Posts Tagged ‘OI’

Big Print In Qualcomm Options Ahead Of Earnings After The Close

Today’s tickers: QCOM, OI & FB

QCOM - Qualcomm, Inc. – Shares in mobile chipmaker, Qualcomm, are off 1.7% today at $61.80 as of 11:00 a.m. ET ahead of the company’s third-quarter earnings report this afternoon. A large trade in out of the money call options on the stock this morning suggests one strategist is positioning for the price of the underlying to take off during the next couple of months. The single largest print in QCOM options thus far in the session was a block of 43,000 Sep $67.5 strike calls purchased for a premium of $0.43 per contract. The trade makes money at expiration should shares in Qualcomm rally 10% to top the effective breakeven point at $67.93. Shares in QCOM last traded above $67.93 back in March. The Sep $70 strike calls are also changing hands today, with around 900 lots purchased during morning trading for an average premium of $0.16 apiece.

OI - Owens-Illinois, Inc. – Shares in the maker of glass containers rallied near the open on Wednesday, but have since pared gains to trade are down roughly 0.60% on the session at $29.43 as of 12:50 p.m. ET. Options changing hands on Owens-Illinois in the early going suggest at least one trader is positioning for the price of the underlying to rally to fresh 52-week highs during the next couple of months. The company reports second-quarter earnings after the close of trading today. The most active contracts traded on OI as measured by volume today are the Sep $29 strike calls, with around 2,000 lots traded versus open interest of just one contract. Time and sales data suggests most of the calls were purchased for an average premium of $1.85 each. The bullish trade on OI may be profitable at expiration in September in the event…
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XLF Put Options Suggest Rally May Have Short Shelf Life

 

Today’s tickers: XLF, AKAM & OI

XLF - Financial Select Sector SPDR ETF – All 10 sectors of the S&P 500 index are in positive territory today after ECB President Mario Draghi said policy makers will do what is necessary to preserve the euro. Shares in the XLF, although off their highs of the session, continue to trade up 1.2% on the day at $14.44 as of 12:15 p.m. in New York. Draghi’s market-moving comments did not manage to make an optimist of one options player who appears to have pulled the trigger on a large position in XLF puts this morning just as the price of the underlying was reaching its highs for the day. It looks like the trader is positioning for shares in the ETF to sustain double digit decline during the next few months by purchasing approximately 70,000 puts at the Oct. $13 strike for an average premium of $0.25 apiece. The bearish position may be profitable at expiration in the event XLF shares slide more than 11% to trade below the average breakeven price of $12.75. Though the transaction was not tied to stock, it is possible the put buyer is hedging a long position in shares of the XLF as opposed to taking an outright bearish stance on the financials. The cost of securing downside protection in the form of Oct. $13 puts is relatively cheaper to come by today with shares in the ETF up and the cost of the options down $0.08 since Monday.

AKAM - Akamai Technologies, Inc. – Strong cloud-computing demand helped Akamai Technologies post better-than-expected second-quarter profit and sales after the closing bell on Wednesday, sending shares in the name screaming to the upside on Thursday. Shares in Akamai are up better than 23% in early-afternoon trade to stand at $34.82 and it looks like some options players are positioning for the price of the underlying to extend gains in the second half of…
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AT&T Weekly Puts In Play

 

Today’s tickers: T, FXE & OI

T - AT&T, Inc. – U.S. equities are on the decline as Europe’s woes once again take center stage. Shares in AT&T, down 0.90% at $33.24 this afternoon, are faring better than most of the other Dow components so far, though options activity on the wireless carrier suggests some strategists are bracing for further declines ahead of the long weekend. Traders exchanged more than 6,800 puts at the May 25 ’12 $33 strike against open interest of 646 open positions, and appear to have purchased the bulk of the volume at an average premium of $0.17 apiece. Bearish positions in the $33 strike weekly puts may be profitable at expiration should shares in AT&T settle below the average breakeven price of $32.83.

