Posts Tagged ‘OMX’

Options In Play On Retailers Supervalu, OfficeMax And Urban Outfitters

     Today’s tickers: SVU, OMX & URBN

SVU - SUPERVALU Inc. – The sale of a massive block of 25,000 call options on the supermarket operator this morning may mean one strategist has little appetite for a significant Supervalu rally, at least through September expiration day. No telling if the two are related, but the sale of the call options occurred roughly one hour before the company’s CFO was scheduled to present to investors at the Goldman Sachs 18th Annual Global Retailing Conference in New York City. SVU’s shares rallied at the open, increasing 2.5% to an intraday high of $7.84, but surrendered much of those gains to stand 0.65% higher on the session at $7.70 as of 12:25 pm ET. The investor responsible for the hefty transaction may or may not be long the stock. It looks like the trader sold 25,000 calls outright at the September $8.0 strike for a premium of $0.20 per contract. The premium remains in the investor’s wallet as long as Supervalu’s shares trade below $8.00 and the calls expire worthless at expiration next week. Potentially devastating losses could result for the trader if the short calls are uncovered, and the price of the underlying stock spikes higher ahead of expiration. Premium received on the sale of the calls provides limited protection in the event of an SVU rally, but the insurance policy gives way to losses if SVU’s shares exceed the effective breakeven price of $8.20 at September expiration day. If the investor is long the stock, it seems he is happy to pad his portfolio with premium today, and willing to have shares called from him at $8.00 should the calls land in-the-money next Friday.

OMX - OfficeMax Inc. – Shares in the office supplies retailer rallied 6.3% this morning to $5.59 despite third-quarter sales estimates that trail those recorded in the same period last year, CEO Ravi Saligram’s comments that OfficeMax is, “experiencing a soft Back-to-School season,” and tough macroeconomic conditions to boot. Saligram spoke today at the…
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Options Strategist Harvests Gains on EQIX Call Butterfly Spread

Today’s tickers: EQIX, OMX, TER & JBLU

EQIX - Equinix, Inc. – In the final trading week of 2010 we reported seeing one options strategist purchase a sizable bullish call butterfly spread on Equinix. It has been nearly four months to the day since the investor paid a net premium of $3.10 per contract for the June $85/$100/$115 call ‘fly, and it looks like the trader is reeling in substantial profits today by unraveling the position. Shares in the provider of global data center services are currently up 3.8% to stand at $100.30 as of 11:20am in New York. The company reported first-quarter earnings of $0.53 a share on Wednesday, which beat average analyst expectations of $0.30 a share in net income for the quarter. The trader responsible for the bullish spread nearly hit the nail on the head. On December 29, 2010, shares in Equinox closed the session at $81.20. Since then, the stock has climbed roughly 23.5% to today’s price. While the upward move in the price of the underlying happened a bit more quickly than estimated, the trader’s predictions for the magnitude of the move were pretty much spot on. It appears the investor closed out the spread this morning, selling 15,000 calls at the now deep in-the-money June $85 strike for a hefty premium of $16.20 each, bought back the 30,000 short calls at the June $100 strike for a premium of $4.70 each, and sold 15,000 of the June $115 strike call options at a premium of $0.30 a-pop. The trader takes in net premium of $7.10 per contract by closing out the spread, and therefore realizes net profits of $4.00 per contract, or around $6 million in total, after accounting for the initial cost of buying the spread at $3.10 apiece. Had Equinix’s shares risen more slowly, hitting $100.00 at expiration in June, the investor could have realized maximum potential profits of $11.90 per contract. But, in the end the investor’s predictions for EQIX’s performance and the…
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Bullish Players Gorge on Apple Calls

Today’s tickers: AAPL, APC, GE, CCL, EMC, RAH, EEM, WAG, FTR, OMX & JPM

AAPL – Apple, Inc. – Bulls sank their teeth into Apple call options today in order to position for continued appreciation in the price of the underlying through August expiration. The iPhone maker’s shares increased as much as 2.10% during the trading session to secure an intraday high of $275.97 perhaps on news the firm sold 3 million iPads in the first 80 days since the product was introduced to the U.S. marketplace. Apple optimists expecting shares to surpass yesterday’s new 52-week high of $279.01 purchased 1,100 calls at the August $280 strike for a hefty premium of $14.64 apiece. Investors long the calls are positioned to profit if Apple’s shares rally 6.75% over today’s intraday high of $275.97 to trade above the average breakeven point at $294.64 by August expiration. Bulls anticipating more significant share price gains by August expiration purchased approximately 2,500 calls at the higher August $290 strike for an average premium of $9.70 each. Investors long the August $290 strike contracts make money if the iPod maker’s shares surge 8.6% to exceed the average breakeven price of $299.70 by expiration day. Finally, uber-bulls bought 2,000 calls at the higher August $300 strike for an average premium of $7.38 a-pop. Traders holding the August $300 strike calls stand ready to accumulate profits as long as Apple’s shares jump 11.4% to trade above the average breakeven point on the calls at $307.38 by expiration day in August. Nearly 200,000 option contracts changed hands on Apple, Inc. by 3:00 pm (ET), with call options trading 1.35 times to each single put option in play.

