Posts Tagged ‘MDRX’

Bulls Prepping for a Rally Don Red Hat Call Options

Today’s tickers: RHT, MDRX, CQB & DOW

RHT - Red Hat, Inc. – Options activity in December contract calls on the world’s leading provider of open source solutions suggests shares in Red Hat may rally more than 10.0% to their highest in more than a decade by the end of 2011. The stock gained 1.80% this afternoon to trade at $44.57 by 12:30 pm on the East Coast, paring some losses realized earlier in this week. In the previous four weeks Red Hat’s shares moved up 17.0% on strong first-quarter earnings as well as analyst upgrades. Bullish strategists expecting the company’s shares to extend gains purchased around 4,390 call options at the December $46 strike on open interest of just 242 contracts. Traders paid an average premium of $3.40 per contract and stand ready to profit should Red Hat’s shares surge 10.8% over the current price of $44.57 to exceed the average breakeven point to the upside at $49.40 by expiration day in December. The Raleigh, NC-based company reports second-quarter earnings after the market closes on September 22. Call buyers may see the value of their positions sky-rocket if Red Hat’s second-quarter results send the price of the underlying skyward.

MDRX - Allscripts-Misys Healthcare Solutions, Inc. – Allscripts shares rose 1.1% to $19.96 this morning after the company said it expects adjusted earnings and revenues for the second quarter to come in better than analysts’ estimates. Despite positive comments from the Chicago, IL-based company, it looks like some options traders are positioning for shares in the healthcare information services company to pullback ahead of August expiration. Allscripts reports second-quarter earnings on August 4. MDRX shares rose 9.1% in the past two weeks, but put buyers populating the stock today are prepared to benefit should shares erase recent gains in the next…
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Impending FDA Decision Spurs Options Traders to Action at Human Genome Sciences

 Today’s tickers: HGSI, MDRX, JPM, ESV, FLR & SD

HGSI - Human Genome Sciences, Inc. – Shares in biotechnology company Human Genome Sciences are down 3.95% this afternoon at $25.23 as of 3:15 pm, but one options trader populating the December contract today is positioning for the stock to rebound ahead of a key FDA decision on its lupus drug treatment, Benlysta. A preliminary FDA review is set for release in one week, while an advisory panel with outside experts is scheduled to provide their input before the FDA provides a final ruling by December 9, 2010. The optimistic options player is well positioned to benefit from a strong rally in the biotech firm’s shares should approval of the lupus treatment become a reality. The trader purchased 5,000 calls at the December $26 strike for a premium of $4.30 each, and sold the same number of calls at the higher December $32 strike at a premium of $1.36 apiece. Net premium paid for the spread amounts to $2.94 per contract. Thus, the investor makes money if Human Genome’s shares reverse course and rally 14.7% over the current price of $25.23 to surpass the effective breakeven point to the upside at $28.94 by expiration day. The call-spreader stands ready to amass maximum potential profits of $3.06 per contract if shares jump 26.8% to trade above $32.00 by December expiration. Options implied volatility on the biotechnology company is up 12.1% at 141.59% as of 3:30 pm, and will likely continue to ascend ahead of the FDA’s critical ruling.

MDRX - Allscripts-Misys Healthcare Solutions, Inc. – Call options on the provider of clinical software, services, information and connectivity solutions to physicians and other healthcare providers are in high demand today ahead of the firm’s third-quarter earnings report, which is scheduled for release after the market closes on Monday. Shares in Allscripts are currently up 1.3% at $19.44 as of 2:15 pm. Plain-vanilla call buyers were the first to arrive on the scene, but the majority of the options volume…
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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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Investors HOG-Wild for Harley-Davidson, Inc. Options

