Posts Tagged ‘NTES’

Protective Puts In Play As Eli Lilly Shares Reach Multi-Year High

 

Today’s tickers: LLY, NTES & HIG

LLY - Eli Lilly and Co. – Shares in the world’s 10th largest pharmaceutical company touched a fresh three-year high of $44.27 today and remain in positive territory, up 0.35% at $44.00 as of 11:20 a.m. in New York, as major U.S. equity benchmarks rebound off earlier declines amid Fed Chairman Ben Bernanke’s Q&A session with the Senate Banking Committee. Options activity on the drug maker today suggests one or more traders may be locking in Lilly’s share price gains in case the stock falters somewhat during the next couple of months. It looks like a 1,100-lot Sept. $39/$43 put spread was purchased this morning for an average net premium of $1.32 per contract. The debit put spread may represent protective positioning by a trader or traders seeking to hedge long stock in LLY, or an outright bearish bet that the shares may pullback by expiration. Profits – or downside protection – kick in on the spread in the event Lilly’s shares decline 5.3% to breach the average breakeven price of $41.68. Maximum potential profits of $2.68 per contract are available on the position should the drug maker’s shares drop 11.4% to trade at or below $39.00 come September expiration. Meanwhile, trading traffic in Lilly call options indicates some strategists may anticipate fresh multi-year highs for the stock this year. One bullish player appears to have rolled a 500-lot long call position from the July $44 strike out to the Sept. $44 strike to extend optimism on the name. Traders betting on a far larger move to the upside snapped up around 480 calls at the Sept. $50 strike for an average premium of $0.68 apiece. The $50 calls may be profitable at expiration if shares in Eli Lilly and Co. jump 15% over the current price of $44.00 to top $50.68. The company is scheduled to report second-quarter earnings ahead of the open next Wednesday.

NTES -
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Financials continue to rally

Today’s tickers: CIT, CSCO, AMX, STI, XTO, NTES & MCHP

CIT CIT Group, Inc. – Shares of the North American bank holding company has jumped more than 10% to $3.01 amid the broad gains enjoyed by the financial sector today. CIT appeared on our ‘most active by options volume’ market scanner after one investor initiated a reversal on the stock. The trader sold 21,200 calls at the in-the-money October 2.5 strike price for 1.15 and then purchased 21,200 puts at the same strike price for 40 cents each. Perhaps the investor is looking to bank gains on today’s rally and protect the profits by getting long of puts. The trade resulted in a credit of 75 cents to the individual who is prepared to gain to the downside at any share price below $2.50 by expiration in October.

CSCO Cisco Systems, Inc. – The networking and communications products company is off slightly by about 2% to $19.26. However, we observed bullish option traders looking for a rise in shares by expiration this month. At the May 20 strike price more than 18,900 calls were picked up for an average premium of 40 cents apiece. The breakeven on the trade at $20.40 requires that shares rise by just 6% from the current price in order for call-buyers to begin to profit to the upside by expiration. One month further, the in-the-money June 19 strike price attracted a trader to bank gains by selling 8,200 calls for a premium of 1.24. Perhaps this individual decided to throw in the towel and take in profits today for fear that shares may fall further over the next month and a half and erode the call premium even more.

AMX America Movil SAB de CV ADR – The Mexican local and long-distance telephone services company has experienced a slight 1.5% rally in shares to stand at $36.88 today. We observed option traders loading up on puts in the May, June, and August contracts. The activity drove up the put-to-call ratio to more than 6-to-1 indicating that 6 puts were traded to each call option in action. At the near-term May 34 strike price some 4,500 puts were purchased for an average premium of 28 cents apiece. Further along in the June contract, bearish traders coveted 2,500 puts at the 35 strike for 1.50 each. Finally, the largest purchase was a chunk of 20,000 puts…
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Phil's Favorites

Free, Live Webinar on Stocks, Options and Trading Strategies

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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

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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Zero Hedge

Futures Spike After Germany Yanks "Debt Break": Berlin To "Temporarily Suspend" Limit On Public Borrowing

Courtesy of ZeroHedge View original post here.

