Posts Tagged ‘JPM’

Toppy Tuesday – GS and JPM Reap the Rewards of Market Manipulation

$9 Billion Dollars!  

That's how much Goldman Sachs (GS) took in in revenues in the second quarter.  They then used $1.25Bn of it (14%) to buy back their own stock at an average cost of $161 per share and reduced the total number of shares by 17% which allowed them to "beat" estimates by earning $4.10 per share vs $3.70 last year (10.8% more).

That's right – it's a scam!  The same scam GS advises it's client companies to do with their own stocks to APPARENTLY inflate their earnings while, in reality, earnings are fairly flat.  The same scam, incidentally, GS had the entire country of Greece do – before that whole thing collapsed and took the Global economy with it a few years ago!  

By trading heavily from inside this fishbowl, GS was able to bump up their Investment and Lending Revenues by 46%, to $2.07Bn and all those little moves allowed GS employees to take 46% of the profits in compensation – up 6% from last year at $3.92Bn, which is really cool as GS only has 32,600 employees – so that's $1.2M per employee but, somehow, I think the top 326 (0.1%) get a bit more than the other 32,274, don't you? 

You would think GS shareholders would be angry that 50% of their revenues go to compensation.  After all, a hedge fund only takes 20% of the profits as salary (and that plus 2% of AUM also covers the cost of all operations) but GS, after taking $3.92Bn, drops just $2Bn to the bottom line for their investors or, in other words, GS is like a hedge fund that takes 66% of the profits!  

Still, with a p/e of 10, that 33% bone they throw investors is enough to keep them happy but, as with everything else, consider the conditions under which GS is able to make $6Bn in salaries and profits on $9Bn in revenues – Endless Free Money from the Fed, a stock market fueled by Mergers and Buybacks using the same Free Money, massive market manipulation by Central Banks around the World – many of whom are run by former GS employees and most of whom are advised by GS.  Perhaps this is as good as it gets for them?
continue reading


Tags: , , , , ,




Will We Hold It Wednesday – S&P 1,920 Edition

Yesterday was a close one!  

We briefly failed our first test of 1,920 (see yesterday's notes) but another low-volume rescue kept us from fulfilling the "Wave C" predicion on this Elliot Wave chart – for now.  

Not that I'm an Elliot Wave person, of course – my theory is that, if you are going to draw 5 points on a graph you can imagine all sorts of random patterns and SOMETIMES you will be right.  About half the time, in fact.  

I believe in bigger numbers and our own EXCLUSIVE 5% Rule™ says the S&P bottomed out at 800 (in 2009) doubled to 1,600 last Spring, consolidated there for a quarter and now has made a 20% move to 1,920 – just like it was supposed to since it bottomed in 2009 (see our many, many predictions over the years).  In fact, it was March of 2012, with the S&P at 1,404, when we set our new goals for the S&P to 1,600.  As I said at the time:

That's right, it turns out our +10% line is still pretty much right on the money, only now we switch our focus to our goal of 1,600 and begin running our numbers off there, rather than from 800.  I know I have been (and still am) Fundamentally bearish on the market at the moment – I just think we are making this move too soon – but that is not to say I think the move is unmakeable.  

SPY WEEJKY

Once we did get the dip in June that we expected at the time (down 10%, back to 1,278 and, fortunately, we had wisely cashed out our Income Portfolio before things turned ugly) we were happy to go gung-ho bullish with our Buy List – the same kind of Buy List we just finised assembling in yesterday's Live Trading Webinar.  In fact, right in that 3/17/12 post, I laid out this play to profit from our prediction:

For example, we expect the S&P to work it's way up to 1,600 and that's SPY $160 and the Jan (2013) $146/154 bull call spread is $3 and you can sell the $110 puts for


continue reading


Tags: , , , , , , , , ,




Weekly Calls Active As Shares In JPMorgan March Higher

JPM – JPMorgan Chase & Co. – Shares in JP Morgan earlier rallied to the highest level since early August before backing off somewhat to trade up 0.85% on the day at $56.21 as of 11:50 a.m. EST. Weekly calls set to expire next week following the Thanksgiving Day holiday in the U.S. are active this morning. It looks like some traders are positioning for shares in the name to extend gains in the near term, and potentially rise to the highest level since September of 2000 by expiration.

