Posts Tagged ‘NVTL’

Bulls Eye Caterpillar, Inc. Put and Call Options

Today’s tickers: CAT, BBY, NVTL, XLF, GME, ANF & GMCR

CAT – Caterpillar, Inc. – Bullish options traders stampeded machinery maker, Caterpillar, Inc., today with the firm’s shares rallying more than 2.75% to stand at $62.70 as of 12:55 pm (ET). CAT’s shares increase as much as 3.4% to touch an intraday high of $63.10 in the first half of the trading day. Near-term optimists sold at least 2,200 puts at the June $62.5 strike for an average premium of $1.06 apiece. Investors selling the puts could be ditching downside protection, or may be selling the contracts outright to pocket available put premium. CAT-bulls also purchased some 1,800 now in-the-money calls at the June $62.5 strike for an average premium of $0.88 apiece. Call buyers at this strike price are poised to profit should shares of the tractor manufacturer rally above the average breakeven price of $63.38 before the contracts expire on Friday. Caterpillar’s overall reading of options implied volatility is down 5.3% to 38.11% in afternoon trading.

BBY – Best Buy Co. – Contrarian options players are taking advantage of the more than 6.5% decline in Best Buy’s shares to $38.37 today by initiating near-term bullish transactions in the June contract. Shares of the world’s largest consumer-electronics retailer fell as much as 7.6% to touch down at an intraday low of $37.93 after the firm reported weaker-than-expected first-quarter profits of $0.36 a share, which underwhelmed analysts expecting average net income of $0.50 a share for the quarter. Best Buy bulls expecting the electronics retailer’s shares to rebound purchased 1,100 calls at the June $39 strike at an average premium of $0.54 apiece. Shares of the underlying stock must rally 3.05% from the current price of $38.37 before June $39 strike call buyers start to make money above the average breakeven point at $39.54. Buying interest spread to the higher June $40 strike where 2,300 calls were coveted for an average premium of $0.25 per contract. Investors long the calls profit if BBY’s shares surge 4.9% to trade above the average breakeven price of $40.25 by June expiration on Friday. Other optimistic investors engaged in put selling to take advantage of richer available premium. Bulls shed 3,600 puts at the June $38 strike to pocket an average premium of $0.53 per contract. Put sellers at this strike keep the full premium received on the transaction as long as BBY’s shares…
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Ford Call Options Gone Wild as Bulls Populate January 2011 Contract

Today’s tickers: F, IPG, MBI, DAL, XLF, XHB, CROX, GME, BBBY & NVTL

F – Ford Motor Co. – Yesterday we reported on a short strangle play, which implied the automaker’s shares would likely remain within the realm of $10.00 to $12.00 for the next six months to expiration in June 2010. Today we observed bullish options activity in the January 2011 contract, which points to significantly higher shares for Ford in the next twelve months. The stock rallied again today, gaining 2% to reach a new 52-week high of $11.60 with just under 30 minutes remaining in the session. Bullish indications came in the form of a call spread and plain-vanilla call buying strategies. It looks like one investor purchased a large chunk of 50,000 calls at the January 2011 $17.50 strike for an average of $0.58 apiece. The trader responsible for the transaction benefits from this position only if Ford’s shares explode 56% over the current price to surpass the breakeven point at $18.08 by next January. The parameters of the call spread also implies a significant increase in shares of the motor company by 2011, but the nature of the spread limits upside profit potential, whereas the plain-vanilla call buyer’s profits are potentially limitless. The investor responsible for the spread selected the more conservative January 2011 $15 strike to purchase approximately 6,000 calls for an average premium of $1.06 per contract. The other half of the debit spread involved the sale of the same number of calls at the higher January 2011 $22.50 strike for about $0.20 each. The net cost of the bullish play amounts to $0.86 per contract and positions the investor to accrue profits above the breakeven price of $15.86. Maximum potential profits of $6.64 per contract are available to the trader if Ford’s shares rally a whopping 94% from the current value to $22.50 by expiration in January of 2011.

IPG – Interpublic Group of Companies, Inc. – A long straddle strategy initiated on the advertising and marketing company implies one investor expects greater volatility in the price of the underlying through expiration in February. The inherent nature of the long straddle suggests shares of IPG may swing dramatically in the next few weeks. Interpublic’s shares are currently off 2.5% to stand at $7.27 in afternoon trading. The straddle-player purchased about 2,000 puts at the February $7.50 strike for an average premium of…
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Bullish Investors Sprinkle Optimistic Spread Trades on Alcon

