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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Zero Hedge

NSA Launches Amazon-Backed Cloud-Computing Service For Sharing "Top Secret" Info

Courtesy of ZeroHedge. View original post here.

Four years after handing Amazon a $600 million contract to develop a cloud-storage service for the US intelligence community that can store information across the full range of data classifications - including Unclassified, Sensitive, Secret, and Top Secret - the NSA announced on Thursday that it has moved most of its mission data to a front-end cloud computing system developed by the agency that's supported by - you guessed it - A...



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Chart School

Large Caps Feel the Heat as Semiconductors Struggle

Courtesy of Declan.

Yesterday, Small Caps led the rally as Large Caps lost ground. Today, those same weak Large Caps took another hit and dragged Tech indices with them.  Small Caps also suffered but they have plenty of wiggle room before they hit trouble.

The Dow sell-off didn't stop at its 50-day MA and is now on course to test its 200-day MA. Technicals, aside from Stochastics, are bearish.


Of greater concern was the hit to the Semiconductor Index. The attempt to hold 1,393 support was swiftly ...

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Phil's Favorites

Opioids don't have to be addictive - the new versions will treat pain without triggering pleasure

 

Opioids don't have to be addictive – the new versions will treat pain without triggering pleasure

shutterstock.

Courtesy of Tao Che, University of North Carolina – Chapel Hill

The problem with opioids is that they kill pain – and people. In the past three years, more than 125,000 persons died from an opioid overdose – an average of 115 people per day – exceeding the number killed in car accidents and from gunshots during the same period.

America desperately needs safer an...



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Insider Scoop

Micron's Latest Earnings Call Was A 'Body Blow To The Bears': Analysts Weigh In

Courtesy of Benzinga.

Related MU Rosenblatt Securities: Micron's Q3 Shows 'Near-Flawless' Execution Investors Appear To Like Small Cap...

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Digital Currencies

BIS Blasts Cryptos In Special Report: "Beyond The Hype"

Courtesy of Mike Shedlock, MishTalk

The BIS blasts cryptos over scaling issues, energy, and trust. The BIS is correct. Cryptos are fatally flawed as money.

A Bank of International Settlements (BIS) report examines cryptocurrencies in depth. The study, called "Looking Beyond the Hype" investigates whether cryptocurrencies could play any role as money.

Bloomberg, Reuters, and the Bitcoin Exchange guide all have articles on the report but not one of the bothered to link to it.

After a bit of digging, I found the crypto report is part of an upcoming BIS annual report. The BIS pre-released the crypto report today (as chapter 5).

Here's a l...



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Biotech

Mind molding psychedelic drugs could treat depression, and other mental illnesses

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

 

Mind molding psychedelic drugs could treat depression, and other mental illnesses

By agsandrew/shutterstock.com

Courtesy of David E. Olson, University of California, Davis

It seems that psychedelics do more than simply alter perception. According to the latest research from my colleagues and me, they change the structures of neurons th...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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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

NewsWare: Watch Today's Webinar!

 

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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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