Of the Nov 29 ’13 expiry options changing hands today, the $57.5 strike calls have attracted the most volume. Upwards of 1,900 of the $57.5 calls traded this morning, roughly three times previously existing open interest at that strike of 631 contracts. It looks like most of the calls were purchased for an average premium of $0.24 each, thus positioning buyers to profit in the event that JPM shares rally 2.7% over the current price of $56.21 to top the average breakeven point at $57.74 by expiration next week. 


Tags:




Options On Cree Light Up As Shares Sprint To The Upside

 

Today’s tickers: CREE, SNDK & JPM

CREE - Cree, Inc. – Options on the maker of energy-efficient LED lighting products are buzzing today, with overall volume rising to more than twice the average daily level for the stock during the first half of the trading session. Shares in Cree are up more than 16% on the day at $52.15 as of 11:15 a.m. in New York. The stock gapped higher on the open after the company raised its guidance for third-quarter earnings and revenue, lifting the price of the underlying to its highest level since March of 2011. Traders positioning for further upside in shares of Cree, Inc. picked up bullish options on the stock straight out of the gate this morning. Weekly calls are attracting light volume, with notable fresh interest in the Mar. 08 ’13 $52.5 strike contracts. Traders appear to be buying the short-dated contracts at an average premium of $0.19 apiece. Call volume is substantial in the April expiry options, notably in the $52.5 strike contracts where more than 6,000 calls changed hands against open interest of just 86 contracts by 11:30 a.m. ET. One or more traders appear to have purchased the bulk of the volume for an average premium of $1.25 apiece within the first 10 minutes of the opening bell today. Initiating the bullish trades at the start of the session is paying off for buyers of the April $52.5 strike calls, with premium required to purchase the contracts having more than doubled since this morning to $2.59 by 11:35 a.m. ET.

SNDK - SanDisk Corp. – Shares in SanDisk increased 2.0% to $51.43 on Tuesday morning amid strong gains in U.S. equities and a price target increase to $70.00 from $55.00 at Susquehanna. Options activity on the provider of data storage products and solutions suggests traders are prepared for shares in the name to extend gains in the near term. Volume in SNDK options is concentrated in the weekly calls as of the time of this writing, with upwards of…
continue reading


Tags: , ,




Bulls Hungry For Domino’s Options As Shares Rise To All-Time High

 

Today’s tickers: DPZ, JPM & JWN

DPZ - Domino’s Pizza, Inc. – Shares in Domino’s are bucking the trend today, rising as much as 2.2% to an all-time high of $43.74 on Thursday morning, even as most stocks decline on weaker-than-expected consumer confidence data for the month of December and the failure of U.S. lawmakers to arrive at a budget compromise. Options traders hungry for fresh highs in Domino’s Pizza shares in the first few months of the New Year snapped up call options on the name today. Bulls picked up around 100 in-the-money calls at the Jan. $43 strike for an average premium of $1.11 apiece, and purchased 70 of the higher Jan. $44 strike calls at an average premium of $0.60 each. Like-minded strategists looked to the Mar. $45 strike calls as well, buying 150 of those contracts at an average premium of $1.65 a-pop. Traders long the $45 strike calls stand ready to profit at expiration in March 2013 should shares in DPZ rally another 6.7% to top a new record high of $46.65 by expiration. The stock has gained 40% during the prior six month period. Domino’s Pizza is scheduled to report fourth-quarter earnings at the end of February, several weeks prior to March options expiration.

JPM - JPMorgan Chase & Co. – Options traders positioning for shares in JPMorgan Chase & Co. to rally during the first week of the New Year snapped up weekly calls on the largest U.S. bank by total assets this morning. Shares in JPM are down 1.8% this morning at $43.17, moving lower along with the broader market on disappointing consumer confidence data and concern the U.S. may go over the fiscal cliff. Traders anticipating a strong start to the New Year for shares in JPMorgan appear to have purchased more than 1,000 calls at the Jan. 04 ’13 $44 strike for an average premium of $0.52 apiece during the first 20 minutes of the trading session today. Call buyers stand ready to profit at expiration next week should shares in JPM reverse course and gain…
continue reading


