Posts Tagged ‘MYL’

Long-Term Bull Eyes Upside Potential at Fidelity National Information Services

 Today’s tickers: FIS, AXL, PGN, HAS, GDX & MYL

FIS - Fidelity National Information Services – A three-legged options combination play on the global provider of banking and payments technology solutions, processing services and information-based services, indicates one strategist is long-term bullish on Fidelity National Information Services. Shares in FIS are currently up 0.20% to stand at $28.55 in the final 20 minutes of the session. The transaction positions the investor to attain maximum possible profits in the position if FIS shares break well above the current 52-week high of $30.78 on the stock. The options player sold 1,105 puts at the January 2012 $22.5 strike for an average premium of $1.03 each in order to offset the cost of buying the same number of January 2012 $30 strike calls at an average premium of $2.23 apiece, marked against the sale of 1,105 calls at the higher January 2012 $32.5 strike for an average premium of $1.05 a-pop. Net premium paid to initiate the three-legged spread amounts to $0.15 per contract. Thus, the options trader stands ready to make money should FIS shares surge 5.6% over the current price of $28.55 to exceed the average breakeven point to the upside at $30.15 ahead of expiration day next January. Maximum potential profits of $2.35 per contract are available to the trader should shares in Fidelity National Information Services jump 13.8% to trade above $32.50 before the contracts expire in 2012.

AXL - American Axle & Manufacturing Holdings, Inc. – Shares of the auto parts manufacturer shot up as much as 9.0% this afternoon to secure an intraday high of $15.25 by 3:40pm in New York trading on unconfirmed takeover chatter. Rumors that Magna International Inc. may place a $23 to $25 cash bid for AXL spurred a rally in the price of the American Axle’s shares and drove speculators to options in the name. Additionally, analysts at JPMorgan Chase & Co. reportedly rated AXL at ‘overweight’ and said shares could move into the upper-teens in the next…
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Retail-Bear Initiates Put ‘Fly On XRT

 Today’s tickers: XRT, SM, AMD, MEE, EXPE, CTV & MYL

XRT - SPDR S&P Retail ETF – Pessimism on the retail ETF took the form of a put butterfly spread today, suggesting one strategist is prepared for the price of the underlying fund to decline by December expiration. Shares of the XRT, an exchange-traded fund designed to track the performance of the S&P Retail Select Industry Index, are up 0.95% this afternoon to stand at $43.75 as of 3:10 p.m. in New York trading. The XRT’s shares are higher today following reports that economists increased estimates for consumer purchases in the third quarter after retail sales rose more than expected in September. But, nearly all of the activity in XRT options took place in puts and implies a bearish slant on the fund today. The butterfly spread involved the purchase of 5,600 puts at the December $43 strike at a premium of $1.45 each [wing 1], the sale of 11,200 puts at the December $39 strike for a premium of $0.47 per contract [body], and the purchase of 5,600 puts at the lower December $35 strike at a premium of $0.19 apiece [wing 2]. Net premium paid to initiate the bearish spread amounts to $0.70 per contract, thus positioning the investor to make money if shares of the XRT fall 3.3% from the current price of $43.75 to breach the effective breakeven point at $42.30 by expiration day in December. Maximum potential profits of $3.30 per contract are available to the trader if the price of the underlying fund declines 10.85% to settle at $39.00 at expiration. The investor paid $0.70 per contract, but stands prepared to gain more than 4.7 times that amount, or $3.30 per contract, if the transaction comes good by December expiration.

