Posts Tagged ‘MDR’

Short-Term Bullish Bets On Yahoo Performing As Shares Push Higher

 

Today’s tickers: YHOO, FWLT & MDR

YHOO - Yahoo!, Inc. – Near-term bullish positions established on Yahoo yesterday are working for some options players on Friday, with shares in the name rallying as much as 4.5% this morning to $22.28, the highest level since July 2008. On Thursday, we noted upside call buying at the Mar. 08 ’13 $22 strike. More than 3,000 of the $22 strike weekly calls changed hands yesterday, with much of the volume purchased at an average premium of $0.11 per contract. Continued gains in the price of the underlying shares since then has pushed the value of those contracts up sharply overnight, with premium on the $22 strike calls nearly quadrupling to $0.40 as of 11:20 a.m. ET. Trading traffic in Yahoo weeklies this morning suggests some strategists are looking for short-term bullish positions to pay off next week as well. Volume in the Mar. 08 ’13 $22.5 strike calls is approaching 4,300 contracts versus open interest of 117 lots, and much of the volume appears to have been purchased in the early going for an average premium of $0.14 apiece. Buyers of the $22.5 strike call options may profit if shares in Yahoo continue to hit fresh multi-year highs next week.

MDR - McDermott International, Inc. – Shares in the provider of off-shore drilling platforms are down 13.75% at $10.97 this afternoon, wiping out all gains realized year-to-date, following the company’s fourth-quarter earnings report after the closing bell on Thursday. The company swung to a fourth-quarter profit, but projected 2013 revenue below average analyst expectations. A sizable position initiated in MDR puts ahead of the earnings report has benefited one strategist, with the value of the bearish options soaring overnight. It looks like the trader purchased 3,000 puts at the Mar. $12 strike yesterday afternoon for a premium of $0.30 per contract. The subsequent double-digit percentage drop in the price of the underlying lifted premium on the $12 strike put options to as high as $1.15 each this morning. The put buyer…
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Morgan Stanley Options Active As JPM Errs

 

Today’s tickers: MS, EWZ & MDR

MS - Morgan Stanley – JPMorgan’s trading loss troubles, which brought the shares down nearly 10.0% this morning, weighed heavily on Morgan Stanley as well. Shares in the financial services firm earlier fell 5.8% to an intraday and four-month low of $14.70. Options traders expecting MS to bounce back next week picked up cheapened upside exposure in the form of May expiry calls. The bullish plays may be winning propositions in the event of a near term recovery in the price of the underlying. Traders purchased around 2,100 of the May $14 strike calls for an average premium of $1.05 apiece, and picked up more than 4,800 calls at the higher May $15 strike at an average premium of $0.36 each. Premiums on the $14 and $15 strike calls have moved higher during the session as shares in the name recovered off the morning lows. Strategists holding in-the-money contracts with one week remaining to expiration face average breakeven prices of $15.05 and $15.36, respectively.

EWZ - iShares MSCI Brazil Index Fund – Shares in the EWZ, currently up 0.75% on the day at $57.53, may extend gains in the near term by the looks of bullish positioning in the June expiry options this morning. Call options on the fund are most active out at the June $60 strike, where more than 36,000 contracts changed hands against open interest of 9,244 positions. Most of the calls appear to have been purchased for an average premium of $0.80 apiece. The single largest stake, a block of 29,707 calls, was picked up just before 11:00 a.m. ET this morning. Call buyers stand ready to profit at expiration next month in the event that shares in the Brazil ETF rally 5.7% to top the average breakeven…
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Visa Traders Turn Call-Sellers After Regulatory Change

Today’s tickers: V, VIX, SY, TIVO & MDR

V – Visa Inc. – The decision to allow the Federal Reserve to regulate and therefore pressure fees charged by debit-card companies hampered shares at Visa today and in late morning trading they are 8% lower at $79.00. The slide slices the share price right through two five-dollar-wide strike prices and with options expiration next weekend, call sellers were quick to capture premiums available at the May 80 strike where 10,000 contracts have traded within a price range of $2.32 to $1.18. At its present share price those call options are worth nothing but the hope value they carry in the event of a recovery next week. Investors also boosted put premiums from a close yesterday at 73 cents to as high as $3.50 per contract at the May 80 line. Implied options volatility rose a further 8% to 38.7% today as uncertainty for the financial sector grew.

VIX – CBOE Vix Index – As investors’ trading screens once again turn a familiar red as Eurozone fears grow, the flashing red light of the CBOE’s Vix index heads inevitably higher. On Friday the index leapt 17% to stand at 31.33. It’s still well beneath the panic-driven peak of last week when it ran up to 42.15, yet today’s reading is the highest point in between then and now. One investor appeared to extend a bet that volatility is set to remain omnipresent using a 50,000 lot calendar call spread that appears to roll forward protection from May expiration to the June contract. The order combined the same amount of May call options at the 35 strike with June calls at the 37.5 strike. The net cost of the trade was $1.20 per contract.

