Posts Tagged ‘JEC’

Options Traders Position for Possible RIMM Rebound

Today’s tickers: RIMM, CVS, CALL & JEC

RIMM - Research In Motion, Ltd. – Shares in the BlackBerry smartphone and PlayBook tablet maker slipped today on news a class action lawsuit alleging RIMM misled investors has been filed in the U.S. against the Canadian company. The past couple of months have seen the value of the stock drop as much as 40.0% off a mid-February 52-week high of $70.54. RIMM’s revised outlook at the end of April for lower-than-previously anticipated earnings and revenue helped accelerate the stock’s pullback. Though headwinds against a RIMM-rebound are strong at present, it looks like some options strategists are positioning for a sharp recovery in the price of the underlying stock by January 2012 expiration. Shares in the smartphone maker pared earlier losses but remain flat on the session at $43.57 as of 11:50am in New York. Investors appear to have initiated bullish call butterfly spreads, buying roughly 1,500 calls at the Jan. 2012 $65 strike, selling some 3,000 calls at the Jan. 2012 $70 strike, and purchasing approximately 1,500 calls at the Jan. 2012 $75 strike, all for an average net premium of $0.16 per contract. The relatively cheap long-term bullish bet on a recovery story for RIMM could result in substantial profits, but the stock would need to soar 60.1% to $70.00 at expiration next year in order for call ‘fly players to bank maximum potential profits of $4.84 per contract. The parameters of the spread are such that maximum potential losses are limited to the premium paid, or roughly $0.16 per contract. Traders may very well lose the full $0.16 in premium come expiration, but it seems the prospect of potentially raking in 30 times as much is, according to these call ‘fly buyers, worth the risk. The BlackBerry provider reports first-quarter earnings after the final bell tolls on June 16, 2011.…
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Massive Delta Neutral Position Signals Bearishness at Jacobs Engineering Group

 Today’s tickers: JEC, GLW, TM & AKS

JEC - Jacobs Engineering Group, Inc. – The third-largest listed U.S. engineering company popped up on our scanners today after one option strategist initiated a big delta neutral position using a large number of long-dated, in-the-money put options tied to more than 1 million shares of the underlying stock. Shares in Jacobs Engineering Group increased as much as 7.3% during the first half of the session to secure a new 2-year high of $53.10. JEC reported weaker-than-expected first-quarter results before the market opened on Tuesday, but increased earnings guidance for the full year. A spate of target share price increases and ratings upgrades from a number of analysts helped shares in Jacobs Engineering higher today. The investor responsible for nearly all of the volume in options traded on JEC today seems to be taking a contrarian view on the stock, positioning for bearish movement in the price of the underlying, while not entirely standing in the way of the rally or bullish sentiment. The trader appears to have shelled out a total of $67.127 million ($11 million for the puts, $56.127 million for the stock) to purchase 1,060,000 shares of the underlying at $52.95 each, and 20,000 in-the-money put options at the July $55 strike for a premium of $5.50 apiece on a 0.53 delta. The position may work in the investor’s favor if shares move sufficiently higher or if shares fall, however, the potential for the greatest gains lies to the downside because the value of the puts will grow much more quickly and offset any losses incurred on the decline in share price. Shares in JEC are soaring at their highest in two years but this put player is prepared to make out handsomely if the good times should come to an end.

GLW - Corning Inc. – Bullish options traders are dominating the scene at Corning this morning with shares in the glass maker now extending gains realized after the firm’s earnings report on Tuesday. Corning’s…
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Thursday Thoughts – GDP Up, Jobs Down

Forget the GDP.

We'll get the report on Q2 GDP at 8:30 tomorrow but I'll be watching the Employment Cost Index to see if we are recovering.  I know it seems like "commie talk" to my Conservative friends, but rising wages and benefits are signs of a healthy economy and you can plot the rise and fall of the stock market very neatly against how well the workers are treated

It was Henry Ford who first "discovered" that, if you expect American consumers to buy your products, you have to pay American workers enough to afford them.  In January of 1914, the Ford Motor Company announced they would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage.  Workers came from all over the nation and all over the world to work for Ford, who had their pick of the best and the brightest, which led to a 60-year legacy of dominance in American Industry. 

