Posts Tagged ‘NXY’

Straddle Seller Foresees Range-Bound Shares for Flextronics

Today’s tickers: FLEX, NXY, XRT & HON

FLEX - Flextronics International, Ltd. – A sizeable short straddle initiated on Singapore-based Flextronics International this morning indicates one options player expects to see limited fluctuations in the price of the underlying shares through January 2011 expiration. Shares in Flextronics, which manufactures thousands of electronic devices, are up 0.45% at $6.90 as of 12:05 pm after Singapore reported a surge in exports in the month of October. The straddler sold 10,000 calls at the January 2011 $7.5 strike for a premium of $0.26 each in combination with the sale of 10,000 puts at the same strike for a premium of $0.81 a-pop. Gross premium pocketed on the straddle amounts to $1.07 per contract. The investor keeps the full amount of premium received if FLEX shares settle at $7.50 at expiration. Short positions taken in both call and put options expose the trader to losses in the event that shares shift significantly away from the selected strike price. Losses start to amass if shares rally above the upper breakeven price of $8.57, or if shares slip beneath the lower breakeven point at $6.43 ahead of expiration. Flextronics’ overall reading of options implied volatility is up 8.3% at 41.57% as of 12:10 pm.

NXY - Nexen, Inc. – Contrarian trading in longer-dated call options on the Canadian oil and natural gas company appears to be the work of an optimistic strategist expecting Nexen’s shares to rebound ahead of June 2011 expiration. Nexen’s shares are currently down 5.4% to stand at $21.00 as of 11:35 am in New York. At an investor conference this morning the firm’s CEO said Nexen will likely focus on developing existing holdings rather than pursuing additional acquisitions. Yesterday Nexen revealed plans to spend roughly $2.4 to $2.7 billion next year to promote…
continue reading


Tags: , , ,




Optimist Enacts Bullish Risk Reversal on Dollar Tree Stores Ahead of Earnings

Today’s tickers: DLTR, SPWRB, VZ, AMKR, NXY, CMCSK, MYL, DELL & ZGEN

DLTR – Dollar Tree Stores, Inc. – An investor expecting shares in Dollar Tree to rally significantly by November expiration initiated a bullish risk reversal on the stock today with the price of the discount retailer’s shares up 2.55% at $43.10 as of 3:05 pm ET. It looks like the trader sold approximately 4,825 puts at the November $40 strike for an average premium of $1.30 each in order to partially finance the purchase of the same number of call options at the higher November $45 strike for an average premium of $1.60 apiece. The net cost of putting on the risk reversal trade amounts to $0.30 per contract. Thus, the investor is prepared to make money should Dollar Tree Stores’ shares jump 5.1% to trade above the average breakeven price of $45.30 by expiration day in November. The investor may also be making a bullish wager on DLTR ahead of the firm’s second-quarter earnings report scheduled for release before the opening bell on August 19, 2010.

SPWRB – SunPower Corp. – News that solar energy developer, Etrion Corp., agreed to purchase the two initial phases of Italy’s largest solar park from SunPower Corp. for roughly $63.5 million in cash plus debt today sent SunPower’s shares up as much as 5.4% today to an intraday high of $12.59. Shares are currently trading 4.25% higher on the day to arrive at $12.45 as of 3:15 pm ET. The move higher in the price of the underlying stock attracted bullish options players to the August contract. Investors hoping to see SunPower’s shares continue to appreciate ahead of August expiration purchased roughly 1,000 calls at the August $12.5 strike for an average premium of $0.50 each. Call buyers make money if SPWRB’s shares can rally another 4.4% to surpass the average breakeven price of $13.00 by expiration day. Other optimistic individuals sold 1,100 in-the-money puts at the August $12.5 strike to take in an average premium of $0.60 apiece. Put sellers retain the full premium enjoyed on the transaction as long as SunPower’s shares are trading above $12.50 through August expiration. Investors short the puts are ready and willing to have shares of the underlying stock put to them at an effective price of $11.90 in the event the put contracts land in-the-money at expiration day.

