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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Zero Hedge

Facebook Moves 1.5 Billion Users' Data Out Of Europe To Circumvent New Privacy Law

Courtesy of ZeroHedge. View original post here.

This doesn't bode well for Facebook CEO Mark Zuckerberg and what remains of his tattered credibility.

After Zuck suggested (but stopping short of promising) during testimony before Congress last week that he would treat all Facebook users' data as if it fell under the European Union...



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Phil's Favorites

Trump's exports-good, imports-bad trade policy, debunked by an economist

 

Trump's exports-good, imports-bad trade policy, debunked by an economist

The White House frets about how the U.S. imports more stuff than it exports. AP Photo/Ben Margot

Courtesy of Ian Sheldon, The Ohio State University

President Donald Trump’s trade policy leaves international economists like me scratching our heads.

His apparent desire to start a ...



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Digital Currencies

Cryptos Continue To Surge As Tax-Day Passes

Courtesy of ZeroHedge. View original post here.

Crytpocurrencies are continuing their post-tax-day gains with Bitcoin above $8500, Ethereum at almost $600, and Ripple up over 30% on the week.

With Bitcoin back above $8,500...

And Ethererum is back above $550 - testing towards $600...

Certainly for now, the anecdotal performa...



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Insider Scoop

Cowen Says The Big Sell-Off In Skechers Is A Buying Opportunity

Courtesy of Benzinga.

Related SKX 25 Stocks Moving In Friday's Mid-Day Session Mid-Day Market Update: Skechers USA Falls After Weak Q2 Guidance; Ericsson Shares Climb...

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Chart School

Short Opportunity II

Courtesy of Declan.

The first chance for a short play got burned but there is a second one on offer for the S&P.

The S&P tagged channel resistance and while today's reversal off resistance didn't amount to a big percentage loss it did register as a distribution day. There wasn't any significant technical change so if this short does evolve it will do so with risk measured on a move above 2,717.


The Nasdaq may match a 'bearish evening star' but if this is the case there has to be a significant move lower tomor...

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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

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

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

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Biotech

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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OpTrader

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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Promotions

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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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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