Today’s tickers: ACL, VIX, FEED, ODP, NRG, NVTL, LVS & MSTR

ACL – Alcon, Inc. – Medical supplies producer, Alcon, attracted long-term bullish option traders to the May 2010 contract. Shares slipped slightly lower by 0.5% to $144.02 by noontime (EDT). It looks as though one investor financed the purchase of a call spread by selling put options. The three-legged trade involved the sale of 4,200 puts at the May 120 strike for about 4.20 apiece. Next, the investor purchased the same number of call options at the May 155 strike for 7.25 each, spread against the sale of 4,200 calls at the higher May 165 strike for 4.50 per contract. The trader receives a credit of 1.45 each on the strategy. The full credit is retained by the investor as long as shares of ACL remain higher than $120.00 through expiration in May. Additional profits accumulate if the stock surges 7.5% to surpass the breakeven point at $155.00. Maximum additional profits available to the investor amount to 10.00 per contract, attainable if shares add 15% to $165.00 ahead of expiration in May.

VIX – CBOE Vix index – With equity prices sadly wilting by noon on Friday, investors were threatening to completely reverse Thursday’s giddy 2% advance. Traders were despondent after a 0.5% drop in consumer spending last month, which soured the tone following Thursday’s stimulus-stuffed GDP gain. The fear-gauge expanded by 8% to 26.70 as a result and one large options player appears to have placed a trade suggesting that volatility will be omnipresent – at least through year-end. The investor sold 10,000 December expiration puts at the 25 strike for a 1.75 premium, while buying half as many puts in the January expiration at the same strike. If the underlying Vix index settles at expiration above a value of the 25 strike price, the puts would expire worthless. This suggests this investor sees a rocky close to the year with volatility remaining elevated. The purchase of 5,000 puts for a 1.95 premium expiring 30 days later suggests the investor sees a calmer start to next year.

FEED – AgFeed Industries, Inc. – Shares of the Chinese feed and commercial hog producing company are trading 2.5% higher today to stand at $4.73. The firm received a ‘buy’ recommendation at EVA Dimensions yesterday. Option traders took to the May 2010 contract to initiate bullish positions on the stock. It…
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Phil's Favorites

Corporate boards are supposed to oversee companies but often turn a blind eye

 

Corporate boards are supposed to oversee companies but often turn a blind eye

Courtesy of Siri Terjesen, American University Kogod School of Business

A lot of giant companies are getting into big trouble these days.

When Boeing 737 Max aircraft crashed in Indonesia and Ethiopia, killing a total of 346 people in October 2018 and March 2019, the disasters raised serious questions about the safety of the aviation leader’s anti-stall system.

When some 5,000 Wells Fargo employees fra...



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Zero Hedge

iPhone X Sales Collapse Triggers Serious Breach Of Contract With Samsung 

Courtesy of ZeroHedge. View original post here.

In an exclusive, ChannelNews reveals Apple is facing hundreds of millions of dollars in penalty payments to Samsung because iPhone demand has fallen.

Apple "demanded" that Samsung construct one of the world's biggest OLED manufacturing facilities exclusively for iPhone screens.

...



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Kimble Charting Solutions

Wilshire 5000 Creating A Triple Top? An Important Breakout Test Is In Play!

Courtesy of Chris Kimble.

The stock market has been on fire of late, rallying up to the edge of price resistance on several indexes. Today, we look at one of those stock market indexes: the Wilshire 5000.

The Wilshire 5000 tracks all of the stocks in the US market, so it is a broad-based index that carries significant importance when gauging the health of the overall US stock market.

Looking at the long-term “weekly” chart above, it is pretty clear that the index is at an important price juncture.

The Wilshire 5000 spent the last 25 years trading within a rising price channel (1)...



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Insider Scoop

Jefferies Upgrades Deere, Cites 'Significantly Improved Farmer Income Outlook'

Courtesy of Benzinga.

Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE: DE), according to Jefferies.

The Analyst

Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190....



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Chart School

Formula for when the Great Stock Market Rally ends

Courtesy of Read the Ticker.

When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.

This is when a seriously over valued market is screaming at you.

Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT). 

To see when water company's (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The c...

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ValueWalk

The "Tesla Killer" Car Is Nowhere In Sight

 

The “Tesla Killer” Car Is Nowhere In Sight

By Jacob Wolinsky, ValueWalk

Here’s some catnip for the Tesla bulls on this email list: my analyst, Kevin DeCamp, a longtime TSLA shareholder and car owner, took a test drive of the Jaguar I-PACE and, while it “looks great and is fun to drive… it is lacking in a few areas where Tesla really shines.” He concludes that “Tesla may end up killing itself, but the “Tesla killer” car is nowhere in sight.”

The Tesla Killer Hasn’t Arrived Yet: My Test Drive of the Jaguar I-PACE

By Kevin DeCamp

As a long-time, devoted Tesla...



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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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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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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

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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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