Henry Ford had reasoned that since it was possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 day helped better the lot of all American workers and contributed to the emergence of the American middle class and that led to a massive economic boom in "the Roaring 20's" until greedy Banksters and speculators crashed the market in 1929.  

Unfortunately, earning $5 a day is still a dream for much of the workforce employed by US corporations as that is more money than is paid to their tens of millions of employees and suppliers in China, India, Vietnam, South Korea, Taiwan, Indonesia, etc.  Not only have American corporations "unlearned" the lessons that made this country great but they are actively involved in tearing down what is left of the American Middle Class by undermining their ability to earn and save as they ship jobs out of the country and cut wages and benefits for those few workers (135M at last count) who are left.

8:30 Update:  Make that 134,543,000 workers left - as we lost another 457,000 American jobs last week.  Continuing Claims picked back up to 4.56M, also more than expected but, as I said…
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Zero Hedge

Jared Kushner's Father Says Qataris Sought Investment In Family's Troubled Manhattan Tower

Courtesy of ZeroHedge. View original post here.

Earlier this month, the Intercept reported that Charles Kushner, the father of White House senior advisor and Trump son-in-law Jared Kushner, had met with Qatari finance minister Ali Sharif al-Emadi in April 2017 about a possible investment by the Qatari sovereign wealth fund in the Kushner's troubled 666 Fifth Ave. property. The report included the stunning detail that, several months later, Kushner backed a decision by Saudi Arabia, the Unite...

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Peter Thiel: Need To Rethink Tariffs In Light Of Trade Deficit With China; SF Sucks, Bitcoin Rocks

By VW Staff. Originally published at ValueWalk.

PayPal cofounder Peter Thiel in a wide-ranging interview on President Trump’s trade tariffs, China’s economy, technology regulations and his outlook for bitcoin.


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Peter Thiel: Need To Rethink Tariffs In Light Of Trade Deficit With China

Peter Thiel On Leaving Silicon Valley For Los Angeles

Billionaire investor Peter Thiel argues Silicon Valley is is a ‘totalitarian place’ where people are not allowed to have dissenting views.


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Insider Scoop

The Market In 5 Minutes: AT&T, Facebook Data, Apple Screens, Google Shopping And More

Courtesy of Benzinga.

Related SPY What You Need To Know About Larry Kudlow, Trump's New Economic Advisor Appeals Court Overturns Fiduciar... more from Insider

Digital Currencies

Bitcoin Soars $1000 Off The Lows After G-20 Rejects Crypto Crackdown

Courtesy of ZeroHedge. View original post here.

While advertising bans and Mt.Gox Trustee overhangs remain, the FUD of a possible global regulatory crackdown in the G-20 Communique was a major driver of this weekend's weakness... until Les Echos confirms FSB has rejected calls for regulation.

After headlines suggesting a global crackdown on cryptocurrencies spooked the markets on Friday, ...

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Phil's Favorites

Low-carbon computing is needed to avoid a technological collapse


Low-carbon computing is needed to avoid a technological collapse

wk1003mike / shutterstock

Courtesy of Oscar Céspedes, University of Leeds

Human society has come to rely on superior gadgets being produced every year. Each year, new phones or laptops are faster, sleeker and have even more capabilities. However, electronics are rarely recycled, and the carbon footprint of the internet already exceeds that of air travel. The internet also relies on “rare earths” and ...

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Members' Corner

"If you want to fundamentally change society, you first have to break it."


"If you want to fundamentally reshape society, you first have to break it." ~ Chistopher Wylie

[Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

Here are a number of disturbing, overlapping articles discussing an enormous socio-political venture into thought- and election-manipulation that took place leading up to and during the US 2016 presidential election. Key players include: ...

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Chart School

Bitcoin Update, demand is present

Courtesy of Read the Ticker.

When a Wyckoff trader looks at a stock chart of price and volume one looks for foot prints of material demand and supply. The current bitcoin chart shows very significant demand prints.

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Sure fundamentals do matter, and so does market timing (entry, stops and exit), here at we believe a combination of Gann Angles, Cycles...

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How your brain is wired to just say 'yes' to opioids

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


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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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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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

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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