Posts Tagged ‘MCP’

Molycorp Options Volume Soars As Shares Tumble

MCP – Molycorp, Inc. – Options volume is up sharply on Molycorp on Tuesday after the rare earth elements producer forecast negative third- and fourth-quarter cash flow, lower than expected sales, and said it will offer approximately $200 million of common stock to finance its capital needs. Shares in the name fell as much as 22% to $5.54, the lowest level since June.

Trading in MCP options is heavier than usual, with overall volume up above 90,000 contracts as of 2:30 p.m. ET versus the stock’s average daily volume of around 18,700 contracts. The most traded options on Molycorp thus far in the session are the Oct $5.5 strike puts, with around 21,000 lots exchanged against zero open interest. Time and sales data suggests most of the volume was purchased at an average premium of $0.19 each. Put buyers may profit at expiration next week if shares in MCP decline another 4.2% to breach the average breakeven point on the downside at $5.31. 

FDX – FedEx Corp. – Shares in FedEx are up sharply on Tuesday after the company announced its Board of Directors authorized a new share repurchase program of up to 32 million of outstanding shares of common stock, adding to the 7.4 million shares remaining as part of the company’s existing buyback program. FDX shares increased as much as 6.1% to a new multi-year high of $122.45 during morning trading.

Trading in April 2014 expiry options on FedEx today indicates some traders are positioning for shares in the name to extend gains during the next six months. Upwards of 6,000 of the Apr ’14 $125 strike calls changed hands against open interest of 372 contracts by midday in New York trading, with much of the volume purchased for an average premium of $6.75 each. Traders long the $125 calls stand ready to profit at expiration next year in the event that FedEx shares rally another 7.5% to exceed the average breakeven price of $131.75.


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Rumor Mill Spurs Heavy Trading In FedEx Options

Today’s tickers: FDX, MCP & NYCB

FDX - FedEx Corp. – Shares in FedEx rose as much as 7.25% on Tuesday morning to $106.00, the highest level since March, fueled by speculation the company may be the target of activist investor and Pershing Square Capital Management L.P. CEO, Bill Ackman. Rumors sparked heavy trading in FDX options, with volume nearing 60,000 contracts by 11:55 a.m. ET versus average daily volume of around 6,700 contracts. Trading in FedEx calls is outpacing that of puts, pushing the call/put ratio to 3.35 at midday. Options traders that were quick to place short-term bullish bets on the stock straight out of the gate this morning are seeing big intraday gains in the value of their positions today. It looks like early-movers picked up roughly 1,300 weekly calls at the Jul 12 ’13 $103 strike for an average premium of $0.79 per contract during the first hour of trading. These contracts are now in the money and changing hands at a last-traded price of $3.35 each, a roughly four-fold increase since this morning, as of 12:15 p.m. in New York.

MCP - Molycorp, Inc. – Upside call options in play on rare metals mining company, Molycorp, Inc., this morning look for shares in the name to rebound in the near term. Shares in MCP are up 4.0% today at $6.04 as of 12:15 p.m. ET. The most actively traded contracts on Molycorp as measured by volume are the Aug $7.0 strike calls, with volume in excess of 12,500 contracts versus open interest of 2,699 lots. Time and sales data suggests most of the volume was purchased for an average premium of $0.24 apiece, thus positioning call buyers to profit in the event that MCP shares rally 20% over the current price of $6.04 to exceed the average breakeven point…
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Bearish Options Active On Molycorp As Shares Nosedive

 

Today’s tickers: MCP, IACI & LNKD

MCP - Molycorp, Inc. – Shares in rare earth metals mining company, Molycorp, Inc., are reeling Thursday morning after the Greenwood Village, Colorado-based company missed its 2012 production target and lowered its 2013 revenue and cash estimates. The stock is currently down 24% on the day to stand at $8.20 as of 11:00 a.m. ET. Analysts at JPMorgan cut their price target on the stock to $5.00 from $8.00 today. Options traders positioning for shares to weaken further by the end of this week initiated bearish plays in weekly put contracts. Put volume is on the rise at the Jan 11 ’13 $9.0, $8.5 and $8.0 striking prices this morning. Traders appear to have purchased around 1,100 in-the-money puts at the $9.0 strike, and another 2,350 lots at the $8.5 strike in the early going. The $8.0 strike puts have traded upwards of 2,200 times thus far today versus zero previously opened positions, with the bulk of the contracts purchased for an average premium of $0.13 apiece. Traders long the Jan. 11 ’13 $8.0 strike puts stand ready to profit at expiration this week should Molycorp’s shares decline another 4% from the current price of $8.20 to breach the average breakeven point at $7.87. MCP shares, down more than 70% since January 2012, last traded below $7.87 on November 23rd.

IACI - InterActiveCorp – Options activity on media and Internet company, InterActiveCorp, this morning indicates one trader is preparing for shares in the name to potentially decline in the near term, perhaps following the company’s fourth-quarter earnings report in February. Shares in the operator of online dating websites, match.com and okcupid, are down more than 3% today at $43.99 as of 11:15 a.m. in New York. The single-largest transaction in IACI options this morning was the purchase of 1,500-lot Feb. $40/$45 put spread for a net premium of $1.55 each. The bearish spread makes money if shares in InterActiveCorp slip 1.2% from the current level to trade below the breakeven price of $43.45. Maximum potential profits of $3.45 are available…
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Big SPY Put Spread Established As Market Awaits Jackson Hole Gathering

 