VZ – Verizon Communications,
continue reading


Tags: , , , , , , , ,




Bank of America Bears Buy Puts

Today’s tickers: BAC, PBR, F, FXI, NXY, KFT, DELL & HPQ

BAC – Bank of America Corp. – Bearish option traders purchased put options on Bank of America today with shares of the firm trading 3% lower to $14.52. The number of put options purchased at the March $14 strike price surpassed existing open interest at that strike, suggesting many investors are bracing for continued near-term share price erosion. Approximately 33,000 puts were purchased for an average premium of $0.59 apiece at the March $14 strike. Investors picking up the put options perhaps anticipate B of A’s share price could slip beneath the effective breakeven point on the trade at $13.41 ahead of March expiration. The 12% increase in the reading of options implied volatility on Bank of America to 43.74% today points to increased fluctuation in the price of the underlying shares going forward.

PBR – Petroleo Brasileiro SA ADR – The Brazilian oil company’s shares recovered slightly today, rising 0.65% to $39.03, amid higher commodity prices and a rebound in the price of crude oil. Option traders are still initiating bearish trades on the stock though, which suggests today’s modest rebound could be short-lived. One investor purchased a put spread in the January 2011 contract, establishing long-term downside protection. It appears the trader bought 5,000 in-the-money puts at the January 2011 $40 strike for a premium of $6.50 each, marked against the sale of 5,000 puts at the lower January 2011 $30 strike for an average premium of $2.13 apiece. The net cost of the transaction amounts to $4.37 per contract. The parameters of the trade indicate an effective breakeven share price of $35.63, which marks the price at which shares must trade at (or below) before downside protection kicks in for the put-spreader.

F – Ford Motor Co. – Shares of the American automaker, whose sales increased 24% year-over-year in the month of January, rallied 3.40% to $11.28 today. Notable options activity on the stock involved long-dated put options in the January 2012 contract. It looks like at least one investor purchased 20,000 puts at the January 2012 $5.0 strike for a premium of $0.58 per contract in combination with the purchase of an equivalent number of shares of the underlying stock. The ‘married-puts’ picked up by options players provide long-term downside protection should Ford’s shares collapse in the next two years. But, the trader(s) are most…
continue reading


Tags: , , , , , , ,




Investor Initiates Volatility Play on Alcoa Ahead of Earnings

Today’s tickers: AA, GLD, MGM, NXY, INTC, NDAQ, ANDS, F, EEM, MMR & MELI

AA – Alcoa, Inc. – A short straddle play on the largest U.S. producer of aluminum today implies one investor anticipates Alcoa’s shares will remain range-bound through January’s expiration on Friday. Alcoa’s shares appreciated 1% to a new 52-week high of $17.20 (as of 12:40 pm EDT) during the session. According to one Bloomberg article, the firm may report fourth-quarter profits of $0.06 per share today. The sold straddle strategy also indicates the trader expects lower volatility in the price per share. Perhaps this individual is taking advantage of the typical drop in option implied volatility, which tends to accompany earnings announcements. The investor sold 10,000 calls at the January $17.50 strike for a premium of $0.59 apiece, and sold 10,000 puts at the same strike for about $0.69 each. The gross premium pocketed on the trade amounts to $1.28 per contract. The full $1.28 premium is safe in the investor’s wallet if the contracts expire worthless at a share price of $17.50 on Friday. The short call and put positions established today leave the investor vulnerable to potential losses in the event that Alcoa’s shares swing outside of the breakeven boundaries. Losses accrue if shares edge beneath the lower breakeven price of $16.22, or if shares rise above the upper breakeven point at $18.78.

