Posts Tagged ‘LNC’

Bearish Player Initiates Ratio Put Spread at Staples

Today’s tickers: SPLS, XCO, THC, FTO, YHOO, ERTS, LNC & GE

SPLS - Staples, Inc. – The supplier of office products popped up on our ‘hot by options volume’ market scanner late in the trading session after one investor initiated a bearish spread in the December contract. Staples’ shares are currently down 0.80% at $20.64 as of 3:15 p.m. in New York. The pessimistic player established a ratio put spread, buying 2,500 in-the-money puts at the December $21 strike for an average premium of $1.185 each, and selling 5,000 puts at the lower December $19 strike at an average premium of $0.39 apiece. The average net cost of the transaction amounts to $0.405 per contract. Thus, the investor is prepared to make money if the price of the underlying stock slips beneath the effective breakeven point on the spread at $20.595 by expiration day in December. Maximum potential profits of $1.595 per contract are available to the ratio-spreader if the office products company’s shares fall 7.945% from the current price of $20.64 to settle at $19.00 at expiration. The investor is vulnerable to losses in the event that Staples’ shares plummet far lower than he expects they will in the next several months. Losses start to accumulate for the trader if shares drop 15.7% lower and trade below the lower breakeven point at $17.405 by expiration day. Staples, Inc. is slated to report third-quarter earnings ahead of the opening bell on November 18, 2010.

XCO - EXCO Resources, Inc. – The oil and natural gas company was visited by one long-term bullish options investor in the second half of the trading session. It looks like the trader is expecting EXCO’s shares to rally significantly by expiration day in March of 2011. Shares of the Dallas, TX-based firm are up 2.05% at…
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Three-Legged Bearish Tactician Targets iShares Dow Jones U.S. Real Estate Index ETF

Today’s tickers: IYR, NSM, IGT, GFRE, LNC, BHI, ONNN & HPQ

IYR – iShares Dow Jones U.S. Real Estate Index ETF – A three-legged bearish options combination play on the IYR, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Dow Jones U.S. Real Estate Index – an index created to measure the performance of the real estate sector of the U.S. equity market, indicates one big player is bracing for a pullback in shares of the ETF through the end of 2010. Shares of the fund went the way of the market this afternoon and rallied 1.05% to $50.71 with less than one hour remaining in the trading week. The investor sold roughly 10,000 calls at the December $55 strike at an average premium of $1.35 each, purchased about 10,000 puts at the December $50 strike for an average premium of $3.65 apiece, and shed 10,000 puts at the lower December $43 strike at an average premium of $1.43 a-pop. The net cost of the pessimistic play is reduced to $0.87 per contract. The transaction could be a hedge to protect the value of a large position in IYR shares. But, if the spread represents an outright bearish bet on the ETF, the investor is poised to profit should shares dip below the average breakeven price of $49.13 by December expiration. Maximum available profits in this scenario amount to $6.13 per contract if the fund’s shares plummet 15.2% from the current price to trade below $43.00 by expiration day.

NSM – National Semiconductor Corp. – Shares in semiconductor manufacturer, National Semiconductor Corp., earlier slipped 2.05% to touch a new 52-week low of $12.41, but the stock came roaring back to life in afternoon trading, rallying as much as 3.2% to an intraday high of $13.08. The significant shifts in the price of the underlying shares inspired investors to purchase both call and put options on the stock today. Options traders may also be gravitating toward NSM options ahead of the firm’s first-quarter earnings report scheduled for September 9, 2010. Investors heartened by the turn-around in shares purchased approximately 5,800 calls at the November $13 strike for an average premium of $0.85 apiece. Call buyers make money if National Semiconductor’s shares rally another 5.9% over today’s high of $13.08 to trade above the average breakeven price of $13.85 by expiration…
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Ford Rally Fuels Bullish Options Activity

