Posts Tagged ‘LSI’

Traders Hop Into BNNY Puts after Frozen Pizza Recall Sends Shares Lower

 

Today’s tickers: BNNY, LSI & RFMD

BNNY - Annie’s, Inc. – Organic and natural food products provider, Annie’s, is taking it on the chin today after the company voluntarily recalled Annie’s Homegrown Frozen Pizza. The recall, initiated as a precautionary measure “due to the possible presence of fragments of flexible metal mesh caused by a faulty screen at a third-party flour mill”, according to a press release issued yesterday, spooked investors and sent shares in the name down nearly 14% after-hours to as low as $33.20. BNNY shares are currently off their lowest levelsbut remain firmly in negative territory, down 5.4% on the session to stand at $36.40 as of 11:10 a.m. ET on Wednesday morning. Options traders bracing for shares in Annie’s to potentially weaken further in the near term snapped up bearish puts on the stock. The Feb. $35 strike puts are the most actively traded contracts, with volume approaching 480 lots versus previously existing open interest of 32 contracts. Time and sales data indicates most of the puts were purchased for an average premium of $1.00 apiece. Put buyers may profit at February expiration in the event that BNNY shares decline 6.6% from the current price of $36.40 to breach the breakeven point on the downside at $34.00. The company is scheduled to report third-quarter earnings next week.

LSI - LSI Corp. – Upside call options on the maker of semiconductors and software are active this morning ahead of the company’s fourth-quarter earnings report after the closing bell. Shares in LSI Corp. are up 0.40% on the day at $7.33 as of 11:30 a.m. ET. The bulk of the volume in LSI options changed hands at the Feb. $7.0 strike, where upwards of 3,300 in-the-money calls traded against open interest of 1,512 contracts. It looks like most of the calls were purchased during the first few minutes of the trading session at an average premium of $0.60 apiece. Call buyers stand ready to profit at expiration should the price of the underlying climb 2.6% to top the average breakeven price of $7.60. The…
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Big Prints In Deutsche Bank Put Options

 

Today’s tickers: DB, ATHN & LSI

DB - Deutsche Bank AG – Heavy trading traffic in Deutsche Bank put options this morning, one week before the investment banking firm is scheduled to report fourth-quarter earnings, may mean some traders are bracing for a pullback. Shares in DB are currently up 0.40% to stand at $43.80 as of 12:40 p.m. in New York. The single-largest put trade on the stock today was the purchase of 9,500 puts at the April $40 strike for a premium of $2.45 each. Though the put options were not marked as a spread against stock, it is possible the put buyer seeks to protect the value of shares already in his or her portfolio. Alternatively, the investor may be taking an outright bearish stance on DB over the next three months. In the latter scenario, the trader may profit if Deutsche Bank’s shares plunge 14.3% to breach the effective breakeven point at $37.55 at April expiration. Meanwhile, the purchase of a 2,000-lot Mar. $35/$45 put spread at a net premium of $2.75 per contract yields profits – or downside protection – to its owner in the event of a 3.5% decline below the breakeven share price of $42.25. Traders populating DB options are overwhelmingly favoring puts over calls ahead of earnings, with today’s put-call ratio hovering just below 15.0 and overall put-call interest greater than 1.4.

ATHN - athenahealth, Inc. – One cautiously optimistic investor appears to have purchased a sizable position in athenahealth put options this morning in order to hedge a long position in the stock. Shares in the provider of cloud-based business services for physician practices rose 1.05% to $57.91 this afternoon, extending gains realized earlier in the week on the heels of a new…
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Mixed Trading in Career Education Corp. Options

Today’s tickers: CECO, ROST, LSI, ADBE, AVNR, PNC & ODP

CECO – Career Education Corp. – Shares of the for-profit provider of education geared toward career-oriented disciplines rallied as much as 10.9% during the session to secure an intraday high of $23.00 on analyst reports stating the industry is likely to rebound as bearish investors close out short positions. Options traders employed a mix of bullish and bearish strategies on the stock ahead of the release of the Education Department’s timeline for regulations on for-profit education industry firms tomorrow. One cautious investor prepared for CECO’s shares to falter ahead of October expiration by purchasing a ratio put spread. The options trader picked up 500 puts at the October $22 strike at a premium of $1.15 each, and sold 1,000 puts at the lower October $19 strike at a premium of $0.20 apiece. The net cost of the transaction amounts to $0.75 per contract. The investor is poised to profits should Career Education’s shares fall 7.6% from today’s high of $23.00 to breach the effective breakeven price of $21.25 by expiration day next month. Maximum potential profits of $2.25 are available to the trader if CECO shares plummet 17.4% to settle at $19.00 at expiration. In contrast, bullish players looking for a near-term rally picked up roughly 3,200 calls at the October $23 strike for an average premium of $1.02 each. Investors make money if shares gain 4.4% to surpass the average breakeven point at $24.02 by October expiration. The most optimistic traders purchased approximately 1,000 calls at the October $25 strike for an average premium of $0.43 a-pop. Call buyers at this strike stand ready to profit should shares surge 10.55% and exceed the average breakeven price of $25.43. Options implied volatility on stock is up sharply ahead of the Education Dept. announcement, and currently stands 11.6% higher on the day at 61.28%, as of 3:40 pm ET.

