Posts Tagged ‘NBR’

Bullish Positions Take Shape Ahead Of Walgreen Co. Earnings

Today’s tickers: WAG, IO, HTZ & NBR

WAG - Walgreen Co. – Shares in the largest U.S. drugstore chain may rally sharply heading into the New Year, according to one options player dabbling in Jan. 2012 contract call options this morning. The buyer of a sizable bull call spread may be using the position to prepare for Walgreen’s shares to pop after the company reports first-quarter earnings ahead of the opening bell on December 21. The stock currently trades flat on the session at $34.01 as of 11:45 AM in New York. It looks like the trader purchased a roughly-3,000 lot Jan. 2012 $35/$39 call spread for an average net premium of $1.06 per contract. The investor stands ready to profit at expiration next year as long as shares in Walgreen Co. increase 6.0% to exceed the average breakeven price of $36.06. Maximum potential profits of $ are available to the call-spreader if the drug retailer’s shares soar 14.7% to trade above $39.00 at expiration in January. Walgreen’s shares last traded above $39.00 at the beginning of August.

IO - ION Geophysical Corp. – The provider of seismic solutions and equipment to the global energy industry rallied in sympathy with shares in Mitcham Industries (MIND), which jumped to a new 52-week high today after reporting better-than-expected third-quarter earnings after the close on Tuesday. ION’s shares are up 1.8% to stand at $6.82 as of 12:20 PM in New York. At least one options trader is taking advantage of the positive day for ION’s shares by picking up bearish put options on the cheap. It looks like the investor purchased more than 3,000 puts at the Dec. $6.0 strike for a premium of $0.10 each. These same options would have cost the trader $0.50 each less than one week ago. The bearish position may yield profits…
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Best Buy Option Investors Condone Broker Upgrade in Bullish Action

Today’s tickers: BBY, DNDN, GLD, BAC, AET, BA & NBR

BBY – Best Buy Co., Inc. – Shares of the world’s largest electronics retailer rallied 2% to $41.25 during the trading session after receiving an upgrade to ‘buy’ from ‘neutral’ at Goldman Sachs Group where analysts increased BBY’s target share price to $47.00 from $44.00. Options traders employed a few different bullish tactics to position for continued upward movement in the price of the underlying stock through expiration in April. Plain-vanilla call buyers targeted the April $44 strike to purchase 5,100 calls for an average premium of $0.55 apiece. These investors stand ready to accrue profits if Best Buy’s share price increases 8% from the current value to exceed the effective breakeven point on the calls at $44.55 by expiration day. Another options player rolled a previously established long call position from the March contract to the April contract in order to extend bullish sentiment on the stock. The trader sold roughly 4,000 in-the-money calls at the March $41 strike for a premium of $0.33 apiece, and purchased about the same number of calls at the higher March $42 strike for an average premium of $1.18 each. In isolation, the net cost of the roll amounts to $0.85 per contract, thus positioning the investor to profit above the breakeven share price of $42.85. Options implied volatility is up approximately 5.5% as of 12:10 pm (ET) to stand at 33.68%.

DNDN – Dendreon Corp. – The biotechnology company received a repeat performance of bearish options activity observed during the previous trading session. Yesterday we reported a put butterfly spread in the April contract on Dendreon. Today the same spread doubled in size. Shares of the biotech firm slipped 1.15% during the current session to trade at $35.75. As was the case yesterday, the spread involved the purchase of 5,000 puts at the April $30 strike for an average premium of $0.94 each [wing 1] and the purchase of another 5,000 puts at the lower April $20 strike for $0.38 apiece [wing 2]. The body of the butterfly centered at the April $25 strike where the bearish investor shed 10,000 puts for a premium of $0.46 apiece. The net cost of the spread is $0.40 per contract, which is a full 10 pennies more expensive than the butterfly spread initiated yesterday. Maximum potential profits of $4.60 per contract are available to the…
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JPMorgan-Bull Constructs Three-Legged Combo Play as Shares Rise