Today’s tickers: F, EEM, DELL, UPS, IYR, JACK, WFC, CLX, SKX & LNC

F – Ford Motor Co. – The automobile manufacturer’s shares are once again trading at a new 52-week high after rallying 4.00% today to $14.02. Upward movement in the price of the underlying stock inspired bullish options trading activity. One investor initiated a plain-vanilla debit call spread to position for continued share price appreciation through expiration in September. The trader bought 5,000 calls at the September $15 strike for a premium of $1.03 per contract, and sold the same number of calls at the higher September $17.5 strike for $0.40 each. The investor paid a net $0.63 per contract for the spread, but could gain as much as $1.87 per contract if Ford’s shares surge 25% over the current price to $17.50 by expiration day. Nearer-term put activity clashes with the bullish move described in the September contract. It looks like investors purchased at least 18,600 put options at the April $13 strike for an average premium of $0.27 apiece. Perhaps put buyers are long shares of the underlying stock and are merely picking up cheap downside protection. But, it could also be the case that traders are buying the puts outright because they expect Ford’s shares to decline ahead of next month’s expiration day. If the latter is true, put-buyers amass profits if shares trade beneath the effective breakeven point on the puts at $12.73 by expiration.

EEM – iShares MSCI Emerging Markets Index ETF – Shares of the EEM, an exchange-traded fund that mirrors the price and yield performance of the MSCI Emerging Markets index, rose 1.55% during the session to $42.24. Despite the move up in share price, one investor employed a total of 60,000 option contracts on the fund to establish a bearish risk reversal in the January 2011 contract. It appears the options player shed 30,000 calls at the January 2011 $48 strike for a premium of $1.60 apiece in order to partially finance the purchase of 30,000 puts at the January 2011 $38 strike for $2.88 each. The net cost of the reversal amounts to $1.28 per contract. The massive size of the position may mean the trader is currently long an equivalent number of underlying shares of the fund. If this is the case, the transaction provides downside protection on that position should the EEM’s share price erode ahead of…
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Zero Hedge

China Seizes "Large Cache Of Drugs" Hidden In Soy Ship From Brazil

Courtesy of ZeroHedge View original post here.

China's Brazilian soybean imports have skyrocketed in May after previously delayed cargo arrived. In one of the shipments, Chinese customs agents found hundreds of pounds of cocaine. 

Qingdao Customs in east China's Shandong Province seized 474 pounds of cocaine, the largest bust this year by the customs office. 

According to state-...



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Phil's Favorites

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

...



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Digital Currencies

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

...



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Biotech/COVID-19

COVID-19: why lab-leak theory is back despite little new evidence

 

COVID-19: why lab-leak theory is back despite little new evidence

...



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Chart School

RTT Plus Bulletin

Courtesy of Read the Ticker

RTT Plus private blog answer these questions over the last two weeks.

Ending: 2021-06-19

- Metal stocks very bullish after gold smash
- FED taper talk vs Basel 3
- Dollar devaluatioin before end of 2021
- COVID, Vaccine insight (off topic)
- The next play for the deep sate (off topic)
- The debt loaded USA can not break these economic stats


RTT Plus membership required to review.

RTT Plus members can include chart building services if you wish. If you you do not want chart building services select 'RTT Plus' only during the membership sign up process.

Sign up now!






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Politics

The Ukraine Fallacies (with Victor Rud)

 

The Ukraine Fallacies (with Victor Rud)

Americans are confused about the history of Ukraine. That's just how Russia wants it.

Courtesy of Greg Olear, at PREVAIL

Greg is the author of Dirty Rubles: An Introduction to Trump/Russia 

...

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Promotions

Live Webinar with Phil on Option Strategies

 

June is TD Bank's Option Education Month, and today (Thursday, June 10) at 1 pm EST, Phil will speak with host Bryan Rogers about selling options and various option strategies that we use here at Phil's Stock World. Don't miss this event!

Click here to register for TD's live webinar with Phil.

 

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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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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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