Posts Tagged ‘MJN’

Long-Term Bull Populates Mead Johnson Nutrition Post-Earnings

Today’s tickers: MJN, ETFC, GNK & CAT

MJN - Mead Johnson Nutrition Co. – The global provider of pediatric nutrition popped up on our scanners after long-dated call and put options changed hands in the January 2012 contract. Shares in Mead Johnson are down slightly by 0.40% as of 12:30pm to stand at $59.78. The Glenview, IL-based firm reported fourth-quarter earnings of $0.57 a share before the market opened, beating the average forecast by one penny, but revenues for the quarter came in at $803.7 million, which missed estimates of $808.0 million. It looks like one investor is positioning for Mead Johnson’s shares to increase substantially ahead of January 2012 expiration. The investor appears to have sold 1,900 puts at the January 2012 $50 strike at a premium of $2.68 each, in order to buy the same number of call options at the higher January 2012 $65 strike for a premium of $3.58 apiece. The net cost of the bullish risk reversal amounts to $0.90 per contract. Thus, the investor stands ready to make money should shares in MJN rally 10.2% over the current price of $59.78 to exceed the effective breakeven price of $65.90 by expiration day in one year’s time. Options implied volatility on the stock is down 16.4% at 26.00% in early afternoon trade.

ETFC - E*Trade Financial Corp. – Shares in the provider of online brokerage and other financial services rallied as much as 6.7% this morning to secure an intraday high of $16.85 despite a weaker-than-expected earnings report Wednesday evening. Analysts, on average, were expecting ETFC to earn $0.04 a share, but the fourth-largest U.S. retail brokerage said it lost $0.11 a share in the fourth quarter. The earnings miss has not stymied today’s rally in the price of the underlying shares, but traders are favoring…
continue reading


Tags: , , ,




Contrarian Player Sees Visa Recovery Story Unfolding by Jan. 2012

Today’s tickers: V, EMC, MON, SAY, MJN, ADM, BBY, EDMC, EBAY & CHS

V – Visa, Inc. – Shares of the global payments company plunged 4.7% this afternoon to an intraday and new 52-week low of $64.90 following reports that said federal caps and pending litigation may limit Visa’s ability to increase prices. The price of the underlying was also helped lower by a downgrade to ‘market perform’ from ‘outperform’ at Sanford Bernstein, where analysts have a 12-month target price of $77.00 a share on the stock. The sharp decline in the price of the credit card issuer’s shares inspired near-term bearish options trading. More interesting, however, were the contrarian players seen initiating bullish positions in the longer-dated January 2012 contract. One optimistic strategist enacted a three-legged bullish combination play to position for a rebound in Visa’s shares. The investor appears to have sold roughly 2,500 puts at the January 2012 $50 strike for premium of $4.39 each, purchased about the same number of January 2012 $70 strike calls at an average premium of $8.37 a-pop, and sold approximately 2,500 calls at the higher January 2012 $90 strike for a premium of $2.50 apiece. The average net cost of the transaction reduces to $1.48 per contract. Thus, the contrarian player stands ready to make money should Visa’s shares jump 10.1% over today’s low of $64.90 to exceed the average breakeven price of $71.48 by expiration day. Maximum potential profits of $18.52 per contract are available to the investor should shares surge 38.7% to trade above $90.00 by January 2012 expiration. Visa’s shares last traded above $90.00 back on May 4, 2010. Options implied volatility on Visa, Inc. is up 10.8% at 33.75% with just over 20 minutes remaining ahead of the closing bell.

EMC – EMC Corp. – A large chunk of call options were purchased on EMC Corp. in early afternoon trading, however, it looks like the investor responsible for the transaction is taking a bearish stance on the stock rather than a bullish one. EMC’s shares rallied as much as 2.25% in the first half of the trading day to reach an intraday high of $20.43. The current 52-week high on the stock is $20.97, attained back on August 4, 2010. At first glance, the purchase of 20,000 calls at the January 2011 $21 strike at a premium of $1.00 each looks like a bullish bet by an…
continue reading


Tags: , , , , , , , , ,




Apple Shares Reach New 52-Week High Ahead of iPad Release

Today’s tickers: AAPL, GDXJ, CEPH, LO, MHK, VRTX & MJN

AAPL – Apple, Inc. – Shares of the iPhone and iPod maker rallied to a new 52-week high of 233.87 in morning trading with just five days remaining before the firm’s newest product, the iPad, hits retail stores across the U.S. Bullish options trading patterns on the stock today indicate optimistic sentiment on Apple ahead of the iPad’s release on Saturday morning. One investor enacted a bullish put credit spread in the May contract in order to benefit from continued strength in the price of Apple’s shares through expiration. It looks like approximately 10,000 puts were shed at the May $210 strike for an average premium of $3.46 per contract, marked against the purchase of about the same number of puts at the lower May $200 strike for $1.95 each. The investor responsible for the spread pockets a net credit of $1.51 per contract, which he keeps in full as long as Apple’s shares trade above $210.00 through May expiration. Maximum potential losses faced by the trader amount to $8.49 per contract should shares of the underlying stock plummet 14.5% to $200.00 ahead of expiration day in May.