SM - SM Energy Co. – Shares of the U.S. producer of oil and natural gas rose 4.05% today to $42.34 as of 3:25 p.m. The current rally may be an extension of gains realized last week on news the…
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Optimist Enacts Bullish Risk Reversal on Dollar Tree Stores Ahead of Earnings

Today’s tickers: DLTR, SPWRB, VZ, AMKR, NXY, CMCSK, MYL, DELL & ZGEN

DLTR – Dollar Tree Stores, Inc. – An investor expecting shares in Dollar Tree to rally significantly by November expiration initiated a bullish risk reversal on the stock today with the price of the discount retailer’s shares up 2.55% at $43.10 as of 3:05 pm ET. It looks like the trader sold approximately 4,825 puts at the November $40 strike for an average premium of $1.30 each in order to partially finance the purchase of the same number of call options at the higher November $45 strike for an average premium of $1.60 apiece. The net cost of putting on the risk reversal trade amounts to $0.30 per contract. Thus, the investor is prepared to make money should Dollar Tree Stores’ shares jump 5.1% to trade above the average breakeven price of $45.30 by expiration day in November. The investor may also be making a bullish wager on DLTR ahead of the firm’s second-quarter earnings report scheduled for release before the opening bell on August 19, 2010.

SPWRB – SunPower Corp. – News that solar energy developer, Etrion Corp., agreed to purchase the two initial phases of Italy’s largest solar park from SunPower Corp. for roughly $63.5 million in cash plus debt today sent SunPower’s shares up as much as 5.4% today to an intraday high of $12.59. Shares are currently trading 4.25% higher on the day to arrive at $12.45 as of 3:15 pm ET. The move higher in the price of the underlying stock attracted bullish options players to the August contract. Investors hoping to see SunPower’s shares continue to appreciate ahead of August expiration purchased roughly 1,000 calls at the August $12.5 strike for an average premium of $0.50 each. Call buyers make money if SPWRB’s shares can rally another 4.4% to surpass the average breakeven price of $13.00 by expiration day. Other optimistic individuals sold 1,100 in-the-money puts at the August $12.5 strike to take in an average premium of $0.60 apiece. Put sellers retain the full premium enjoyed on the transaction as long as SunPower’s shares are trading above $12.50 through August expiration. Investors short the puts are ready and willing to have shares of the underlying stock put to them at an effective price of $11.90 in the event the put contracts land in-the-money at expiration day.

VZ – Verizon Communications,
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Frenzied Bearish Options Activity Ensues as Visa, MasterCard Shares Take a Big Hit

Today’s tickers: V, MA, JPM, COF, EEM, STX, MDC, DPS, MYL & LEN

V – Visa, Inc. – Shares of the world’s largest payments network are down sharply by 7.75% to stand at $68.92 as of 2:55 pm (ET) after Senator Sheldon Whitehouse (D – RI) suggested Monday that the U.S. should cap interest rates on credit cards. Other credit card companies such as MasterCard and Capital One Financial Corp. are also suffering significant share price erosion this afternoon. Bearish options investors flooded the May contract with pessimistic plays, while more optimistic traders appear to be positioning for a rebound in Visa’s share price by June expiration. Investors bracing for continued bearish movement in the price of the underlying stock picked up 3,600 now in-the-money puts at the May $70 strike for an average premium of $1.15 apiece. Buying interest spread to the lower May $65 strike where 1,400 puts were purchased at an average premium of $0.36 each. Finally, uber-bearish traders scooped up 1,290 puts at the May $60 strike – the lowest strike price currently available in the front month – for an average premium of $0.16 apiece. Investors long the May $60 strike puts make money if Visa’s shares plummet 13.15% from the current value of $68.92 to breach the average breakeven point to the downside at $59.84 by expiration on Friday. Bearish traders also ravaged May contract calls, selling roughly 7,000 lots at the May $75 strike to take in an average premium of $0.71 per contract. Investors also shed 2,000 calls at the May $70 strike to receive an average premium of $2.47 apiece. Call sellers retain the full premium received today as long shares of the underlying stock do not exceed $70.00 ahead of expiration. Finally, optimistic options investors are positioning for a rebound in the credit card company’s shares by purchasing 1,800 calls at the June $70 strike for an average premium of $4.71 each. Shares must rally 8.4% over the current price of the stock before June $70 strike call buyers start to make money above the average breakeven price of $74.71. Bullish call buying activity spread to the higher June $72.5 strike where 2,500 calls were picked up for an average premium of $3.64 per contract. Investor uncertainty, as measured by the overall reading of options implied volatility, is net up on Visa today with volatility rising 16.5% to 52.68% as…
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Xyratex’s Earnings Forecast Inspires Bullish Options Activity

