Posts Tagged ‘LXK’

AT&T Call Volume Jumps As New Trading Year Begins

Today’s tickers: T, PAYX, LXK & THRX

T - AT&T Inc. – A large bullish position initiated in AT&T call options this morning indicates at least one strategist expects shares in the wireless provider to near their highest of the past 52 weeks. The stock rose 0.85% to $30.49 in the first half of the first trading session of 2012. Options volume on AT&T is heaviest at the Feb. $31 strike, where more than 26,000 call options changed hands against open interest of 6,174 contracts. The bulk of the volume was purchased in one block of roughly 20,400 calls at a premium of $0.26 each. The call buyer may profit at expiration next month in the event that shares in AT&T rally another 2.5% to surpass the breakeven price of $31.26. The wireless provider is scheduled to report fourth-quarter earnings ahead of the opening bell on January 26.

PAYX - Paychex, Inc. – A burst of call and put activity on Paychex in the first hour of trade in the New Year suggests the price of the underlying is likely to make big moves ahead of February expiration. Shares in the provider of employee benefits outsourcing solutions to small and medium sized businesses rose 1.65% to stand at $30.61 as of 11:40 AM ET. Likely the work of one investor, it appears both calls and puts were purchased on Paychex this morning in anticipation of increased volatility in the share price. It looks like the trader purchased roughly 4,000 calls at the Feb. $31 strike for an average premium of $0.62 each, and purchased around 2,650 in-the-money puts at the same strike at a premium of $1.20 apiece. The transactions were not marked as a spread or straddle, but the implications of each position are similar to those of a long straddle. The long calls…
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Options Players Sweet On Dunkin’ Brands Calls As Quiet Period Winds Down

    Today’s tickers: DNKN, AXP, LXK & CBG

DNKN - Dunkin’ Brands Group, Inc. – Options activity on the franchisor of Dunkin’ Donuts and Baskin-Robbins quick service restaurants spiked one day before analysts are expected to initiate coverage on the company. Shares in DNKN rallied as much as 6.1% to $27.95 this morning, but cooled to $26.95 in early-afternoon trade as investors await analyst opinion on the stock. The Canton, Massachusetts-based company’s shares are currently a far-cry from the $31.94-high achieved days after the IPO, but some traders are looking to the options market to speculate on a move in that direction. More than 3,000 options have changed hands on the stock thus far in the session, which is substantial next to overall open interest of 5,439 contracts. Demand is decidedly skewed in favor of calls on Dunkin’ Brands, with roughly 7 call options trading on the stock for each single put option in play this afternoon. The wave of activity lifted options implied volatility on DNKN 9.1% to 59.18% by 1:10 pm on the East Coast.

Bullish players itching for a near-term rally in the price of the underlying snapped up calls in the front month. It looks like traders purchased at least 1,000 calls at the September $30 strike for an average premium of $0.36 a-pop. Call buyers profit if shares in the provider of frozen treats and breakfast sandwiches surge 12.65% over the current price of $26.95 to surpass the average breakeven point to the upside at $30.36 by September expiration day. Like-minded optimists hungry for a Dunkin’ rally picked up around 185 calls out at the October $30 strike for a premium of $1.00 per contract. Positive analyst coverage of the America runs on Dunkin’ donut-maker could potentially spur a sprint to buy up shares in the stock to the delight of call holders. Of course, if it turns out analysts don’t quite have a sweet tooth for ice…
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Oracle Bulls Envision 10% Rally in Shares by June Expiration

Today’s tickers: ORCL, KFT, CLF, JPM, JCP, MCD, ROK, HK, TIE & LXK

ORCL – Oracle Corp. – Options players are initiating bullish stances on software development firm, Oracle Corp., today ahead of the company’s third-quarter earnings report scheduled for Thursday after the closing bell. Oracle’s shares rallied 0.95% during the current session to trade at a new 52-week high of $25.80. Medium-term optimists scooped up 10,600 call options at the June $28 strike for an average premium of $0.37 per contract. Perhaps plain-vanilla call buyers foresee continued bullish movement in the price of Oracle’s shares through expiration in June. Investors long the calls accrue profits if shares of the underlying stock surge 10% from the current price to breach the breakeven point at $28.37 by expiration day.

