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

Why governments are so bad at implementing public projects

 

Why governments are so bad at implementing public projects

Around the world, government officials fail often at implementing policy and public sector projects. Here’s why. (Shutterstock)

Courtesy of Andrew Graham, Queen's University, Ontario

As Canada’s federal government starts looking for a replacement for its failed payroll system and the Ontario provincial government launches yet another major shake-up of its health-care system, it’s ...



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Zero Hedge

IMF Discreetly Preps Massive Aid Package For "Day After" Maduro's Fall

Courtesy of ZeroHedge. View original post here.

The International Monetary Fund is reportedly making plans for the "day after" embattled President Nicolas Maduro's fall, according to Bloomberg. Though there's been little momentum in military defections following US-backed opposition leader Juan Guaido's offer of amnesty to any army officer that switches loyalties, Washington sanctions have effectively strangled state-owned PDVSA's access to global markets. News of IMF maneuvering also comes amidst fresh reports the US is amassing aircraft, troops and armored vehicles on the Venezuelan border under the pretext ...



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Kimble Charting Solutions

Gasoline bullish breakout could fuel higher prices, says Joe Friday

Courtesy of Chris Kimble.

Are we about to pay much higher prices at the gas pump? Possible!

This chart looks at Gasoline futures over the past 4-years. Gasoline has become much cheaper at the pump, as it fell nearly 50% from the May 2018 highs. The decline took it down to test 2016 & 2017 lows at (1). While testing these lows, Gasoline could be forming a bullish inverse head & shoulders pattern over the past few months.

Joe Friday Just The Facts- If Gasoline breaks out at (2), we could all see higher prices at the gas pump. If a breakout does...



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Insider Scoop

10 Stocks To Watch For February 15, 2019

Courtesy of Benzinga.

Some of the stocks that may grab investor focus today are:

  • Wall Street expects PepsiCo, Inc. (NASDAQ: PEP) to report quarterly earnings at $1.49 per share on revenue of $19.52 billion before the opening bell. PepsiCo shares rose 0.2 percent to $112.82 in after-hours trading.
  • NVIDIA Corporation (NASDAQ: NVDA) reported upbe...


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ValueWalk

Global Quality Edge Fund: Tail-Risk Hedging Strategy

By Jacob Wolinsky. Originally published at ValueWalk.

Global Quality Edge Fund presentation titled, “Tail-Risk Hedging Strategy.” How to leverage the end of the business cycle without exposing our fund to permanent capital loss?

Alexas_Fotos / Pixabay

Objective:

  • Understand the current convergence between business cycle and the long term debt cycle.
  • Empathize the benefits of Tail Hedging as a means to shield from capital loss. We began implementing this strategy in Q4-2018 to protect the fund from significant market downturns, similar in sca...


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Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Reminder: We are available to chat with Members, comments are found below each post.

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

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Chart School

Weekly Market Recap Feb 10, 2019

Courtesy of Blain.

A good week for the bulls once again as a very overbought market essentially went sideways to help work off some of those near term extreme conditions.  The S&P 500 stalled exactly at the 200 day moving average after a frantic rally the past month and a half.  It was generally a quiet week with lowered volatility as the word “patience” continues to have the investor class in a happy daze.

In economic news, ISM Services fell from 58.0 in December to 56.7 last month, below economists’ expectations of a 57.4 reading. A reading above 50 indicates an expansion in activity.

For the week the S&P 500 gained 0.1% and the NASDAQ 0.5%.  That is 7 up weeks in a row.

Here is the 5 day weekly “intraday” chart of the S&P 500 … ...



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Digital Currencies

People don't trust blockchain systems - is regulation a way to help?

 

People don't trust blockchain systems – is regulation a way to help?

Using blockchain technology can feel like falling and hoping someone will catch you. Nicoleta Raftu/Shutterstock.com

Courtesy of Kevin Werbach, University of Pennsylvania

Blockchain technology isn’t as widely used as it could be, largely because blockchain users don’t trust each other, as research shows. Business lea...



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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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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