Posts Tagged ‘pay’

Options On VeriFone Eye Further Weakness As Stock Tumbles To Multi-Year Low

Today’s tickers: PAY, SWK & VMW

PAY - VeriFone Systems, Inc. – Shares in electronic payment systems and services provider, VeriFone, are getting slammed on Thursday after the company yesterday forecast third-quarter revenue and earnings well below average analyst estimates. The stock dropped nearly 20% today to $17.70, the lowest level since May of 2010. Shares are currently down 18% on the day at $18.00 as of 11:45 a.m. ET. Traders positioning for shares in VeriFone Systems to extend losses in the near term picked up June and July expiry put options this morning. Put buying at the Jun $16 and $17 strikes position traders to profit from further selling pressure in the shares ahead of expiration in two weeks. It looks like bears purchased around 200 of the Jun $16 strike puts for an average premium of $0.16 each and around 350 of the Jun $17 strike puts at an average premium of $0.37 apiece. Meanwhile, sizable volume in the July expiry puts appears to be the work of one or more traders taking profits and initiating fresh bearish positions on the stock. More than 2,000 puts changed hands at the Jul $23 strike against open interest of 4,106 contracts in the early going this morning. Open interest in the $23 puts increased during the first half of this week, with around 2,500 lots purchased on Monday and Tuesday for an average premium of $1.63 each, according to time and sales data. The sharp drop in the price of the underlying overnight now finds the deep in the money put options changing hands at $4.90 apiece as of midday in New York. Prints in the $23 puts within 10 minutes of the opening bell today indicates traders sold more than 1,400 of the puts for an average premium of $4.55 apiece. Finally, bears anticipating continued weakness in the price of the underlying going forward snapped up 2,000 puts at the Jul $18 strike for an average premium of $1.20 each. Buyers of these contracts stand ready to profit at expiration next month should shares in VeriFone decline another 6.7% from the current level of $18.00…
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Upside Calls Change Hands On VeriFone As Shares Rebound

 

Today’s tickers: PAY, CAB & GPRE

PAY - VeriFone Systems, Inc. – Shares in the mobile payments solutions provider rallied sharply on Tuesday, rising 8.4% to an intraday high of $22.18, after the company’s CEO, Douglas Bergeron, stepped down. VeriFone, which was raised to ‘Positive’ from ‘Neutral’ with a target price of $25.00 at Susquehanna today, currently trades up 5.8% on the session at $21.65 as of 12:30 p.m. ET. Options traders positioning for shares in the name to extend gains in the near term snapped up April expiry calls this morning. The April $23 strike calls attracted the most volume, with upwards of 3,200 lots in play versus open interest of 811 contracts, as of the time of this writing. Traders appear to have purchased most of the volume for an average premium of $0.69 apiece, and may profit at expiration next month should VeriFone’s shares rally another 6.8% over today’s high of $22.18 to top the average breakeven point at $23.69. VeriFone Systems shares are down roughly 60% since this time last year.

CAB - Cabela’s, Inc. – Upside call options on Cabela’s are active today, with shares in the retailer of hunting and camping gear rising nearly 13% to touch a new all-time high of $60.81 after the company’s forecast of first-quarter profits topped the average analyst projection. Traders positioning for shares in CAB to extend gains in the near term, and following the company’s analyst day tomorrow, picked up March and April expiry calls on the name. Bulls purchased more than 760 in-the-money calls at the Mar. $60 strike for an average premium of $0.59 apiece during the first half of the trading day. Meanwhile, like-minded strategists exchanged more than 700 calls at the April $60 strike versus open interest of 58 contracts. Traders buying the contracts in the early going appear to have paid an average premium of $1.91 per contract for the April $60 strike calls, and may profit if shares in Cabela’s rally another 1.8% to top the average breakeven point…
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Options Volume Pops At VeriFone As Shares Take A Dive

 

