Posts Tagged ‘MCK’

McKesson Corp. Ratio Call Spread

A one-by-two ratio call spread initiated on McKesson Corp. (Ticker: MCK) on Monday looks for shares in the distributor of medical supplies to potentially push higher during the next couple of months. Shares in McKesson are trading lower in the final hour of trading, down 1.6% at $185.90 and near session lows as of 3:30 pm ET.
The largest trade on MCK today appears to be the purchase of 2,500 of the Aug 185.0 strike calls at a premium of $6.70 each against the sale of 5,000 of the Aug 190.0 strike calls for a premium of $3.80 apiece, resulting in a net credit to the trader of $0.90 per contract. Maximum potential gains available on the strategy (inclusive of the $0.90 net credit) amount to $5.90 per contract provided shares in McKesson rally 2.2% over the current price of $185.90 to settle at $190.00 at August expiration. Shares in McKesson last traded at $190.00 back on June 5th. The sale of twice as many of the 190.0 strike calls leaves the position vulnerable to losses on the upside in the event that shares in the name jump 5.0% to top an upper breakeven price of $195.90. The all-time high for MCK shares is $192.92.


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Put Options Active In Cognizant As Shares Edge Lower

Today’s tickers: CTSH, CZR & MCK

CTSH - Cognizant Technology Solutions Corp. – Put options are changing hands on IT consulting and technology services provider, Cognizant Technology Solutions Corp., this morning, with shares in the name declining as much as 1.1% to an intraday low of $78.12. The stock has declined 3.7% since last week after securing a new 52-week high of $81.12 during Thursday’s trading session. Cognizant was downgraded to ‘Sector Perform’ from ‘Outperform’ at Pacific Crest on Monday. One or more options traders bracing for further declines in Cognizant’s shares in the near term snapped up April expiry puts on the name in the early going today. The April $75 strike puts are the most actively traded contracts on Cognizant, with upwards of 5,800 lots in play versus open interest of 897 contracts. It looks like most of the volume was purchased during the first few minutes of the trading day for an average premium of $0.83 each. The contracts make money if shares in CTSH decline another 5.0% from today’s low of $81.12 to breach the average breakeven point on the downside at $74.17 by April expiration. Shares in Cognizant last traded below $74.17 in January.

CZR - Caesars Entertainment Corp. – Shares in casino operator, Caesars Entertainment Corp., are rallying Wednesday, up as much as 10.4% during the first half of the session to touch a new 52-week high of $15.83. Front month call buyers appear to be positioning for further gains in the price of the underlying ahead of the weekend, while fresh interest in April expiry puts suggests other strategists are prepared for shares to potentially decline during the next five weeks. Traders exchanged more than 1,100 in-the-money calls at the Mar. $15 strike by 12:30 p.m. ET on Wednesday, and it looks like most of the volume was purchased for an average premium of $0.48 per contract. Bullish bets may pay off at expiration later this week in the event that shares in Caesars settle above the average breakeven price of $15.48. Meanwhile, the most heavily traded options contracts on CZR so far today are the April $15 strike puts, with roughly 1,800 lots in play versus open interest…
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McKesson Calls Active Ahead of Earnings After the Bell

 Today’s tickers: MCK, SWY, EXM & CVLT

MCK - McKesson Corp. – Bulls are buying up call options on the drug and medical supplies distribution company today ahead of the firm’s third-quarter earnings report after the final bell. Shares in McKesson are currently up 0.50% to stand at $74.52 as of 12:25pm in New York. More than 5,800 calls have changed hands at the February $75 strike on paltry previously existing open interest of just 819 contracts at that strike. Investors taking bullish positions on McKesson ahead of earnings purchased more than 5,000 of the calls for an average premium of $1.45 per contract. Call buyers stand ready to make money should shares in the name rally another 2.6% to surpass the average breakeven price of $76.45 by February expiration. McKesson Corp.’s shares, which rallied up to $75.49 last week, have not traded this high since 1999. Options implied volatility on McKesson is up 13% at 26.23% in early afternoon trade ahead of earnings this evening.

SWY - Safeway Inc. – Activity in near-term put options on the food and drug retailer today suggests some investors expect shares in Safeway to rebound ahead of February expiration. Shares are up 1.25% at $20.77 just before 12:45pm in New York, but are down roughly 13.45% since November 5, 2010. Safeway will reveal its performance for the fourth quarter before the opening bell tolls on February 24, 2011. Bullish players appear to have sold the majority of the 18,500 puts that have changed hands at the February $20 strike on open interest of 1,595 contracts for an average premium of $0.20 each. Put sellers keep the full premium received on the sale as long as shares in Safeway exceed $20.00 through expiration day next month. More than 3,750 in-the-money put options changed hands at the higher February $23 strike on previously existing open interest of just 6 contracts. It looks like nearly 2,000 of the put options sold for an average premium of $2.57 a-pop. Investors selling the puts…
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M&A Monday – Goldman’s Golden Goose

Hope springs eternal at Goldman Sachs.

This morning our favorite Banksters goosed the EU markets by upping targets on international mining operators Kazakhmys, Lonmin and BHP and that got the European markets off to a flying start out of the gate, despite the fact that UBS had just DOWNgraded the same sector on Friday.  UBS said on Friday that the sector is facing difficult times concerning potential growth with government rulings on mineral leases and the proposed supertax on mining profits in Australia set to hinder metal-based stocks.

We also have a lot of M&A activity, also courtesy of GS, who are leading the resurgence this year with 225 deals to date worth $401.6Bn, accounting for about 20% of all activity going through Goldman's sticky fingers.  In a sign of the times, however, GS only generated $961M in revenues as an M&A advisor as they cut a lot of discounts in order to land the top spot in dealmaking.  Although outdealt by GS, MS, Rothchild, JPM and DB all made more in fees than the Uncle Lloyd show.

