Posts Tagged ‘KBE’

Time Warner Bull Channels Stock and Option Combo Play

 Today’s tickers: TWX, KBE, KMB & AET

TWX - Time Warner, Inc. – A massive transaction combining Time Warner stock and options suggests one strategist expects bullish movement in shares of the media and entertainment company ahead of February expiration. Time Warner’s shares are currently trading 0.40% higher on the session at $33.30 as of 1:25pm. The combo-player initiated a delta neutral trade, selling 1,400,000 shares of the underlying at $33.00 each, and buying 40,000 calls at the February $34 strike for a premium of $0.56 apiece, on a 0.35 delta. This is another one of those stock and option combinations in which the investor wants to have his cake and eat it too. The short stock leg of the trade works in the event Time Warner loses value, but should the shares jump, the value of the calls is intended to swell and outpace losses on the now losing stock price. As the share price increases the delta on the calls moves higher meaning that the value of the calls appreciate at a faster rate leaving the investor better placed as a bull. In other words, gains from the rising value of the call options, given share price appreciation, will eclipse losses that accumulate from the short stance in TWX shares. Time Warner’s shares last traded above $34.00 back on May 30, 2010.

KBE - SPDR KBW Bank ETF – Large prints in March contract call options on the SPDR KBW Bank ETF this morning appear to be the work of one strategist taking profits off the table and extending bullish sentiment on the fund through expiration in a few months time. Shares of the KBE, an exchange-traded fund that replicates the performance of the KBW Bank Index and invests in regional banks and other diversified financial services industries, are currently down 0.50% to stand at $26.68 as of 12:30pm in New York. It looks like the investor originally purchased a total of 27,100 calls at the March $26 strike, picking 20,000 lots for an…
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Put Butterfly Spread on Financials ETF Points to Persisting Pessimism

Today’s tickers: XLF, CMCSA, IBB, IYR, KBE & RIG

XLF – Financial Select Sector SPDR ETF – Investors heavily favored put options over call options on the financial SPDR today despite the 4.4% rebound in the price of the underlying stock to $15.75. Earlier in the trading session shares of the XLF, an exchange-traded fund seeking investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, increased 6.15% over Friday’s closing price of $15.09 to reach an intraday high of $16.02 in the first 30 minutes of the session. Options traders populating the fund today initiated decidedly bearish transactions signaling shares of the fund may be unable to retain the current rebound. Near-term pessimism took the form of a large-volume debit put spread in the May contract. It looks like one investor purchased 36,000 puts at the May $15 strike for a premium of $0.17 apiece, and sold the same number of puts at the lower May $14 strike for $0.07 each. The net cost of the trade amounts to $0.10 per contract, thus positioning the put player to pocket maximum potential profits of $0.90 per contract should shares decline 11.11% from the current price to breach the $14.00-level by expiration day. The trade is perhaps the work of an investor still smarting from last week’s market meltdown now taking advantage of relatively cheap downside protection today to hedge against similar catastrophic events. Bearishness spread to the June contract where another pessimistic individual enacted a put butterfly spread. The transaction involved the purchase of 10,000 now in-the-money puts at the June $16 strike for a premium of $0.67 each [wing 1] and the purchase of 10,000 puts at the lower June $14 strike for $0.23 apiece [wing 2]. The body of the butterfly, nestled between the two wings at the central June $15 strike, involved the sale of 20,000 puts for a premium of $0.41 each. The net cost of the butterfly spread amounts to just $0.08 per contract. The trade yields maximum potential profits of $0.92 per contract to the responsible party if shares of the XLF fall 4.75% from the current price to settle at $15.00 at June expiration. The investor starts to make money if shares of the financials ETF slip beneath the upper breakeven price of $15.92. Options traders exchanged more than 440,000 contracts on the…
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Qualcomm Bull Itching for a Sharp Rally in Shares by July Expiration

Today’s tickers: QCOM, KBE, XRT, GE, BAC, F, UPS, UAUA & NTRI

QCOM – Qualcomm, Inc. – The manufacturer of digital wireless telecommunications products and services received a vote of confidence by one optimistic options investor who purchased a debit call spread in the July contract today. Qualcomm’s shares rallied 0.55% in late afternoon trading to stand at $42.84 as of 2:45 pm (ET). The trader initiated the call spread by purchasing 4,000 lots at the July $46 strike for a premium of $1.00 each, marked against the sale of 4,000 calls at the higher July $49 strike for $0.37 apiece. Net premium paid for the bullish play amounts to $0.63 per contract, thus positioning the investor to amass maximum potential profits of $2.37 per contract should Qualcomm’s shares rally 14.4% over the current value of the stock to $49.00 by expiration day in July. The parameters of the transaction suggest the responsible party hopes Qualcomm’s share price shifts toward the stock’s current 52-week high of $49.80, attained back on January 8, 2010, in the next several months to expiration.