Today’s tickers: JPM, LVS, S, WFC, UAUA, NBR, PTEN, FIG, PCS, DAL & TPX

JPM – JPMorgan Chase & Co. – A three-legged combination play suggests one investor anticipates a significant rally in JPMorgan’s shares within the next few months. The stock is trading 2% higher this afternoon to $43.65. The trader utilized both calls and puts in the March contract in order to position for potential bullish movement in shares of the underlying. The investor sold 15,000 puts at the March 40 strike for an average premium of 1.18 apiece to partially offset the cost of buying a call spread. The call spread involved the purchase of 15,000 calls at the now in-the-money March 43 strike for an average premium of 2.58 each, marked against the sale of 15,000 calls at the higher March 47 strike for 90 cents premium apiece. The net cost of the three-legged strategy amounts to 90 cents per contract. Maximum potential profits of 3.50 per contract – a grand total of $5.25 million – are available to the investor if JPM’s shares rally through $47.00 by expiration day. Profits amass above the breakeven price of $43.50. The short put stance at the March 40 strike implies the investor is willing to have shares put to him at $40.00 apiece if the put options land in-the-money.

LVS – Las Vegas Sands Corp. – Reports of a large 48% increase in December revenue at Sands China – the Macau unit of Las Vegas Sands Corp. – pushed shares of LVS up 9.5% to $18.21 today. Option bulls, hoping good fortune and accurate foresight are on their side looked to the February contract to initiate plain-vanilla call buying strategies. The now in-the-money February 18 strike had roughly 2,700 calls picked up for an average premium of 1.29 apiece. The higher February 19 strike was the hot spot for bulls looking to bet on an LVS rally. Out of the 19,500 calls traded at that strike, more than 12,200 contracts were purchased for about one dollar per contract. Call options exchanged at the February 19 strike vastly outnumber previously existing open interest at that strike of just 2,725 lots. The higher February 20 strike received bullish interest as well, with about 2,000 contracts coveted by traders for an average premium of 66 cents each. As of 3:15 pm (EDT), investors traded just under 127,000 option contracts of LVS,…
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Tech Back in Demand as Call Buyers Line Up at XLK

Today’s tickers: XLK, RF, NBR, MCD, KEY, MGM, HBAN & LVS

XLK - The tech-sector exchange-traded fund attracted a hoard of call buyers this afternoon amid a less than 0.5% decline in shares during the session to $20.62. Traders expecting upward momentum in the price of the stock looked to the December 22 strike price where approximately 35,000 call options were purchased for an average premium of 43 cents per contract. Investors will turn a profit on the calls if shares of the XLK rise 9% from the current level to surpass the breakeven price of $22.43 by expiration in December. – Technology Select Sector SPDR –

RF - Investors exhibited near-term bearish sentiment on RF today by piling into put options on the stock. Shares of Regions Financial have slipped 1% lower today to stand at the current price of $5.54. The heaviest volume was observed at the September 5.0 strike where about 31,000 puts look to have been purchased for an average premium of 11 cents apiece. More pessimistic traders looked to the lower October 4.0 strike to get long of 3,100 puts valued at 10 cents per contract. Perhaps traders exhibiting such behavior are long shares of the underlying stock. If this is the case, the put action was inspired by traders seeking downside protection through expiration next Friday and through October’s expiration day. – Regions Financial –

NBR  The largest onshore drilling firm edged onto our ‘hot by options volume’ market scanner today due to call action in the October contract. Investors were apparently not discouraged from taking bullish stances on the stock even though shares are currently lower by about 1% to $18.84. Approximately 6,000 calls were coveted at the October 20 strike for an average premium of 95 cents apiece. Traders long the calls are hoping to see shares rally about 11% higher by expiration so that they may begin to garner profits above the breakeven point at $20.95. – Nabors Industries Limited –

MCD - Traders hungry for calls – or perhaps a Big Mac – placed bullish bets on the golden arches using options despite a 1% decline in the price of its shares to $54.36. Nearer-term optimism was observed at the October 60 strike where approximately 4,500 calls were pocketed for an average premium of 12 cents per contract. Perhaps the continued rise in unemployment has helped fuel bullish sentiment on the fast…
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Phil's Favorites

As U.S. buys up remdesivir, 'vaccine nationalism' threatens access to COVID-19 treatments

 

As U.S. buys up remdesivir, ‘vaccine nationalism’ threatens access to COVID-19 treatments

Are we really all in this together? ‘Vaccine nationalism’ must be addressed to ensure equitable distribution of a COVID-19 vaccine. (Pixabay)

Courtesy of Joel Lexchin, University of Toronto

At the end of June, the United States government announced that it had ...



