Posts Tagged ‘LPX’

Louisiana Pacific Put Options Active

LPX – Louisiana Pacific Corporation – Shares in the manufacturer of engineered wood building materials are sprinting higher on Thursday, rallying nearly 15% during morning trading to an intraday high of $17.47, after Louisiana Pacific yesterday announced it will acquire Ainsworth Lumber Co. for C$3.76 per Ainsworth common share in a deal valued at approximately USD $1.1 billion, according to a press release issued by the company. LPX was raised to ‘Buy’ from ‘Neutral’ at DA Davidson with a 12-month target price of $20.00 a share today. Trading in November expiry put options this morning suggests one trader may be unraveling a sizable long position in the contracts. Roughly 10,000 of the Nov $16 puts appear to have been sold this morning at an average premium of $0.81 each against open interest of 10,342 contracts. Time and sales data indicates most of the open contracts were purchased at a volume-weighted average price of $1.65 between August 13th and August 21st. The sale of the puts this morning could represent the unraveling of the long put position following the sharp move in the price of the underlying today. 

TWI – Titan International, Inc. – Put options purchased on the maker of wheels and tires for off-the-road equipment used in the agriculture, construction, forestry and mining industries this morning look for shares in Titan International to slump to fresh 52-week lows during the next six weeks. Shares today are in positive territory at present, up 0.20% at $16.05 as of 11:55 a.m. ET, though the stock is down more than 20% since this time last year. One trader stepped in to buy 1,000 of the Oct $15 puts during the first 15 minutes of the session, paying a premium of $0.55 for most of the contracts. The put options may be profitable at expiration next month in the event that shares in Titan International decline 10% from the current price to trade below the breakeven point at $14.45. The stock last traded below $14.45 in October of 2011.  


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Arena Pharmaceuticals Options in High Demand as Shares Rally to New 52-Week High

Today’s tickers: ARNA, EXPE, LPX & NLY

ARNA – Arena Pharmaceuticals, Inc. – Shares of the biotechnology firm surged 14.6% this morning to a new 52-week high of $8.00 inspiring options investors to establish near-term bullish stances on the stock as the battle royal between the firm and its competitors to get an obesity drug on the market continues to rage. Arena’s shares are currently up 7.90% to stand at $7.53 as of 12:35 pm ET. Investors positioning for continued upward movement in the price of the underlying shares picked up 1,900 now in-the-money calls at the August $7.0 strike for an average premium of $0.93 apiece. In-the-money call coveters make money if Arena’s shares are trading above the average breakeven price of $7.93 at expiration. Buying interest spread to the higher August $8.0 strike where bulls purchased approximately 2,600 calls for an average premium of $0.58 each. Arena’s shares must rally 13.95% over the current price of $7.53 in order for August $9.0 strike call buyers to start to accumulate profits above the breakeven point to the upside at $9.58 by expiration day in August. Other optimists paid an average premium of $0.27 per contract to take ownership of 1,000 calls at the August $9.0 strike. Traders long the higher-strike calls profit as long as ARNA’s shares jump 23.1% to surpass the breakeven price of $9.27 by August expiration. Options traders exchanged more than 46,900 calls on the stock by 12:42 pm ET. Approximately 2.35 calls changed hands on Arena for each single put option in action thus far in the trading session.

EXPE – Expedia, Inc. – Online travel company, Expedia, popped up on our ‘hot by options volume’ market scanner in the first half of the trading day due to near-term activity in both calls and puts. Expedia’s shares surged 9.5% to touch an intraday high of $23.08 on news the firm reported earning second-quarter net income of $0.44 a share, which exceeded the average analyst forecast of $0.42 a share, after the closing bell on Thursday evening. EXPE’s shares are currently up 7.40% on the day at $22.63 as of 12:50 pm ET. Bullish players hoping to see Expedia’s shares extend gains scooped up approximately 1,100 now in-the-money calls at the August $22.5 strike for an average premium of $0.95 each. Call buyers stand ready to profit should the largest online travel company’s shares rally another…
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Gold Bull Buys Butterfly Spread

