Posts Tagged ‘MW’

Sizable Options Trade Initiated On Men’s Wearhouse

Today’s tickers: MW & BBD

MW - Men’s Wearhouse, Inc. – A three-legged options trade initiated on men’s apparel retailer, Men’s Wearhouse, this morning prepares for shares in the name to potentially dip to the lowest level since April during the next few months. The stock is down 2.0% today to stand at $37.95 as of 11:30 a.m. ET. It looks like one trader sold call options to partially offset the cost of buying a bear put spread on the stock. The strategist appears to have purchased a 3,075-lot Nov $32/$38 put spread at a net premium of $2.25 each, and sold 3,075 Nov $40 calls at a premium of $1.90 apiece, reducing the net cost of the position to $0.35 per contract. The trader starts making money if shares in MW decline 0.80% from the current price of $37.95 to trade below the effective breakeven point on the downside at $37.65. Maximum potential profits of $5.65 per contract are available on the position should shares in Men’s Wearhouse drop more than 15% to $32.00 by November expiration. The options play may be an outright bearish bet on the stock, or could be a protective play to hedge a long position in the underlying shares. Men’s Wearhouse is scheduled to report second-quarter earnings after the closing bell on September 11th.

BBD - Banco Bradesco SA – Activity in Banco Bradesco options today suggests traders are positioning for heightened volatility in the price of the underlying in the near term. Overall options volume on BBD of around 1,550 contracts just before midday in New York is more than twice the stock’s average daily volume of 720 contracts, with much of the trading centered in the September expiry options. Shares in the name, down roughly 25% year to date, are currently off 1.3% on…
continue reading


Tags: ,




Micron Calls Change Hands At A Clip Ahead Of Earnings After The Close

Options brief will resume June 21st, 2013.

Today’s tickers: MU, VNDA & MW

MU - Micron Technology, Inc. – Options traders appear to be snapping up out of the money call options on Micron Technology this morning ahead of the company’s third-quarter earnings report after the closing bell today. Shares in the name kicked off the trading session in rally mode, rising as much as 2.6% to a six-year high of $14.11 in the early going, but have since turned negative to stand 0.15% lower on the day at $13.73 as of 11:10 a.m. ET. Micron’s shares are up roughly 130% since this time last year. July expiry call options are seeing the most volume as of the time of this writing. Notable fresh interest is building in the Jul $16 and $17 strike calls, with more than 23,000 contracts in play at each. It looks like much of the volume in the $16 strike calls was purchased for an average premium of $0.44 apiece, while bulls paid an average premium of $0.26 each to get long the Jul $17 strike calls. Traders long the $16 strike calls stand ready to profit at expiration next month should shares in MU rally 16.5% over today’s high of $14.11 to top the average breakeven point at $16.44, while the $17 strike calls make money given a more than 22% move in the price of the underlying to $17.26 by July expiration. Overall options volume of 187,000 contracts on Micron is well above the stock’s average daily level of around 111,000 contracts less than two hours into the trading day. Heavy trading traffic in MU calls has pushed the call/put ratio to 4.0 as of 11:25 a.m. in New York.

VNDA - Vanda Pharmaceuticals, Inc. – Shares in Vanda Pharmaceuticals are getting slammed on Wednesday; down 24% at $8.31 as of 11:25 a.m. ET after…
continue reading


Tags: , ,




JPM Calls Active As Shares Hit Highest Since May

 

Today’s tickers: JPM, JNY & MW

JPM - JPMorgan Chase & Co. – Financial stocks are on a tear today after the ECB released details of its bond-buying plan amid a better-than-expected ADP report that showed private-sector employers added 201,000 jobs in August. Shares in JPMorgan earlier rallied to their highest level on an intraday basis since May 10th, climbing 4.7% to touch $38.87 in the first half of the session. Options traders positioning for shares in the name to extend gains in the near term pounced on the newly issued weekly contracts expiring one week from tomorrow. Call volume is on the rise at the Sep. 14 ’12 $38.5, $39 and $39.5 strikes. Roughly 1,400 calls changed hands at the $38.5 strike by midday, with much of the volume purchased for an average premium of $0.56 apiece. Traders long these in-the-money call options stand ready to profit next week should JPM’s shares exceed the average breakeven price of $39.06. Trading traffic spread to the Sep. 14 ’12 $39 strike where more than 3,100 contracts are in play. Overall options volume of 166,735 contracts as of 12:40 p.m. ET on JPMorgan is well above the stock’s average daily options volume of around 70,500 contracts. Calls are more active than puts, with the call-to-put ratio hovering around 1.6.