Tags: , ,




Weekly Options In Play On Intel

 

Today’s tickers: INTC, HALO & JPM

INTC - Intel Corp. – Shares in the chip maker are in negative territory this morning, trading lower with the broader market on signs budget talks are stalling and lawmakers may not reach a deal by year end. Intel’s shares are down better than 2% to stand at $20.59 as of midday in New York. Fresh interest in weekly call and put options on the name this morning suggests traders are preparing for volatility in the price of the underlying through the end of 2012. Options players bracing for Intel’s shares to potentially fall sharply during the next four trading session snapped up around 1,000 puts at the Dec. 28 ’12 $20 strike and another 550 puts at the Dec. 28 ’12 $19.5 strike at premiums of $0.07 and $0.04 apiece, respectively. Traders long the $20 and $19.5 strike contracts may profit in the event that Intel’s shares drop roughly 3.2% and 5.5% to settle below the effective breakeven prices of $19.93 and $19.46 by expiration next week. Meanwhile, strategists holding out hope that a deal gets done and lifts equities in the near term appear to be purchasing upside calls today. The Dec. 28 ’12 $21 strike calls saw the most volume, with upwards of 5,000 contracts in play during the first half of the session. Time and sales data suggests the bulk of the volume was purchased for an average premium of $0.15 apiece. Buyers of the $21 strike calls profit at expiration as long as Intel’s shares rally 2.7% to settle above $21.15.

HALO - Halozyme Therapeutics, Inc. – Upside calls on biopharmaceutical company, Halozyme Therapeutics, Inc., are active today, with shares in the name rallying as much as 30% to $7.19 on Friday morning. The stock popped after Halozyme announced it will work with Pfizer to create up to six new injectable drugs. Options traders positioning for HALO’s shares to extend gains during the next four weeks purchased around 250 calls at the Jan. 2013 $7.5 strike for an average premium of $0.37 per contract. Call…
continue reading


Tags: , ,




Vertex Call Spread Eyes Big Gains In Drug Maker’s Shares

 

Today’s tickers: VRTX, ZQK & JPM

VRTX - Vertex Pharmaceuticals, Inc. – A sizable bullish position initiated in Vertex options this morning looks for shares in the drug maker to regain some of the steep losses realized during the past two months. Shares in Vertex Pharmaceuticals are trading flat on the session at $39.10 as of 11:20 a.m. ET, but have dropped 35% since the second week in October. One options trader who appears to have purchased a 3,500-lot April $42/$55 call spread for a net premium of $2.66 per contract stands ready to profit from a strong rebound in Vertex shares through expiration. The spread starts making money if shares increase 14% over the current price of $39.10 to surpass the effective breakeven point at $44.66, with maximum potential profits of $10.34 per contract available in the event shares jump 41% to hit $55.00 by expiration in April.

ZQK - Quiksilver, Inc. – Options on apparel and accessories retailer, Quiksilver, Inc., are more active than usual on Friday ahead of the company’s fourth-quarter earnings report next week. Shares in the maker of casual wear under its Quiksilver, Roxy and DC brands are trading up 2% today at $4.09 as of midday on the East Coast. Traders exchanged more than 7,500 option contracts on ZQK during the first half of the session, sizable volume versus the stock’s average daily options volume of around 1,300 contracts. The Dec. $5.0 strike calls are seeing the heaviest trading traffic, with more than 4,200 lots in play against zero open positions. It looks like most of these calls were purchased for an average premium of $0.05 apiece, perhaps by one or more strategists expecting the price of the underlying to pop after earnings. The stock posted double-digit percentage gains following the release of third-quarter earnings in September and after the second-quarter earnings report in April of this year. Buyers of the $5.0 strike front month call options on ZQK this morning may profit at expiration should shares in the name rally nearly 25% to top the breakeven price of $5.05.…
continue reading


Tags: , ,




Flowers Foods Options In Play As Shares Flourish On Hostess Brands Bankruptcy

 