FXE - CurrencyShares Euro Trust – Bearish positions initiated yesterday in FXE options are worth far more on Wednesday as the Euro, and of course the Euro Currency Trust that mirrors its performance, continue to slide on fears Greece may leave the euro. Traders betting on further weakness in the currency on Tuesday picked up around 1,000 of the May 25 ’12 $125 strike puts for an average premium of $0.16 apiece. As of Wednesday afternoon just before 12:30 p.m. ET, these same contracts cost $0.60 apiece, or nearly four times as much. Overnight profits are also available for those effectively taking a short position in the currency on Tuesday. Buyers of around 1,000 deep in-the-money put options at the $127 strike for an average premium of $0.71 apiece yesterday could currently sell those contracts at $2.10 apiece for a net gain of nearly 200.0% on the position. The FXE currently trades 0.96% lower on the day at $124.96 as of 1:10 p.m. in New York.

OI - Owens-Illinois, Inc. – The maker…
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Contrarian Strategist Eyes Owens-Illinois Call Options

Today’s tickers: OI, CAKE, XLK & HRB

OI - Owens-Illinois, Inc. – The world’s largest maker of glass bottles reduced its second-quarter profit margin forecast citing higher costs and weaker demand in Australia. The market’s reaction to the Ohio-based company’s revised estimates was swift, with shares in Owens-Illinois sliding ahead of the opening bell this morning. Shares are currently down 10.3% at $26.50 just after 11:30am on the East Coast. Despite the sharp pullback in OI’s shares today it seems the glass is still half-full for one optimistic player taking a medium-term bullish stance on the stock. The contrarian trader picked up 2,000 calls at the August $29 strike at a premium of $0.85 per contract. OI’s calls are available at a steep discount today with the August $29 strike calls trading at $0.85 today down from $1.75 apiece on Tuesday. The call buyer makes money if shares in Owens-Illinois surge 12.6% over the current price of $26.50 to surpass the effective breakeven point at $29.85 at expiration. Options implied volatility on the stock shot up 23.7% to arrive at 33.23% by 11:45am.

CAKE - The Cheesecake Factory, Inc. – Shares in the operator of casual full-service restaurants may be headed lower over the next four months according to investors initiating bearish options trades on the stock today. Cheesecake Factory’s shares are currently down 0.80% to stand at $30.54 as of 11:05am in New York. Traders employed debit put spreads in the October contract, buying 1,500 puts at the October $30 strike for an average premium of $2.20 each, and selling the same number of puts at the lower October $25 strike at an average premium of $0.62 a-pop. Bears hungry for a CAKE pullback paid an average net premium of $1.58 for the spread. Investors are poised to profit should…
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Retail Bears Abound

Today’s tickers: XRT, IMAX, ADSK & OI

XRT - SPDR S&P Retail ETF – Options traders are positioning for shares in the Retail ETF to fall substantially in the coming months. Massive bearish bets popped up on the XRT in the first half of the trading session with shares slipping further from last week’s new highs. The familiar outline of a put butterfly spread unfurled in the March contract, but was preceded by a large debit put spread initiated in the April contract within the first 15 minutes of trading. Pessimistic players are perhaps speculating that consumers, who now face heftier prices at the pump, are likely to tighten their grip on discretionary dollars going forward. Shares in the XRT, an exchange-traded fund designed to track the performance of the S&P Retail Select Industry Index, are currently down 2.4% at $48.02 as of 12:00pm in New York. In the past week shares in the ETF have pulled back 5.1% from an all-time high of $50.61 last Wednesday. One big put player is well-positioned to benefit from additional weakness in XRT shares in the near term. The investor purchased 20,000 puts at each of the March $46 and March $42 strikes, and sold 40,000 puts at the central March $44 strike, all for a net premium of $0.22 per contract. The net cost of the pessimistic play pales in comparison to the $1.78 per contract in maximum potential profits the investor enjoys if shares in the ETF drop to $44.00 ahead of March expiration. Meanwhile, the buyer of a 17,000-lot April $44/$47 put spread for a net premium of $0.57 per contract could walk away with up to $2.43 per contract in profits if shares in the fund slip beneath $44.00 by April expiration. Options implied volatility on the Retail SPDR has been on the rise throughout the trading session, and currently stands 12.6% higher on the session at 27.35% in early afternoon trade.…
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Bull Eyes New Highs in United Continental Shares by Year’s End