Today’s tickers: SPY, MCP & JNPR

SPY - SPDR S&P 500 ETF – A massive bearish spread initiated in the final hours of the trading session on Monday afternoon suggests one big options market participant is prepared for a roughly 8% pullback in the S&P 500 Index during the next few months. Shares in the SPY, an exchange-traded fund that tracks the performance of the S&P 500 Index, slipped to an intraday low of $140.97 earlier today after consumer confidence fell the most in 10 months, but have since recovered to stand 0.10% lower on the session at $141.40 as of 11:30 a.m. ET. The large, approximately, 100,000-lot Nov. $130/$140 put spread purchased Monday for around $2.47 per contract makes money if the price of the underlying slips 2.7% to breach the average breakeven point on the downside at $137.53. Maximum potential profits of $7.53 per contract are available on the position in the event SPY shares drop 8% to settle at or below $130.00 at November expiration. The strategy could be looking ahead to the meeting of central bankers in Jackson Hole, Wyoming; betting the markets may be disappointed in what Bernanke and others have to say as the U.S. settles in for the long weekend. Additionally, with the S&P 500 Index having traded up to its highest in four years on an intraday basis last week, the spread may simply be locking in recent gains to protect against any bumps in the road, central bank-related or otherwise, that could trip up the market in the next few months.

MCP - Molycorp, Inc. – Shares in Molycorp are up 11.5% today at $10.61 after the rare earth metals mining company announced Monday it began operations at its Mountain Pass mine in California. Weekly call options on Molycorp are seeing the most volume in the first half of the trading session, with the Aug. 31 ’12 $10 and $11 strike calls changing hands more than…
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Phil's Favorites

Free, Live Webinar on Stocks, Options and Trading Strategies

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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! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

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! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

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Zero Hedge

Futures Spike After Germany Yanks "Debt Break": Berlin To "Temporarily Suspend" Limit On Public Borrowing

Courtesy of ZeroHedge View original post here.

The Germans may have opposed closing borders in response to the outbreak in Italy, but it appears Berlin is planning to do something about the outbreak.

According to reports, the Germans are stepping up to suspend Berlin's longstanding constitutional "debt break" and deliver the fiscal stimulus for which economists have been begging.

To try and prevent a full-blown recession ...



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Biotech & Health

World economy flashes red over coronavirus - with strange echoes of 1880s Yellow Peril hysteria

 

World economy flashes red over coronavirus – with strange echoes of 1880s Yellow Peril hysteria

Courtesy of John Weeks, SOAS, University of London

As the novel coronavirus pandemic continues to unfold, travel restrictions are being imposed around the world. China is the main target, with various countries including Australia, Canada and the US placing different restrictions on people who have travelled through the country ...



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Insider Scoop

Benzinga Pro's Top 5 Stocks To Watch For Wed., Feb. 26, 2020: DIS, SPCE, BYND, SDC, JCP

Courtesy of Benzinga

Benzinga Pro's Stocks To Watch For Wednesday

  • Disney (DIS) - The company announced Bob Iger will step down as CEO, to be replaced by Bob Chapek. Iger will assume the role of Executive Chair through 2021. Disney shares were down about 2% on the news. 
  • Virgin Galactic (SPCE) - Shares were down 4% following Q4 results. The company reported a nearly $73 million loss on sales of under $530K. The stock is probably one of the most popular stocks on Wall Street right now: about 15 million shares trade per day on average; on Tuesday, ahead of the earnings report, about 41 million shares traded. Virgin Galactic was about a $6 billion market-cap company ...


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Kimble Charting Solutions

Dow Industrials Reversal Lower Could Be Double Whammy for Stock Bulls!

Courtesy of Chris Kimble

Dow Jones Industrial Average “monthly” Chart

The Dow Industrials have spent the past 70 years in a wide rising price channel marked by each (1). And the past 25 years have seen prices test and pull back from the upper end of that channel.

The current bull market cycle has seen stocks rise sharply off the 2009 lows toward the upper end of that channel once more.

In fact, the Dow has been hovering near the topside of that price channel for several months.

But just as the Dow is kissing the top of this channel, it might be creating back-to-back “monthly” bearish ...



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The Technical Traders

Yield Curve Patterns - What To Expect In 2020

Courtesy of Technical Traders

Quite a bit of information can be gleaned from the US Treasury Yield Curve charts.  There are two very interesting components that we identified from the Yield Curve charts below.  First, the bottom in late 2018 was a very important price bottom in the US markets.  That low presented a very deep bottom in the Yield Curve 30Y-10Y chart.  We believe this bottom set up a very dynamic shift in the capital markets that present the current risk factor throughout must of the rest of the world.  Second, this same December 2018 price bottom set up a very unique consolidation pattern on the 10Y-3Y Yield Curve chart.  This pattern has been seen before, in late 1997-1998 and late 2005-2008.

...

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Chart School

Oil cycle leads the stock cycle

Courtesy of Read the Ticker

Sure correlation is not causation, but this chart should be known by you.

We all know the world economy was waiting for a pin to prick the 'everything bubble', but no one had any idea of what the pin would look like.

Hence this is why the story of the black swan is so relevant.






There is massive debt behind the record high stock markets, there so much debt the political will required to allow central banks to print trillions to cover losses will likely effect elections. The point is printing money to cover billions is unlikely to upset anyone, however printing trillions will. In 2007 it was billions, in 202X it ...

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Members' Corner

Threats to democracy: oligarchy, feudalism, dictatorship

 

Threats to democracy: oligarchy, feudalism, dictatorship

Courtesy of David Brin, Contrary Brin Blog 

Fascinating and important to consider, since it is probably one of the reasons why the world aristocracy is pulling its all-out putsch right now… “Trillions will be inherited over the coming decades, further widening the wealth gap,” reports the Los Angeles Times. The beneficiaries aren’t all that young themselves. From 1989 to 2016, U.S. households inherited more than $8.5 trillion. Over that time, the average age of recipients rose by a decade to 51. More ...



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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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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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