Posts Tagged ‘K’

Kellogg Call Options Active Ahead Of Earnings

Shares in packaged foods producer Kellogg Co. (Ticker: K) are in positive territory on Monday afternoon, trading up by roughly 0.20% at $65.48 as of 2:20 p.m. ET. Options volume on the stock is well above average levels today, with around 12,500 contracts traded on the name versus an average daily reading of around 1,700 contracts. Most of the volume is concentrated in September expiry calls, perhaps ahead of the company’s second-quarter earnings report set for release ahead of the opening bell on Thursday. Time and sales data suggests traders are snapping up calls at the Sep 67.5, 70.0 and 72.5 strikes. Volume is heaviest in the Sep 72.5 strike calls, with around 4,600 contracts traded against sizable open interest of approximately 11,800 contracts. It looks like traders paid an average premium of $0.37 per contract for the 72.5 strike calls, which may be a profitable trade at expiration in September in the event that Kellogg shares rally 11% over the current price to exceed the average breakeven point at $72.87. Shares in Kellogg traded up to a 52-week high of $69.50 in June, but have not traded above $72.87 since August of 1997. The concentration of trading traffic in September expiry calls on Kellogg today has pushed the call/put ratio on the name to roughly 6.5 this afternoon.

Chart – 20-year chart of Kellogg


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Kellogg Put Options Active As Shares Hover Near Record Highs

Today’s tickers: K, TSN & FHN

K - Kellogg Company – Trading traffic in Kellogg Co. options this morning suggests some traders may be placing bearish bets on the stock ahead of the company’s second-quarter earnings report on August 1st. Shares in the maker of Pringles and Pop-Tarts are rose as much as 1.2% on Thursday morning to $66.76, just pennies off the stock’s all-time high of $66.84 reached back in April, amid strong gains in U.S. stocks. The most actively traded options contracts on Kellogg thus far in the session are the Aug $65 strike puts, with upwards of 1,400 lots in play versus open interest of 35 contracts. Time and sales data suggests most of the volume was purchased for an average premium of $0.93 apiece. Put buyers may profit at expiration next month should Kellogg’s shares decline 3.7% from the current price of $66.52 to breach the average breakeven point on the downside at $64.07.

TSN - Tyson Foods, Inc. – Shares in chicken, beef and pork processor, Tyson Foods, Inc., rallied 1.3% to a record high of $27.12 this morning. Options changing hands on the stock in the early going indicate at least one strategist is positioning for the price of the underlying to extend gains in the near term. Upwards of 3,000 Aug $28 strike calls appear to have been purchased during the first hour of the session for an average premium of $0.53 apiece. The bullish bet pays off if shares in Tyson surge 5.2% to exceed an average breakeven price and new all time high of $28.53 by August expiration. Tyson Foods reports third-quarter earnings in early August.


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Traders Nibble On Kellogg Put Options As Shares Hover Near Record Highs

 

Today’s tickers: K, GBX & EBAY

K - Kellogg Co. – Shares in consumer food products company, Kellogg, are roughly flat on the session, down less than 0.10% at $64.54 as of 11:30 a.m. ET. Options activity on the stock this morning suggests one strategist is bracing for the price of the underlying to pullback a bit during the next few weeks. Shares in the maker of Froot Loops and Frosted Mini-Wheats, up roughly 25% since this time last year, hit a record high of $64.75 yesterday. Overall options volume in excess of 2,400 contracts in play on Kellogg this morning is more than two times the stock’s average daily volume, with the put-to-call ratio topping 5-to-1 as of the time of this writing. Most of the trading traffic in Kellogg options is in the front month puts, with upwards of 1,700 lots changing hands at the April $62.5 strike versus open interest of 519 contracts. It looks like most of the $62.5 strike calls were purchased in the early going at an average premium of $0.20 apiece. Traders long the contracts may profit at expiration next month if shares in Kellogg decline more than 3.0% from the current price of $64.54 to breach the effective breakeven point at $62.30.

GBX - Greenbrier Companies, Inc. – Options on the manufacturer of railroad freight car equipment and ocean-going marine barges are more active than usual this morning after the company announced yesterday it received new orders for 5,400 railcar units values at around $575 million in January, February and March. Shares in the name rallied more than 7.5% on Thursday morning to touch a new 52-week high of $22.98. Traders looking for shares in Greenbrier to extend gains in the near term snapped up front month calls. The April $25 strike calls attracted the most volume, with upwards of 420 lots in play against open interest of 47 contracts. It looks like most of the calls were purchased during the first 15 minutes of the session at a premium…
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Traders Show An Appetite For Hain Celestial Put Options

 

Today’s tickers: HAIN, GNW & K

HAIN - Hain Celestial Group, Inc. – Bearish options are changing hands on theprovider of natural and organic food products today, with shares in Hain Celestial Group down 1.5% on the session to stand at $52.90 as of 12:40 p.m. ET. Downside put buyers on the operator of well-known brands, including Celestial Seasonings, Terra and Arrowhead Mills, among others, may be bracing for shares in the name to extend losses following the company’s fourth-quarter earnings report in February. The most active option contracts on Hain today are the Feb. $50 strike puts, with more than 5,000 lots in play versus open interests of 1,247 contracts. It looks like most of the $50 strike puts were purchased this morning for an average premium of $2.30 apiece. The trader or traders buying the puts may profit at expiration should HAIN shares drop 10% from the current price of $52.90 to breach the average breakeven price of $47.70. Shares in Hain Celestial Group last traded below $47.70 back in May of 2012. The company is scheduled to present at the 15th Annual ICR XChange in Miami Beach, Florida, on Thursday.

