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

The Science Behind the $13 Billion Medical Cannabis Industry

 

The Science Behind the $13 Billion Medical Cannabis Industry

By , Visual Capitalist 

 

The Science Behind the Medical Cannabis Industry

There’s nothing quite like cannabis in the plant kingdom. Beneath its humble surface, over 750 unique compounds exist within – all of which have helped propel the cannabis industry into the multi-billion dollar market it is today.

Today’s infographic from ...



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Kimble Charting Solutions

Gold is Knocking on a Key Breakout Level

Courtesy of Chris Kimble.

For the past 5 years, Gold prices have traded sideways. There were plenty of “trades” to be made, but that type of price action tends to grind out long-term bulls and bears.

You can see this in today’s “monthly” closing chart for Gold (shown below).

Gold bulls caught a break recently when Gold broke out above its multi-year downtrend line at (1) and (2). This spurred a big advance in metals & mining stocks.

Can Gold bugs and bulls keep the momentum going? We should find out shortly.

Gold is currently knocking on a key breakout resistance level (3). A bullish message will be sent to bulls if Gold can breakout above the 2017 m...



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Zero Hedge

Trump: "I Want 5G, Or Even 6G, Tech In The US As Soon As Possible"

Courtesy of ZeroHedge. View original post here.

President Trump has finally hit upon the real issue at the center of the US government's battle with Huawei: It's all about the technology. To wit, one reason why US allies and the UK and Germany have been so hesitant to cut ties with the Chinese telecoms giant is that, as its founder pointed out in a recent interview with Western media, there is no real alternative. US telecoms like Verizon still lag their Chinese rivals when it comes to 5G.

So, in a series of tweets sent Thursday morning, President Trump exclaimed that "I want 5G, and even 6G technology in the United States as soon as ...



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ValueWalk

Liquid Technology Clinches Bid To Dispose Theranos IT Assets

By Jacob Wolinsky. Originally published at ValueWalk.

Liquid Technology Provides Theranos With Post-Shutdown Equipment Processing and Recycling

Theranos [Public domain], via Wikimedia CommonsThe Company Spearheaded the Biotech Start-Up’s Task of Decommissioning and Reselling of Thousands of Unneeded IT Assets

Q4 hedge fund letters, conference, scoops etc

...

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Insider Scoop

Seaport Global Initiates Bullish Coverage On A Dozen Cannabis Stocks

Courtesy of Benzinga.

Seaport Global turned bullish on cannabis stocks Thursday, initiating coverage on a dozen names. However, some of the most popular U.S. cannabis stocks are not among the firm’s top picks.

The Analyst

Seaport Global analyst Brett Hundley initiated coverage of the following cannabis stocks with Buy ratings:

  • Aphria Inc (NYSE: APHA), $18 target.
  • Hexo Corp...


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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 02 August 2018, 07:48:20 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: $600 BN interest payments for US gov, print baby print



Date Found: Sunday, 05 August 2018, 09:22:26 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Hire FED interest rates always brings double trouble



Date Found: Monday, 06 August ...

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Digital Currencies

Cryptos Are Surging: Bitcoin, Ethereum Hit One-Month Highs As Institutions Dip Toes

Courtesy of Zero Hedge

Cryptocurrencies are surging while the US equity markets take the day off. Ethereum is up over 18% from Friday's 'close' and the rest of the crypto space is a sea of green. While no immediate catalyst (headline or technical level) is clear, increasing chatter over institutional investors dipping their toes in the space have prompted an extension of the positive trend.

A sea of green...

Source: Coin360

Ethereum is leading the charge follow...



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Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

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

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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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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