GLD – SPDR Gold Trust ETF – Shares of the exchange-traded fund, which mirrors the price of gold bullion, may be up more than 1.25% to $112.82 today, but option traders populated various contracts with bearish strategies. A hefty put spread appeared in the June contract. The transaction involved the purchase of 17,000 puts at the June $105 strike for a premium of $3.50 each, marked against the sale of 17,000 puts at the lower June $95 strike for roughly $0.52 apiece. The net cost of the pessimistic play amounts to $2.98 per contract. If the investor is holding a long position in GLD shares, the spread provides downside protection in case shares slip beneath the breakeven price of $102.02, by expiration in June. Additional bearish indications appeared in the September contract. One trader initiated a risk reversal by selling 5,000 calls at the September $130 strike for $4.55 each, spread against the purchase of 5,000 puts at the lower September $100 strike for $3.60 apiece. GLD’s shares must trade beneath…
continue reading


Tags: , , , , , , , , , ,




 
 
 

Phil's Favorites

How to make fragile global supply chains stronger and more sustainable

 

How to make fragile global supply chains stronger and more sustainable

Shipping containers are moved from the Fairview Cove Container Terminal In Halifax in May 2021. THE CANADIAN PRESS/Andrew Vaughan

Courtesy off Adel Guitouni, University of Victoria; Cynthia Waltho, University of Victoria, and Mohammadreza Nematollahi, University of Victoria

...

more from Ilene

Digital Currencies

Ethereum: the transformation that could see it overtake bitcoin

 

Ethereum: the transformation that could see it overtake bitcoin

The crypto wars are hotting up. Wit Olszewski

Courtesy of Daniel Broby, University of Strathclyde

The world’s second most valuable cryptocurrency, ether, has been touching all-time highs in price ahead of a major upgrade of its underlying platform, ethereum. Ether is currently worth in aggregate just shy of US$500 billion (£363 billion). That’s still slightly less than half that of the biggest cryptocurrency, bitcoin.

...

more from Bitcoin

Zero Hedge

Another Massive Short Squeeze Leads To Spectacular 5Y Auction

Courtesy of ZeroHedge View original post here.

Similar to yesterday's stellar 2Y auction, which many were worried would see a drop in demand only to be silenced by the burst in demand due to a furious scramble for physical paper on the back of a record front-end short (which we previewed earlier in the week), so a quick look at just how special the 5Y TSY had become ahead of today&...



more from Tyler

Politics

Trump wants the National Archives to keep his papers away from investigators - post-Watergate laws and executive orders may not let him

 

Trump wants the National Archives to keep his papers away from investigators – post-Watergate laws and executive orders may not let him

Nixon resigned after tapes he had fought making public incriminated him in the Watergate coverup. Bettmann/Getty

Courtesy of Shannon Bow O'Brien, The University of Texas at Austin College of Liberal Arts

The National Archives is the United States’ memory, a repository of artifacts that includes everything from half-fo...



more from Politics

Biotech/COVID-19

An infectious disease expert explains new federal rules on 'mix-and-match' vaccine booster shots

 

An infectious disease expert explains new federal rules on ‘mix-and-match’ vaccine booster shots

Discuss with your doctor whether or not you need a booster – and if so, which vaccine will work best for you. Justin Sullivan/Getty Images News via Getty Images

Courtesy of Glenn J. Rapsinski, University of Pittsburgh Health Sciences

Many Americans now have the green light to get a COVID-19 vaccine booster – and the flexibility to receive a different brand than the ori...



more from Biotech/COVID-19

Chart School

Price and Volume Swing Analysis on Bitcoin and Silver

Courtesy of Read the Ticker

Many take guidance from news, pundits or advisors. Well sometimes the swings of price and volume are a better measure of what happens next.

The big boys do not accumulate or distribute in single 1 second trade, they build positions over weeks, months and years. They use price swings in the market to build or reduce positions, and you can see their intent by studying swings of price and volume and applying Tim Ord logic as written in his book called 'The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks'.

Tim Ord is a follower of Richard Wyckoff logic, his book has added to the studies of Richard Wyckoff, Richard Ney and Bob Evans.

Richard Wyckoff after years of...

more from Chart School

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...



more from Promotions

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...



more from Kimble C.S.

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 ...



more from ValueWalk

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...



more from M.T.M.

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...



more from Tech. Traders

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...



more from Lee

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.
...

http://www.insidercow.com/ more from Insider





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.