Today’s tickers: GLD, AA, KR, AMD, HAL, LOW, CTRP, STR & LPX

GLD – SPDR Gold Trust ETF – Gilded butterfly wings unfurled in the July contract on the GLD, an exchange-traded fund designed to mirror the performance of the price of gold bullion, in afternoon trading with shares of the underlying fund flying 1.30% higher at a new 52-week high of $122.24. Options investors exchanged more than 478,100 contracts on the gold fund as of 3:35 pm (ET). Overall, trading action on the GLD was dominated by bullish players tossing around more than 2 call options to each single put option in play today. One bullish individual expecting the price of gold bullion to continue to appreciate in the next few months purchased a call butterfly spread in the July contract. The investor picked up 6,500 calls at the July $123 strike for an average premium of $4.40 each [wing 1], in combination with the purchase of 6,500 calls at the higher July $143 strike for $0.63 apiece [wing 2]. The third leg of the trade centered at the July $133 strike where 13,000 calls were sold for a premium of $1.59 a-pop [body]. The net cost of the spread amounts to $1.85 per contract and represents maximum loss potential assumed by the investor responsible for the transaction. Shares of the GLD must rally at least 2.15% over the new 52-week high of $122.24 before the investor starts to make money above the effective breakeven price of $124.85. Maximum potential profits of $8.15 per contract are available to the trader should shares of the underlying fund surge 8.80% to settle at $133.00 by July expiration. The spread is a very efficient way for this individual to take a bullish stance because the potential rewards are 4.4 times greater than potential losses.

AA – Alcoa, Inc. – The sale of a large chunk of June contract call options may be the work of an optimistic investor initiating a covered call on the stock. The aluminum maker’s shares are currently up 2.80% to $12.47 with 10 minutes remaining the session. It looks like one investor sold 19,000 calls at the June $13 strike for a premium of $0.42 apiece at around 1:06:16 pm (ET) when shares of the underlying stock were trading at $12.45 each. If the calls were sold in combination with the purchase of 1.9 million shares of stock –…
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Amazon Options in High Demand Following eBook Pricing Concession

Today’s tickers: AMZN, DELL, FXI, AET, XOM, LPX, CSCO, VCI & ITMN

AMZN – Amazon.com, Inc. – E-tailer, Amazon.com, Inc., attracted two-way trading traffic in its options today after the firm gave in to publisher, Macmillan’s, demands to increase the price of digital books. Amazon.com’s concession to Macmillan is fueling investor concerns that the largest internet retailer is relinquishing its pricing advantage. Shares of the online shopping destination slumped more than 8.65% during the trading session to an intraday low of $114.38 – the largest decline in Amazon’s shares in more than one year. Investors inundated Amazon with options trades today, exchanging more than 226,300 contracts on the stock by 2:50 pm (EDT). Option volume generated thus far in the session represents more than 45% of the total 493,697 lots of existing open interest on AMZN. Strong demand for options on the stock as well as a rise in investor uncertainty boosted option implied volatility on Amazon roughly 8.3% higher to 41.44% in afternoon trading. Option traders expecting shares to rebound quickly purchased 2,200 call options at the February $115 strike for an average premium of $5.67 apiece. The $120.67 breakeven price on the contracts suggests call buyers expecting to amass profits in the next few weeks, anticipate a more than 5% increase off the intraday low, by expiration day in February. Call buying and selling in roughly equal proportions was observed at the February $120 strike and at the February $125 strike. Two-way trading traffic of put options is also apparent in the February contract. Contrarian players sold nearly 8,000 puts at the February $115 strike to take in an average premium of $3.58 per contract. Put sellers at this strike keep the full premium received if AMZN’s shares trade above $115.00 through expiration day. The most bearish moves were made at the March $105 strike where 1,100 puts were picked up for an average premium of $2.81 each.