Today’s tickers: HOG, SKS, MDRX, DFS, NFLX, IGT & DOW

HOG – Harley-Davidson, Inc. – Motorcycle maker, Harley-Davidson, Inc., attracted hoards of options investors during the session with its shares rallying as much as 5.85% in morning trading to secure an intraday high of $27.71. Harley’s shares are currently up a more modest 1.80% to $26.65 just before 12:40 pm (ET). Bullish tactics dominated activity in the June contract, with optimistic traders picking up some 4,300 calls at the June $28 strike for an average premium of $0.52 apiece. Call buyers at this strike price make money only if Harley-Davidson’s shares exceed $28.52 ahead of June expiration. Optimism spread to the higher June $30 strike where 1,100 calls were purchased at an average premium of $0.15 each. The calls are not a profitable acquisition for traders unless Harley’s shares jump more than 13.1% over the current price of $26.65 to exceed the average breakeven price of $30.15 by June expiration day. Investor sentiment is mixed in the July contract. While bulls purchased call options at the July $30 strike for an average premium of $0.82 apiece, bearish traders employed different strategies. It looks like some pessimistic investors essentially opted to sell call options in order to finance the purchase of debit put spreads. These traders appear to have purchased roughly 4,000 puts at the July $25 strike for an average premium of $1.23 each, and sold about the same number of puts at the lower July $20 strike for $0.23 apiece. Additional financing for the bearish spread was provided by the sale of approximately 4,000 calls at the July $30 strike for an average premium of $0.82 each. Thus, the average net cost of the combination play amounts to $0.18 per contract. Investors employing this strategy are prepared to profit should HOG’s shares decline 6.9% to breach the effective breakeven price to the downside at $24.82 by July expiration. Maximum available profits of $4.82 per contract accumulate for bearish individuals if shares of the underlying stock plummet 24.95% from the current price of $26.65 to break through $20.00 by expiration day.

SKS – Saks, Inc. – Some investors made bullish moves on Saks, Inc. today with shares of the underlying stock up as much as 5.2% in the first half of the trading session to an intraday high of $8.50. The luxury retailer’s share price rose on optimism consumer spending…
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BP Shares Hemorrhage, Options Activity Explodes

Today’s tickers: BP, ALKS, MO, NFLX, APC, MDCO, LVS, TIVO, CAR, MDRX & XLK

BP – BP PLC – Options volume on beleaguered oil company, BP PLC, is fast approaching 750,000 contracts, fueling a more than 79.7% upward shift in the stock’s overall reading of options implied volatility to a 5-year high of 120.96%. Utter pandemonium erupted in BP options after the firm’s shares plunged 16.00%, crashing straight through the now defunct 52-week low of $34.15, to touch an intraday and new 5-year low of $29.13. Catalysts for the squall are not difficult to come by with analysts suggesting an increased probability BP will cut dividends to help pay for the disaster in the Gulf of Mexico. The first half of the trading day was relatively calm with shares increasing 1.62% over the opening price of $33.90 to an intraday high of $34.45. But, by noon time on the east coast, BP’s shares had already begun their descent. Options activity on the stock can easily be described as frenzied as volume continues to grow in both call and put options across multiple expiries. Investors are displaying a slight preference for put options, with roughly 1.35 put contracts exchanged to each single call option in play thus far in the trading day. Put buyers are out in full force, scooping up at least 1,600 of the bearish contracts at the June $17.5 strike for an average premium of $0.25 apiece. Buying interest in the front month is heaviest in now in-the-money puts at the June $30 strike where more than 43,000 contracts changed hands by 3:05 pm (ET). Investors buying these contracts now face an asking price of $2.85 apiece. Other pessimistic players cast doubts for a near-term recovery by selling call options. Less than 60 minutes remain in the current trading session. Option volume on BP has surpassed 710,000 contracts and continues to steadily rise.

ALKS – Alkermes, Inc. – A three-legged bullish options combination trade enacted on biotechnology company, Alkermes, Inc., this afternoon indicates long-term optimism by one savvy strategist today. Alkermes’ shares are up 1.10% to $11.00 as of 3:12 pm (ET), but earlier rallied more than 4.75% to touch an intraday high of $11.40. The bullish player essentially sold short a chunk of put options in order to finance the purchase of a debit call spread in the November contract. The trader picked up 5,000 calls at…
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Kimble Charting Solutions

Are Commodity Prices About To Let The Good Times Roll?