Today’s tickers: XRTX, EXEL, PBR, F, BPOP, ALTH, RIG, MYL, HIG & SYMC

XRTX – Xyratex, Ltd. – Shares of the provider of data storage and network technology surged 13.7% at the start of the trading session to a new 52-week high of $19.25 after the firm said it anticipates earnings per share of at least $1.10 in the second quarter. The company’s earnings forecast is significantly greater than the consensus estimate of $0.76 per share. The wear-and-tear of the trading session parsed some of the early-morning rally, but Xyratex’s shares are still up 9.50% to $18.56 as of 2:45 pm (ET). Bullish investors prepared for continued appreciation in the price of the underlying by purchasing 1,100 calls at the June $20 strike for an average premium of $1.49 apiece. Call-buyers at this strike profit only if shares surge 15.8% from the current price of $18.56 to exceed the effective breakeven point at $21.49 by expiration day in June. Options traders exchanged 5,025 contracts on the stock during the trading day, which is nearly on par with total existing open interest on XRTX of 5,656 contracts.

EXEL – Exelixis, Inc. – Bullish options trading tactics were employed on the biotechnology company this afternoon as the firm’s shares surged 11.7% to an intraday high of $6.78. It looks like one investor sold 5,000 puts short at the November $5.0 strike price to take in an average premium of $0.40 per contract. The put seller keeps the full premium received on the transaction as long as shares of Exelixis trade above $5.00 through expiration day in November. By selling the put contracts, the investor implies he is willing to have shares of the underlying stock put to him at an effective price of $4.60 each in the event that the put options land in-the-money at expiration. The jump in options activity on the stock and the shift in share price lifted the overall reading of options implied volatility on Exelixis 42.2% to 82.1% in the final hours of the trading week.

PBR – Petroleo Brasileiro SA – A debit call spread enacted on Brazilian oil and gas company, Petroleo Brasileiro, suggests one investor is positioning for continued bullish movement in the price of the underlying stock through July expiration. PetroBras’ shares rallied 1.9% late in afternoon trading to stand at $45.35 as of 2:30 pm (ET). The optimistic options trader purchased 2,500…
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Generic Drug Makers

Here's another terrific post by Pharmboy, this time discussing Generic Drug Makers. – Ilene

Generic Drug Makers

 

Courtesy of Pharmboy

Coming to the end of a good year, and good riddance for some!  Whilst the market has been irrational for some time, it is not about what we think but rather about what others that have money think.  I have my notions, and here are a few companies that may do well in the New Year with a passed health care reform bill.

I really like the generic market right now. With patents expiring you can literally gauge how much a generic will make based on the patents expiring in the next few months. These generics are the vultures that follow the in a pack of lions.  They have a good way of scavenging for their food and vultures have a distinct relationship with the lions.  They may not come up with the drugs but they are definitely going to make a nice margin from them.  But the competition is fierce these days, and competitors in the generic market include Watson (WPI), Teva (TEVA) , Dr Reddy's Labs (RDY), Hi-Tech Pharmacal (HITK), Par Pharmaceuticals (PRX), and Caraco (CPD).

First up, Mylan Pharmaceuticals (MYL) – I know that Phil has liked Teva in the past and I have noted Mylan (#3 in generics), WPI and RDY (pre-GSK rumors).  Currently, Mylan has blown through its 52 week high so is it still a buy?  In short answer, yes.  Mylan's future comes from a swath of FDA approvals that have come in over the past few months.

