Posts Tagged ‘LYV’

Bear Put Spreads Take Shape In NetApp Ahead Of Earnings

 

Today’s tickers: NTAP, LYV & SGEN

NTAP - NetApp, Inc. – Options on the supplier of enterprise storage and data management software and hardware products and services are among the most active by volume today. Bearish positions are accumulating in the front month, with debit put spreads comprising the majority of overall options volume in the name. Shares in NetApp are currently down 1.1% to stand at $39.25 as of 1:20 p.m. ET, three days ahead of the Company’s third-quarter earnings report after the close on Thursday. The stock was cut to ‘hold’ from ‘buy’ with a share price target of $42.00 down from $54.00 at ThinkEquity today. It looks like one or more investors purchased the Feb. $34/$39 put spread roughly 9,000 times for an average premium of $1.85 per contract. Traders harnessing the strategy may be hedging long positions in the underlying shares or, alternatively, establishing outright bearish stances on the stock in the expectation that shares will pullback following earnings. Profits are available on the spread if shares in NetApp drop 5.35% to trade below the average breakeven price of $37.15. Put-spreaders could walk away with maximum potential profits of $3.15 per contract should NTAP’s shares plunge 13.4% to settle below $34.00 at expiration.

LYV - Live Nation Entertainment, Inc. – Put options on the live entertainment and eCommerce Company are more active than usual today, with more than 10 put contracts changing hands in the first half of the session for each single call option in play. Shares in the operator of Ticketmaster.com are up 0.90% at $10.82 just before 12:00 p.m. in New York. Traders may be snapping up put options on Live Nation Entertainment ahead of the Company’s fourth-quarter earnings report next Thursday after the close. The April $10 strike saw the…
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Bearish Player Unfurls Butterfly Wings on Financial Select Sector SPFR Fund (XLF)

Today’s tickers: XLF, CMA, LYV, WYNN, MRVL, AVP & PX

XLF – Financial Select Sector SPDR ETF – The familiar shadow of a put butterfly spread appeared in the August contract on the XLF, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, suggesting shares of the fund may continue to decline in the next couple of months to expiration. Shares of the ETF are currently down more than 3.7% to $13.96 with 25 minutes remaining ahead of the closing bell. The bearish put butterfly spread involved the purchase of 10,000 now in-the-money puts at the August $14 strike for a premium of $0.62 apiece [wing 1], and the purchase of 10,000 puts at the lower August $12 strike for a premium of $0.17 each [wing 2]. The investor sold 20,000 puts at the central August $13 strike for a premium of $0.32 a-pop [body]. The net cost of the pessimistic play amounts to $0.15 per contract, thus preparing the investor to make money if shares slip beneath the upper breakeven price of $13.85 ahead of expiration day in August. Maximum available profits of $0.85 per contract are safe in the investor’s piggy bank if shares of the underlying fund decline another 14% from the current price of $13.96 to settle at $12.00 at expiration. Options implied volatility on the XLF jumped 17.5% to 35.96% by 3:38 pm (ET).

CMA – Comerica Inc. – Shares of the financial services firm edged 3.45% lower to stand at $37.25 with just 20 minute remaining in the trading session. Bearish investors dominated activity in CMA options this afternoon, with nearly all of the day’s volume centering on the put side of the field. One investor purchased a debit put spread, buying 7,500 now in-the-money puts at the August $37.5 strike for a premium of $2.50 each, and selling the same number of puts at the lower August $32.5 strike for a premium of $0.80 apiece. The net cost of the spread amounts to $1.70 per contract, and prepares the investor to make money should Comerica’s shares decline another 3.90% to breach the average breakeven point to the downside at $35.80 by expiration day in August. Maximum potential profits of $3.30 per contract are available to the responsible party if CMA’s shares plummet 12.75% from the current…
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Contrarian Options Player Sheds Put Options on Lloyd’s Banking Group PLC

Today’s tickers: LYG, XLV, MSFT, XLF, F, AZN, LYV, AZO, MW & XLNX

LYG – Lloyd’s Banking Group PLC – One optimistic options strategist initiated a short put stance on Lloyd’s Banking Group PLC today, suggesting perhaps that shares of the underlying stock are not likely to collapse much further ahead of October expiration. Lloyd’s Banking Group shares fell as much as 8.9% to an intraday low of $2.88 in morning trading, but recovered slightly during the session to stand 5.05% off yesterday’s close at $3.16 a share as of 2:45 pm (ET). Across the pond, Lloyd’s Banking Group shares declined the most in London trading, falling 8.9% to 50.52 pence, as concerns over the creditworthiness of European financial institutions continues to weigh heavily on U.K. banking stocks. But, back to U.S. equity options on LYG, the contrarian investor opted to sell short 4,000 puts at the October $2.5 strike in order to pocket premium of $0.30 per contract. The trader keeps the full amount of premium received on the sale as long as LYG’s share price exceeds $2.50 through expiration day in October. The short sale of put options in this case implies the investor is happy to have 400,000 shares of the underlying stock put to him at an effective price of $2.20 each should the put contracts land in-the-money at expiration.