Today’s tickers: PAY, RFMD & SWKS

PAY - VeriFone Systems, Inc. – VeriFone’s lower-than-expected forecast for second-quarter earnings sent shares in the provider of electronic payment systems down nearly 40% to the lowest level since July 2010 on Thursday morning, and drove options volume on the stock to roughly four times its daily average by 11:35 a.m. ET. The total number of call and put options in play on VeriFone this morning at last check tops 24,400 contracts versus the stock’s average daily volume of around 6,100 contracts. Analysts at Deutsche Bank, Raymond James, Citi, JPMorgan and Piper Jaffray downgraded and/or lowered price targets on the stock today. Trading traffic in PAY call options suggests some contrarian traders are positioning for shares to potentially rebound somewhat in the near term. Options traders nibbling at upside calls picked up around 600 lots at the Mar. $22 strike for an average premium of $0.55 apiece in the early going. Call buyers may profit at expiration next month in the event that VeriFone shares jump 16% off today’s low of $19.43 to exceed the average breakeven price of $22.55. Around 360 calls were purchased at the higher Mar. $23 strike at an average premium of $0.29 apiece, as well. Meanwhile, hefty paper profits may be available for one strategist who appears to have sold around 500 Mar. $34 strike calls on Wednesday afternoon ahead of today’s selloff. Time and sales data indicates the call options were sold at a premium of $1.05 apiece yesterday, contracts that can now be bought back at just $0.05 each.

RFMD - RF Micro Devices, Inc. – Bearish options are changing hands on the semiconductor components manufacturer today, with shares in RF Micro Devices tumbling on a downgrade to ‘Market Perform’ from ‘Outperform’ at Raymond James on concerns of increased competition from Qualcomm, amid a down day for U.S. stocks across the board. Shares in RF Micro Devices are down more than 13% as of midday in New York to stand at $4.49. Traders positioning for…
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Morgan Paying Out 62% of Revenues in Bonuses and Pay While Average Families Face ‘Years of Pain’

Morgan Paying Out 62% of Revenues in Bonuses and Pay While Average Families Face ‘Years of Pain’ 

Courtesy of Jesse’s Café Américain

bernankeOne has to wonder how much of that ‘revenue’ is merely the result of artificial mark to market accounting and prop desk speculation, and not real cash flow from commercial banking operations.

That is not the pay method for a bank. That’s a hedge fund. And that would be all very well and good if they were a hedge fund and responsible for their own failures and successes, but they are obtaining the discount window and federal guarantees and subsidies from the taxpayers as though they were a commercial bank.

This highlights the problem with this ‘trickle down’ approach that characterizes neo-liberal stimulus versus the approach of, let’s say, the Roosevelt administration, that of putting people to work and keeping their savings safe as the first priority.

The US and UK are packing the banks with public money to ‘save the system.’ Their hope seems to be that as the banks recover, they will start lending to the private sector again, and eventually this money will trickle down to the public as real wages generated by organic economic activity.

Another approach would have been to guarantee the people’s savings in banks and Credit Unions, the cash value of insurance policies, and money market funds, up to let’s say $2,000,000 per individual and $5,000,000 per couple.

Keeping the people whole, the government would have then been able to effectively place the banks in receivership as required, and work them through the resolution of their problems, handing out some stiff losses to shareholders and speculators and the debt-holders.

No mechanism to do this? They could have nationalized the banks temporarily with a single executive order, as readily as it took Hank Paulson and Tim to type up a ten page document to give away $700 billion. The guarantees on all savings and private investments would have prevented a panic from the public, but quite a few more bankers and hedge funds might have taken the hard results of their recklessness.

This would have placed all the bailout money in the hands of the people, who could have chosen where they wished to place it after the nationalization process as the banks were either shuttered or restored. We would have ended up with


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Wall Street, Meet Ken Feinberg, the Pay Czar

Wall Street, Meet Ken Feinberg, the Pay Czar

By Stephen Gandel, courtesy of TIME

Ken Feinberg 

Ken Feinberg at his office in Washington
Charles Dharapak / AP, courtesy of TIME

Ken Feinberg is a close talker. Feinberg, a lawyer who in June was named the Treasury Department’s special master for executive compensation, starts his sentences about 18 inches from your face and, with a thick Boston accent, leans in to make his point.

It’s an unusual trait for a guy who has to deliver the type of news that most of us would prefer to dispense from across the room or, better yet, by e-mail from a do-not-reply address. On Oct. 22, he told 136 top executives of seven bailed-out firms that effective immediately, he was cutting their total compensation 50% from what they received a year ago. Feinberg’s previous public position was the administrator of the September 11th Victim Compensation Fund. In that job, he had to put a price tag on the dead.

"Dollars are a surrogate for worth," says Feinberg, leaning back in his chair before bouncing forward again on the next sentence. "So when you start talking about dollars, what people hear is a ruling on their overall integrity and value to society. It gets difficult."