In a sign of the end of times, GS's London Headquarters has been taken over by lenders after the owner fell into receivership.  GS's landlord, Antedon, is an offshore real estate firm that bought the building for $500M at the top of the market in 2007 and GS has locked up the building through 2026 at what seems to be not enough money to keep Antedon liquid – it would be very interesting to trace the web of deals that led to this massive default.  

Meanwhile, the consortium of Irish investors that own GS's other London building are also bailing out, this action is coinciding with what Ireland's Independent says is a campaign by Wall Street Hedge Funds to short sell Irish Government Bonds.  US hedge funds Groveland Capital and Corrientes Advisors are thought to have taken major positions against Irish debt. Giant €60bn asset-manager Pictet also revealed that it had earlier bet against Irish government bonds. JP Morgan is also thought to have taken a bearish position on Irish debt.  The International Monetary Fund estimated that up to €3bn of Ireland's debt was being targeted by speculators through the uses of derivatives.

So,…
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ValueWalk

Bitcoin Investors Buys The Dip But The Dip Kept On Dipping

By Eloise Williams. Originally published at ValueWalk.

In the world of cryptocurrency it is exciting and challenging all at the same time. Investors are realizing that this currency could be the way of the future. But in the recent weeks Bitcoin has dropped a significant amount.

Q4 2021 hedge fund letters, conferences and more

Disclaimer: This is a satirical article.

Investors Dump Money In Bitcoin

Some investors frantically sol...



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Phil's Favorites

Indiscriminate selling

 

Indiscriminate selling

Courtesy of 

There are a few green stocks in the market today, and by “a few”, I mean you can count them on two hands and still have a few fingers left over. To gag yourself with. Those green stocks are things like Kohl’s (a special situation takeover story) and then it’s like grocery stores and shoe cobblers. That’s really it. Tesla is being absolutely mangled, which tells you which type of mutual funds and ETFs are being redeemed (liquidated?) today.

I have some buy limit orders in at completely out...



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Zero Hedge

Asian EM Stocks Clubbed Into Corrections As Monetary Tightening Takes Away Punch Bowl

Courtesy of ZeroHedge View original post here.

Major equity indexes in Asia are approaching or have already entered corrections as central banks (ex-China) prepare to hike this year. 

On Tuesday, Andrew Tilton, the chief Asia-Pacific economist at Goldman Sachs, told clients that Asian central banks (ex-China) would join the so-called "normalization train" with other monetary authorities and begin to hike interest rates in the second half of the year. 

Tilton points out that emerging market policy tightening is well underway. This means EM assets will face a challenging macro backdrop as elevated valuation...



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Biotech/COVID-19

How mRNA and DNA vaccines could soon treat cancers, HIV, autoimmune disorders and genetic diseases

 

How mRNA and DNA vaccines could soon treat cancers, HIV, autoimmune disorders and genetic diseases

Nucleic acid vaccines use mRNA to give cells instructions on how to produce a desired protein. Libre de Droit/iStock via Getty Images

Courtesy of Deborah Fuller, University of Washington

The two most successful coronavirus vaccines developed in the U.S. – the Pfizer and Moderna vaccines – are both mRNA vaccines. The idea of using genetic material to produce an immune response has opened up a world of research ...



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Politics

5 things to know about why Russia might invade Ukraine - and why the US is involved

 

5 things to know about why Russia might invade Ukraine – and why the US is involved

Courtesy of Tatsiana Kulakevich, University of South Florida

U.S. President Joe Biden said on Jan. 19, 2022, that he thinks Russia will invade Ukraine, and cautioned Russian president Vladimir Putin that he “will regret having done it,” following months of building tension.

Russia has amassed an estimated 100,000 troops along its border with Ukraine over the past several months.

In mid-January, Russia began moving ...



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Kimble Charting Solutions

Nasdaq Erases 7 months of Gains With Sharp Decline! Just Getting Started???

Courtesy of Chris Kimble

The tech wreck has been fast and furious. And considering that the stock market correction is still relatively new, we really don’t know if it will end soon or carry on for weeks/months.

Today’s chart is “linear” and takes a long-term “monthly” view. As you can see, the Nasdaq Composite Index registered a bearish monthly reversal at the top of the channel at (1).

And in the first 21-days of the year, this broad index of technology stocks has wiped out the prior 7 months of gains!...



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Chart School

Bitcoin Swings Down to Support

Courtesy of Read the Ticker

Come on! Seriously do you think a 400% rally for Bitcoin was going to be given to the public easily. Without any pain! Come on muppets!



The uniformed (public) buy when price is rising or breaking new highs, the informed buy when price is falling or breaking lows.



The informed have to do it this way as they are large volume players and the only way they can buy large volume is to create chaos. The chaos brings to the market the weak holders and a forced sell. Price is moved to where the volume can be accumulated, in a bull trend that is down to critical support.



Of course if price is in a true bull market the 'chaos' created should not break critical long term trend signals, ...



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Digital Currencies

The metaverse is money and crypto is king - why you'll be on a blockchain when you're hopping

 

The metaverse is money and crypto is king – why you’ll be on a blockchain when you’re virtual-world hopping

In the metaverse, your avatar, the clothes it wears and the things it carries belong to you thanks to blockchain. Duncan Rawlinson - Duncan.co/Flickr, CC BY-NC

Courtesy of Rabindra Ratan, Michigan State University and Dar Meshi, Michigan State University ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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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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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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