Posts Tagged ‘LYB’

Limited Brands Calls Look For Near-Term Rally

 

Today’s tickers: LTD, AGNC & LYB

LTD - Limited Brands, Inc. – Options on the operator of retail brands Victoria’s Secret, Bath & Body Works and others, are more active than usual today, with volume topping 8,500 contracts as of 1:40 p.m. ET, versus the stock’s average daily options volume of 1,058 contracts. The bulk of the action is in the October expiry options, where it appears one strategist purchased roughly 6,000 calls at the Oct. $49 strike for an average premium of $0.35 apiece. Upside call buying may pay off for the trader at expiration later this week if shares in LTD rally 1.7% over the current price of $48.54 to top the average breakeven price of $49.35. Limited Brands holds its 2012 Investor Day starting at 8:30 a.m. on Wednesday morning. The stock traded up to an all-time high of $52.20 in September.

AGNC - American Capital Agency Corp. – Shares in mortgage REIT, American Capital Agency Corp., fell as much as 9% this morning to an intraday low of $29.63, extending recent declines following the Fed’s decision last month to expand its mortgage bond-buying program. The stock, currently off its lows and down 2.4% on the day at $31.91 as of 1:05 p.m. ET, has dropped 13% in the past four weeks. A sizable bullish options trade initiated on AGNC this morning suggests one strategist is prepared to benefit from a rebound in the price of the underlying. The options player appears to have purchased 2,120 calls at the Nov. $31 strike for a premium of $1.27 apiece, and sold 4,240 calls at the Nov. $34 strike at a premium of $0.20 each. Net premium paid to establish the spread amounts to $1.07 per contract, with profits available on the upside in the event that AGNC shares reverse course and top the breakeven price of $32.07 by November expiration. Maximum potential profits of $1.93 per contract are available on the position should…
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Near-Term Bullish Bets On The Rise At Thermo Fisher Scientific

 

Today’s tickers: TMO, ODP & LYB

TMO - Thermo Fisher Scientific, Inc. – Front month call buying on the provider of analytical technologies and laboratory products suggests at least one options player is positioning for the price of the underlying to extend gains in the near term. Shares in Thermo Fisher Scientific moved up sharply in the first three months of the 2012, climbing nearly 30.0% to $58.37 by the end of March. April showers washed away some of those gains, however, with the stock surrendering around 9.0% during the first two weeks of this month. Today’s 2.6% pop in the price of the underlying to $54.72 saw a pickup in near-term bullish action on the stock. One or more traders snapped up calls on TMO, with around 1,090 contracts changing hands at the April $55 strike against open interest of 254 positions. Most of the calls appear to have been purchased for an average premium of $0.50 apiece, thus positioning buyers to profit should Thermo Fisher’s shares increase another 1.4% to surpass the breakeven price of $55.50 by expiration next week. The Waltham, Massachusetts-based company is scheduled to report first-quarter earnings ahead of the opening bell on April 25th, the week following options expiration.

ODP - Office Depot, Inc. – The single-largest trade in Office Depot options this morning appears to be a vote of confidence in the office supplies retailer, initiated by an investor positioning for shares in the name to trade north of $2.50 through October expiration. Shares today rose 3.5% to stand at $3.23 as of 12:45 p.m. in New York. It looks like the strategist responsible for the bullish bet on ODP sold 2,500 puts at the Oct. $2.5 strike to pocket premium of $0.25 per contract. The trader keeps the full amount…
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Options Feeding Frenzy Ensues On AT&T As DOJ Threatens T-Mobile Deal

Today’s tickers: T, LYB, XLY & NRG

T - AT&T, Inc. – The cost of buying AT&T put options that expire at the end of the week exploded after the U.S. Justice Department filed suit to block the telecommunications company’s proposed $39 billion acquisition of Deutsche Telekom’s T-Mobile USA, Inc., on grounds the deal would hamper competition in the wireless market. Shares in Dallas, Texas-based AT&T fell as much as 5.5% on the news to $28.00, while options implied volatility jumped 30.0% to 27.97%. Frenzied options trading ensued on AT&T during a news conference held to explain the lawsuit. Nearly 200,000 option contracts have changed hands on the stock as of 1:25 pm in New York. Put options are more active, with around 1.5 puts trading on AT&T for each single call option in play this afternoon.