Today’s tickers: FLO, JPM & SFD

FLO - Flowers Foods, Inc. – Shares in the provider of packaged bakery products are up nearly 7% this morning at $23.86 as of 11:35 a.m. after the stock was raised to ‘buy’ from ‘hold’ with a 12-month target price of $25.00 at Keybanc Capital Markets. Flowers Foods, Inc., which sells its products under a number of brands, including Sunbeam and Tastykake, has attracted far greater-than-usual options activity in recent trading sessions on speculation the Thomasville, Georgia-based baker may consider purchasing some of rival Hostess Brands, Inc.’s assets as that company enters bankruptcy proceedings this week. Flowers Foods shares are up nearly 30% since Monday of last week. Traders positioning for shares in the name to extend gains purchased upside calls on Flowers this morning. The Dec. $25 strike call was purchased 50 times for a premium of $0.15 apiece, while 140 of the Jan. 2013 $25 strike calls were picked up at an average premium of $0.33 each. These contracts make money if shares in the name hit fresh 52-week highs by their respective expiration dates. Meanwhile, strategists who established bullish positions last week are seeing sizable gains in the value of their option contracts as shares sprint to the upside. The purchaser of 90 calls at the Dec. $20 strike last Monday for a premium of $0.30 apiece now holds contracts that cost $3.90 apiece, or thirteen times as much, as of midday in New York. Similarly, traders who picked up 180 of the April 2013 $22.5 strike calls at $0.90 apiece on Friday, find the value of their contracts increased 120% to $2.00 since the prior trading session. Finally, put buying at the $22.5 strikes in January and April indicates some traders are establishing downside protection to hedge possible declines in the price of the underlying in the months ahead. Overall options volume on Flowers this morning is greater than 1,050 contracts versus the stock’s average daily options volume of 45 contracts.…
continue reading


Tags: , ,




Bullish Bets On The Rise In JPMorgan Weekly Call Options

 

Today’s tickers: JPM, IP & ATHN

JPM - JPMorgan Chase & Co. – Trading traffic in JPMorgan call options this morning suggests some traders are positioning for shares in the U.S. bank to rally to their highest level since May by the end of the week. U.S. stocks are moving broadly higher on Monday and JPM shares advanced 2.3% to $41.40 by 11:30 a.m. ET, after the ISM’s U.S. factory index rose to 51.5 in September. Traders snapping up weekly calls on the stock are well-positioned to benefit from further upside in the shares in the near term. More than 6,300 calls have changed hands at the Oct. 05 ’12 $42 strike against previously existing open interest of 2,750 contracts. It looks like most of the calls were purchased for an average premium of $0.10 apiece, thus positioning buyers to profit in the event that JPM shares rally another 1.7% to top the average breakeven price of $42.10 by expiration this week. Shares in JPM, up more than 30% since the first full week in June, last traded above $42.10 on May 7th. The company is scheduled to report third-quarter earnings ahead of the opening bell next Friday.

IP - International Paper Co.– Shares in global paper and packaging company, International Paper Co., rose 0.85% on Monday morning to $36.63, and may soar to their highest in more than five years in the near future. The stock has moved sharply higher during the past 52 weeks, trading up 70% versus the first week of October 2011. A large bullish options play initiated on IP in the first hour of the trading day suggests one strategist is prepared for shares to extend gains into 2013. The trader appears to have paid a net premium of $1.12 per contract to buy a 5,000-lot Jan. 2013 $38/$42 call spread. The bullish position starts making money if shares in International Paper rally another 7% to top the effective breakeven…
continue reading


Tags: , ,




McDonald’s Reports Aug. Same-Store Sales, Call Buyers Lovin’ It

 

Today’s tickers: MCD, INTC & JPM

MCD - McDonald's Corp. – Traders hungry for bullish options on McDonald’s Corp. purchased upside calls on the stock this morning, with shares in the world’s largest restaurant chain rising as much as 0.90% to $92.10 at the start of the session on better-than-expected August same-store sales growth in its Asia Pacific, Africa and Middle East region. Options players positioning for shares in MCD to extend gains during the next five weeks snapped up Oct. $92.5 and $95 calls. The Oct. $95 strike call is the most heavily traded at present, with around 3,700 contracts in play as of 12:15 p.m. in New York. It looks like most of the $95 calls were purchased for an average premium of $0.51 apiece, thus preparing buyers to profit at expiration next month should the price of the underlying rally another 3.7% to exceed the average breakeven price of $95.51. Bullish activity spread to longer-dated contracts expiring in December, where around 2,600 of the Dec. $95 strike calls were purchased for an average premium of $1.21 each. These contracts may be profitable at expiration if the Big Mac maker’s shares rally 4.5% to top $96.21, the highest since May. McDonald's is scheduled to report third-quarter earnings ahead of the opening bell on October 19th, the last session available to trade the October options before they expire.

