Posts Tagged ‘KMX’

Bullish Options In Play As CarMax Shares Pop

 

Today’s tickers: KMX, AA & MCO

KMX - CarMax, Inc. – Shares in used vehicle retailer, CarMax, Inc., jumped 13% this morning to $33.00 on positive comments regarding revenue growth and same-store sales at ITG Research. The stock is off its earlier highs this afternoon, trading up 9.3% on the day at $31.90 as of 12:40 p.m. ET. Options traders flocked to CarMax options straight out of the gate this morning, snapping up calls across several expiries to position for further upside in the price of the underlying. Near-term bullish positioning in the front month options is heaviest at the Oct. $32 strike, where around 1,200 calls were purchased for an average premium of $0.50 apiece. Traders long the $32 calls stand ready to profit at October expiration in the event that KMX shares add 1.9% to the current price of $31.90 to exceed the average breakeven point at $32.50. Upside calls expiring November 16th attracted fresh interest, as well. Options traders picked up around 700 of the Nov. $33 strike call at an average premium of $0.92 each and purchased some 480 calls at the Nov. $34 strike for an average premium of $0.60 apiece. Call buyers that may see profits in the event that KMX shares soar to a new 52-week high by November expiration, bought more than 300 calls at the Nov. $35 strike for an average premium of $0.39 per contract. Buyers of the $35 strike call start making money if CarMax’s shares surge 11% over the current price of $31.90 to top $35.39 by expiration next month.

AA - Alcoa, Inc. – All eyes will be on aluminum producer, Alcoa, Inc., on Tuesday when the company reports third-quarter earnings after the closing bell. Shares in the name are bucking the trend on a down…
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Put Spreader Prepares For Possible Market Rout

Today’s tickers: EFA, KMX & ONNN

EFA - iShares MSCI EAFE Index Fund – A massive put spread on the EFA, an exchange-traded fund made up of stock in multinational companies such as Nestle, Novartis and BP, to name a few, suggests one big options player is prepared should equities stumble over the next few months. Shares in the index developed as an equity benchmark for international stock performance rallied 2.5% to $51.80 this afternoon as stocks across the board look to end the week on a positive note. The put spread initiated on the fund may serve as a life preserver for its owner if (when) the next negative headline from Europe rocks markets once more. The investor purchased 55,000 puts at the Jan. 2012 $49 strike for a premium of $2.27 each, and sold the same number of puts at the lower Jan. 2012 $43 strike at a premium of $1.07 apiece. Net premium paid to initiate the spread amounts to $1.20 per contract, or a total of $6.6 million. The spread positions the trader to profit in the event that shares in the ETF fall 7.7% to breach the effective breakeven point on the downside at $47.80 by January expiration. Maximum potential profits of $4.80 per contract are available on the spread – that amounts to a cool $26.4 million – should shares in the EFA tumble 17.0% over the next few months to trade below $43.00 at expiration. Shares in the fund slumped to a 52-week low of $45.45 as recently as October 4, but have not traded below $43.00 since May 2009.

KMX - CarMax, Inc. – A flurry of put activity on CarMax, Inc. pushed the used car retailer onto our ‘hot by options volume’ market scanner this morning. Shares in the Richmond, Virginia-based company rose 0.80% to $28.60 in the first half of the session. It looks like one investor binged on KMX puts, perhaps to take an outright bearish stance on the stock through the end of the year, or to provide varying degrees of downside protection on a long position in the underlying shares. The investor purchased roughly 200 puts at the Dec. $28 strike, the closest to-the-money available in the expiry, for a premium of $1.10 each. Buying continued at the Dec. $26 and $27 strikes, where the trader picked up more than 650 puts at each strike at average premiums of $0.56 and…
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Options Fly Following Juniper Networks Disappointment