DELL – Dell, Inc. – Bullish investors initiated call spreads on the just-in-time manufacturer of personal computers this afternoon with Dell’s share price up 2.5% to $13.22 on the day. Option traders purchased more than 10,000 calls at the August $14 strike for an average premium of $1.17 apiece, spread against the sale of roughly 10,000 calls at the higher August $18 strike for an average premium of $0.20 each. The average net cost of the bullish trade amounts to…
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ValueWalk

S&P 500 (INDEXSP: .INX) in the red for a third straight day

By Jacob Wolinsky. Originally published at ValueWalk.

September 18, 2020 Update: The S&P 500 (INDEXSP: .INX) declined for a third consecutive day amid fears about the economic recovery in the U.S. and a new global surge in coronavirus infections. Today is also a “quadruple witching” day, which doesn’t help matters any. There is one such day every quarter when volatility is increased due to the expiration of futures and options on indexes and equities.

The S&P has been trading lower since Wednesday when the Federal Reserve signaled it would hold interest rates near zero for years as the economy continues to reel from the pandemic. Stocks were also pressured as the prospects of further stimulus from Congress grow even dimmer.

S&P 500 (INDEXSP: .INX) continues to hover close to record

August 17, 2020 Update: The S&P 500...



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Phil's Favorites

More Than One Third Of All NYC Residents Consider Leaving

Courtesy of Mike Shedlock via MishTalk

The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving.

High Income Flight

A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating.

The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents.

Key Findings ...

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Zero Hedge

More Than One Third Of All NYC Residents Consider Leaving

Courtesy of Mike Shedlock via MishTalk

The cost of living in New York City is so steep that in the past 4 months, 35% have considered leaving.

High Income Flight

A Siena College study shows 44 Percent of Six-Figure Earners in NYC Have Considered Relocating.

The study also states 80% of those living in the city make $100,000 or more, and that translates to 35.2% of all residents.

Key Findings ...

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Politics

Faked videos shore up false beliefs about Biden's mental health

 

Faked videos shore up false beliefs about Biden's mental health

Joe Biden faces a disinformation campaign promulgating the false notion that he is in cognitive decline. Gage Skidmore/Flickr, CC BY-SA

By Dustin Carnahan, Michigan State University

From Ronald Reagan in 1984 to Bob Dole in 1996 and even ...



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Kimble Charting Solutions

Gold Breakout Triggers Buy Signal, Is $3000 Next Target?

Courtesy of Chris Kimble

90-days ago this cup & handle pattern was discussed on See It Market when Gold was trading at 1717.

Fast-forward to today and Gold is up 15 percent. So it’s time for an update!

As we pointed out 90-days ago, the initial price magnet for the rally was the 261.8 Fibonacci extension that marked the 2011 high at (1).

That high has served as price resistance for nearly 9 years! …But it may be ...



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Biotech/COVID-19

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

 

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

Firefighters have battled camp crud before, but COVID-19 brings new risks with the potential for heart and lung damage. Robyn Beck/AFP/Getty Images

By Luke Montrose, Boise State University

Two forces of nature are colliding in the western United States, and wildland firefighters are caught in the middle.

Emerging research suggests that ...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

Golds bullish trend has worked well in 2020, so what is next over the immediate 3 to 6 months? Will we continue to see a golden future.

The US dollar had been strong into COVID 19, since then the FED has printing a lot of money, and they are also considering YCC (Yield Curve Control), last seen during WW2. [Note YCC lasted 9 years over WW2. WOW, that is a lot of money printing.]

The FED is now forecast to over take competing central banks balance sheets in size, and the release valve will be a falling US dollar. Therefore we should continue to see the US dollar maintain is slow leak down over the next 3 to 6 month, say on the DXY 82 to 88. 

Also, US election worries will add to the weakening of the dollar. Of course extreme chaos in W...

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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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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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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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