  1. August 27, 2009 Mylan Begins Marketing First Generic Version of BenzaClin(R) Acne Treatment
  2. August 18, 2009 Mylan's Matrix Receives First and Only Tentative FDA Approval Under PEPFAR for Generic Version of Atripla(R) HIV Treatment
  3. August 10, 2009 Mylan Receives FDA Approval for Generic Version of Migraine Treatment Imitrex(R)
  4. July 20, 2009 Mylan Receives FDA Approval for Additional Strengths of the Antipsychotic Haloperidol— Key News from the article. Currently, Mylan has 119 ANDAs pending FDA approval representing $84.7 billion in annual brand


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Mylan Rebounds After FDA Report Signals All Clear

Today’s tickers: MYL, MU, ACAD, PAAS, PALM, KLAC, LDK, OIH & SM

MYL – The global pharmaceutical manufacturer released the final findings of an FDA investigation review of its Morgantown W Va. manufacturing plant, which came under the microscope following a local newspaper’s scathing report alleging health and safety wrong doings. The FDA found nothing wrong with the operations, much to the pleasure of Mylan shareholders as new investors sent its shares higher by 3.8% to $14.12. Mylan’s valuation now stands above the point it was trading at the day prior to the story. Shares fell from $13.93 to $11.66 on the report prompting investors to seek the safety of protective puts. Investors today are taking a different take and have scooped up almost 10,000 bullish call options expiring in September granting rights to buy shares at a fixed $15 per share. The number of open positions at that strike as of Wednesday evening was 8,576 contracts. Investors paying 55 cents for calls are predicting a break to a fresh 52-week high for Mylan’s shares indicating a rally by as much as 10% within a month. Around four times the number of calls traded today compared to puts. – Mylan Inc.

MU – The demand for call options on the manufacturer of flash memory products far outweighed that of calls as investor activity drove the call-to-put ratio up to more than 25-to-1. The call option feeding-frenzy was likely induced by the more than 3.5% rally in shares of MU to $7.00. About 1,000 calls were picked up at the nearer-term September 8.0 strike price for an average premium of 15 cents apiece. Bullishness spread to the October contract where traders splurged on 5,600 now at-the-money October 7.0 strike calls for an average premium of 66 cents each. Finally, traders got long of some 7,500 call options at the higher October 8.0 strike for about 40 cents per contract. A 20% increase over the current price per share by expiration, would allow investors long the October 8.0 strike calls to begin to accumulate profits above the breakeven point at $8.40. – Micron Technology, Inc.

ACAD – Shares of the biopharmaceutical company have soared upwards of 17.5% during the trading session and currently stand at $6.23. ACAD appeared on our ‘hot by options volume’ market scanner after one investor initiated a long butterfly spread in the September contract. The trader constructed the
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Western Digital in the Hot Seat

Today’s tickers: WDC, XLF, EEM, RRI, MYL, XHB, ROK, IACI, & XME

WDC – The manufacturer of hard disk drives has enjoyed a 3% rally today to stand at $31.31. Near-term bullish bets were initiated by option traders expecting further gains in the stock. It appears that some investors established call spreads on WDC by purchasing 14,000 calls at the now in-the-money August 31 strike price for an average premium of 1.77 each, and simultaneously selling 14,000 calls at the higher August 35 strike for about 37 cents per contract. The net cost of the spreads amount to approximately 1.40 apiece. Call-spreaders will begin to realize profits on today’s transaction if WDC can climb 3.5% higher to the breakeven point at $32.40. Maximum profits of 2.60 would be attained by investors if the stock increases to $35.00 by expiration. Finally, plain-vanilla call buying was observed at the August 32 strike where some 3,200 calls were coveted for an average premium of 1.12 per contract. We note that the volume of more than 45,433 contracts seen on WDC today represents 45% of the total existing open interest on the stock of 101,598 lots. – Western Digital Corp.

