Posts Tagged ‘NUAN’

Bullish Options Change Hands On Hartford Financial Services Group

 

Today’s tickers: HIG, NUAN & XLU

HIG - Hartford Financial Services Group, Inc. – Shares in insurer, Hartford Financial Services Group, Inc., are trading at their highest level since May of 2011 today after the company posted better than expected first-quarter earnings after the close on Monday. The stock is up 3.5% at $28.17 as of 11:20 a.m. ET this morning and some options players appear to be positioning for the price of the underlying to extend gains in the near term. The most actively traded contracts on HIG as measured by volume today are the May $29 strike calls, with upwards of 7,000 lots in play versus open interest of 2,184 contracts. It looks like most of the volume was purchased during the first 30 minutes of the trading session for an average premium of $0.38 each. Traders long the $29 calls stand ready to profit at expiration in the event that HIG’s shares rally another 4.3% over the current price of $28.17 to surpass the average breakeven point at $29.38. Hartford’s shares are up roughly 80% off a 52-week low of $15.56 set back in August of 2012.

NUAN - Nuance Communications, Inc. – Investors in speech recognition software maker, Nuance Communications, Inc., are taking it on the chin today as shares in the name tumble on the lower than expected second-quarter earnings and revenue reported by the company ahead of the opening bell. Shares in NUAN dropped as much as 19% to a one-month low of $18.86 this morning. Double-digit percentage declines in the price of the underlying appears to have spurred some contrarian trading in Nuance options. Strategists positioning for shares in the audio software provider to rebound during the next couple of months snapped up around 1,700 calls at the Jun $20 strike for an average premium of $0.90 each in the early going today. The bullish bet may pay off at June expiration if shares in Nuance manage to rally 11% off the $18.86 low to surpass the average breakeven point at…
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The Price is Right for Lockheed Martin Corp. Call Buyers

Today’s tickers: LMT, KO, LNG & NUAN

LMT - Lockheed Martin Corp. – President Barack Obama’s proposal to cut $400 billion from the Pentagon’s budget through 2023 sent shares in Lockheed Martin lower this week, providing one contrarian options player the opportunity to pick up May contract call options at a steep discount this morning. Lockheed’s shares fell as much as 3.2% at the start of the session to touch an intraday low of $75.81, which marks a 6.7% total decline off Monday’s high of $81.22. Talks of reining-in defense spending pushed some options players to put options, but most of the volume in LMT options on Thursday is in out-of-the-money calls. More than 10,500 calls changed hands at the May $80 strike on paltry previously existing open interest of just 452 contracts. It looks like most of these calls were purchased by bullish players positioning for a rebound in the price of the underlying stock by May expiration. Investors may be picking up the calls in anticipation of a rally following Lockheed Martin’s first-quarter earnings report on April 26, 2011. Call buyers paid an average premium of $0.81 per contract for the options this morning. Premium on the calls was up around $2.60 each at the start of the week, and had a price tag of $1.70 a-pop on Wednesday. Plain-vanilla call buyers start making money if shares in Lockheed rise 3.9% over the current price of $77.79 to surpass the average breakeven point on the upside at $80.81 by expiration day next month. The overall reading of options implied volatility on LMT increased 14.1% to 23.53% by 11:55am.

KO - Coca-Cola Co. – The beverage manufacturer bubbled up on our scanners this morning after one strategist initiated a short strangle in long-dated Coke options. Shares in Coca-Cola Co. are…
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Bulls Take the Wheel, Initiate Recovery Plays Using Ford Options

Today’s tickers: F, TOL, BRCD, LOW, NUAN, WAG & IFF

F - Ford Motor Co. – The automaker’s shares edged 2.45% lower this afternoon to $15.80, but investors expecting to see Ford rebound and rally in the next few months initiated bullish plays using put and call options expiring in February 2011. It looks like one trader purchased a bull call spread, while another investor put on a bullish risk reversal. The call spreader picked up 5,000 contracts at the February 2011 $16 strike for a premium of $1.24 each, and sold the same number of calls at the higher February 2011 $20 strike for a premium of $0.20 apiece. Net premium paid to establish the spread amounts to $1.04 per contract. Thus, the responsible party is prepared to make money should shares in Ford Motor Co. surge 7.85% over the current price of $15.80 to surpass the effective breakeven point at $17.04 by February expiration. The call-spreader could end up walking away with maximum potential profits of $2.96 per contract if Ford’s shares jump 26.6% to trade above $20.00 by expiration day next year. The other bullish play in the February 2011 contract appears to be the work of an investor selling 1,990 February 2011 $15 strike puts at a premium of $0.69 each in order to purchase the same number of February 2011 $18 strike calls for a premium of $0.50 a-pop. The transaction results in a net credit of $0.19 per contract, which the investor keeps as long as shares in Ford exceed $15.00 through expiration. Additional profits start to accrue for the trader should shares rally 13.9% to trade above $18.00 before the contracts expire. The net credit received by the investor provides limited downside protection should shares continue to head south. The investor will face losses, however, if Ford’s shares trade below the effective breakeven price of $14.81 in the next few months to expiration.…
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Pessimist Plants Put Spread on Comerica Inc.