XLV – Health Care Select Sector SPDR Fund – A large chunk of out-of-the-money put options were purchased on the Health Care Select Sector SPDR Fund today as part of a delta neutral trade enacted by one cautiously optimistic options player. Shares of the XLV, an exchange-traded fund designed to produce investment results that correspond to the price and yield performance of the Health Care Select Sector of the S&P 500 Index, declined 0.65% to stand at $28.54 as of 3:35 pm (ET). It looks like the investor purchased up to 22,500 put options with a .31 delta at the September $26 strike for a premium of $1.08 per contract. The trader picked up the puts in conjunction with the purchase of stock at $28.25 a-pop. The delta neutral transaction is meant to offset potential losses faced by the investor should shares of the XLV continue lower because of the larger proportion of put options held by the trader. The purchase of shares of the underlying stock in combination with the put options indicates the investor…
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Goldman-Bulls Foresee Greener Pastures by July

Today’s tickers: GS, AMLN, LYV, KFT, PM, IYR, MAS, VMW, BKS & CAL

GS – Goldman Sachs Group, Inc. – Option traders assumed medium- and long-term bullish stances on the global investment banking and management firm today to position for a rebound in shares in the next six to twelve months. Shares edged 1.65% lower during the session to stand at $152.43 as of 2:45 pm (EDT). One optimistic individual sold 2,500 put options for a premium of $8.90 apiece at the July $140 strike in order to finance the purchase of 2,500 calls at the higher July $175 strike for about $6.10 each. The trader receives a net credit of $2.80 per contract on the risk reversal play, and keeps the full amount as long as Goldman’s shares trade above $140.00 through expiration in July. Additional profits amass if the stock price jumps 15% over the current price to surpass the $175.00-level by expiration. Longer-term optimism appeared in the January 2011 contract where another Goldman-bull purchased a call spread. The investor bought approximately 2,300 call options at the January 2011 $160 strike for an average premium of $17.38 apiece, and sold the same number of calls at the higher January 2011 $195 strike for about $6.50 each. The net cost of the spread amounts to $10.88 per contract. Maximum potential profits of $24.12 per contract accumulate if Goldman’s shares surge 28% from the current price to $195.00 by expiration next January.

AMLN – Amylin Pharmaceuticals, Inc. – Shares of biopharmaceutical company, Amylin Pharmaceuticals, are up more than 11% to a new 52-week high of $19.39 in afternoon trading. The stock opened the session even higher at $19.97 on “optimism that the company’s new version of diabetes treatment Byetta will be approved following U.S. regulators’ clearance of a similar drug”, according to an earlier report by Elizabth Lopatto at Bloomberg. Option traders initiated bullish plays on the stock to position for upward movement in AMLN shares, which is likely to occur if the Food & Drug Administration approves the once-weekly version of Byetta, known as Byetta LAR. One investor established a bullish risk reversal by selling 10,000 puts at the February $17.5 strike for a premium of $0.50 each, spread against the purchase of 10,000 calls at the higher February $20 strike for $0.80 apiece. The net cost of the reversal amounts to $0.30 per contract and positions the trader…
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Phil's Favorites

Why stock splits disappeared from our lives

 

Why stock splits disappeared from our lives

Courtesy of 

Apple is splitting its stock 4-for-1 in two weeks. What does it mean for you? What might it mean for the broader market? And why have stock split announcements become so scarce in recent years? Did something change?

The peak of the stock split era was from 1995 through 2000. Investors were buying stocks specifically because they were about to split. It was one of the dopiest aspects of an ...



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Zero Hedge

39% Of Younger Millennials Return Home Amid Crushing Recession 

Courtesy of ZeroHedge View original post here.

The virus-induced recession has abruptly upended younger millennials (ages 24 to 29) from living on their own, have now moved back home, according to a new survey.

The new survey, commissioned by TD Ameritrade (seen by CNBC), found that out of the 2,000 young millennials surveyed, about 39% are in the process or have already moved back home because of the c...



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The Technical Traders

Melt-Up Continues While Metals Warn of Risks

Courtesy of Technical Traders

What a week for Metals and the markets, folks. The Transportation Index is up nearly 4% for the week.  The Dow Jones Industrial Average is up over 3% for the week.  Silver is up over 14% and reached a peak near $30 (over 23%).  Gold is up over 2.5% and trading above $2025 right now – with a peak price level near $2090.  If you were not paying attention this week, there were some really big moves taking place.

MELT-UP WITH HIGH RISKS – PAY ATTENTION

Overall, our research team believes the current “melt-up” price action is likely to continue as global investors continue to believe the US Fed will do everything possible to save the...



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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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ValueWalk

Ubben Helping Investors Steer Away From Activist Investing With Inclusive Capital

By ActivistInsight. Originally published at ValueWalk.

Our profile in this month’s issue of Activist Insight Monthly is with Jeff Ubben, who recently shocked the activist community by taking his environmental and socially-focused Spring Fund outside of ValueAct Capital Partners, the firm he founded two decades ago. Under a new banner – that of Inclusive Capital Partners – he will have plenty of surprises up his sleeve and may face a few himself as he battles to change the way investors think about valuing companies and steer them away from short-term ac...



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Kimble Charting Solutions

Silver Headed Back To $50, Top Of The Cup & Handle Pattern?

Courtesy of Chris Kimble

Could Silver be creating a multi-decade bullish “Cup & Handle” pattern? Possible!

Did a retest of a handle breakout take place in March at (1), where Silver created one of the largest bullish reversals in decades? Possible!

Could Silver be creating a 40-year bullish pattern? Anything is possible! I humbly have to say share this; I’ve been in the business for 40-years and I haven’t seen anything like this.

Silver looks to have double topped back in 2011 at $50, which was the 1980 highs. After double topping, Silver ...



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Biotech/COVID-19

What the huge COVID-19 testing undercount in the US means

 

What the huge COVID-19 testing undercount in the US means

Health care workers use a nasal swab to test a person for COVID-19 in Pembroke Park, Florida. Joe Raedle / Getty Images News

Courtesy of Melissa Hawkins, American University

Researchers from the Centers for Disease Control and Prevention and other institutions recently published a study which estimated that the true number of people infected by COVID-19 could be six to 24 times high...



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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: Sunday, 29 March 2020, 07:00:37 PM

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Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



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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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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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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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