Posts Tagged ‘NYX’

First-Mover Advantage Big for NYX Call Buyers Acting Before Trading Suspended

Today’s tickers: NYX, ATML, JCP & SWY

NYX - NYSE Euronext Inc. – Investors observed buying up call options on the global group of exchanges before trading in the name was halted this morning, are sitting pretty this afternoon with NYX shares trading up as much as 19.7% at a new 2-year high of $39.99. Reports that NYSE Euronext and Deutsche Boerse AG were in advanced talks to merge, lifted NYX shares before trading was suspended earlier in the session. Early-birds speculating that the rally was just getting started scooped up some 830 calls at the February $35 strike for an average premium of $0.56 each. These calls now tout an asking price of $3.65 apiece, an increase in value of around 550%. Other bulls picked up more than 2,600 calls at the higher February $36 strike for an average premium of $0.26 per contract this morning. The now deep in-the-money call options now cost $2.36 each, which is 808% more than first-movers paid earlier today. Investors who purchased the calls could potentially walk away with huge profits by selling the contracts in the span of just a few hours. Trading in NYX call options picked up significantly once trading in the name resumed. News of the merger-talks and rising demand for NYX options fueled a more than 53.1% rise in options implied volatility on the stock to 37.48% by 12:35pm in New York.

ATML - Atmel Corp. – The semiconductor manufacturer popped up on our scanners this morning after one trader reeled in profits on the sale of large block of call options that were originally purchased during the first week of trading in 2011. The same strategist extended and augmented bullish sentiment on Atmel Corp. by picking up calls in the May contract. Shares in Atmel are currently up…
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Weekly Wrap Up – Cash Out Edition

How did I reach my breaking point on Friday?

Well, I haven’t been happy about the action for the whole month of March and this week was simply the last straw, where I feel the risk of being long now outweighs the likely rewards.  Even all the bullish analysts in 12 of 13 of our beloved IBanks are "only" projecting the S&P to gain another 7.5% for the year.  That’s not even 1% a month so excuse me if I decide it’s time to take a 7th inning stretch after we’re already up 70% of 77.5% projected over 2 years.  As I said when reviewing our Buy List, where we are closing out 22 of 37 stocks – you just aren’t supposed to make an average of 28% with 64 winners on 66 picks in 6 weeks – it gets to a point where it’s just foolish not to cash out and take a rest.  

Make sure you check out our latest round of Disaster Hedges as well, "5 Plays that Make 500% if the Market Falls" is a good way to keep your toes in the water!  In last Weekend’s Wrap-Up I was "Still Trying to Get Bullish" and I was wrestling with killing the Buy List then - doing the full review this week is what killed it for me because - if I go over the fundamentals of 37 of my favorite stocks and can’t see more than 15 plays I’m enthusiastic about keeping – then it’s a good bet I’m not going to be too wild about the rest of the market either. 

If I were a real bear, this would be great and I’d just be running around yelling SELLSELLSELL but I am, believe it or not, a generally bullish guy who prefers to play an up market but I am also realistic enough not to fall so in love with my positions or bullish premise that I don’t know when it’s time to give things a rest.  We haven’t had a proper pullback, we haven’t had good volume to the upside (Barron’s raised that concern this weekend) and we haven’t addressed many, many problems that are still out there. 

Monday Morning – Moody’s Makes More Negative Noises

Moody’s got us off to a fun start on Monday morning, saying the US and UK are "substantially" closer to losing their AAA credit ratings as the cost of servicing their debt rose – a statement
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Prior Weekly Wrap-Up – February Expiration Day Special!

I didn't get to do a wrap-up last week so we have a lot of trades to go over and, with expiration looming and the Fed tightening, I thought it would be good to just get the list out on Friday so we can adjust our rolls to March where neccessary (in bold under appropriate positions).