KFT – Kraft Foods, Inc. – Voracious investor appetite for call options on Kraft Foods this afternoon pushed the KFT ticker symbol onto our ‘most active by options volume market scanner’ as shares of the U.S. food maker jumped 2.25% to a new 52-week high of $30.40. It looks like one particularly bullish individual satisfied his hunger for Kraft-calls by purchasing a large chunk of 16,000 contracts at the September $32 strike for a premium of $0.69 apiece. The investor holding the call options is prepared to reel in profits on the position if Kraft’s shares rally another 7.50% from the current value to surpass the breakeven price of $32.69 by expiration day in September.

CLF – Cliffs Natural Resources, Inc. – Shares of iron ore pellet producer, Cliffs Natural Resources, jumped more than 6.00% during the trading day to arrive at a fresh 52-week high of $69.34. Investors celebrated Cliffs’ new high by enacting a plethora of bullish options strategies on the stock. One such individual established a ratio risk reversal in order to cover the cost of taking a long position in Cliffs-calls. The optimistic trader sold 1,500 deep in-the-money put options at the July $75 strike for a premium of $11.50 per contract, and purchased 3,000 calls at the same strike for an average premium of $4.51 each. The reversal player pockets a net credit of $2.48 per contract on the transaction, which he keeps if shares of the underlying stock rally up to or above $75.00 by expiration. Additional profits also accumulate for the trader should shares breach the effective breakeven price of $75.00. Other bullish investors initiated…
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American Express Investor Trades Puts for Calls

Today’s tickers: AXP, EFA, XL, LXK, AVP, WERN, ISRG & CHK

AXP – An investor hoping for a medium-term rally in AXP put on a bullish reversal in the October contract. Shares of the global payments and travel company are currently trading a wee-bit higher, up 0.25% to $28.94. The reversal involved the sale of 7,500 puts at the October 26 strike price for a premium of 1.45 each spread against the purchase of 7,500 calls at the higher October 31 strike for 1.85 apiece. The investor paid a net 40 cents for the transaction. He will realize profits on the trade if shares can rally 9% higher to breach the breakeven point at $31.40 by expiration. Interestingly, we essentially observed the antithesis of the trade we just described, last Friday July 17, 2009. Rather than getting long call options, an investor last week sold calls at the October 30 strike to buy put options at the October 25 strike. The direction in which the price of the underlying moves over the next few months will determine whether today’s bullish reversal or last week’s risk reversal result in profits to those individuals responsible for the trades. – American Express Co.

EFA – Shares of the exchange-traded fund have dipped 0.25% to stand at $47.63 this afternoon. The EFA caught our attention after a couple of bullish reversals were established in the December and January 2010 contracts. One investor sold 5,000 puts at the December 49 strike price for a premium of 3.90 apiece in order to purchase 5,000 calls at the same strike for 2.72 each. The trader received a net credit of 1.18 per contract for the transaction. Additional profits are available if shares rally above $49.00 by expiration at the conclusion of 2009. Another bullish-reversal was enacted at the January 49 strike price, although the trade involved the sale of 1,100 puts against the purchase of 1,100 calls for a net credit of 1.53 to the investor. – iShares MSCI EAFE Index ETF

XL – The provider of insurance and reinsurance coverage edged onto our ‘hot by options volume’ market scanner after a large-volume transaction was initiated in the January 2010 contract. Shares of XL are currently off by 2% to $12.53. At first glance, the 20,000 put options purchased at the January 5.0 strike price for 35 cents apiece, smells of bearish. However, it appears that
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Lexmark Call Buyers Out In Force

Today’s tickers: LXK, EEM, MT, VIX, HUM, IPI, MIR & UNH

LXK – The world’s fifth-largest printer and toner seller announced that printers with internet connectivity and programmable software will be available in September. Shares of LXK have enjoyed an approximate rally of 2% to $18.13. Investor’s bullish on LXK concentrated their interest in call options on the stock today. The now in-the-money August 17.5 strike price had about 1,700 calls picked up for an average premium of 1.25 apiece. Investors long of these calls are hoping shares of LXK will rise 3% from the current price to surpass the breakeven point at $18.75. Traders who are looking for an even sharper rally bought 2,000 calls at the higher August 20 strike for 35 cents per contract. Shares would need to climb higher by 12% before traders breakeven at a price of $20.35. Option implied volatility surged to 52% on the stock, up from yesterday’s reading of about 46%. – Lexmark International, Inc.