Trading traffic in the weeklies suggests investors are scrambling for near-term downside protection and asking questions later. Puts granting the right to sell shares in the wireless provider at $29.00 were purchased roughly 1,000 times for just $0.08 apiece around one hour into the trading session, but news of the lawsuit saw premium required to buy those puts sky-rocket to $1.02 in under 60 minutes. All told, more than 7,100 of the September ’02 $29 strike puts changed hands against open interest of 1,432 contracts thus far today. It looks like the majority of the contracts were purchased for an average premium of $0.25 apiece. Investors piled into puts at the Sept. ’02 $28 strike, as well, driving volume up past 9,600 contracts by lunchtime. On the flip-side, traders expecting the stock to rebound somewhat before the week is out, picked up nearly 3,000 calls at the Sept. ’02 $29 strike at an average premium of $0.16 each, and another 1,000 calls…
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LyondellBasell Bulls Dabble in Chemical Maker’s Call Options

Today’s tickers: LYB, EEM, JACK & MWW

LYB - LyondellBasell Industries NV – Two sizable bullish options trades on the chemical manufacturer indicate strategists expect shares in LyondellBasell Industries to rise significantly over the next four months. Shares in the Rotterdam-based company increased as much as 2.9% today to secure an intraday high of $39.22 on a positive note from analysts at Morgan Stanley. A ratio call spread in the September contract was one of the two bullish plays initiated on LYB during the first half of the session. The investor responsible for the transaction purchased 6,500 calls at the September $40 strike for a premium of $2.90 each, and sold 13,000 calls up at the September $46 strike at a premium of $0.95 apiece. The net cost of putting on the spread amounts to just $0.10 per contract. Profits are available on the position if shares in the chemical company rally another 2.2% over today’s high of $39.22 to surpass the average breakeven price of $40.10 by expiration day in September. Maximum potential profits of $5.90 per contract pad the investor’s wallet in the event that shares surge 17.3% to settle at $46.00 at expiration. Shares in LYB traded as high as $48.12 at the beginning of May, the highest since the company’s emergence from Chapter 11 bankruptcy protection in 2010. The short stance in twice as many September $46 strike calls lowers the net cost of the trade substantially, but also adds an element of risk for the investor. Losses on the uncovered calls kick in if the price of the underlying stock jumps 32.3% in the next several months to surpass the upper breakeven price of $51.90 at expiration. Next, it appears a different bullish strategist purchased 10,000 calls at the June $39 strike for a premium of $1.80 each, and sold the same number of calls out at the September $45 strike for an average premium of $1.275 a-pop. The trader paid a net premium of $0.525 per contract…
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Options Investors Flock to Sallie Mae

