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

Are S&P 500 and Precious Metals Bears Just Getting Started?

By Monica Kingsley. Originally published at ValueWalk.

Scary selling yesterday? See how little the downswing has achieved technically, check out the other characteristics, and you‘ll probably reach the same conclusion I did. It‘s still about the tech getting its act together while much of the rest of the market is doing quite fine.

Q4 2020 hedge fund letters, conferences and more

Treasuries Are Under Pressure

The credit market confirm, as is obvious from the HYG:SHY ratio chart I‘m showing you. True, long-term Treasuries are under pressure, but I wrote on Monday that ...



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Kimble Charting Solutions

Will Bond Yields Fastest Rise In 50 Years Rattle Markets?

Courtesy of Chris Kimble

The waterfall decline of bond yields (and interest rates) has been met with an equally steep rally.

In fact, the 10-Year US Treasury bond yield is up 131% in 45 weeks, making it the biggest rally in 50 years! See the chart below.

Earlier today we asked if the 40-Year Bond Bull Market Is Over? And we highlighted how bonds and yields are facing an important test right now.

Will the record rise in bond yields continue? And will bond pric...



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Zero Hedge

Thousands Of Quakes Rock Iceland As Volcanic Eruption Could Be Brewing 

Courtesy of ZeroHedge View original post here.

Over the past week, there have been swarms of earthquakes on the Reyjanes Peninsula in Iceland. Most of the quakes are felt around Keilir volcano, just 20 miles south of the capital. Officials are warning similar quake activity has previously preceded volcanic eruptions.

According to the Icelandic Meteorological Office, thousands of quakes have hit the southwestern region of Reykjanes over the past week. The largest earthquake, a magnitude 5.6 on the Richter s...



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Politics

Why repressive Saudi Arabia remains a US ally

 

Why repressive Saudi Arabia remains a US ally

A demonstrator dressed as Saudi Arabian Crown Prince Mohammed bin Salman with blood on his hands protests outside the Saudi Embassy in Washington, D.C., on Oct. 8, 2018. Jim Watson/AFP via Getty Images

Courtesy of Jeffrey Fields, USC Dornsife College of Letters, Arts and Sciences

Saudi Crown Prince Mohammad bin Salman “approved an operation … to capture or kill Saudi journalist Jamal Khashoggi,” according to a...



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Phil's Favorites

Ensuring the minimum wage keeps up with economic growth would be the best way to help workers and preserve FDR's legacy

 

Ensuring the minimum wage keeps up with economic growth would be the best way to help workers and preserve FDR's legacy

It may seem like a lot, but it’s not the most important change in the bill. AP Photo/J. Scott Applewhite

Courtesy of Felix Koenig, Carnegie Mellon University

The US$1.9 trillion pandemic relief bill that the House ...



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Biotech/COVID-19

COVID-19 revealed how sick the US health care delivery system really is

 

COVID-19 revealed how sick the US health care delivery system really is

Many U.S. hospitals and clinics are behind when it comes to sharing information. Teera Konakan/Moment via Getty Images

Courtesy of Elizabeth A. Regan, University of South Carolina

If you got the COVID-19 shot, you likely received a little paper card that shows you’ve been vaccinated. Make sure you keep that card in a safe place. There is no coordinated way to share information about who has been vaccinated and who has not.

...

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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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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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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

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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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