In our Feb 7th Wrap-Up, I was gung-ho bullish saying "It's Only a 55-Point Drop You Wimps!" and we had  been BUYBUYBUYing at the bottom all week, especially Wed-Fri as the market spiked through our projected support at Dow 10,000 but not enough to change our minds as we bottom-fished on AAPL (2 trades), ABX, ACOR, AKAM, AMED, BRK/B (2), C, CCJ (3), CSCO, DELL, FXI, GE,  GOOG, IBM, LLY, LOW, NLY, TBT (5 times!), TM (3), TNA, USO (yep, we wen long oil) and UYG.  To say we were weigting bullish by that Monday was an understatement as we has finished the weekend in a bullish stance and were relying on our disaster hedges to protect us

Those disaster hedges are an interesting set to look at, especially now that we've recovered 400 points:

  • DXD July $27/33 bull call spread at $2.50, now $2 – down 20%

    • We can roll the $27 calls to the $25 calls for $5 to widen the spread and drop our b/e from $29.50 to $28.50
  • EDZ July $3/8 bull call spread at $2.10, now $1.60 - down 23%
  • EDZ Apr $10 calls sold for .70, now .15 – up 78% (pair trade)
  • SDS 2011 $36/40 bull call spread at $1.30, now $1 – down 18%

    • We can roll the $36 calls to the $33 calls for $1.10
  • TBT Jan $35/45 bull call spread at $6.30, now $7.40 - up 17%
  • TBT March $50s sold for .65, now $1.22 – down 87% (pair trade)

This is what is great about disaster hedges.  The potential upside on these spreads, if the market headed south was up about 100% on the 4 trades so a commitment of 5% of your virtual portfolio to each one (20%) would give you back 40% of your virtual portfolio in cash if the markets tanked.  Already, after 2 weeks, we have the markets heading in the opposite direction and what is the cost?  Not even 20% of…
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Bullish Player Forecasts Sunnier Skies Over B of A by August Expiration

Today’s tickers: BAC, PBR, UAUA, BIIB, USO, MAC, NLY, NYX, CVS & KGC

BAC – Bank of America Corp. – Options trading in the August contract on Bank of America suggests a significant recovery in the value of the underlying shares within the next seven months to expiration. Shares spent the majority of the trading session in the red, but rallied in late-afternoon trading, improving 0.20% to $14.51. It looks like one trader sold 6,000 put options at the August $12 strike for a premium of $0.86 each in order to partially finance the purchase of 6,000 calls at the higher August $16 strike at a premium of $1.12 apiece. The net cost of the bullish risk reversal amounts to $0.26 per contract, positioning the investor to accumulate profits above a breakeven share price of $16.26. Shares of the underlying stock must rally at least 12% over the current price for the trader to break even on the transaction by August expiration. We note that B of A’s shares traded above $16.50 as recently as January 20, 2010.

PBR – Petroleo Brasileiro SA ADR – Shares of Brazil’s state-controlled oil company, Petroleo Brasileiro SA, rallied 3.70% to $39.60 today perhaps after the company stated natural gas output will increase to 93 million cubic meters in 2011, up from 85 million cubic meters in the current year. PetroBras-bulls stampeded the February contract this afternoon to sell roughly 15,000 puts at the February $39 strike for an average premium of $0.83 apiece. Investors selling short the puts retain the full premium received today as long as shares of the underlying stock trade above $39.00 through expiration day. Put-sellers are apparently happy to have shares put to them for an effective price of $38.17 each should the put contracts land in-the-money at expiration.