JNY - The Jones Group, Inc. – Apparel and accessories retailer, The Jones Group, Inc., is seeing heavier than usual options activity today, with shares in the name rallying 3.5% to an intraday- and new 52-week high of $13.38 in the first half of the trading day. The company was scheduled to present at the Goldman Sachs 2012 Global Retailing Conference ahead of the opening bell this morning. One options trader appears to be positioning for shares in the name to potentially rise to their highest level since April 2011 by October expiration. It looks like the strategist purchased a 657-lot Oct. $12/$15 call spread for a net…
continue reading


Tags: , ,




LinkedIn Weekly Calls Active As Shares Rally To Highest In Three Months

 

Today’s tickers: LNKD, MW & GFI

LNKD - LinkedIn Corp. – Shares in the professional social-networking site operator jumped 6% to a three-month high of $113.89 in the first half of the trading session after the Internet stock was raised to 'buy' from 'hold' with a share price target of $142.00 at Jefferies. Traders snapping up weekly calls on the stock this morning appear to be climbing aboard the bullish-bandwagon, positioning for additional near-term gains in the price of the underlying shares in the back half of this week. Volume in the weekly contracts is heaviest at the Sep. 07 '12 $115 strike where upwards of 3,100 calls changed hands against open interest of 543 positions. It looks like most of the $115 calls were purchased for an average premium of $0.47 apiece, thus preparing buyers to profit at expiration in the event LNKD shares exceed the average breakeven price of $115.47. Upside calls are also in play at the Sep. 07 '12 $120 strike, with roughly 460 of the contracts purchased this morning for an average premium of $0.15 each. Some bullish positions initiated yesterday and Friday are already seeing substantial paper profits given the big upside move in the shares today. Upside call buyers who picked up around 700 of the Sep. 07 '12 $110 strike call during the prior two trading sessions paid between $0.60 and $0.75 apiece for most of the contracts. Premium on the $110 weekly calls has increased five-fold since then from roughly $0.75 each on Tuesday to $4.10 per contract as of 12:15 p.m. ET on Wednesday.

MW - The Men’s Wearhouse, Inc. – Options on men’s clothing retailer, Men’s Wearhouse, are active ahead of the company’s second-quarter earnings report after the close this afternoon. Shares in the name are up 0.90% at $31.80 as of 12:35 p.m. ET, and at least one strategist is positioning for further gains in the share price in the near term. The…
continue reading


Tags: , ,




Bearish Players Eye Men’s Wearhouse Put Options Ahead of Earnings

Today’s tickers: MW, ABV, ANR & ODP

MW - The Men’s Wearhouse, Inc. – Investors are posturing in Men’s Wearhouse put options this afternoon ahead of the retailer’s first-quarter earnings report after the final bell. Shares in the Houston, TX-based company are well off their lows of the session, but still trade 0.65% lower today at $30.61 as of 1:35pm on the East Coast. One options strategist donned a debit put spread in the June contract to position for the price of the underlying shares to fall. The trader picked up 1,500 puts at the June $30 strike for a premium of $1.25 each, and sold the same number of puts at the lower June $28 strike at a premium of $0.47 a-pop. Net premium paid to initiate the spread amounts to $0.78 per contract. The investor profits if shares in Men’s Wearhouse drop 4.5% post-earnings to breach the effective breakeven price of $29.22. Maximum potential profits of $1.22 per contract pad the investor’s wallet in the event that MW’s shares plunge 8.5% in the next week and a half to trade below $28.00 at June expiration. Options implied volatility on the clothing company currently stands 7.7% higher on the session at 50.64%. Investors have exchanged a total of 6,295 call and put options on the stock as of 1:40pm, which is substantial relative to MW’s total open interest of 11,578 contracts. Pre earnings report options players are exchanging more than 3.5 put options on the stock for each single call option on the retailer this afternoon.

ABV - AmBev – Shares in AmBev, a subsidiary of global brewing company Anheuser-Busch InBev, rose nearly 1.1% at the start of the trading session to $31.94. Activity in AmBev call options this morning suggests one strategist expects shares in the biggest brewery in…
continue reading