Today’s tickers: SLM, LYB, SRZ & AUY

SLM - SLM Corp. – A barrage of bullish options traders targeted the student loan provider today perhaps on news SLM Corp. will continue to downsize and increase the number of company-wide layoffs to 2,500 by the end of next year. Shares in Sallie Mae rallied as much as 3.4% today to touch an intraday high of $12.28, with shares currently trading 2.35% high on the day at $12.16 just before 12:30 pm. Plain-vanilla call buyers expecting bullish movement in the price of the underlying shares to continue picked up 1,500 in-the-money calls at the December $12 strike for an average premium of $0.36 each. Call buying spread to the higher December $13 strike where more than 4,700 call options were purchased for an average premium of $0.14 a-pop. Investors holding the December $13 strike contracts are prepared to make money should SLM Corp.’s shares surge 8.05% over the current price of $12.16 to exceed the average breakeven point at $13.14 by expiration day this month. Bulls also targeted longer-dated put and call options to gain upside exposure on the stock. It looks like one strategist sold 10,000 puts at the January 2011 $11 strike for a premium of $0.22 each, in order to purchase the same number of April 2011 $15 strike calls at a premium of $0.22 apiece. The investor responsible for the transaction seems to be predicting a sharp recovery in SLM Corp. shares by April of next year. Shares in Sallie Mae would need to rally at least 23.35% for the trader to start to make money above the effective breakeven share price of $15.00. The sale of January 2011 $11 strike puts indicates the investor expects shares will exceed that price level through expiration day. But, also suggests the trader is willing to have 1,000,000 shares of the underlying stock put to him at $11.00 apiece should the puts land in-the-money ahead of January expiration. The sharp rise in demand for…
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Phil's Favorites

Why Jack Dorsey's Square paid a record $39 billion for Afterpay

 

Why Jack Dorsey’s Square paid a record $39 billion for Afterpay

Courtesy of Lien Duong, Curtin University and Sonny Pham, Curtin University

The A$39 billion (US$29 billion) that Twitter founder Jack Dorsey’s digital payments company Square is paying to acquire Australian upstart payments outfit Afterpay is the biggest takeover deal in Australian corporate history.

It surpasses the A$32 billion European commercial real estate giant Unibail-Rodamco agreed to pay for Frank Lowy’s Westfield Corporation in 2...



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Zero Hedge

Texas Judge Blocks Governor's Order Halting Transport Of Covid-Positive Illegals

Courtesy of ZeroHedge View original post here.

In a short-term victory for the Biden administration, a federal judge in Texas blocked an executive order which restricts the transport of infected illegal immigrants on Tuesday, suggesting that the order itself would have the effect of "exacerbating the spread of COVID-19."

U.S. District Judge Kathleen Cardone of El Paso agreed with the Justice Department, which accused Governor Greg Abbott (R) of potentially worsening the spread of the virus - as impeding the transfer of undocumented migrants would prolong the ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 13 March 2021, 06:40:57 PM

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Comment: @crossbordercap Peak liquidity already evidence from our GLI momentum signal...has 6-9 month lead-time on markets and 15-20 months on economies



Date Found: Friday, 19 March 2021, 10:55:22 PM

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Comment: ...



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Biotech/COVID-19

Americans Tend To Stick To Their Stance On COVID-19 Vaccines

 

Source: Bloomberg, via ZeroHedge

Courtesy of Felix Richter, Statista

As U.S. health officials and the Biden administration desperately try to kickstart the stalling rollout of COVID-19 vaccines in face of the highly contagious Delta variant, President Biden...



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Digital Currencies

What are stablecoins? A blockchain expert explains

 

What are stablecoins? A blockchain expert explains

Stablecoins promise more stability than other cryptocurrencies. DenBoma/iStock via Getty Images

Courtesy of Stephen McKeon, University of Oregon

Stablecoins are a type of cryptocurrency linked to an asset like the U.S. dollar that doesn’t change much in value.

The majority of the dozens of stablecoins that currently exist use the dollar as their benchm...



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Politics

Bipartisan infrastructure deal begins to address consequences of a warming planet: 3 essential reads

 

Bipartisan infrastructure deal begins to address consequences of a warming planet: 3 essential reads

A lot of coastal infrastructure wasn’t designed for the frequent flooding and crashing waves brought by rising seas. Jeffrey Greenberg/Universal Images Group via Getty Images

Courtesy of Bryan Keogh, The Conversation and Stacy Morford, The Conversation

...



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Promotions

Free Webinar Wednesday: July 7, 1:00 pm EST

 

Don't miss Phil's Webinar on July 7 at 1:00 pm EST. It's FREE and open to all who wish to join.

Click here: 

https://attendee.gotowebinar.com/register/6552545459443187211

Join us to learn Phil's trading tactics and strategies in real-time!

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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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