Today’s tickers: CMA, CSCO, ATHN, FIG, CYD, CROX & NUAN

CMA – Comerica Inc. – The financial services firm’s shares declined as much as 4.8% today to touch down at an intraday low of $36.38. One options investor expecting Comerica’s shares to continue to head south ahead of October expiration purchased a plain-vanilla debit put spread. Shares are currently down 3.65% on the day to arrive at $36.82 just before 2:45 pm ET. The bearish player purchased 5,000 puts at the October $36 strike for an average premium of $2.05 per contract, and sold the same number of puts at the lower October $30 strike for an average premium of $0.50 apiece. The net cost of buying the spread amounts to $1.55 per contract. Thus, the investor responsible for initiating the transaction is poised to profit should CMA’s shares fall another 6.4% from the current price of $36.82 to trade below the effective breakeven point at $34.45 by expiration day. Maximum potential profits of $4.45 per contract pad the investor’s wallet if Comerica’s shares plummet 18.5% to slip beneath $30.00 by expiration in October. The surge in demand for options on the stock helped lift the overall reading of options implied volatility on CMA 9.1% to 34.00% this afternoon.

CSCO – Cisco Systems, Inc. – Wary options players are scooping up put options on the maker of switches and routers today with shares of the underlying stock trading lower by 0.95% to stand at $23.94 in late afternoon trading. Investors expecting to see Cisco’s shares decline following the firm’s fourth-quarter earnings report, scheduled for release after the closing bell on August 11, opted to purchase weekly put options expiring on August 13. Traders bought approximately 6,800 put options at the August $23 strike for an average premium of $0.26 apiece. Put buyers make money as long as Cisco’s shares fall another 5.00% from the current price of $23.94 to trade below the average breakeven point to the downside at $22.74 by expiration day.

ATHN – Athena Health, Inc. – Shares of the provider of Internet-based business services for physician practices fell as much as 4.00% today to an intraday low of $25.18. Today’s low point in ATHN shares marks an 11.025% decline in the price of the underlying stock since Monday when shares touched an intraday high of $28.30. Athena Health appeared on our scanners today after one bearish options…
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Option Players Construct Conflicting Strategies on EBAY

Today’s tickers: EBAY, RCL, RAI, VLO, VRSN, USU, JAS, NUAN, TIVO & DNR

EBAY – eBay, Inc. – Two different options strategies employed on online auction-house, eBay, Inc., today indicate conflicting medium-term sentiment on the stock. One trader is positioning for a significant rally in the price of the underlying, while another individual anticipates shares will remain range-bound through July expiration. EBAY’s shares increased 3.35% during the current session to stand at $24.58. The uber-bullish stance taken on the stock involved the purchase of 10,000 call options at the July $30 strike for a premium of $0.22 per contract. The investor holding the calls stands ready to amass profits should shares of the underlying stock surge 22.95% from the current price to surpass the effective breakeven point on the calls at $30.22 by expiration in five months time. In contrast, the other options player initiated a sold strangle, which yields maximum benefits only if shares trade within a specified range through expiration. The investor sold 3,500 calls at the July $26 strike for a premium of $1.10 apiece in combination with the sale of the same number of puts at the lower July $21 strike for a premium of $0.58 each. Gross premium enjoyed on the trade amounts to $1.68 per contract. The investor keeps the full amount of premium if shares trade between $21.00 and $26.00 through expiration. However, losses accrue on the position if EBAY’s shares trade above the upper breakeven point at $27.68, or if shares slip beneath the lower breakeven price of $19.32 by expiration day. If the call-buying optimist ends up accurately predicting EBAY’s future share movements, the strangle seller will lose out big time. But, if shares do remain range-bound, the call-buyer only ever risks losing $0.22 per contract, or the price paid to take ownership of the call contracts.

RCL – Royal Caribbean Cruises Ltd. – The cruise operator received an upgrade to ‘neutral’ from ‘sell’ with a target share price of $27.00 at Goldman Sachs Group yesterday, and today nearly reached the target price amid a 2.60% rally in the price of the underlying shares to $29.70. Option trading in the June contract today is likely the work of a bullish trader investing in married put options. It appears the investor purchased shares of the underlying stock for about $29.36 apiece in conjunction with the purchase of approximately 39,000 puts at the…
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Weekly Wrap-Up – 10,000 or Bust!