    Today’s tickers: JNPR, IACI, KMX & NWL

JNPR - Juniper Networks, Inc. – Investors are initiating diverse options strategies on the largest maker of Internet networking equipment today in the aftermath of an earnings miss that sent shares in Juniper Networks down more than 20.0% to a new 52-week low of $24.72. It looks like some traders are bracing for shares to extend losses, while other investors position for the stock to rebound. Meanwhile, investors holding previously established bullish and bearish positions on the stock may be throwing in the towel or taking profits off the table given the nosedive in the price of the underlying today. Call and put options on JNPR are by far the most active in the front month. Traders hoping to see shares recover are buying to open positions in out-of-the-money calls, with notable fresh interest building in the August $26 strike call. The closest to-the-money August $25 strike call chances hands more than 5,400 times by 1:30 pm ET, but trading traffic here is decidedly mixed as both sellers and buyers of the contracts made their mark. Calls at the August $28 strike are the most heavily traded, with upwards of 6,600 contracts having changed hands against open interest of 1,377 positions. Sellers of these options for an average premium of $0.18 a-pop cast doubt that Juniper’s shares will recover above $28.00 ahead of August expiration in a few weeks time. Open interest is substantial in deep out-of-the-money calls, which lost nearly all of their value overnight and today trade for a penny or two post-earnings. Near-term puts are active, as well. Buyers of the August $25 strike put paid an average premium of $1.12 each for some 1,500 contracts. Put buyers profit if shares in JNPR extend losses to trade beneath the lower breakeven price of $23.88 by expiration day next month. Finally, the heaviest put action up at the August $26 and $27 strikes may be the work of an investor taking profits on well-placed pre-earnings bearish positions.…
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Phil's Favorites

Whirlpool CEO Says Company Is About To Run Face-First Into $1 Billion In Inflation Costs

Courtesy of ZeroHedge

Whirlpool is the latest in a growing line of companies publicly stating that inflation has been a headwind for their business. Whirlpool CEO Marc Bitzer said yesterday that his company is going to run face first into $1 billion worth of inflation this year. 

"We have raised prices across the globe and we feel we are in a pretty good position to mitigate the effects of raw materials," Bitzer said yesterday, according to Yahoo.

He noted that "peak increases" due to inflation would be materializing in the current quarter. 

Despite the...



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Zero Hedge

Whirlpool CEO Says Company Is About To Run Face-First Into $1 Billion In Inflation Costs

Courtesy of ZeroHedge

Whirlpool is the latest in a growing line of companies publicly stating that inflation has been a headwind for their business. Whirlpool CEO Marc Bitzer said yesterday that his company is going to run face first into $1 billion worth of inflation this year. 

"We have raised prices across the globe and we feel we are in a pretty good position to mitigate the effects of raw materials," Bitzer said yesterday, according to Yahoo.

He noted that "peak increases" due to inflation would be materializing in the current quarter. 

Despite the...



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Digital Currencies

Is Amazon About To Start Accepting Crypto?

Courtesy of ZeroHedge

For the first time ever, Amazon has shown itself to be interested in crypto with a new major hire within its payments-focused team.

Posted on Thursday, the new role seeks an experienced product leader with expertise in blockchain, central bank digital currencies and cryptocurrencies to “develop the case for the capabilities which should be developed” and drive overall product vision.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap

The Amazon Payment Acceptance & Experie...



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Biotech/COVID-19

US is split between the vaccinated and unvaccinated - and deaths and hospitalizations reflect this divide

 

US is split between the vaccinated and unvaccinated – and deaths and hospitalizations reflect this divide

As coronavirus cases surge, unvaccinated people are accounting for nearly all hospitalizations and deaths. Fat Camera/E+ via Getty Images

Courtesy of Rodney E. Rohde, Texas State University and Ryan McNamara, University of North Carolina at Chapel Hill ...



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Chart School

Investing with Channels - Review

Courtesy of Read the Ticker

The US has a lot of debt, to sell more units of the debt to non US buyers the FED and Treasury must get the unit price of the debt down.

This video assumes a 'risk on' bullish bias into the Nov 2022 US mid terms. The bias assumes a US dollar trending down from it current high price of $93 on the DXY.






Chart 1 - US Dollar Channels


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Chart 2 - Ethereum/USD


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Politics

New York defines illegal firearms use as a 'public nuisance' in bid to pierce gun industry's powerful liability shield

 

New York defines illegal firearms use as a ‘public nuisance’ in bid to pierce gun industry’s powerful liability shield

Illegal gun use is now a public nuisance in New York. AP Photo/Bebeto Matthews

Courtesy of Timothy D. Lytton, Georgia State University

Could calling the illegal use of firearms a “public nuisance” bring an end to the gun industry’s immunity from civil lawsuits? ...



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Promotions

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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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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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