Posts Tagged ‘OVTI’

Options Eye Higher Highs For Expedia; Downside Puts In Play On Masco

 

Today’s tickers: EXPE, MAS & OVTI

EXPE - Expedia, Inc. – Traders positioning for shares in the online travel site to continue to hit new highs stepped up to purchase bullish call options on Expedia this morning, with shares in the name trading up nearly 6% this morning at a new high of $60.29. Expedia shares are moving higher on Friday after the stock was raised to ‘Buy’ from ‘Hold’ with an increased target price of $68.00 at Deutsche Bank, and was rated new ‘Buy’ with a 12-month target share price of $64.00 at Cantor Fitzgerald. The stock, which has gained nearly 125% since Expedia, Inc. spun off its TripAdvisor unit last year, may have more room to run according to some options players today. Bullish strategists preparing for fresh highs in the near term purchased more than 2,000 calls at the Oct. $60 strike for an average premium of $2.23 apiece. Call buyers profit at expiration next month as long as Expedia’s shares increase another 3% to top the average breakeven price of $62.23.

MAS - Masco Corp.– A large trade in Masco Corp. put options suggests one options player may be securing downside protection on the maker of home improvement and building products, as shares in the high-flying stock tack on another 2.5% today to secure a two-year high of $16.48. The purchase of a block of 40,000 puts at the Jan. 2013 $15 strike this morning for a premium of $1.10 apiece may be the work of an investor hedging a large position in the underlying shares, possibly to lock in gains enjoyed during the stock’s impressive 150% move higher since October 2011. Alternatively, the sizable stake in MAS puts could be an outright bearish bet on the stock, initiated in an attempt to benefit from a pullback in the price of the underlying during the next four months. Profits, or downside protection, kick in if shares in Masco Corp. drop 15.7%…
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Options Suggest Carnival Corp. Rally Is Running On Empty

Today’s tickers: CCL, ELX, OVTI & KKR

CCL - Carnival Corp. – Shares in the provider of cruise vacations are up 3.0% at $30.30 in early-afternoon trade, but options activity on the stock indicates the rally may lose steam. Investors appear to be selling in- and out-of-the-money calls on the cruise operator today perhaps on the expectation that today’s stock market rally represents but a brief respite from painful market pullbacks on the horizon. Abundant signs the market is slowing coupled with potential debt disasters overseas could dampen consumers’ willingness to spend hard-earned money on a non-essential cruise vacation. Shares in Carnival currently hover just above Wednesday’s fresh 52-week low of $29.35. Traders expecting Carnival’s shares to sink below $30.00 by expiration next month sold some 8,500 calls at the September $30 strike to pocket an average premium of $1.80 per contract. Call sellers keep the full amount of premium received as long as CCL’s shares fail to exceed $30.00 at expiration day. Premium received on the sale acts as a buffer against potentially uncapped losses to the upside, but protection gives way in the event that shares exceed the effective breakeven price of $31.80. Call selling spread to the higher September $32 strike where some 200 lots sold for an average premium of $0.92 a-pop. Reminders of the strong headwinds to growth going forward would likely once again spur investors to abandon ship on consumer discretionary names such as Carnival. The call options sold today expire several days ahead of CCL’s third-quarter earnings report on September 20.

ELX - Emulex Corp. – Shares in the provider of networking convergence solutions and equipment rose 1.6% this afternoon to $6.92, led higher by the broad market rally in U.S. stocks and Cisco’s better-than-expected fourth-quarter earnings report. Emulex is slated to post its…
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Hartford Financial Services Group Call Options in High Demand