I think I was right on the money last week when I said:

The bar for corporate earnings is still set at very easy to beat levels yet, like this limbo-playing child, when they announce their beats of very low expectations we’re going to get all excited and tell them how great they are doing.  The problem is, these are not kids who we hope may grow up one day to be President or CEOs of major companies. these ARE CEOs of major companies and they are being paid top salaries for top performance and we, the stock purchasing public, are paying top dollar for what should be SPECTACULAR performance, not beating 75% off last year’s earnings by a penny! 

In that post, I rattled off a list of stocks that seemed overpriced to me: AMZN, BIDU, AM, PALM, NFLX, PCLN, URBN, UHS, CERN, CREE, GMCR, CY, SWM, TRLG, BKE and you would have had a fabulous week just shorting those stocks as only NFLX, URBN and CREE stayed positive.  Now most newsletter writers would quit right there and make a giant ad saying they were 12 for 15 on the week but, as our members know, THAT'S NO BIG DEAL AT PSW!  I'm just going to remind members that they can refer friends to FREE advice like that in our trial newsletter and earn 20% or more off their subscriptions for doing it. 

Picking stocks is easy but a few percent here and a few percent there isn't much fun is it?  On that list, the two we attacked were AMZN and BIDU, both of which ran (in our opinion) way too high AND had very liquid and very overpriced call options that we could sell to collect premiums.  AMZN is a staple short in our $100K Virtual Portfolio and we had set up BIDU the week before, selling Oct $420 calls for $8.30 and the Oct $430 calls for $7,20.  While both went higher on Monday, the fact that we had a plan for managing the trade kept us from panicking and, thankfully, Monday was the only day those positions gave us trouble and both finished the week worthless (100% profit for us). 

Adjusting our positions kept us busy this week as we STILL have a slightly bearish
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Gaylord Welcomes New Options Players As Investors Target Upside

Today’s tickers: GET, BAC, WFMI, KSS, HGSI, MOS, AES & NUAN

GET – The diversified hospitality and entertainment company edged onto our ‘hot by options volume’ market scanner after a bullish reversal was established in the October contract. Shares of GET have surged more than 17.5% to $17.22 today on “solid” second-quarter results which exceeded analyst expectations. An investor looking for continued gains in the stock sold 3,000 puts short at the October 12.5 strike price for 55 cents per contract in order to partially fund the purchase of 3,000 calls at the higher October 17.5 strike for a premium of 1.65 each. The net cost of the transaction amounts 1.10. The trader will begin to accrue profits by expiration if shares can continue higher by at least 8% to breach the breakeven point at $18.60. We note that the more than 6,000 lots exchanged on the stock today, trumps previous existing open interest of 1,993 contracts by 201%. – Gaylord Entertainment Company

BAC – A number of longer-term option trades observed on BAC today indicate that some investors believe the financial services firm is on the road to recovery. Shares have increased more than 3% to arrive at the current price of $15.80. Call spreads were enacted in the February 2010 contract by traders expecting significant appreciation in the value of the underlying shares by expiration. Approximately 14,000 calls were purchased at the February 20 strike price for an average premium of 86 cents apiece, and were spread against the sale of about 14,000 calls at the higher February 25 strike for 22 cents each. The average net cost of the transaction amounts to 64 cents. Investors will enjoy maximum potential profits of 4.36 per contract if shares of BAC can rally a whopping 58% to $25.00 by expiration in February. Traders will begin to amass profits given a 31% rise in the stock through the breakeven point at $20.64. – Bank of America Corp.

WFMI – The largest retailer of natural and organic foods in the U.S. is scheduled to report third-quarter earnings after the market closes today. Shares are currently off slightly by more than 1% to $24.45 as we near the conclusion of today’s trading session. Option trades revealed mixed sentiment by investors ahead of earnings. A trader who could be protecting a long position in the underlying was seen selling 5,000 puts short at
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Bulls singing Yahoo! in tune

Today’s tickers: YHOO, MMR, FXI, CI, HOG, KFT, NUAN & VMC

YHOO Yahoo!, Inc. – Shares have rallied by more than 2% to $14.32 amid news that the company is seeking buyers for its HotJobs employment website and has plans to cut some 200 to 500 jobs. Perhaps investor confidence has been bolstered by the past few months with CEO Carol Bartz at the helm as the stock has risen about 29% from its January 2009 low of around $11.03 up to today’s price. Option investors were seen taking bullish stances on the stock in the May and October contracts. At the May 15 strike price 26,600 calls were purchased for an average premium of 77 cents apiece. Shares would need to rise by another 10% in order to breach the breakeven point on the trade at $15.77 by expiration in May. Further along, the October 12 strike price witnessed the sale of 2,100 puts for a premium of 1.30 each. Some traders were showing caution in the May contract by purchasing 4,500 puts at the May 14 strike price for 99 cents should shares experience a decline in the near future. These put options would begin to provide downside protection or profits beginning at the breakeven point to the downside at $13.01. Option implied volatility on Yahoo! is up sharply today to 74% from yesterday’s reading of 67%.