Tags: , , ,




Put spreader portends near-term erosion in Energy fund’s shares

Today’s tickers: XLE, CROX, COCO, PCX, EBAY, NTAP, MW, ARG & AXL

XLE – Energy Select Sector SPDR ETF – A massive put spread purchased on the XLE, an exchange-traded fund designed to correspond to the performance of the Energy Select Sector of the S&P 500 Index, points perhaps to one investor’s expectation that the price of the fund’s shares are set to decline ahead of September expiration day. Shares of the fund are currently up 0.40% at $54.06 as of 3:45 pm ET. It looks like the pessimistic player picked up approximately 40,000 puts at the September $53 strike for an average premium of $0.21 each, and sold about the same number of puts at the lower September $52 strike at an average premium of $0.44 a-pop. Net premium paid to purchase the spread amounts to $0.23 per contract. The investor responsible for the transaction stands ready to make money if shares of the XLE fall 2.4% from the current price of $54.06 to breach the effective breakeven point at $52.77 by expiration next Friday. Maximum potential profits of $0.77 per contract – for a total of $3,080 million – are available to the trader if the XLE’s shares drop 3.8% to slip beneath $52.00 by expiration day.

CROX – Crocs, Inc. – The footwear firm’s shares plunged 15.5% in afternoon trading to touch down at an intraday low of $11.68. Sharp share price erosion spurred put buying by options traders expecting the stock to continue lower ahead of October expiration. Investors purchased approximately 5,100 now in-the-money puts at the October $12 strike for an average premium of $0.85 each. Put players make money if shares fall another 4.5% from today’s low of $11.68 to breach the average breakeven point at $11.15 by expiration day next month. Options implied volatility on the shoe maker shot up 26.7% to 66.39% as of 3:40 pm ET.

COCO – Corinthian Colleges, Inc. – Shares in for-profit university, Corinthian Colleges, Inc., shot up 14.5% to an intraday high of $5.61 this morning on speculation the company may be acquired. Options traders were quick to initiate bullish stances on the stock in case the rumors end up having some truth to them. COCO’s shares cooled slightly in afternoon trading and are currently up 9.8% on the day to stand at $5.38 as of 2:50 pm ET. Speculators hoping to see shares continue higher picked…
continue reading


Tags: , , , , , , , ,




Contrarian Options Player Sheds Put Options on Lloyd’s Banking Group PLC

Today’s tickers: LYG, XLV, MSFT, XLF, F, AZN, LYV, AZO, MW & XLNX

LYG – Lloyd’s Banking Group PLC – One optimistic options strategist initiated a short put stance on Lloyd’s Banking Group PLC today, suggesting perhaps that shares of the underlying stock are not likely to collapse much further ahead of October expiration. Lloyd’s Banking Group shares fell as much as 8.9% to an intraday low of $2.88 in morning trading, but recovered slightly during the session to stand 5.05% off yesterday’s close at $3.16 a share as of 2:45 pm (ET). Across the pond, Lloyd’s Banking Group shares declined the most in London trading, falling 8.9% to 50.52 pence, as concerns over the creditworthiness of European financial institutions continues to weigh heavily on U.K. banking stocks. But, back to U.S. equity options on LYG, the contrarian investor opted to sell short 4,000 puts at the October $2.5 strike in order to pocket premium of $0.30 per contract. The trader keeps the full amount of premium received on the sale as long as LYG’s share price exceeds $2.50 through expiration day in October. The short sale of put options in this case implies the investor is happy to have 400,000 shares of the underlying stock put to him at an effective price of $2.20 each should the put contracts land in-the-money at expiration.

XLV – Health Care Select Sector SPDR Fund – A large chunk of out-of-the-money put options were purchased on the Health Care Select Sector SPDR Fund today as part of a delta neutral trade enacted by one cautiously optimistic options player. Shares of the XLV, an exchange-traded fund designed to produce investment results that correspond to the price and yield performance of the Health Care Select Sector of the S&P 500 Index, declined 0.65% to stand at $28.54 as of 3:35 pm (ET). It looks like the investor purchased up to 22,500 put options with a .31 delta at the September $26 strike for a premium of $1.08 per contract. The trader picked up the puts in conjunction with the purchase of stock at $28.25 a-pop. The delta neutral transaction is meant to offset potential losses faced by the investor should shares of the XLV continue lower because of the larger proportion of put options held by the trader. The purchase of shares of the underlying stock in combination with the put options indicates the investor…
continue reading


Tags: , , , , , , , , ,




Looming Lululemon Earnings Lifts Implied Volatility – Puts in Demand

Today’s tickers: LULU, XLE, OIH, JPM, IOC, CYB, AMSC, MW, SVU & JTX

LULU – Lululemon Athletica, Inc. – Investors are hoarding put options on athletic apparel maker, Lululemon Athletica, ahead of the firm’s third-quarter earnings report scheduled for release after market close. LULU’s shares rallied as much as 3.8% to an intraday high of $27.84. The stock is currently up 2.75% to $27.56 with 45 minutes remaining in the trading session. Some analysts expect the Canada-based company will record earnings of 19 cents per share on revenue of $111 million. Option traders hedged against an earnings disappointment by purchasing puts. Approximately 6,800 put options were coveted by investors at the January 25 strike for an average premium of 1.23 apiece. Put-buyers are positioned to profit if shares fall through the breakeven price of $23.77 by January’s expiration day. Mounting investor anticipation for third-quarter earnings and the increase in demand for option contracts on the stock boosted option implied volatility throughout the session. Volatility rose 10.85% from an opening reading of 59.93% to an intraday high of 67.52%.