Today’s tickers: UAL, KSS, ANN, KO, SINA, XLF, FRX & OI

UAL - United Continental Holdings, Inc. – The world’s largest carrier jumped up on our ‘most active by options volume’ market scanner earlier today after one bullish options player purchased a large call spread in the December contract. Shares in United Continental rose 0.90% this afternoon to trade at $27.42 as of 3:00 pm. The investor purchased approximately 11,200 calls at the December $29 strike for a premium of $0.72 each, and sold the same number of calls at the higher December $31 strike at a premium of $0.32 each. Paying a net $0.40 per contract for the spread, the investor is prepared to profit should shares in UAL surge 7.2% over the current price of $27.42 to surpass the effective breakeven point to the upside at $29.40 by expiration day. The trader is poised to accumulate maximum potential profits of $1.60 per contract, roughly $1.792 million, if the airline operator’s shares jump 13.05% and trade above $31.00 by expiration in December.

KSS - Kohl’s Corp. – Massive prints in Kohl’s Corp. call and put options caught our eye this afternoon. Shares of the department store operator that sells nationally recognized as well as privately branded goods increased as much as 4.165% in the second half of the session to touch an intraday high of $52.76. It looks like the investor responsible for the mammoth transaction sold 50,000 puts at the December $50 strike for a premium of $0.85 each, and purchased the same number of calls up at the December $57.5 strike at a premium of $0.30 apiece. The risk reversal was tied to the sale of 2.15 million shares of the underlying stock at a price of $52.12 on a 0.43 delta. The investor receives a net credit…
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Reversal combinations at play in Lamar Advertising

Today’s tickers: LAMR, SVU, DIS, CHRW & OI

LAMR Lamar Advertising Company – Shares of the outdoor advertising company have remained relatively flat and currently stand at $16.92 today. LAMR appeared on our ‘hot by options volume’ market scanner after one investor appears to have taken a bullish stance on the stock in the June contract. It looks as though this individual sold about 5,100 puts at the June 12.5 strike price for an average premium of 58 cents apiece in order to fund the purchase of some 5,100 calls picked up at the June 20 strike for 1.32 each. The net cost of getting long of the calls amounts to 47 cents. In order to profit from the bullish position shares would need to rally by about 21% to the breakeven point located at $20.47 by expiration.

SVU Supervalu, Inc. – The grocery retailer has climbed by about 1% to $16.51 per share. We observed some investors taking a bullish position on the stock by selling about 1,400 puts at the June 15 strike price for about 72 cents each in order to fund the purchase of 1,400 calls at the June 17.5 strike for an average premium of 65 cents. The trade results in a 7 cent credit to the investor who is looking for shares to climb by 6% from the current price in order for the calls to land in-the-money by expiration. The same strike prices described above were also targeted by a trader who appears to have established a sold strangle by shedding approximately 3,600 puts at the June 15 strike for about 72 cents while also selling the same amount of calls for 68 cents each at the June 17.5 strike. The strangle strategy yields a gross premium of 1.40 and will be fully retained by the investor if the share price remains ‘strangled’ between the two strike prices. The trader would face losses at any share price below the breakeven to the downside at $13.60 or at any price above the breakeven to the upside at $18.90.

DIS The Walt Disney Co. – Shares have declined by about 3% to $21.20 today amid news that the entertainment company plans to obtain a 27% stake in the third most popular video website, Hulu.com. The DIS ticker jumped onto our ‘most active by options volume’ market scanner after one investor fiddled with put options…
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Masco options bearish ahead of earnings

Today’s tickers: MAS, HES, WHR, ORCL, NVAX, BMRN, TIVO & OI

MAS Masco Corporation – The manufacturer and distributor of home improvement and building products has experienced a share price decline of more than 2% to $9.85 ahead of its earnings report scheduled for release after the market closes today. One option investor took a decidedly bearish stance on the stock by selling short 10,000 calls at the May 10 strike price for an average premium of 69 cents per contract. On the put side, some 2,700 contracts were purchased for an average of 24 cents apiece at the May 7.5 strike price as investors appear to be looking to profit from continued downward movement in shares by expiration in May. In order to profit to the downside, shares would need to continue to fall by another 26% from the current price to breach the breakeven point at $7.26.