XLF – The financials ETF has climbed 1.5% higher to $12.61. Notable bullish action was observed at the December 13 strike price this afternoon where it seems some 35,000 calls were purchased for an average premium of 93 cents per contract. Shares of the XLF would need to rally 10% higher and surpass the breakeven point at $13.93 in order for traders to begin to amass profits by expiration at the conclusion of 2009. – Financial Select Sector SPDR

EEM – A mess of deep in-the-money put purchases were initiated on the emerging markets fund today amid a 0.5% increase in the price of the underlying shares to $35.60. The greatest volume was seen at the March 2010 38 strike price where about 7,400 puts were picked up for 5.70 apiece. The March 40 strike appears to have had 2,700 puts purchased for 7.00 each while the higher March 41 strike had 1,200 puts bought for 7.71 per contract. Put-buying continued at the March 42 strike price with 1,600 lots lifted for a premium 8.46 each. The higher March 43 strike had 2,300 puts purchased for 9.22 apiece while the March 44 strike had 1,000 puts coveted for a whopping 10.01 per contract.
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Zero Hedge

Nearly Half Of US Consumers Report Their Incomes Don't Cover Their Expenses

Courtesy of ZeroHedge View original post here.

Low-income consumers are struggling to make ends meet despite the "greatest economy ever," and if a recession strikes or the employment cycle continues to decelerate -- this could mean the average American with insurmountable debts will likely fall behind on their debt servicing payments, according to a UBS report, first reported by Bloomberg

UBS analyst Matthew Mish wrote in a recent report that 4...



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The Technical Traders

Indexes Struggle and TRAN suggests a possible top

Courtesy of Technical Traders

Nearing the end of October, traders are usually a bit more cautious about the markets than at other times of the year. History has proven that October can be a month full of surprises.  It appears in 2019 is no different. Right now, the markets are still range bound and appear to be waiting for some news or other information to push the markets outside of the defined range.

We still have at least one more trading week to go in October, yet the US markets just don’t want to move away from this 25,000 to 27,000 range for the Dow Industrials. In fact, since early 2019, we have traded within a fairly moderate price range of about 3200 points on the YM – a rotation...



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Phil's Favorites

Arrogance destroyed the World Trade Organisation. What replaces it will be even worse

 

Arrogance destroyed the World Trade Organisation. What replaces it will be even worse

As the public face of globalism, the WTO mobilised protesters. It’ll be replaced by the law of the jungle. fuzheado/Flikr, CC BY-SA

Courtesy of John Quiggin, The University of Queensland

In line with his usual practice, Australia’s Prime Minister Scott Morrison has backed Donald Trump over the World Trade Organisation, criticising of China’s status in it as a “developing country”.

Critics of the int...



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Kimble Charting Solutions

Apple Bullish Breakout Suggesting Tech Follows In Its Path?

Courtesy of Chris Kimble

Is Apple sending a bullish message to the overall Tech market? Sure could be

Apple (AAPL) is working on a breakout above last year’s highs at (1), after creating a series of higher lows over the past year.

Tech ETF QQQ has been a similar-looking pattern to Apple over the past few months, as it is near old highs while creating higher lows.

Is Apple’s upside breakout suggesting that QQQ will follow in its footsteps and breakout?

Str...



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Insider Scoop

How Much Litigation Risk Is Priced Into Johnson & Johnson?

Courtesy of Benzinga

Johnson & Johnson (NYSE: JNJ) just can't seem to shake its talcum powder problems.

On Friday, Johnson & Johnson recalled 33,000 bottles of baby powder after a bottle purchased online by the FDA tested positive to asbestos.

Last year, a jury awarded a group ...



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Digital Currencies

Five hurdles blockchain faces to revolutionise banking

 

Five hurdles blockchain faces to revolutionise banking

Shutterstock

Courtesy of Markos Zachariadis, Warwick Business School, University of Warwick

Blockchain is touted as the next step in the digital revolution, a technology that will change every industry from music to wast...



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Chart School

Gold Stocks Review

Courtesy of Read the Ticker

Gold stocks are swinging back forth between the range, and a break out swing higher is due. Gold stocks are holding a near perfect Wyckoff accumulation pattern. All should get ready to play this sector. Yet we must recognize that gold stocks are a one of the most crazy rides at the stock market fair, so play very carefully.

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GDX PnF chart from within the video

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Important channels around the HUI.
...

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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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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:

 

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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. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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