XLE – Energy Select Sector SPDR ETF – Shares of the exchange-traded fund comprised of companies in the oil, gas, and energy equipment industries, fell 1% during the trading day to $54.30. A massive put spread by one investor indicates shares of the XLE may decline further by the time the quarterly December contract options expire on December 31st, 2009. It appears the bearish trader purchased 74,800 puts at the December 53 strike for 95 cents apiece, spread against the sale of 74,800 puts at the lower December 48 strike for 13 pennies each. The net cost of the pessimistic play amounts to 82 cents per contract. The investor likely holds a long position in the underlying stock. The puts serve to protect the value of the stock position in case shares continue to decline. Downside protection kicks in if shares of the XLE decline beneath the breakeven point at $52.18 by expiration on the final day of 2009.

OIH – Oil Service HOLDRs Trust – Shares of the OIH exchange-traded fund rallied 1.25% to $112.69 today. We observed bearish options activity on the fund despite the bullish movement in the price of the underlying. A put spread enacted in the January 2010 contract suggests some investors feel the need for downside protection through expiration next year. It looks like 1,500 puts…
continue reading


Tags: , , , , , , , , ,




 
 
 

Phil's Favorites

Nine Surprising Things Jesse Livermore Said

 

Nine Surprising Things Jesse Livermore Said

Courtesy of 

Today in market history, 1923:

The book "Reminiscences of a Stock Operator" is published. It was written by Edwin Lefevre based on interviews with the greatest speculator who ever lived, Jesse Livermore. pic.twitter.com/xcB4AsmiM9

— Ritholtz Wealth (@RitholtzWealth) May 25, 2018

 

Today is the 95th anniversary of the publishing of ...



more from Ilene

Zero Hedge

UMich Sentiment Slumps Near 2018 Lows As Income Expectations Tumble

Courtesy of ZeroHedge. View original post here.

Preliminary data for May's UMich sentiment survey showed a tumble in current conditions (and small rise in hope) but the final data showed both sliding notably intra-month with the headline sentiment index at its lowest since January.

  • Headline Sentiment slipped from 98.8 prelim to 98.0 final from 98.8 in April

  • Current Conditions slipped from 113.3 prelim to 111.8 final from 114.9 in April

  • Expectations slipped from 89.5 prelim to 89.1 final from 88....



more from Tyler

Insider Scoop

Benzinga Pro's 5 Stocks To Watch Today

Courtesy of Benzinga.

Each day, the Benzinga Pro news team highlights several stocks with Trading Idea potential. Be the first to see them by becoming a Benzinga Pro user!

Foot Locker, Inc. (NYSE: FL) stock was trading higher by nearly 13 percent Friday morning after reporting its first-quarter results. The specialty athletic apparel said it earned $1.45 per share in the first quarter on revenue of $2.025 billion versus expectations of $1.25 per share and $1.96 billion. The man...



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

Chart School

Second Day of Bullish Defense

Courtesy of Declan.

The market had initially reacted to Trump's decision to cancel his North Korean summit before coming to its senses and finishing where it left off yesterday.

For the Russell 2000 it was a bullish doji to follow the 'hammer'; those brave enough to buy the morning dip will be feeling confident as technicals remain bullish.

...

more from Chart School

Digital Currencies

How the US Government Could Effectively Use Crypto

The US government could start, or officially endorse an existing crytpo coin. What they would do is build a fee into the software protocol that went to a single address that they control. This is effectively a tax. The fee could be a transaction fee, a percentage of the next block award, or a combination of both. How this works is every single transaction that occurs everywhere wihtin the system, the fee scalped goes directly to this single address that is owned by the IRS, in this case, the "New-IRS." Forget postcards. We're down to a single dude in one office chair in front of one computer. Imagine that being the IRS, because that's where this is going. The consequences of this mechanism are dramatic. First off the IRS is now one guy. Granted, this guy controls the private key for the most valuable thing in the world. This key would be the single most important key right up there with the nuclear launch code, but the system would most definitely still work. More strikingly, the US...

more from Bitcoin

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

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 >>