INTC - Intel Corp. – Shares in the chip maker are on the mend today, up 1.3% at $23.57 as of 12:25 p.m. ET, reversing some of the declines suffered during the prior two trading sessions. A large bullish risk reversal initiated on INTC this morning suggests one big options market participant is positioning for further gains in the price of the underlying this year. It looks like the strategist sold around 25,000 puts at the Dec. $21 strike at a premium of $0.45 each in order to partially offset the…
continue reading


Tags: , ,




 
 
 

Phil's Favorites

Staggering

 

Staggering

Courtesy of 

We now have data for last week’s initial jobless claims. The number is staggering. 6.6 million filed for unemployment insurance for the first time last week. During the prior week it was 3.28 million. These numbers take your breath away.

Chart via WSJ

Here’s the even worse news – this only records the people who have successfully filed. Many, many more have been locked out of the system so far due to the overwhelmi...



more from Ilene

Biotech/COVID-19

Antibodies in the blood of COVID-19 survivors know how to beat coronavirus - and researchers are already testing new treatments that harness them

 

Antibodies in the blood of COVID-19 survivors know how to beat coronavirus – and researchers are already testing new treatments that harness them

A person who has recovered from COVID-19 donates plasma in Shandong, China. STR/AFP via Getty Images

Ann Sheehy, College of the Holy Cross

Amid the chaos of an epidemic, those who survive a disease like COVID-19 carry within their bodies the secrets of an effective immune response. Virologists like me...



more from Biotech/COVID-19

Zero Hedge

US Consumer Comfort Suffers Biggest 2-Week Crash... Ever

Courtesy of ZeroHedge View original post here.

Having reached near-record high levels of consumer comfort in late-January, Bloomberg's Consumer Comfort Index has plunged to its lowest since June 2018.

Source: Bloomberg

This is the biggest two-week drop in comsumer comfort... ever...

Source: Bloomberg

“Th...



more from Tyler

The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

more from Tech. Traders

ValueWalk

Paycheck Protection Program: Not Enough To Help Restaurant Industry

By Jacob Wolinsky. Originally published at ValueWalk.

Below is a statement from the Independent Restaurant Coalition on the start of the Paycheck Protection Program, which comes a day after the Department of Labor announced a historic surge in unemployment claims. In the last week, over 6.6 million Americans filed for unemployment bringing the total people out of work to over 10 million.

“The short-term relief made available through the Paycheck Protection Program in the CARES ...



more from ValueWalk

Kimble Charting Solutions

S&P 500 Price Pattern Similar to 2008 Market Crash?

Courtesy of Chris Kimble

Last week’s sharp rally off the lows, gave bulls some relief.

But if the bulls are going to have reason to cheer, they will need to see another move higher… and fast!

Why? Just look at today’s “weekly” price chart of the S&P 500 Index. 

This key broad-based index broke a 10-year bull market trend line in March. And it’s now kissing the underside of the trend line at (2).

The last stock market crash saw a similar pattern in 2008. And after a failed “...



more from Kimble C.S.

Insider Scoop

Nestle CEO Says Snack Foods 'Just As Important As Essential Nutrients'

Courtesy of Benzinga

Global food behemoth Nestle (OTC: NSRGY) is "scrambling to meet demand" to keep the world fed, but doesn't want to take much credit, as "this is our main purpose at this hour," CEO Mark Schneider said Wednesday during a "Mad Money" interview with Jim Cramer.

Nestle...

http://www.insidercow.com/ more from Insider

Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














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

more from Chart School

Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



more from Our Members

Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



more from Bitcoin

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.  

...

more from Promotions

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 ...



more from Lee

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





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...

Learn more About Phil >>


As Seen On:




About Ilene:

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