KBE – SPDR KBW Bank ETF – Shares of the SPDR KBW Bank fund, which replicates the performance of the KBW Bank Index, slipped 0.75% during the course of the trading day to stand at $28.18 with 35 minutes remaining in the session. Earlier today, one investor pocketed a net credit by selling a large chunk of call options spread against the purchase of put contracts. The trader sold 28,260 calls at the May $29 strike for a premium of $0.58 each, and purchased the same number of puts at the lower May $27 strike for $0.40 apiece. A net credit of $0.18 per contract pads the investor’s wallet as long as shares of the underlying fund trade below $29.00 through expiration day in May. Additional profits are available should shares slip beneath $27.00 in the next several weeks. The transaction may be linked to an underlying share position. If this is the case, the put options serve as downside protection should the fund’s share price erode, but the short position in calls could result in the investor having the underlying shares called away from him at expiration should the call contracts land in-the-money at that time.

XRT – SPDR S&P Retail ETF – A massive bearish transaction on the XRT, an exchange-traded fund which seeks to replicate the performance…
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Kimble Charting Solutions

Lumber Price Peak Would Raise Concerns For Equities!

Courtesy of Chris Kimble

The supply chain has dealt with several issues over the past couple of years, as consumers and businesses have been forced to navigate a tricky “COVID” landscape.

Commodity prices (in general) have risen, while enduring some big swings.

Today we look at a commodity that plays an intricate role for consumers, and perhaps the equities market as well. Lumber. When lumber prices are high, new homes and buildings cost quite a bit more.

Above is a “weekly” chart of lumber prices. As you can see, there have been times when a lumber peak/bottom have be...



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ValueWalk

How To Buy Gold

By Eric Gozenput. Originally published at ValueWalk.

If you’re looking for an asset that protects against inflation, buy gold!  Take a look at our helpful guide below for some tips on purchasing this precious metal.

Q4 2021 hedge fund letters, conferences and more

Wondering How to Buy Physical Gold? Consider The Different Types: Gold Bars and Rounds

Gold bars are one of the most popular gold buying options for investors. B...



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Zero Hedge

Canadian 'Freedom Convoy' Receives First GoFundMe Payment After Temporary Halt

Courtesy of ZeroHedge View original post here.

Update (Friday 0711ET): Organizers of the "Freedom Convoy" have "received confirmation that GoFundMe has released our first batch of funds" following reports Thursday, the c...



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Phil's Favorites

Is the omicron variant Mother Nature's way of vaccinating the masses and curbing the pandemic?

 

Is the omicron variant Mother Nature’s way of vaccinating the masses and curbing the pandemic?

Preliminary research suggests that the omicron variant may potentially induce a robust immune response. Olga Siletskaya/Moment via Getty Images

Courtesy of Prakash Nagarkatti, University of South Carolina and Mitzi Nagarkatti, University of South Carolina

In the short time since...



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Biotech/COVID-19

Is the omicron variant Mother Nature's way of vaccinating the masses and curbing the pandemic?

 

Is the omicron variant Mother Nature’s way of vaccinating the masses and curbing the pandemic?

Preliminary research suggests that the omicron variant may potentially induce a robust immune response. Olga Siletskaya/Moment via Getty Images

Courtesy of Prakash Nagarkatti, University of South Carolina and Mitzi Nagarkatti, University of South Carolina

In the short time since...



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Digital Currencies

Why do you need a Bitcoin ETF when they already made you one?

 

Why do you need a Bitcoin ETF when they already made you one?

Courtesy of 

Chart via Piper Sandler’s new note on Coinbase. They don’t think it’s trading as a proxy for Bitcoin but I know it is. Here’s their take:

COIN shares have performed in-line with bitcoin since reaching an all-time closing high on 11/9/21. COIN shares and the price of bitcoin (which we use as a proxy for broader cryptocurrency pric...



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Politics

5 things to know about why Russia might invade Ukraine - and why the US is involved

 

5 things to know about why Russia might invade Ukraine – and why the US is involved

Courtesy of Tatsiana Kulakevich, University of South Florida

U.S. President Joe Biden said on Jan. 19, 2022, that he thinks Russia will invade Ukraine, and cautioned Russian president Vladimir Putin that he “will regret having done it,” following months of building tension.

Russia has amassed an estimated 100,000 troops along its border with Ukraine over the past several months.

In mid-January, Russia began moving ...



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Chart School

Bitcoin Swings Down to Support

Courtesy of Read the Ticker

Come on! Seriously do you think a 400% rally for Bitcoin was going to be given to the public easily. Without any pain! Come on muppets!



The uniformed (public) buy when price is rising or breaking new highs, the informed buy when price is falling or breaking lows.



The informed have to do it this way as they are large volume players and the only way they can buy large volume is to create chaos. The chaos brings to the market the weak holders and a forced sell. Price is moved to where the volume can be accumulated, in a bull trend that is down to critical support.



Of course if price is in a true bull market the 'chaos' created should not break critical long term trend signals, ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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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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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