GDXJ – Market Vectors Junior Gold Miners ETF – The GDXJ, which is an exchange-traded fund that seeks to replicate the price and yield performance of the Market Vectors Junior Gold Miners Index, realized a 1.25% appreciation in the value of its underlying share price to $25.82 today. The Market Vectors Junior Gold Miners Index tracks the overall performance of foreign and domestic publicly traded companies of small/medium-capitalization that primarily engage in gold and/or silver mining. Despite the move higher in shares today, one options trader initiated a bearish debit put spread in the May contract. It appears the investor purchased 10,000 in-the-money puts at the May $26 strike for a premium of $1.65 apiece and sold the same number of puts at the lower May $23 strike for $0.52 each. The net cost of the put spread amounts to $1.13 per contract. If the investor responsible for the trade holds no underlying share position, maximum potential profits of $1.87 per contract are available if shares slip to $23.00 by expiration day in May. However, the trader may be buying the spread to protect the value of an existing underlying share position, in which case protection kicks in beneath the breakeven share…
continue reading


Tags: , , , , , ,




Mead Johnson and Bristol Myers Split Inspires Option Traders

Today’s tickers: MJN, BMY, FTR & FDO

MJN – Mead Johnson Nutrition Co. – Over the weekend Bristol Myers Squibb decided to sell its remaining 83% stake in Mead Johnson, maker of baby formula, Enfamil. Mead Johnson shares declined by 2% to $44.35 and the additional uncertainty surrounding the issue caused options implied volatility to spike higher in early trading. On Friday the expected degree of movement on the stock stood at 36.5% before jumping today to 56.3% as investors wonder whether the company will be able to stand on its own two feet without Bristol Myers. One option trader who clearly knows the stock well enough appears to have used a short straddle combination to predict that today’s move is bogus on two fronts. Using the December contract the seller wrote around 1,500 call options at 35 cents and sold a similar number of puts at the same strike. Being deep-in-the-money put options the premium here fetched 8.00. The premium especially on the put is boosted by the direction of the share price today but mostly by the 55% leap in implied volatility. The investor thus expects the share price to rise should Bristol find a buyer and similarly expects lower volatility. Last week those puts traded at 6.60. One analyst Bristol Myers has been hunting for a buyer at $60 per share, which may indicate the value this company might add to a willing buyer.

BMY – Bristol Myers Squibb – For its part shares surged to a one-year high after it jettisoned Mead Johnson, rising 5.7% to $24.47. The progress was slow throughout the morning that some call sellers were left wanting at the November 24 strike. Early sellers were forced to rethink as they tossed out calls at 27 cents per contract only to see buyers step in shortly after 10am to pay 34 cents before things really got interesting with call options currently commanding a 65 cent premium. Some 9,800 calls changed hands at this strike – almost equivalent to the 10,694 previously established calls. Put sellers were also in evidence using the same November contract and collected rich premiums in the expectation that the share price will rise despite the additional risk that the company has a less diversified product line in light of the Mead Johnson announcement. Option implied volatility rose, but only jumped from 21% to 23%.

FTR – Frontier Communications Corp.
continue reading


Tags: , , ,




 
 
 

Zero Hedge

New Home Sales Slide In April As Average Price Spikes To Record High

Courtesy of ZeroHedge. View original post here.

After a two-month rebound from January's plunge, new home sales disappointed in April, dropping 1.5% MoM to a SAAR of 662k (below the 680k expectation).

Is the rebound over?

While new home sales declined 1.5% MoM, they rose 11.6% YoY thanks to the insanely noisy time-series and various weather impacts.

...



more from Tyler

Phil's Favorites

QOTD: How Politicians Use Economics

 

QOTD: How Politicians Use Economics

Courtesy of 

“The jobs pay for themselves,” she says, by creating new socially productive stuff that makes its way into the economy. What matters isn’t the deficit but whether these new work hours can generate something useful.

Kelton thinks it’s obvious that there’s plenty of room for more work today. Poverty and unemployment are tricks played on the economy by money ? there are no material or productive barriers to eliminating either one.

What if, instead of a Universal Basic Income, as some European nations are currently experimenting with, we talked ab...



more from Ilene

Chart School

Wide Market Cycle Review

Courtesy of Read the Ticker.

Lets review some big market cycles, to see where cycle pressure is building or peaking.

Cycles are like long term trend lines and are great for the long term view, of course price action leads (Wyckoff Logic) before cycles.

Lets go ...

US 10 yr: Trending higher to 4% ... Ouch. Inflation moving from Wall Street to Main Street.

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



The EURO looks to bottom (USD topping).

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



SSEC looks forward to another pump up to save the SP...

more from Chart School

Biotech

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

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

 

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

Courtesy of John Bergeron, McGill University

In 2013, Kyoto University’s Shinya Yamanaka was awarded one of the first Breakthrough Prizes in Life Sciences for his discovery of “induced” stem cells that enabled researchers to convert adult cells back into stem cells.

The Breakthrough Prize is not to be sneezed at. Founded in 2013, the prize “honours transformative advances toward understanding living systems and extending human life.” It’s also the most financially attractive aw...



more from Biotech

Insider Scoop

8 Stocks Moving In Monday's After-Hours Session

Courtesy of Benzinga.

Related PTX Benzinga's Daily Biotech Pulse: FDA Panel Nod For Akcea, Synergy's Revenue Miss, FDA Warns E-Liquid Makers Again 18 Stocks Moving In Friday's Pre-Market Session Related 36 Biggest Movers From Friday ...

http://www.insidercow.com/ more from Insider

Digital Currencies

5 Factors That Drive Bitcoin's Ups & Downs

Courtesy of ZeroHedge. View original post here.

By Kayla Matthews via Hackernoon.com

The price of Bitcoin has been wildly volatile. From November to December 2017, it increased by 223 percent. It fell by 59 percent between January and February 2018, increased by 64 percent from February to March and then dropped again during March by 40 percent.

While this isn&r...



more from Bitcoin

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...



more from ValueWalk

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 ...



more from Kimble C.S.

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 ...



more from Our Members

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 ...



more from M.T.M.

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 ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

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...

more from David





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>