Posts Tagged ‘OXY’

Far Out-Of-The-Money Calls In Play On POT, USO & OXY Ahead Of U.S. Holiday

 

Today’s tickers: POT, USO & OXY

POT - Potash Corp. of Saskatchewan, Inc. – Shares in the provider of crop nutrients and feed products have rallied sharply in recent weeks, adding nearly 20.0% to $44.76 during the month of June. Potash extended gains Tuesday, adding 2.6% to trade at $45.10 by 10:40 a.m. in New York on an upgrade to ‘Sector Perform’ from ‘Underperform’ with a 12-month target price of $47.50 at National Bank Financial. Trading traffic in far out-of-the-money August expiry call options this morning suggests one or more strategists are positioning for the stock to continue to move higher this summer. It looks like approximately 850 calls were picked up at the Aug. $55 strike for an average premium of $0.04 apiece versus open interest of just 50 contracts. Call buyers shelling out $0.04 per contract stand ready to profit should shares in Potash Corp. gain another 22.0% to surpass the breakeven price of $55.04 within the next six weeks to August expiration. Traders long the calls could look for opportunities to sell the contracts prior to expiration at an advantageous price if POT’s shares continue to climb, although time decay will be working against them. Potash Corp. reports second-quarter earnings ahead of the open on July 26th.

USO - United States Oil Fund, LP – Shares in the USO are extending their move off fresh 52-week lows reached last week as concerns regarding possible restrictions in the Strait of Hormuz and hopes for QE3 push crude oil prices higher. Shares in the USO are up 4.2% at $32.75 with 50 minutes remaining in today’s shortened trading session. Weekly calls attracted heavy trading traffic within the first 15 minutes of the opening bell as some traders looked to secure exposure to further upside gains in the price of the underlying. Volume in the weekly calls is heaviest at the July 06 ’12 $34.5 strike where some 1,100 calls were purchased at an average…
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Contrarian Strategists Dominate XLF Options

 

Today’s tickers: XLF, COH, OXY & SH

Higher than estimated initial jobless claims of 429,000 compounded a revision higher to prior data in a sign the economic recovery remains anemic. Lowered growth forecasts and some earlier words of caution from central bankers Trichet and Bernanke reminded investors of what many already knew to be true: strong headwinds such as the European debt crisis, stubbornly high U.S. unemployment, and data showing manufacturing is slowing in the U.S. and Europe – just to name a few – represent serious threats to growth. Even the pace of China’s manufacturing appears to be slowing, possibly rising at its slowest pace in nearly a year, as weaker demand translates into fewer export orders amid the central bank’s efforts to combat inflation with interest rate hikes and higher reserve requirements. Add to all of that the International Energy Agency’s most recent announcement and it’s no wonder global markets are on the decline. The opening bell in U.S. trading on Thursday saw the VIX spike well above 10%, crossing the psychological 20-level for the 5th time in the past 7 trading sessions, as renewed fears drove sellers to the marketplace.

XLF - Financial Select Sector SPDR ETF – Contrarian strategists are out in numbers today while other market participants watching the broad-market decline accelerating are opting to head for the hills. Financials are not the worst performing sector today, but shares in the XLF, an exchange-traded fund that tracks the performance of the Financials sector of the S&P 500 Index, did decline as much as 2.2% this morning to $14.67. Options volume on the financials ETF jumped after a massive bullish transaction was initiated in the September contract. It looks like one or more traders purchased a call butterfly spread, buying a total of 27,000 calls…
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Plum Creek Options Active