SY – Sybase Inc. – Option trading indicates little upside room for Sybase after Germany’s SAP said it would pay $65 per share to acquire the enterprise software business. Having shot up from $40 before the deal to more than $65 yesterday option sellers appear to be writing chunks of $65 strike calls in the June and September contracts probably because they expect to see further declines in volatility and little improvement in an already generous deal that boosted the company’s capitalization by 63% in a stroke. The June call options carrying a $65 strike price have traded 13,000 times mainly at a 25-cent premium, while the September contract…
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Simon Properties upgrade leaves option traders with butterflies

Today’s tickers: SPG, AMR, EEM, MDR, EFA, EWZ, IP & M

SPG Simon Property Group, Inc. – The real estate investment trust (REIT) has experienced a significant rally of more than 9% to $42.16 today and was added to the ‘conviction buy’ list at Goldman Sachs. SPG appeared on our ‘most active by options volume’ market scanner after one investor established a long butterfly spread in the July contract. The purchase of 5,000 puts at the July 20 strike for 90 cents apiece (wing 1) and the purchase of 5,000 puts at the July 40 strike for 6.70 each (wing 2) were spread against the sale of 10,000 puts at the July 30 strike price for a premium of 2.80 per contract (body). The net cost of the transaction amounts to 2.00 (0.90 [wing 1] + 6.70 [wing 2] – (2.80*2 [body]) = 2.00). This investor will gain the maximum potential profit of 8.00 if shares settle at $30.00 by expiration. This strategy implies that he is hoping shares will fall from the current level through the breakeven point located at $38.00, at which point profits begin to amass to the downside. Should shares continue to rally rather than plummet, the most this trader can lose is the 2.00 he paid for the strategy. In order to reel in the full 8.00 of potential profits, shares would need to decline by 29% from the current price.

AMR AMR Corporation – American Airlines parent corporation, AMR, has experienced a huge share price rally as the stock jumped by more than 16% today to $4.90 after the company revealed narrower than expected first-quarter losses. AMR continues to struggle in this recessionary climate, but looks for travel demand to rise by the middle of the year. Option investors welcomed the better-than-expected results and were seen taking bullish stances on the company. At the May 5.0 strike price, 10,800 calls were purchased for an average premium of 70 cents per contract. One investor sold 6,850 puts at the May 4.0 strike price for 30 cents apiece in order to fund the purchase of 6,850 of the calls picked up at the May 5.0 strike. Finally, bullish investors looking to fly higher selected the May 6.0 strike where more than 3,400 calls were coveted for an average premium of 28 cents. Shares would need to continue on the up-and-up and gain another 22% in order…
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Phil's Favorites

Corporate boards are supposed to oversee companies but often turn a blind eye

 

Corporate boards are supposed to oversee companies but often turn a blind eye

Courtesy of Siri Terjesen, American University Kogod School of Business

A lot of giant companies are getting into big trouble these days.

When Boeing 737 Max aircraft crashed in Indonesia and Ethiopia, killing a total of 346 people in October 2018 and March 2019, the disasters raised serious questions about the safety of the aviation leader’s anti-stall system.

When some 5,000 Wells Fargo employees fra...



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Zero Hedge

iPhone X Sales Collapse Triggers Serious Breach Of Contract With Samsung 

Courtesy of ZeroHedge. View original post here.

In an exclusive, ChannelNews reveals Apple is facing hundreds of millions of dollars in penalty payments to Samsung because iPhone demand has fallen.

Apple "demanded" that Samsung construct one of the world's biggest OLED manufacturing facilities exclusively for iPhone screens.

...



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Kimble Charting Solutions

Wilshire 5000 Creating A Triple Top? An Important Breakout Test Is In Play!

Courtesy of Chris Kimble.

The stock market has been on fire of late, rallying up to the edge of price resistance on several indexes. Today, we look at one of those stock market indexes: the Wilshire 5000.

The Wilshire 5000 tracks all of the stocks in the US market, so it is a broad-based index that carries significant importance when gauging the health of the overall US stock market.

Looking at the long-term “weekly” chart above, it is pretty clear that the index is at an important price juncture.

The Wilshire 5000 spent the last 25 years trading within a rising price channel (1)...



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Insider Scoop

Jefferies Upgrades Deere, Cites 'Significantly Improved Farmer Income Outlook'

Courtesy of Benzinga.

Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE: DE), according to Jefferies.

The Analyst

Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190....



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Chart School

Formula for when the Great Stock Market Rally ends

Courtesy of Read the Ticker.

When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.

This is when a seriously over valued market is screaming at you.

Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT). 

To see when water company's (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The c...

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ValueWalk

The "Tesla Killer" Car Is Nowhere In Sight

 

The “Tesla Killer” Car Is Nowhere In Sight

By Jacob Wolinsky, ValueWalk

Here’s some catnip for the Tesla bulls on this email list: my analyst, Kevin DeCamp, a longtime TSLA shareholder and car owner, took a test drive of the Jaguar I-PACE and, while it “looks great and is fun to drive… it is lacking in a few areas where Tesla really shines.” He concludes that “Tesla may end up killing itself, but the “Tesla killer” car is nowhere in sight.”

The Tesla Killer Hasn’t Arrived Yet: My Test Drive of the Jaguar I-PACE

By Kevin DeCamp

As a long-time, devoted Tesla...



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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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