Feinberg, 64, holds a unique position in American society. He decides what people — their pain as well as their day-to-day roles — are worth. Appointed 25 years ago to distribute about $200 million to Vietnam vets poisoned by the herbicide Agent Orange, he has become the Solomon of settlement. As head of the 9/11 fund, he held town-hall meetings and met one on one with countless grieving relatives to explain his bottom line on the lost years of mothers and fathers and daughters and sons. "He recognized the astounding amount of sensitivity of the assignment," says former Senator Charles Hagel, who supported Feinberg for the position. "By all the different assessments you can take of these things — victims’ reactions, cost to the taxpayer, political issues — he did a great job with the 9/11 fund."

His current task may be even more complex. Feinberg’s mid-October report reassessed not only what the top 25 executives of each of the seven firms that received the most government assistance should be paid but also how. Unlike his job with the 9/11 fund, Feinberg’s position as pay…
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Verifone Options Indicate Bullish Positioning at Payment Provider

Today’s tickers: PAY, GLD, WFC, SMH, CMCSK, SUN, KO & MON

PAY - The designer of systems that enable secure electronic payments edged onto our ‘most active by options volume’ market scanner this afternoon after a large bullish stance was taken in the January 2010 contract. Shares of the firm have increased nearly 1% today to stand at $14.13. The options action observed indicates that one investor expects significant appreciation in shares by next year. But, the trader apparently does not see the stock rising much higher than the current 52-week high of 19.91, attained nearly one year ago on September 12, 2008. The bullish trader was seen partially financing the purchase of a long call spread by selling 12,000 out-of-the-money puts at the January 10 strike for 55 cents each. He then bought 12,000 calls at the January 12.5 strike for 3.10 per contract, spread against the sale of the same number of calls at the higher January 20 strike for 42 cents premium apiece. The net cost of the spread was reduced to 2.13. Thus, the trader stands to accumulate maximum potential profits of 5.37 should the stock surges to $20.00 by expiration in January. Shares would need to rally a whopping 42% from the current price for the trader to pocket the maximum available profits of approximately $6,444,000. We note that the 36,000 lot trade put on today exceeds the previous existing open interest on the stock of 29,251. – Verifone Holdings, Inc. –

GLD - Option traders established ratio put spreads on the gold exchange-traded fund today amid a 1% rally in shares to $97.86. Gold is actually a couple of dollars lower today as the dollar regains its feet and investors critically assess the rationale for gold’s recent ascent. Today’s put spreads represent downside protection for investors hoping to lock in gains assumed to have been made during the recent rally in the price of gold. Using the November contract 2,500 puts were picked up at the November 97 strike for 4.20 apiece, and spread against the sale of 5,000 puts at the lower November 93 strike for 2.25 each. The investor pockets a net credit of 30 cents on the trade, which he will retain in full if shares of the GLD remain higher than $97.00 by expiration. Beneath a price of $97.00 for GLD, the investor faces rising profits should shares fall to $93.00…
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Infamia e Disgrazie: Is Sheila Bair an Unsophisticated Hick?

In defense of "unsophisticated hicks,"

Infamia e Disgrazie: Is Sheila Bair an Unsophisticated Hick?

Sheila BairCourtesy of Jesse’s Café Américain

"Flagrant evils cure themselves by being flagrant; and we are sanguine that the time is come when so great an evil…cannot stand its ground against good feeling and common sense…" John Henry Newman

The reporter on Bloomberg television just mentioned as a snide, smirking editorial aside, that Sheila Bair feels that a million dollars is a lot of pay for one year, and that ten million is excessive for a deposit taking institution. He noted that she is obviously a Washingtonian, and not a New Yorker.

That’s right. A million dollars annual pay is ‘nothing.’ Even ten million is not much pay for an average Wall Street banker that is taking billions in public funds and gaming the financial system.

The obvious implication is that Ms. Bair is some hick regulator who is not as sophisticated as, let’s say, Larry Summers, Tim Geithner, or Ben Bernanake when it comes to rewarding their Wall Street cronies for allowing the economy to continue unimpaired.

Perhaps he was attempting to sneak a bit of irony into the propaganda that passes for news in the States these days, but it was not obvious.

But he might be right. When the monetary inflation from all this financial corruption hits, a million dollars per year might yet be a ‘livable wage.’

And so goes the "downward spiral of dumbness." Keep these metrics in mind when you look at your next credit card bill, mortgage payment, and paycheck, rubes, and send your tribute to Caesar.

Bair Says U.S. Regulators Should Set Pay Standards for Banks

By Alison Vekshin and Erik Schatzker

Aug. 5 (Bloomberg) — Federal Deposit Insurance Corp. Chairman Sheila Bair said regulators should set pay standards for U.S. banks to ensure incentives encourage long-term performance without setting specific dollar limits.