APC – Anadarko Petroleum Corp. – Shares of the independent oil and gas exploration and production company which holds a 25% stake in BP’s leaking well in the Gulf of Mexico dropped 4.35% late in the session to stand at $41.56 as of 3:15 pm (ET). Despite the decline in the price of the underlying today one optimistic option strategist positioned himself to one day bask in the light at the end of the tunnel by enacting a bullish debit call spread in the November contract. APC’s shares plunged 53.4% from a high of $74.14 on April 20 – the day the leak was triggered – down to a 52-week low of $34.54 on June 9, 2010. Since bottoming out on…
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Options on Halliburton Get Messy

Today’s tickers: HAL, IPG, AMGN, BP, COF, FXI, OMX, NEM & FSLR

HAL – Halliburton Co. – Making sense of options activity on oil company, Halliburton Co., this afternoon is difficult due to the chaotic and seemingly pattern-less trading taking place on the stock. Investors exchanged more than 200,000 contracts on HAL by 3:00 pm (ET), which represents approximately 37% of total existing open interest on the stock of 541,062 contracts. Frenzied options trading was catalyzed by news the firm is assisting in ongoing investigations regarding the oil spill in the Gulf of Mexico as HAL reportedly provided a variety of oilfield services to Deepwater Horizon rig, which is the rig that caught fire and sank last week. Options volume and options implied volatility on Halliburton jumped while its shares slipped 6.3% to $31.26. The surge in demand for option contracts on the stock, coupled with uncertainty regarding possible repercussions stemming from HAL’s connection to the situation in the Gulf of Mexico, lifted the overall reading of options implied volatility 25.4% to 44.13% as of 3:25 pm (ET). Trading activity is heaviest in the May contract with decent volume building in both call and put options. Some bearish investors bracing for continued share price erosion purchased about 2,200 puts at the lowest available strike – the May $25 strike price – for an average premium of $0.16 apiece. Buying interest in put options was also apparent at the May $26 strike where 1,800 puts were picked up for an average premium of $0.20 each. May $29 strike puts were the most heavily trafficked as more than 16,700 contracts changed hands by 3:22 pm (ET), versus previously existing open interest of just 2,743 contracts at that strike. But, the put action was certainly not one-sided as investors took to buying and selling the contracts, with buyers gaining the right to sell the stock at $29.00, and sellers receiving an average premium of $0.81 per contract in exchange for bearing the risk of having shares of the underlying stock put to them at $29.00. Similar two-way trading traffic in calls took place at out-of-the-money strike prices as some traders threw in the towel on bullish stances expiring in May. Meanwhile, contrarian players purchased out-of-the-money calls, perhaps to prepare for a potential rebound in the price per share ahead of expiration next month.

IPG – Interpublic Group of Cos., Inc. – Advertising and…
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Phil's Favorites

USMCA: The 3 most important changes in the new NAFTA and why they matter

 

USMCA: The 3 most important changes in the new NAFTA and why they matter

Pena Nieto, Trump and Trudeau signed the USCMA in November 2018. AP Photo/Pablo Martinez Monsivais

Courtesy of Amanda M. Countryman, Colorado State University

President Donald Trump and Democratic leaders agreed on a deal to pass a new trade agreement between the U.S., Mexico and Canada that will update NAFTA.

Passing the new trade accord, known as the U.S.-Mexico-Canada Agreement, would be a substantial win for both Trump – given it’s one o...



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Kimble Charting Solutions

Is Freeport McMoRan (FCX) Making A Run For the "Gold"?

Courtesy of Chris Kimble

Mining company Freeport McMoRan NYSE: FCX is enjoying the tailwind from a strong year for gold and silver prices. And although Copper prices are down, Copper has been turning up lately.

This has helped Freeport’s stock price recover in 2019 and has FCX testing a key breakout level.

Below is a “weekly” chart of Freeport McMoRan (FCX). The shaded channel outlined by each (1) highlights the longer-term downtrend that FCX has been stuck in.

But this could change on a dime, especially if FCX can breakout above (2). This area represents its re...



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Zero Hedge

Aramco Stock Soars Limit Up In Debut After Saudis Force Locals To Buy

Courtesy of ZeroHedge View original post here.

Is Jamie Dimon about to get the old bonesaw for leaving $180BN on the table?

Saudi Arabia's oil company Aramco soared 10% limit up on its first day of trading, reaching a valuation of $1.88 trillion, higher than any other publicly traded company in the world. This means that after pricing its IPO at $1.7 trillion, Jamie Dimon left about $180 billion on the table, which will hardly impress the Crown Prince.

The record valuation reflects an oversubscribed book o...



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Insider Scoop

Economic Data Scheduled For Wednesday

Courtesy of Benzinga

  • The MBA's index of mortgage application activity for the latest week is schedule for release at 7:00 a.m. ET.
  • The Consumer Price Index for November will be released at 8:30 a.m. ET.
  • The Census Bureau quarterly services survey report for the third quarter is schedule for release at 10:00 a.m. ET.
  • The Atlanta Fed's Business Inflation Expectations survey report for December will be released at 10:00 a.m. ET.
  • The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is schedule for release at 10:30 a.m. ET.
  • The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.
  • The U.S. Treasury budget report for November will be released at 2:00 p.m. ET.
  • ...


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Digital Currencies

The Road To Retirement: Millennials Put Their Faith In Bitcoin But Goldman Says Go With Gold

Courtesy of ZeroHedge View original post here.

"Drop Gold" - the ever-present tagline of Grayscale's Bitcoin Trust TV commercial - appears to be working its magic on a certain cohort of society.

2019 has seen assets under management in GBTC soar...

Source: Bloomberg

And for Millennials, according to the lates...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 

Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices.

The cycle below shows prices are ready to move in the months ahead (older chart re posted).


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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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