ROST – Ross Stores, Inc. – Shares of the operator of off-price retail apparel and home accessories stores increased as much as 2.3% during the trading session to secure an intraday high of $56.12. Ross Stores appeared on our scanners due to near-term activity in call options. It looks like the majority of trading in October contract calls is the work of one investor booking profits and rolling a previously purchased chunk of calls to a higher strike price. The investor likely…
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Whirlpool Call Buyers in a Spin Over New Chinese Factory

Today’s tickers: WHR, MRK, EBAY, RHI, XLP, MOS, GE, LSI & MGM

WHR – The manufacturer of appliances and products for home use experienced a 7% surge in shares to $53.34 after announcing yesterday that it has opened a new factory in China with another appliance company known as Hisense-Kelon Electrical Holdings. Option traders were seen buying bullish call options at the July 55 strike price where 2,800 lots were scooped up for 28 cents each. One investor was seen locking into gains by purchasing a put spread in the August contract. The August 50 strike price had 2,200 puts bought for 2.61 apiece spread against the sale of 2,200 puts at the lower August 44 strike for a premium of 86 cents. The net cost of the spread amounts to 1.75 and yields maximum potential profits of 4.25 if shares of WHR recede to $44.00 by expiration next month. Finally, additional bullishness was observed as high as the August 60 strike price where traders bought 1,200 calls for an average premium of 1.37 per contract. Option implied volatility on Whirlpool has been steadily rising over the past two days, opening at about 53% on Wednesday and increasing to the current reading of 60%. – Whirlpool Corp.

MRK– The pharmaceutical company appeared on our ‘hot by options volume’ market scanner this afternoon after a ratio put spread was implemented in the October contract. The investor responsible for the transaction appears to be positioning for continued downward movement in the stock. Shares are currently lower by less than 0.5% to $27.69. The ratio spread involved the purchase of 5,715 in-the-money puts at the October 29 strike price for a premium of 2.70 each against the sale of 11,440 puts at the lower October 26 strike for 1.20 per contract. By selling twice as many puts, the investor reduced the cost of the transaction to just 30 cents. Thus, he will attain the maximum profits available of 2.70 if the stock declines to $26.00 by expiration. – Merck & Co., Inc.

EBAY – Shares of the online marketplace have enjoyed a rally of more than 4% today to arrive at the current price of $18.61. Investors who are hoping for continued upward movement in the price of the underlying were seen positioning themselves in the August contract. Approximately 6,500 call options were coveted at the August 20 strike price
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Zero Hedge

Are Consumers Nearing The End Of Their Road Of Debt?

Courtesy of Zero Hedge. View original post here.

Via SchiffGold.com,

Are consumers getting close to the end of their road of debt?

Total consumer debt grew and set yet another new record in November, according to the most recent data released by the Federal Reserve. But the rate of growth slowed and credit card debt contracted slightly for the third month out of the last four.

Total consumer debt grew by $12.5 billion to $4.176 trillion. (Seasonally adjusted). That represents an annual growth rate of 3.6%, down from 5.5% in October.

The F...



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Kimble Charting Solutions

Hang Seng Index Double Topping At 2007 Highs?

Courtesy of Chris Kimble

Could the Hang Seng Index be “Double Topping” at its 2007 highs? Possible, yet not proven!

The Hang Seng Index attempted to break above its 2007 highs at (1), only to see a key reversal pattern take place the following month.

After the reversal pattern, the index has created a series of lower highs, just below falling resistance.

So far this month, the index is attempting to break above falling resistance, where it could be created a bearish reversal monthly pattern at (2).

What would it take to prove that a double top was i...



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Phil's Favorites

Baltic Dry Continues Epic Plunge As IMF Slashes Global GDP Forecast

Courtesy of ZeroHedge

The Baltic Exchange's main sea freight index hit a nine-month low on Monday, dragged down by falling rates of capesize and panamax segments as world trade continues to slump. 

The Baltic Dry Index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities across the world, dropped 25 points, or 3.3%, to 729 (according to Refinitiv data), the lowest level since April 2019:

  • The capesize index .BACI dropped 119 points, or 16.7%, to 593 - its lowest since April 23.The index registered its 27th straight session of losses, and also its largest daily percentage loss since early April.

    ...


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Insider Scoop

Earnings Scheduled For January 21, 2020

Courtesy of Benzinga

Companies Reporting Before The Bell
  • Halliburton Company (NYSE: HAL) is projected to report quarterly earnings at $0.29 per share on revenue of $5.11 billion.
  • TAL Education Group (NYSE: TAL) is estimated to report quarterly earnings at $0.09 per share on revenue of $839.96 million.
  • Signature Bank (NASDAQ: ...


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The Technical Traders

Using the copy-paste formula in the Forex market

Courtesy of Technical Traders

In Forex there are many techniques available to boost up the profit factors. However, as there are millions of people trying to make a profit it is not easy to get the right tricks. There are many brokers offering high leverage trading account to the interested traders. They also provide useful insight into the market so that the traders can make a decent profit. In fact, some brokers often sell signals to their clients so that they can start earning money in the early stage of their careers.

At present, this method has earned a huge following as many investors don’t like to spend time staring at the chart. In this article, we are going to try to bust the myth about this infamous technique...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Chart School

SP500 Kitchin Cycle Review

Courtesy of Read the Ticker

The biggest known news date in the next 18 months is the US Election. The biggest unknown news date is when the US believes it is in a economic recession.

The Kitchin Cycle is still working.

We must conclude the major 900 period low is now in, and we are now in a up swing, which may top out ate 2020 or late 2021. Any future top out may only generate a 10% to 20% correction, of course this can be deemed very mild. This is expected, but the expected does always play out. 

Rolling the dice to get '7' does not always work. Post US elections seasonal's aligned with a poor start of the decade seasonal trends, add on high global recession risk, add on a stock market slump tends to occur in the years ending 9,1,2,3,4 (like 1973, 1...



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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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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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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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