HES Hess Corporation – Shares of the global energy company have dipped by more than 3% to $54.34. Despite the share price erosion, option traders have been getting bullish on the stock by jumping into calls in the May contract. The May 65 strike price had more than 6,100 calls purchased for an average premium of 53 cents apiece while the May 70 strike attracted a smaller volume of some 1,800 calls picked up for 30 cents each. We are not certain of the motivation for the increased option activity on the stock today, but we did notice one news report which stated that Credit Suisse posited Hess Corp. was unlikely to be acquired by Exxon. Option implied volatility on the stock jumped as high as 61% today up from the closing value on Friday of 51%.

WHR Whirlpool Corporation – The home appliances manufacturer has jumped more than 8.5% to stand at $44.28 per share. Earlier in the day shares were up 20% – the biggest intraday climb for WHR in at least 29 years – after the company reported first-quarter earnings that beat analyst expectations. The company has cut costs as well as curtailed a post-retirement benefit plan which added about 84 cents to earnings surprising the street which had anticipated a loss of 18 cents per share for the company. Whirlpool also reported that it expects to earn a profit of between 3 to 4 dollars for 2009. Option traders gobbled up the bearish breakfast and were…
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Kimble Charting Solutions

Tech index facing must hold support test!

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

This chart looks at the Nasdaq Composite Index over the past 22-years on a monthly basis. The chart highlights that the index has spent the majority of the past 18-years inside of rising channel (1).

The rally off the 2009 lows hit the top of the channel a couple of months ago at (2), where it looks to have created a bearish hanging man pattern as it kissed the underside of the rising channel...



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Zero Hedge

Futures Slide After US-China APEC Clash, Apple Production Cuts

Courtesy of ZeroHedge. View original post here.

After a dramatic end to the APEC summit in Papua New Guniea which concluded in disarray, without agreement on a joint communique for the first time in its history amid the escalating rivalry between the United States and China, U.S. index futures initially traded sharply lower as investors digested signs that America-China trade tensions are set to persist, however they staged a modest rebound around the time Europe opened, and have ...



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Message from Jeff Bezos - SNL

 

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Chart School

The Power of the Dow Jones Cycle

Courtesy of Read the Ticker.

Once again the data confirms cycles exists in the market. Value and other fundamental investors must concede cycles are in the stock market. [You can learn more about our Hurst Cycle tools here].

Previous Post Kitchin Cycle warned of market volatility

In the past this blog has posted the chart below, the Kitchin cycle or 900 periods, and you can see its success.

The cycle source:

.."Joseph Kitchin (1861–1932) was a British busine...



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Insider Scoop

Analysts Cautious On Williams-Sonoma After Q3 Print

Courtesy of Benzinga.

Related WSM 48 Stocks Moving In Friday's Mid-Day Session 28 Stocks Moving In Friday's Pre-Market Session ...

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Members' Corner

NY Times: OPERATION INFEKTION

 

This is a three-part Opinion Video Series from NY Times about Russia’s meddling in the United States’ elections as part of its "decades-long campaign to tear the West apart." This is not fake news. Read more about the series here.

OPERATION INFEKTION

RUSSIAN DISINFORMATION: FROM COLD WAR TO KANYE

By Adam B. Ellick and Adam Westbrook

EPISODE 1

MEE...



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Digital Currencies

Bitcoin's high energy consumption is a concern - but it may be a price worth paying

 

Bitcoin's high energy consumption is a concern – but it may be a price worth paying

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Courtesy of Steven Huckle, University of Sussex

Bitcoin recently turned ten years old. In that time, it has proved revolutionary because it ignores the need for modern money’s institutions to verify payments. Instead, Bitcoin relies on cryptographic techniques to prove identity and authenticity.

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ValueWalk

Vilas Fund Up 55% In Q3; 3Q18 Letter: A Bull Market In Bearish Forecasts

By Jacob Wolinsky. Originally published at ValueWalk.

The Vilas Fund, LP letter for the third quarter ended September 30, 2018; titled, “A Bull Market in Bearish Forecasts.”

Ever since the financial crisis, there has been a huge fascination with predictions of the next “big crash” right around the next corner. Whether it is Greece, Italy, Chinese debt, the “overvalued” stock market, the Shiller Ratio, Puerto Rico, underfunded pensions in Illinois and New Jersey, the Fed (both for QE a few years ago and now for removing QE), rising interest rates, Federal budget deficits, peaking profit margins, etc...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

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

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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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

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All About Trends

Mid-Day Update

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Click here for the full report.




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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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