Today’s tickers: HIG, EW, GENZ, AWK, STEC, DELL, HTZ, DBRN & OVTI

HIGHartford Financial Services Group, Inc.Call options on the insurance and financial services firm are flying off the shelves today with shares trading higher by as much as 2.95% to tie down an intraday high of $22.99. As of 2:20 pm ET, more than 14.1 calls have changed hands on HIG for each single put option in action on the stock thus far in the session. The sharp increase in demand for calls bumped up the insurer’s overall reading of options implied volatility 26.4% to today’s high of 56.57%. While some investors populating HIG are selling calls, the majority of calls traded were purchased by traders positioning for continue appreciation in the price of the underlying shares. Near-term optimists picked up roughly 7,500 calls at the September $23 strike for an average premium of $0.50 each. Call buyers at this strike make money if HIG’s shares rally above the average breakeven price of $23.50 by expiration day next Friday. Other bulls purchased some 4,600 calls at the September $24 strike for premium of $0.23 each. Another 2,800 calls were scooped up at the higher September $25 strike at an average premium of $0.16 a-pop. More than 10,800 calls changed hands at the September $26 strike versus previously existing open interest of just 3,300 lots. The vast majority of those calls, some 7,000 contracts, traded to the middle of the market at a premium of $0.12 apiece. Bullish sentiment on the insurance company spread to the October $24 strike where some 2,000 calls were coveted at an average premium of $0.76 each. Investors holding these contracts stand ready to accumulate profits if HIG’s shares jump 7.7% over today’s high of $22.99 to exceed the average breakeven price of $24.76 by October expiration. An additional 2,000 calls were picked up at the October $25 strike for premium of $0.70 a-pop. Traders long the calls make money if shares surge 11.8% to trade above $25.70 ahead of expiration day next month. Options traders exchanged more than 66,700 contracts on Hartford Financial Services Group by 2:30 pm ET.

EW – Edwards Life Sciences Corp. – The provider of products and technologies created to treat advanced cardiovascular disease popped up on our ‘hot by options volume’ market scanner after…
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Phil's Favorites

China's worldwide investment project is a push for more economic and political power

 

China's worldwide investment project is a push for more economic and political power

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

Inspired by the ancient Silk Road, China is investing in a massive set of international development projects that are raising concerns about how the country is expanding its power around the world.

Initially announced in 2013 by Chinese President Xi Jinping, the so-called “Belt and Road Initiative” has China planning to invest in e...



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Kimble Charting Solutions

Bank Index Breakout? Stock Market Bulls Sure Hope So

Courtesy of Chris Kimble

One of the most important sectors of the stock market is the banking industry and bank stocks.

When the banks are healthy, the economy is likely doing well. And when bank stocks are participating in a market rally, then it bodes well for the broader stock market.

In today’s chart, we look at the Bank Index (BKX).

As you can see, the banks have been in a falling channel for the past 20 months. As well, the banks have been lagging the broader market during this time as well – see the Ratio in the bottom half of the chart above.

That said, th...



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Zero Hedge

Russia Scraps "Climate Change Plan" After Uproar From Businesses

Courtesy of ZeroHedge View original post here.

The Russian government has abandoned key provisions of a new "climate change" legislation package after the country's leading businesses - most operating in the "not quite" ESG arena - mounted a significant protest, according to Russian daily Kommersant (via the Moscow Times).

The abandoned legislation included quotas on carbo...



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Insider Scoop

Citigroup Appoints New Head Of Asia Pacific Business

Courtesy of Benzinga

American multinational financial services corporation Citigroup Inc. (NYSE: C) has appointed Peter Babej as the new chief executive officer of its Asia Pacific region, a memo sent to staff by Citi global CEO Mike Corbat shows. Babej previously served as the bank’s global head of financial institutions group.

He joined Citi in 2010 to co-head the company’s financial institutions...



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The Technical Traders

Market Trend Change Triggered Today

Courtesy of Technical Traders

CLICK HERE TO GET REAL TIME TRADE ALERTS!

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Chart School

Review of Andrew CardWell RSI with Wyckoff price waves

Courtesy of Read the Ticker

RSI measures relative strength of price action of a set period versus prior set periods. It helps review the price swings or waves, the power of each price thrust into new ground, or lack of it. Price thrust like many things relies on energy, and energy is not a constant, it has a birth, a life and a death and relative strength helps us see that cycle. 

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Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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:

 

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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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