Posts Tagged ‘NIHD’

Options Remain Cautious On ORCL, LLY As Shares Rise

Options brief will resume June 25, 2012.

Today’s tickers: ORCL, LLY & NIHD

ORCL - Oracle Corp. – Shares in software giant, Oracle Corp., are up 2.3% this afternoon at $27.53 amid a broad-based rally in equities and after the stock was raised to ‘Buy’ from ‘Hold’ with a 12-month share price target of $33.00 at ThinkEquity LLC. Stocks are trading higher on speculation global central banks may take coordinated action to counter possible market shocks in the wake of Greek elections this weekend. The software maker’s shares may be on the rise today, but a sizable put spread initiated in the September expiry this morning suggests one strategist is keeping an eye on potential bearish movement in the price of the underlying. It looks like the trader snapped up 4,230 puts at the Sept. $26 strike and sold the same number of puts at the lower Sept. $23 strike, all for a net premium outlay of $0.72 per contract. The trader makes money on the spread if shares in ORCL slip 8.2% to breach the breakeven price of $25.28, while maximum potential profits of $2.28 per contract are available in the event shares plunge 16.5% to settle below $23.00 at September expiration. Oracle is scheduled to report fourth-quarter earnings after the final bell next Thursday.

LLY - Eli Lilly and Co. – The drug maker’s shares rallied to their highest level since October 2008 today, trading up as much as 0.90% to $42.17. Trading traffic in Eli Lilly options is fairly evenly distributed between calls and puts, however, the single largest transaction in the contracts today appears to be a protective or potentially an outright bearish stance on the near-term performance of the stock. Volume at any one strike today is heaviest in the July $40 put where more…
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Bearish Player Binges On Perfect World Co. Put Options

Today’s tickers: PWRD, NIHD & COCO

PWRD - Perfect World Co., Ltd. – The online game developer popped up on our scanners this morning following a burst of bearish activity in March 2012 contract call and put options. It looks like much of the trading was initiated by one investor positioning for the price of the underlying to pull back further in the next four months to expiration. Shares in Perfect World Co. fell 6.8% to $11.59 by 12:25 PM in New York trade. The company is slated to report third-quarter earnings after the final bell this evening. It appears the options player purchased around 300 puts at the Mar. 2012 $11 strike, the nearest to-the-money strike put available, for an average premium of $1.92 apiece. Similar bearish activity was seen at the Mar. 2012 $10, $9.0, $8.0 and $7.0 strike prices. The investor purchased at least 290 and as many as 430 puts at each of the lower strikes for premiums ranging from $1.35 down at $0.52 a-pop. The investor starts making money on the Mar. 2012 $11 strike put position in the event that shares in Perfect World decline another 21.7% to breach the effective breakeven point on the downside at $9.08 by expiration day next year. Meanwhile, light call selling at the Mar. 2012 $12, $13, $14 and $15 strikes suggests the investor doubts shares in the name will rally above the current price level by expiration next year.

NIHD - NII Holdings, Inc. – Wireless communications company, NII Holdings, attracted heavier-than-usual activity in its options this morning. It appears one investor is taking a bearish stance on the stock, prepping for near double-digit declines in the price of the underlying by December expiration. Shares in NII Holdings, Inc. are down 4.05% to stand at $22.46 in early-afternoon trade. More than 3,000 put options changed hands at the Dec. $21 strike earlier in the session, against previously existing open interest of just 175 contracts. It looks like the investor purchased the majority of the puts for an average premium of $0.65 each. The trader may profit on the position at expiration next month in the event that NIHD’s shares drop 9.4% from the current price of $22.46 to breach the effective breakeven point on the downside at $20.35. Shares in NII Holdings last traded below $20.35 back in July 2009.

COCO - Corinthian Colleges, Inc. – Shares in the for-profit provider of post-secondary…
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Phil's Favorites

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

 

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

The 16 nations negotiating the Regional Comprehensive Economic Partnership account for almost half the world’s population. Shutterstock/Datawrapper

Courtesy of Pat Ranald, University of Sydney

The Regional Comprehensive Economic Partnership has been touted as the best hope for keeping world trade flowing after the attacks on the World Trade Organisation.

The WTO isn’t dead yet, but in a two-pronged attack, US P...



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Kimble Charting Solutions

Crude Oil Create A Panic Peak This Week?

Courtesy of Chris Kimble

Yesterday Crude Oil rallied nearly 15%. How often does Crude rally this much in a day? Not often!

How many times has Crude rallied nearly 15% in the past 20-years? Only one other time, which suggests that yesterdays move was a rare event.

This chart looks at Crude Oil on a weekly basis over the past 2-years. Last year Crude Oil created a bearish reversal pattern at the 2018 highs and a bullish reversal pattern at the 2018 lows.

Earlier this year, Crude created a bearish reversal pattern (bearish wick pattern), while testing its 61% retracement level of last years hig...



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Zero Hedge

The Fed Has Lost Control Of Rates Again

Courtesy of ZeroHedge View original post here.

Something critical is going on in overnight funding markets: ever since March 20, the Effective Fed Funds rate has been trading above the IOER. This is not supposed to happen, and it just got significantly worse.

As a reminder, ever since the financial crisis, in order to push the effective fed funds rate above zero at a time of trillions in excess reserves, the Fed was compelled to create a corridor system for the fed funds rate which was bound on the bottom and top by two specific rates controlled by the Federal Reserve: the "floor" for the corridor was the overnight reverse repurchase rate (ON-RR...



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Insider Scoop

3 Takeaways From SeaWorld CEO's Surprise Resignation

Courtesy of Benzinga

SeaWorld Entertainment Inc (NYSE: SEAS) announced Monday evening that Gustavo Antorcha resigned as CEO and board member due to a "difference of approach."

What Happened

Antorcha's resignation will be effective immediately and he will be replaced with CFO Marc ...



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The Technical Traders

What Are The Real Upside Targets For Oil Post Drone Attack?

Courtesy of Technical Traders

After the news of the drone attack on the Saudi Arabia oil refinery, traders knew this week would be full of bigger price moves, reversals and some real opportunity for profits.  We were also well aware of the risks of engaging in these market moves prior to fully understanding the dynamics of this event.  We heard from many of our friends in the industry about open positions that were not properly scaled to deal with risk – and we know some of our friends took a hit early today.

The real questions before skilled technical traders are:

What will happen with Oil and where will price find the first level of resistance?

What will happen to t...



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Lee's Free Thinking

Is The Drone Strike a Black Swan?

Courtesy of Lee Adler

Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.”

According to Investopedia:

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.

I seriously doubt that no one expected or could have predicted a drone strike on a Saudi oil facility.

Call Me A B...

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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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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

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