Courtesy of Chris Kimble

Commodities have traded “heavy” for the past decade, as bond yields remain low and inflationary forces remain under wraps. But this trend could be up-ended as we head into 2021.

Today’s chart 2-pack looks at long-term “monthly” charts of the Thomson Reuters Equal Weight Commodity Index and the 10-Year US Treasury Bond Yield.

Over the past decades, Commodities and Yields have shown weakness. The Commodity Index has managed ...



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Zero Hedge

China Lands Spacecraft On Moon To Collect Lunar Rocks 

Courtesy of ZeroHedge View original post here.

According to the Chinese state-run CGTN news channel, China's National Space Administration declared on Tuesday morning that it's "Chang'e-5 successfully landed on the near side of moon." 

Chang'e 5, China's first-ever attempt to collect lunar rocks and conduct a return mission back to Earth, apparently touched down this morning. Not much on the landing was conveyed by CGTN, who only offered a single-sentence statement. 

Over the next few days, th...



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ValueWalk

The Vaccine Rally Could Be Running Out Of Steam

By Gorilla Trades. Originally published at ValueWalk.

Commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q3 2020 hedge fund letters, conferences and more

The Vaccine Rally Is Fading Away

Despite today’s new all-time highs the late-day weakness among cyclicals could mean that the first leg of the vaccine rally could be running out of steam. While stocks started the session in a positive fashion, the leaders of the vaccine rally faded towards the end of the session in the face of the mostly positive news flow, and that warrants caution for bulls, at least from a short-term perspective....



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Phil's Favorites

Salesforce Confirms Deal To Buy Slack

Courtesy of ZeroHedge

It's official. After reportedly entering high-level, late-stage talks, Salesforce, one of the newest members of the Dow 30, has agreed to buy Slack, a former Silicon Valley "unicorn" that IPO'd last year.

Shares of the Slack have surged in after-hours trade on the news, as if the massive surge seen following the initial reports that the two companies were in talks wasn't enough.

Here are the juicy details: $27.7 billion in cash and stock, giving the corporate software giant a popular workplace-communications platform in one of the biggest technology deals...



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Biotech/COVID-19

Rapid COVID-19 tests can be useful - but there are far too few to put a dent in the pandemic

 

Rapid COVID-19 tests can be useful – but there are far too few to put a dent in the pandemic

Rapid tests for COVID-19 are easy to administer and give fast results. AP Photo/Julio Cortez, File

Courtesy of Bonnie LaFleur, University of Arizona and Katherine Ellingson, University of Ari...



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Digital Currencies

Five Reasons Why Bitcoin is Going Up

 

Five Reasons Why Bitcoin is Going Up

Courtesy of 

Call it the “Respectability Rally”…

A few reasons for Bitcoin’s return to the record highs. It’s about $18,500 as of this writing, matching the previous highs from 2017’s original explosion.

Reason one: It’s going up because it’s going up. Don’t scoff, this is the reason most things in the markets happen and then the explanations are called for afterwards. I’m in financial television, I have literally watched this process occur in real-time. The more something moves in a given direction, the more peop...



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Politics

Mythmakers: The Men Who Created Donald J. Trump

 

Mythmakers: The Men Who Created Donald J. Trump

Mark Burnett, Jeff Zucker, and the Trustwashing of a Fake President

Courtesy of Greg Olear, Prevail, author of Dirty Rubles: An Introduction to Trump/Russia 

...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Friday, 12 June 2020, 08:06:43 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Interesting (2)



Date Found: Saturday, 13 June 2020, 12:27:02 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Recession Forecasts Time Frame



Date Found: Monday, 15 June 2020, 11:07:52 PM

...

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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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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

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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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.