UAUA – UAL Corp. – Shares of the owner and operator of United Airlines surged 17% to a new 52-week high of $15.27 today amid better-than-expected unit revenue for the month of January. Optimistic option traders dabbled in both calls and puts to take bullish positions on UAL Corp. Investors sold 2,300 puts at the February $13 strike, taking in an average premium of $0.16 per contract. Put sellers retain the full premium as long as UAUA’s share price remains above $13.00 through expiration. One the call side, traders picked up roughly 2,000 contracts at the now in-the-money February $15…
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Brazilian Stocks Capture Option Traders’ Imagination

Today’s tickers: VALE, EWZ, NYX, PFE, HOG, XRT, S & ROVI

VALE – Vale S.A. – Rio de Janeiro-based mining company, Vale S.A., experienced a 6.25% surge in shares today to $26.57. Perhaps the jump in shares is due to unconfirmed news the company plans to invest $5.8 billion to expand projects in the Brazilian state of Minas Gerais. In options-land one investor took a bullish stance by selling puts to buy calls. It appears the risk reversal involved the sale of 4,000 puts at the November 23 strike for 45 cents apiece, spread against the purchase of 4,000 calls at the higher November 28 strike for 38 cents premium each. The investor receives a net credit of 7 pennies per contract on the trade. He will retain the full credit as long as shares of VALE remain higher than $23.00 through expiration day. To add to profits shares must climb 5% higher to surpass the breakeven price of $28.00.

EWZ – iShares MSCI Brazil Index ETF – Bullish call action in the March contract today certainly jives with the 3.25% rally in shares of the exchange-traded fund to $75.18. An investor hoping for further upward movement in the price of EWZ shares enacted a call spread. The trader bought 2,500 calls at the now in-the-money March 73 strike for an average premium of 7.00 each, and simultaneously sold 2,500 calls at the higher March 78 strike for 4.54 apiece. The net cost of the bullish play amounts to 2.46 per contract. Thus, the investor stands to accumulate maximum potential profits of 2.54 if shares rise to $78.00 by expiration in March. Profits start to accumulate if shares break through $75.46, which is just 28 cents above the current price per share. But, the stock must climb 4% to $78.00 for the investor to revel in maximum available profits of $635,000.

NYX – NYSE Euronext, Inc. – Bullish call buying this afternoon pushed New York Stock Exchange operator, NYSE Euronext, onto our ‘most active by options volume’ market scanner. Shares of NYX are currently trading 5% higher to stand at $29.81. Investors expecting continued upward movement in the stock scooped up call options in the November contract. The November 30 strike had 2,100 calls purchased for an average premium of 1.13 each, while the November 31 strike had 1,200 calls coveted for 82 cents premium apiece. Finally, super-bullish traders…
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Bullish Vibes Radiate From Energy Fund

Today’s tickers: XLE, USU, XLP, MYGN, NYX & ELN

XLE – Investors were observed making bullish plays on the energy ETF today amid a modest share price rally of less than 1% to $48.17. The August 49 strike price had more than 10,000 calls purchased for an average premium of 2.09 per contract. Traders long of the calls are hoping to see shares of the XLE increase 6% to breach the breakeven point at $51.09 by expiration. Elsewhere, investors shed 10,000 puts at the January 2010 45 strike price for 3.65 apiece. It would seem that the put-sellers expect shares of the energy fund to remain higher than $45.00 at the start of 2010. The full premium received today for writing the puts is retained as long as the puts land out-of-the-money by expiration. Investors short the contracts bear the risk of having shares put to them at an effective price of $41.35. – Energy Select Sector SPDR

USU – The supplier of low enriched uranium (LEU) for commercial nuclear power plants was launched onto our ‘most active by options volume’ market scanner after a massive bearish play was initiated on the stock. Shares of USU are currently off by less than .5% to $5.30. An investor looking to extend downside protection on the stock through expiration in October appears to have sold 47,500 puts at the July 5.0 strike price for a premium of 40 cents apiece. The trader then purchased 47,500 puts at the October 5.0 strike for 1.00 per contract. The net cost of the spread amounts to 60 cents or a total of $2,850,000. It is unclear whether the investor was long 47,500 puts prior to today’s transaction. If he were originally long the puts, the trade today would merely represent an extension of downside protection through expiration in October. However, if the trader has sold 47,500 puts short in the July contract to fund the purchase of the October puts, he bears the risk of having shares of the underlying put to him at an effective price of $4.60 by expiration. Downside protection on the October 5.0 strike puts kicks in beneath the breakeven share price of $4.40. – USEC, Inc.