GNW - Genworth Financial, Inc. – Shares in Genworth Financial, Inc. reached their highest level since March 2012 this morning after the insurer announced plans to separate much of the company from its mortgage guaranty unit. The price of GNW shares jumped14% to an intraday high of $9.27 in the early going, sparking heavy trading traffic in upside call options on the name during the first half of the session. Traders positioning for Genworth’s shares to extend gains during the next two trading sessions snapped up January expiry call options. The $9.0 strike calls are seeing the most volume, with upwards of 6,400 in-the-money contracts in play versus open interest of 2,575 contracts. Time and sales data suggests most of the calls were purchased for an average premium of $0.14 apiece, thus positioning buyers to profit should GNW shares exceed the average breakeven price of $9.14 at expiration this week. Bullish positioning on…
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Options Feeding Frenzy Ensues At The Cheesecake Factory

 

Today’s tickers: CAKE, LIZ & K

CAKE - Cheesecake Factory, Inc. – Traders are loading up on Cheesecake Factory call and put options today, perhaps ahead of the restaurant operator’s fourth-quarter earnings report next Tuesday. Shares in CAKE rose 1.6% to stand at $31.51 as of 12:55 p.m. in New York. March expiry calls garnered much of the attention from traders, with appetite for CAKE calls outpacing that of puts by around 1.4 to 1. The Mar. $34 strike calls are the most active as some 2,780 contracts changed hands against open interest of just 20 positions. It looks like the majority of the calls were purchased by one investor at a premium of $0.25 each. The strategist may profit at expiration in the event that Cheesecake Factory’s shares rally another 8.7% to surpass the effective breakeven point and new 52-week high of $34.25. The same investor may also be responsible for the purchase of call options at the Mar. $33 strike, where roughly 750 contracts traded for an average premium of $0.54 apiece. Time stamps for trades in the Mar. $33 and $34 strike calls exactly match those of transactions in the Mar. $29 strike puts. Nearly 950 of the $29 strike put options were purchased for an average premium of $0.55. The strategist snapping up both call and put options on the stock is prepared to see CAKE’s shares make big moves in either direction. The rise in demand for Cheesecake options has the overall reading of options implied volatility 31.5% on the day at 42.3% in early-afternoon trade.

LIZ - Liz Claiborne, Inc. – Shares in the owner of Juicy Couture, Kate Spade and other retail-based premium brands rallied to a fresh 52-week high of $10.38 today, extending year-to-date gains to 23.4%. A spate of…
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Phil's Favorites

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

 

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

The 16 nations negotiating the Regional Comprehensive Economic Partnership account for almost half the world’s population. Shutterstock/Datawrapper

Courtesy of Pat Ranald, University of Sydney

The Regional Comprehensive Economic Partnership has been touted as the best hope for keeping world trade flowing after the attacks on the World Trade Organisation.

The WTO isn’t dead yet, but in a two-pronged attack, US P...



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Kimble Charting Solutions

Crude Oil Create A Panic Peak This Week?

Courtesy of Chris Kimble

Yesterday Crude Oil rallied nearly 15%. How often does Crude rally this much in a day? Not often!

How many times has Crude rallied nearly 15% in the past 20-years? Only one other time, which suggests that yesterdays move was a rare event.

This chart looks at Crude Oil on a weekly basis over the past 2-years. Last year Crude Oil created a bearish reversal pattern at the 2018 highs and a bullish reversal pattern at the 2018 lows.

Earlier this year, Crude created a bearish reversal pattern (bearish wick pattern), while testing its 61% retracement level of last years hig...



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Zero Hedge

The Fed Has Lost Control Of Rates Again

Courtesy of ZeroHedge View original post here.

Something critical is going on in overnight funding markets: ever since March 20, the Effective Fed Funds rate has been trading above the IOER. This is not supposed to happen, and it just got significantly worse.

As a reminder, ever since the financial crisis, in order to push the effective fed funds rate above zero at a time of trillions in excess reserves, the Fed was compelled to create a corridor system for the fed funds rate which was bound on the bottom and top by two specific rates controlled by the Federal Reserve: the "floor" for the corridor was the overnight reverse repurchase rate (ON-RR...



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Insider Scoop

3 Takeaways From SeaWorld CEO's Surprise Resignation

Courtesy of Benzinga

SeaWorld Entertainment Inc (NYSE: SEAS) announced Monday evening that Gustavo Antorcha resigned as CEO and board member due to a "difference of approach."

What Happened

Antorcha's resignation will be effective immediately and he will be replaced with CFO Marc ...



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The Technical Traders

What Are The Real Upside Targets For Oil Post Drone Attack?

Courtesy of Technical Traders

After the news of the drone attack on the Saudi Arabia oil refinery, traders knew this week would be full of bigger price moves, reversals and some real opportunity for profits.  We were also well aware of the risks of engaging in these market moves prior to fully understanding the dynamics of this event.  We heard from many of our friends in the industry about open positions that were not properly scaled to deal with risk – and we know some of our friends took a hit early today.

The real questions before skilled technical traders are:

What will happen with Oil and where will price find the first level of resistance?

What will happen to t...



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Lee's Free Thinking

Is The Drone Strike a Black Swan?

Courtesy of Lee Adler

Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.”

According to Investopedia:

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.

I seriously doubt that no one expected or could have predicted a drone strike on a Saudi oil facility.

Call Me A B...

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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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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