The Germans may have opposed closing borders in response to the outbreak in Italy, but it appears Berlin is planning to do something about the outbreak.

According to reports, the Germans are stepping up to suspend Berlin's longstanding constitutional "debt break" and deliver the fiscal stimulus for which economists have been begging.

To try and prevent a full-blown recession ...



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Biotech & Health

World economy flashes red over coronavirus - with strange echoes of 1880s Yellow Peril hysteria

 

World economy flashes red over coronavirus – with strange echoes of 1880s Yellow Peril hysteria

Courtesy of John Weeks, SOAS, University of London

As the novel coronavirus pandemic continues to unfold, travel restrictions are being imposed around the world. China is the main target, with various countries including Australia, Canada and the US placing different restrictions on people who have travelled through the country ...



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Insider Scoop

Benzinga Pro's Top 5 Stocks To Watch For Wed., Feb. 26, 2020: DIS, SPCE, BYND, SDC, JCP

Courtesy of Benzinga

Benzinga Pro's Stocks To Watch For Wednesday

  • Disney (DIS) - The company announced Bob Iger will step down as CEO, to be replaced by Bob Chapek. Iger will assume the role of Executive Chair through 2021. Disney shares were down about 2% on the news. 
  • Virgin Galactic (SPCE) - Shares were down 4% following Q4 results. The company reported a nearly $73 million loss on sales of under $530K. The stock is probably one of the most popular stocks on Wall Street right now: about 15 million shares trade per day on average; on Tuesday, ahead of the earnings report, about 41 million shares traded. Virgin Galactic was about a $6 billion market-cap company ...


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Kimble Charting Solutions

Dow Industrials Reversal Lower Could Be Double Whammy for Stock Bulls!

Courtesy of Chris Kimble

Dow Jones Industrial Average “monthly” Chart

The Dow Industrials have spent the past 70 years in a wide rising price channel marked by each (1). And the past 25 years have seen prices test and pull back from the upper end of that channel.

The current bull market cycle has seen stocks rise sharply off the 2009 lows toward the upper end of that channel once more.

In fact, the Dow has been hovering near the topside of that price channel for several months.

But just as the Dow is kissing the top of this channel, it might be creating back-to-back “monthly” bearish ...



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The Technical Traders

Yield Curve Patterns - What To Expect In 2020

Courtesy of Technical Traders

Quite a bit of information can be gleaned from the US Treasury Yield Curve charts.  There are two very interesting components that we identified from the Yield Curve charts below.  First, the bottom in late 2018 was a very important price bottom in the US markets.  That low presented a very deep bottom in the Yield Curve 30Y-10Y chart.  We believe this bottom set up a very dynamic shift in the capital markets that present the current risk factor throughout must of the rest of the world.  Second, this same December 2018 price bottom set up a very unique consolidation pattern on the 10Y-3Y Yield Curve chart.  This pattern has been seen before, in late 1997-1998 and late 2005-2008.

...

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Chart School

Oil cycle leads the stock cycle

Courtesy of Read the Ticker

Sure correlation is not causation, but this chart should be known by you.

We all know the world economy was waiting for a pin to prick the 'everything bubble', but no one had any idea of what the pin would look like.

Hence this is why the story of the black swan is so relevant.






There is massive debt behind the record high stock markets, there so much debt the political will required to allow central banks to print trillions to cover losses will likely effect elections. The point is printing money to cover billions is unlikely to upset anyone, however printing trillions will. In 2007 it was billions, in 202X it ...

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Members' Corner

Threats to democracy: oligarchy, feudalism, dictatorship

 

Threats to democracy: oligarchy, feudalism, dictatorship

Courtesy of David Brin, Contrary Brin Blog 

Fascinating and important to consider, since it is probably one of the reasons why the world aristocracy is pulling its all-out putsch right now… “Trillions will be inherited over the coming decades, further widening the wealth gap,” reports the Los Angeles Times. The beneficiaries aren’t all that young themselves. From 1989 to 2016, U.S. households inherited more than $8.5 trillion. Over that time, the average age of recipients rose by a decade to 51. More ...



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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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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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