XLP – Shares of the consumer staples ETF have rallied approximately 2% to $23.45. The fund caught our eye after some 7,500 puts were purchased in the January 2010 contract at
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Phil's Favorites

What if GDP falls more than the stock market?

 

What if GDP falls more than the stock market?

Courtesy of 

In the last recession, GDP contracted by less than 5%, but the stock market fell 57% from peak to trough. Stocks reacted to economic conditions in a way the “real” economy did not.

In our present situation, Wall Street strategists are predicting a second quarter contraction for the economy of up to 30% (annualized), which the drop in stock prices have already achieved.

Michael and Ben sort out some important distinctions between the stock market’s historic reaction to recessions and the recessions themselves…

  ...



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Zero Hedge

Trump Says "No Quarantine Necessary" For NY, NJ And CT As US Death Toll Tops 2,000: Live Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • Global case total tops 600k
  • Global COVID-19 death toll tops 30k
  • US death toll tops 2k
  • After Trump earlier said he was weighing enforceable quarantine order for all the tri-state area, late on Sunday he said that "on the recommendation of the White House CoronaVirus Task Force, and upon consultation with the Governor’s of New York, New Jersey and Connecticut" he would not be imposing a quarantine. ...


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Biotech/COVID-19

The world before this coronavirus and after cannot be the same

 

The world before this coronavirus and after cannot be the same

Gettyimages

Courtesy of Ian Goldin, University of Oxford and Robert Muggah, Pontifical Catholic University of Rio de Janeiro (PUC-Rio)

With COVID-19 infections now evident in 176 countries, the pandemic is the most significant threat to humanity since the second world war. Then, as now, confidence in international cooperation and institutions plumbed new lows.

While the on...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Insider Scoop

'Psyched': Hawaii Considers Resolution For Shrooms, Champignon Eyes Ketamine Products

Courtesy of Benzinga

Psyched is a bi-monthly column covering the most important developments in the industry of medicinal psychedelics. We hope you follow us periodically as we report on the growth of this exciting new industry.

Champignon Brands Buys IP Company and Adds Ketamine and New Formulations To Its Portfolio

On March 19, Champignon Brands Inc. (CSE: SHRM) (OTC: SHRMF), a Canadian healt...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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Kimble Charting Solutions

Broadest Of All Stock Indices Testing Critical Support, Says Joe Friday!

Courtesy of Chris Kimble

One of the broadest indices in the states remains in a long-term bullish trend, where a critical support test is in play.

The chart looks at the Wilshire 5000 on a monthly basis over the past 35-years.

The index has spent the majority of the past three decades inside of rising channel (1). It hit the top of this multi-decade channel to start off the year, where it created a monthly bearish reversal pattern.

Weakness the past 2-months has the index testing rising support and the December 2018 lows at (2).

Joe...



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Chart School

Cycle Trading - Funny when it comes due

Courtesy of Read the Ticker

Non believers of cycles become fast believers when the heat of the moment is upon them.

Just has we have birthdays, so does the market, regular cycles of time and price. The market news of the cycle turn may change each time, but the time is regular. Markets are not a random walk.


Success comes from strategy and the execution of a plan.















Changes in the world is the source of all market moves, to catch an...

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Members' Corner

Bloody Mob Sh*t: An Interview with Lincoln's Bible

 

Bloody Mob Sh*t: An Interview with Lincoln's Bible

We talk Trump, Mogilevich, Epstein, Giuliani, Fred Trump, Roy Cohn, and more.

Courtesy of Greg Olear at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

(Originally published on Feb. 21, 20.)

...

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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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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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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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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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About Ilene:

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