Today’s tickers: PCL, TBT, GE, OXY, C, ODP, RMBS & S

PCL – Plum Creek Timber – It appears that an investor sold a 15,000 lots strangle on paper-manufacturer, Plum Creek using February options. The implied volatility reading on the share price of 38% remains above the 31% on the share price performance. Call premium at the 35 strike was sold at 1.15 and pushed it lower by 4% on the day while the 10% decline in put premium was accounted for by simultaneous selling of puts at the 25 strike price. Together the premium of 2.05 implies that this investor expects that shares in Plum Creek remain hemmed between $37.05 and $22.95 during the next five months. Shares are 0.4% higher today at $31.32. There is also action at the same expiration 30 series where 5,000 calls traded close to a 3.40 asking price while puts traded on identical volume at a mid-market premium of 2.63. This is more opaque than the strangle and could represent a reversal in which a Plum Creek bull is selling puts to purchase calls. However, it could also be a sold strangle in a similar vane to the above. The currently implied trading range in this case would be between $23.97 to $36.03.

TBT – ProShares UltraShort 20+ Year Treasury ETF – With today’s comments from Fed chairman Bernanke sending bond prices spiraling, investors have targeted call options on the inverse exchange traded fund, TBT, to target a continuation in the move. Likely investors expect further normalization in the yield curve as the discussion on a tighter policy stance expands. As bond yields have fallen during the recent four months, the price of this ETF has slipped from near $60 per share to $42. Today its price stands at $46.14 for a 4.8% gain. Note that the fund focuses on the 20-year area of the yield curve and is double leveraged, which account for today’s sharp price movement. Investors targeted call options in expectation of a further move and used October calls up to the 49 strike to play that move. They also bought calls at the 46 through 50 strike prices.

GE – General Electric – Option sellers chose to write call premium at the December contract using the 21 strike price today. We can see around 7,000 calls sold at premiums between 9-11 cents as shares in the conglomerate slip…
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Zero Hedge

China's Top Carmaker Guides For First Annual Sales Drop In 14 Years

Courtesy of ZeroHedge. View original post here.

SAIC Motor – China’s top carmaker and General Motors' biggest Chinese partner - expects sales to fall annually for the first time in at least 14 years, according to Bloomberg.

The company is based in Shanghai and projects that for 2019, sales will be down about 7%. The company's new target of 6.54 million sales is about 8% below the company's public forecast for a s...



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Phil's Favorites

Mauldin: The Problem With Keynesian Economics

Courtesy of John Mauldin via RealInvestmentAdvice.com

In The General Theory of Employment, Interest and Money, John Maynard Keynes wrote:

“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.”

I think Lord Keynes himself would appreciate the irony that he has become the defunct economist under whose influence the academic and bureaucratic classes now toil, slaves to what has become as much a religious belief system as an economic theory.

...



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Kimble Charting Solutions

Doc Copper Is Pushing Higher Off 18-Year Rising Support, Says Joe Friday

Courtesy of Chris Kimble.

Gold & Silver have been hot of late! Is Doc Copper about to do the same? Possible says Joe Friday.

This chart looks at Copper Futures over the past 27-years. Copper has spent the majority of that time inside of rising channel (1).

The decline over the past year has Doc Copper testing 18-year rising support and lows of the past 8-months at (2).

Joe Friday Just The Facts Ma’am- Copper is attempting to rally off of long-term support at (3). As Copper is testing the bottom of this support channel, smart money hedgers are making a bi...



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Insider Scoop

Benzinga's Top Upgrades, Downgrades For July 19, 2019

Courtesy of Benzinga.

Upgrades
  • For American International Group Inc (NYSE: AIG), William Blair upgraded the previous rating of Market Perform to the current rating Outperform. American International Gr earned $1.58 in the first quarter, compared to $1.04 in the year-ago quarter. American International Gr's market-cap stands at $48,358,299,270. At the moment, the stock has a 52-week-high of $56.49 and a 52-week-low of $36.16. American International Gr c...


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Chart School

RTT Plus Chart Book (Sneak Peak)

Courtesy of Read the Ticker.

The magic of support and resistance channel lines and how they direct price. Here are some chart disclosed to members via the RTT Plus service. All charts are a few weeks old. 


XAU bound by parallel channel lines.


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Newmont Mining support from Gann Angles.



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US Dollar index (DXY) dominate cycle ...

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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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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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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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