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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Phil's Favorites

Why are Atlantic and Gulf coast property owners building back bigger after hurricanes?

 

Why are Atlantic and Gulf coast property owners building back bigger after hurricanes?

Surf threatens beach houses on Dauphin Island, Alabama, September 4, 2011 during Tropical Storm Lee. AP Photo/Dave Martin

Courtesy of Eli Lazarus, University of Southampton and Evan B. Goldstein, University of North Carolina – Greensboro

U.S. coastal counties are densely populated and extensivel...



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Zero Hedge

Russian And South Korean Fighter Jets Face Off In "Mid-Air Confrontation"

Courtesy of ZeroHedge. View original post here.

For the first time since the fall of the Soviet Union, Russian jets flying through South Korean airspace provoked the South Korean military into a "midair confrontation" that involved firing hundreds of warning shots. All told, South Korean jets fired 360 machine-gun rounds and at least 20 flares, Bloomberg reports.

Three Russian military planes (two Tu-95 bombers and one A-50 airborne early warning and control aircraf...



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Insider Scoop

The Daily Biotech Pulse: Acadia Schizophrenia Drug Fails, Viveve Plummets, Eisai Gets Breakthrough Therapy Designation

Courtesy of Benzinga.

Here's a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech stocks hitting 52-week highs on July 22)

  • Acasti Pharma Inc (NASDAQ: ACST)
  • Apellis Pharmaceuticals Inc (NASDAQ: APLS)
  • Arcturus...


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Kimble Charting Solutions

Is Crude Oil Sending a Bearish Message to the Stock Market?

Courtesy of Chris Kimble.

Crude Oil (NYSEARCA: USO) and the S&P 500 Index (INDEXSP: .INX) have peaked and bottomed together several times in the past 9 months. See points (1) and (2) on the chart above.

In summary, the correlation between Oil and the stock market has been quite interesting and demands investors attention.

Crude Oil has been creating lower highs of late and is breaking price support at (3).

If the correlation remains the same, Crude Oil may very well be sending a bearish message to stocks.

Tricky spot for active investors – careful here.

...

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Chart School

RTT Plus Chart Book (Sneak Peak)

Courtesy of Read the Ticker.

The magic of support and resistance channel lines and how they direct price. Here are some chart disclosed to members via the RTT Plus service. All charts are a few weeks old. 


XAU bound by parallel channel lines.


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Newmont Mining support from Gann Angles.



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US Dollar index (DXY) dominate cycle ...

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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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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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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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

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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