MMR McMoRan Exploration Co. – Shares of the oil and natural gas company have declined slightly by less than 1% today to stand at $5.22. Despite the fall in share price, one investor does not see shares falling much further as he sold more than 14,000 puts at the May 5.0 strike price for a premium of 50 cents apiece. There is currently no open interest at the May 5.0 strike, and thus this trader accepts the 50 cent premium in exchange for bearing the risk that shares fall beneath the breakeven point to the downside at $4.50. Should shares plummet through the breakeven point, the investor would face increasing losses in proportion with declines in the stock. The puts traded today represent nearly 40% of the existing open interest on the stock of 38,000 contracts. While we do not know the exact motivation for the trade, we do know that shares need only decline by 13% from the current price for this investor to face losses.

FXI iShares FTSE/Xinhua China 25
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Phil's Favorites

Red Friday

 

Red Friday

Courtesy of Scott Galloway, No Mercy/No Malice@profgalloway

Smoking wasn’t popular among women until Edward Bernays, the father of public relations, rebranded it. In 1929 he capitalized on the feminist movement and repositioned cigarettes with a “torches of freedom” campaign. Bernays hired women to march down Fifth Avenue smoking as a public display of emancipation and rebellion. Within six years, women were purchasing 1 in 5 cigarettes, up from 1 in 20 in 1923.

The strategy is simple: If people associate something negative with your product (e.g., cancer), change the conversation — “You’ve come a long way, baby.”

Facebook’s rebranding...



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Zero Hedge

"The Omicron Variant" - Magic Pills, Or Solving The Africa Problem?

Courtesy of ZeroHedge View original post here.

Authored by Kit Knightly via Off-Guardian.org,

Yesterday the WHO labelled the sars-cov-2 variant B.1.1.529 as a “variant of concern” and officially named it “Omicron”.

This was as entirely predictable as it is completely meaningless. The “variants” are just tools to stretch the story out and keep people on their toes.

...



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Biotech/COVID-19

The hunt for coronavirus variants: how the new one was found and what we know so far

 

The hunt for coronavirus variants: how the new one was found and what we know so far Scientists find variants by sequencing samples from people that have tested positive for the virus. Lightspring/Shutterstock

Courtesy of Prof. Wolfgang Preiser, Stellenbosch University; Cathrine Scheepers, University of the Witwatersrand; Jinal Bhiman, National Institute for Communicable Diseases; ...



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Politics

The first Thanksgiving is a key chapter in America's origin story - but what happened in Virginia four months later mattered much more

 

The first Thanksgiving is a key chapter in America’s origin story – but what happened in Virginia four months later mattered much more

In the 19th century, there was a campaign to link the Thanksgiving holiday to the Pilgrims. Bettman/Getty Images

Courtesy of Peter C. Mancall, USC Dornsife College of Letters, Arts and Sciences

This year marks the 400th anniversary of the first Thanksgiving in New England. Remembered and retold as an allegory for perseverance and cooper...



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Chart School

Gold and Silver still working higher

Courtesy of Read the Ticker

Using Gann Angles from zero we can time the next run up, and it is near.

The last two days gold and silver are down on the back of central bankers talking the US Dollar higher in a attempt to off set inflation. A rising dollar is a form of tightening. Also the talk of a faster 'taper' has sent interest rates higher. But Luke Gromen knows this cant not last.

@LukeGromen Externally-financed twin deficit nations with insufficient external financing (ie the US, not Japan) cannot abide rising real rates for long.


RTT Comments: What this means a higher US Dollar makes it harder for those outside the US to buy the vast quantity of US Treasuries. 


U...

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Digital Currencies

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

 

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

Safe as houses? iQoncept

Courtesy of Jean-Philippe Serbera, Sheffield Hallam University

Cryptocurrencies have had an exceptional year, reaching a combined value of more than US$3 trillion (£2.2 trillion) for the first time in November. The market seems to have benefited from the public having tim...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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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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. Contact Ilene to learn about our affiliate and content sharing programs.