EEM– Shares of the emerging markets fund have climbed approximately 1% to stand at $31.40. The spread of a massive number of put options between the July and August contracts caught our attention today as one investor looks to be taking a bearish stance on the exchange-traded fund. It appears that some 73,000 puts were sold at the July 31 strike price for an average premium of 37 cents apiece and spread against the purchase of 73,000 puts at the lower August 30 strike for 1.07 each. The net cost of the calendar spread amounts to 70 cents to the party responsible for the transaction. Shares of EEM would need to decline by about 7% before the investor begins to garner profits at the breakeven point to the downside at $29.30. – iShares MSCI Emerging Markets Index

MT– The steel producer attracted the attention of bearish traders today amid a very slight dip in shares by less than 0.5% to $30.84. The near-term July 30 strike price saw the short sale of approximately 3,100 in-the-money calls for a premium of 1.30 per contract. Given the high degree of risk inherent in uncovered call selling, it would seem that the investors responsible for writing the calls expect shares of MT to fall below $30.00 by expiration. The full 1.30 premium received for the sale will be retained as long as the call options land out-of-the-money by this
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Phil's Favorites

Kurds targeted in Turkish attack include thousands of female fighters who battled Islamic State

 

Kurds targeted in Turkish attack include thousands of female fighters who battled Islamic State

Courtesy of Haidar Khezri, University of Central Florida

Kurdish fighters under attack by Turkey have described President Donald Trump’s decision to withdraw U.S. troops from northern Syria as a “stab in the back.”

Since bombing began on Oct. 9, Turkish military operations against the Syrian Democratic Forces in northern Syria, Washington’s staunchest and most effective allies in the war against the Islamic State, has killed at least 11 civilians...



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Zero Hedge

Uber & Out: Ride-Hailing Firms Lays Off Another 350 Staff

Courtesy of ZeroHedge

In the third round of layoffs since its IPO (and post-IPO share price plunge), Uber CEO Dara Khosrowshahi announced the job cuts in a company-wide email this morning.

Khosrowshahi told staff that around 350 employees across several teams within the organization, including Uber Eats, will be laid off.

All of this comes about one month after Uber laid off 435 employees across its product and engineering teams and less than three months after Uber laid off about 400 people from its marketing team. At this point, most departments at Uber have been affected by layoffs.

One wonders if, like the...



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Insider Scoop

'Wait For A Better Entry Point': Datadog Analysts Initiate Coverage Following IPO

Courtesy of Benzinga

Datadog Inc (NASDAQ: DDOG) shares got off to a hot start on the public market following the company’s IPO in September. After pricing its IPO at $27 per share, Datadog jumped nearly 50% on its first day of trading and has held onto most of those gains in the stock’s first month of trading.

This week, investors get their first taste of what Datadog underwriter...



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Kimble Charting Solutions

New Gold Bull Market? Not Until This Happens!

Courtesy of Chris Kimble

After a big summer rally, Gold peaked out at $1566/oz in September.

Since then, Gold prices have been consolidating between $1475 and $1550.

So what’s happening here? Enter the Swiss Franc currency…

In today’s chart, we look at a key indicator (and correlation) for Gold. As you can see, the Swiss Franc has an uncanny resemblance to Gold.

Both Gold and the Franc are testing heavy resistance at the same time.

Until both breakout at (2), odds are low that a new Gold bull market emerges with another big rally leg higher....



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The Technical Traders

Lots of Upside Ahead for the Metals and Miners

Courtesy of Technical Traders

Palisade Radio talks with Chris as he discusses his approach to trading and why technical analysis works for him. He focuses on the chart and price action and explains why investors need to follow a trading strategy that suits their personality.

He cautions that a broad sell-off is likely when stocks move into the next bear market. This liquidation will pull everything down, including gold, for a time. Afterward, he anticipates a massive rally in the juniors.

Time Stamp References:

...



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Chart School

US Economic Review 2019Q4

Courtesy of Read the Ticker

An investor must form an opinion of the wider economic risk, here is a small sample of readtheticker.com US economy review.


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Example of the first chart in the video.


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Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of ...

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Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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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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