump Tax Returns Must Be Released To NY Grand Jury

Courtesy of ZeroHedge View original post here.

The Supreme Court on Thursday ruled that a New York Grand Jury can have President Trump's tax records, after Manhattan prosecutor Cy Vance subpoenaed eight years of returns in connection with an investigation into hush money payments made to porn star Stormy Daniels, according to Axios.

The court has yet to rule on whether House Democrats can have access to the records, after the lawmakers issued subpoenas to Deutsche Bank, Capital One, and the president's longtime accounting fi...



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Kimble Charting Solutions

Tech Experiencing A 20-Year Breakout, While Small Caps Are Near 20-Year Lows!

Courtesy of Chris Kimble

Successful investors are often rewarded by owning strength and avoiding weakness.

Could two key sectors be experiencing 20-year strength and weakness extremes at the same time? Yes!

The NDX 100/S&P ratio (left above) is currently experiencing a 20-year breakout at (1).

At the same time, the Russell 2000/S&P ratio is near 20-year lows at (2).

This 2-pack reflects that the place to be at this time continues to be Tech...



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Biotech/COVID-19

5 COVID-19 myths politicians have repeated that just aren't true

 

5 COVID-19 myths politicians have repeated that just aren't true

The purveyors of these myths aren’t doing the country any favors. Brendan Smialowski/AFP/Getty Images

Courtesy of Geoffrey Joyce, University of Southern California

The number of new COVID-19 cases in the U.S. has jumped to around 50,000 a day, and the virus has killed more than 130,000 Americans. Yet, I still hear myths about the infection that has created the worst public health crisis in A...



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The Technical Traders

Credit/Investments Turned Into End-User Risk Again

Courtesy of Technical Traders

Continuing our research from Part I, into what to expect in Q2 and Q3 of 2020, we’ll start by discussing our Adaptive Dynamic Learning predictive modeling system and our belief that the US stock market is rallied beyond proper expectation levels.  The Adaptive Dynamic Learning (ADL) modeling systems attempts to identify price and technical indicator DNA markers and attempts to map our these...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 14 March 2020, 05:51:16 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Crash in perspective - its Bad, and not over!



Date Found: Saturday, 14 March 2020, 07:49:29 PM

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Comment: The Blood Bath Has Begun youtu.be/bmC8k1qmM0s



Date Found:...

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.