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Biotech/COVID-19

As U.S. buys up remdesivir, 'vaccine nationalism' threatens access to COVID-19 treatments

 

As U.S. buys up remdesivir, ‘vaccine nationalism’ threatens access to COVID-19 treatments

Are we really all in this together? ‘Vaccine nationalism’ must be addressed to ensure equitable distribution of a COVID-19 vaccine. (Pixabay)

Courtesy of Joel Lexchin, University of Toronto

At the end of June, the United States government announced that it had ...



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Zero Hedge

Prins: "We're Living In A Permanent Distortion"

Courtesy of ZeroHedge

Via Greg Hunter’s USAWatchdog.com,

Three time best-selling book author Nomi Prins says long before the Covid 19 crisis, the global economy was faltering big time. The Fed stepped in with the start of massive money printing in late 2019 to save the day. 

Prins explains, “We were already in crisis mode as I mentioned at the end of my last book going into 2019."

"What did we see at the end of 2019?  We saw this pivot, and I call it phase two. . ...



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ValueWalk

Facebook Stock Crashes Due To Ad Boycott - Key Investing Points

By Sven Carlin. Originally published at ValueWalk.

Facebook, Inc. (NASDAQ:FB) stock crashed 8.32% on Friday because of the announced ad boycott by many companies like Unilever, Coca Cola, recently Starbucks on Sunday that might push the stock down even more during this week.

Q2 2020 hedge fund letters, conferences and more

However, investing is about knowing how to differentiate between the noise and fundamentals and we discuss Facebook's recent news and compare it to FB fundamentals.

  • Facebook stock crash
  • Ad boycott
  • Facebook stock volatility
  • Facebook's fundamentals
  • Be sure of volatility
  • My po...


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Chart School

Golds quick price move increases the odds of a correction

Courtesy of Read the Ticker

Every market corrects, maybe profit taking, maybe of allowing those who missed out, to get in!


The current open interest on the gold contract looks to high after a very fast price move, it looks like 2008 may be repeating. A quick flushing out of the weak hands open interest may take place before a real advance in price takes place. The correction may be on the back of a wider sell off of risk assets (either before of after US elections) as all assets suffer contagion selling (just like 2008).

This blog view is a gold price correction of 10% to 20% range is a buying opportunity. Of course we may see  a very minor price correction but a long time correction, a price or time is correction is expected, we shall watch and...

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The Technical Traders

Wild Volatility Continues As US Markets Attempt To Establish New Trend

Courtesy of Technical Traders

We’ve continued to attempt to warn investors of the risks ahead for the US and global markets by generating these research posts and by providing very clear data supporting our conclusions.  Throughout the entire months of May and June, we’ve seen various economic data points report very mixed results – and in some cases, surprise numbers as a result of the deep economic collapse related to the COVID-19 virus event.  This research post should help to clear things up going forward for most traders/investors.

As technical traders, we attempt to digest these economic data factors into technical and price analysis while determining where and what ...



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Kimble Charting Solutions

Nasdaq 100 Relative Strength Testing 2000 Highs

Courtesy of Chris Kimble

The tech bubble didn’t end well. BUT it did tell us that the world was shifting into the technology age…

Since the Nasdaq 100 bottomed in 2002, the broader markets have turned over leadership to the technology sector.

This can be seen in today’s chart, highlighting the ratio of Nasdaq 100 to S&P 500 performance (on a “monthly” basis).

As you can see, the bars are in a rising bullish channel and have turned sharply higher since the 2018 stock market lows. This highlights the strength of the Nasdaq 100 and large-cap tech stocks.

...

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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

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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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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