Posts Tagged ‘LL’

Implied Volatility Continues To Climb As Lumber Liquidators Shares Tumble

The first trading session of the week is only halfway complete, yet options volume on Lumber Liquidators has already surpassed the stock’s average daily options volume of around 38,000 contracts amid continued vicious selling in the underlying. Shares in LL are down another 11% today and trading below $30.00, the lowest level since June 2012, as the stock continues to suffer in the wake of a 60 Minutes documentary and comments from short sellers. Options implied volatility is up more than 12% on the session at 115% as of midday.

Snapshots of option volumes and open interest across all expiries and striking prices on Lumber Liquidators reveals notable differences. Open interest in call options is heaviest in what are now far out-of-the-money contracts, notably the 65.0 strike calls, while put open interest is greatest in deep in-the-money contracts, namely the 60.0 strike puts.

Meantime, today’s action in LL options is dispersed across a wider swath of striking prices, perhaps as some traders look to position for further damage to the share price. March expiry put options at the 17.0, 20.0, 21.0 and 22.0 strikes are in play today, roughly 25-40% out-of-the-money versus today’s current share price.

Chart – LL open interest levels across expiries and striking prices

Chart – LL volume snapshot 3/9/15 at midday


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Sizable Put Spread Cautious On P&G Through Year End

 

Today’s tickers: PG, F & LL

PG - Procter & Gamble Co. – Consumer products giant, Procter & Gamble, is trading higher today in advance of the company’s first-quarter earnings report ahead of the opening bell on Thursday. Shares in P&G are currently up 1.25% to stand at $68.28 as of midday in New York. A sizable ratio put spread initiated on the stock this morning indicates one strategist is prepared for limited bearish movement in the price of the underlying through year end. It looks like the trader purchased 2,000 puts at the Dec. $67.5 strike for a premium of $1.22 apiece and sold 4,000 puts at the lower Dec. $65 strike at a premium of $0.56 each. Net premium paid to establish the position amounts to $0.10 per contract and provides downside protection – or profits – beneath a breakeven share price of $67.40 through December expiration. Maximum potential profits of $2.40 per contract are available on the ratio spread should P&G’s shares slide 4.8% from the current level to settle at $65.00 at expiration. Shares in Procter & Gamble last traded at $65.00 in the first week of August.

F - Ford Motor Co. – Shares in the automaker tacked on 1% this morning to stand at $10.10 by 10:50 a.m. ET on reports the company plans to close its last remaining vehicle-making plant in the United Kingdom. Near-term bullish positioning in Ford options straight out of the gate this morning suggests some traders anticipate further gains in the price of the underlying during the next couple of trading sessions. The most heavily trafficked of the Oct. 26 ’12 options contracts are the $10 strike calls, which changed hands more than 7,800 times against open interest of 2,843 lots. It looks like most of the in-the-money calls were purchased in the first 10 minutes of the trading session at an average premium of $0.17 apiece, thus preparing buyers to profit at expiration…
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Riverbed Options Active As Shares Soar

 

Today’s tickers: RVBD, LL & FCN

RVBD - Riverbed Technology, Inc. – Front month trading traffic on Riverbed Technology suggests the profits are flowing for one options strategist that hit it out of the park on a three-legged bullish position initiated ahead of the company’s second-quarter earnings report. Shares in the maker of computer networking products are up better than 26% to stand at $18.35 as of midday on the East Coast after the company posted better-than-expected earnings for the second quarter and said full year revenue is likely to increase more than analysts were expecting. It looks like one trader yesterday sold 2,000 puts at the Aug. $13 strike in order to partially offset premium required to buy a 2,000-lot Aug. $14/$17 call spread, all for a net premium outlay of $0.34 per contract. The sharp move to the upside in Riverbed’s shares overnight far exceeded the more than 15% rally required for the position to realize maximum possible profits. Activity in the options today suggests the trader is raking in the chips, closing out all three legs to enjoy net profits of $2.23 per contract in overnight gains. Meanwhile, traders positioning for Riverbed’s shares to extend gains in the near term picked up another 1,100 calls at the Aug. $19 strike for an average premium of $1.02 apiece. Call buyers may profit in the event shares tack on another 9% to exceed the average breakeven price of $20.02 by expiration next month.

LL - Lumber Liquidators Holdings Inc. – Shares in the retailer of hardwood flooring soared to a record today after the company posted better-than-expected second-quarter earnings and upped its full year profit and revenue forecasts. Lumber Liquidators shares jumped 25% to an intraday and new all-time high of $40.77 at the start of the session, sparking increased activity in options on the stock. Traders positioning for shares in Lumber Liquidators to continue higher in the near term purchased upside calls on…
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Zero Hedge

Will COVID-19 Lead To A Gold Standard?

Courtesy of ZeroHedge View original post here.

Authored by Alasdair Macleod via GoldMoney.com,

Even before the coronavirus sprang upon an unprepared China the credit cycle was tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.

The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds i...



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Phil's Favorites

What scientists are doing to develop a vaccine for the new coronavirus

 

What scientists are doing to develop a vaccine for the new coronavirus

It is critical to learn more about SARS-CoV-2, including its source and why transmission appears to be more efficient than with previous coronaviruses. (Shutterstock)

Courtesy of Marc-Antoine De La Vega, Université Laval

With an increasing number of confirmed cases in China and 24 other countries, the COVID-19 epidemic caused by the novel coronavirus (now known as SARS-CoV-2) looks concerning to many. As of Feb. 19, the latest numbers listed 74,280 confirmed cases including 2,006 deaths. Four of these de...



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Biotech & Health

What scientists are doing to develop a vaccine for the new coronavirus

 

What scientists are doing to develop a vaccine for the new coronavirus

It is critical to learn more about SARS-CoV-2, including its source and why transmission appears to be more efficient than with previous coronaviruses. (Shutterstock)

Courtesy of Marc-Antoine De La Vega, Université Laval

With an increasing number of confirmed cases in China and 24 other countries, the COVID-19 epidemic caused by the novel coronavirus (now known as SARS-CoV-2) looks concerning to many. As of Feb. 19, the latest numbers listed 74,280 confirmed cases including 2,006 deaths. Four of these de...



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Members' Corner

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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The Technical Traders

Gold Rallies As Fear Take Center Stage

Courtesy of Technical Traders

Gold has rallied extensively from the lows near $1560 over the past 2 weeks.  At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018.  Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer-term fear that is build...



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Kimble Charting Solutions

Precious Metals Eyeing Breakout Despite US Dollar Strength

Courtesy of Chris Kimble

Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.

The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).

What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.

In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.

The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further ...



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Insider Scoop

68 Stocks Moving In Friday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
  • TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
  • ...


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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Tuesday, 01 October 2019, 02:18:22 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

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Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



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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 ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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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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