Banking agencies should “become more active” in using existing authority to set compensation standards that are “principles-based,” Bair said today in an interview with Bloomberg Television in Washington.

“We do need to revamp the system to make sure that the incentives are long-term,” Bair said. “I do wish some of these firms would exercise better restraint and common sense on what they’re paying their folks.”

Bair echoed concerns of House Financial Services Committee Chairman Barney Frank and other lawmakers…
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Kimble Charting Solutions

Are Energy Stocks Suggesting Long-Term Strength Here?

Courtesy of Chris Kimble

Energy stocks spent the decade of 2010 to 2020 mired in weakness… but is that trend coming to an end?

The past two years have seen the Energy Sector (XLE) surge as Crude Oil has rallied back over $80.

Today’s chart is a long-term “weekly” ratio chart of the Energy Sector to S&P 500. And this chart may be illustrating why energy stocks may be ready to out-perform in the weeks/months/years ahead.

As you can see, the XLE/SPY ratio formed a strong bottoming pattern over the past 24 months. And now the ratio is breaking o...



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ValueWalk

Another Promising Rebound

By Anna Peel. Originally published at ValueWalk.

We’re seeing a strong start to trading on Wednesday after what has been a very turbulent start to the week.

Q4 2021 hedge fund letters, conferences and more

We've seen some sharp sell-offs already this week but investors appear to be encouraged by just how quickly and strong markets have bounced back. Monday looked like it was going to be a bloodbath in equity markets but rather than panic, investors poured back in and seized upon the lower valuati...



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Zero Hedge

Nomura: Here Comes 'The Big One'

Courtesy of ZeroHedge View original post here.

Authored by Charlie McElligott, Managing Director of Cross-Asset Strategy at Nomura,

“Pre-FOMC drift” - but this time, thanks to a massive “kick-save” from Microsoft guidance which turned the entirety of global risk-assets from cratering lower in the after-hours trade last night to now, spasming higher into Fed later today (NQ +4.4% low to high) and with still substantial “short Gamma vs spot” out there for Dealer hedging purposes, as well as sharply “netted-down” exposure from Fundemental investors and outright “shorts” in CTA Trend….while conversely, we currently see a quiet R...



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Phil's Favorites

Indiscriminate selling

 

Indiscriminate selling

Courtesy of 

There are a few green stocks in the market today, and by “a few”, I mean you can count them on two hands and still have a few fingers left over. To gag yourself with. Those green stocks are things like Kohl’s (a special situation takeover story) and then it’s like grocery stores and shoe cobblers. That’s really it. Tesla is being absolutely mangled, which tells you which type of mutual funds and ETFs are being redeemed (liquidated?) today.

I have some buy limit orders in at completely out...



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Biotech/COVID-19

How mRNA and DNA vaccines could soon treat cancers, HIV, autoimmune disorders and genetic diseases

 

How mRNA and DNA vaccines could soon treat cancers, HIV, autoimmune disorders and genetic diseases

Nucleic acid vaccines use mRNA to give cells instructions on how to produce a desired protein. Libre de Droit/iStock via Getty Images

Courtesy of Deborah Fuller, University of Washington

The two most successful coronavirus vaccines developed in the U.S. – the Pfizer and Moderna vaccines – are both mRNA vaccines. The idea of using genetic material to produce an immune response has opened up a world of research ...



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Politics

5 things to know about why Russia might invade Ukraine - and why the US is involved

 

5 things to know about why Russia might invade Ukraine – and why the US is involved

Courtesy of Tatsiana Kulakevich, University of South Florida

U.S. President Joe Biden said on Jan. 19, 2022, that he thinks Russia will invade Ukraine, and cautioned Russian president Vladimir Putin that he “will regret having done it,” following months of building tension.

Russia has amassed an estimated 100,000 troops along its border with Ukraine over the past several months.

In mid-January, Russia began moving ...



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Chart School

Bitcoin Swings Down to Support

Courtesy of Read the Ticker

Come on! Seriously do you think a 400% rally for Bitcoin was going to be given to the public easily. Without any pain! Come on muppets!



The uniformed (public) buy when price is rising or breaking new highs, the informed buy when price is falling or breaking lows.



The informed have to do it this way as they are large volume players and the only way they can buy large volume is to create chaos. The chaos brings to the market the weak holders and a forced sell. Price is moved to where the volume can be accumulated, in a bull trend that is down to critical support.



Of course if price is in a true bull market the 'chaos' created should not break critical long term trend signals, ...



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Digital Currencies

The metaverse is money and crypto is king - why you'll be on a blockchain when you're hopping

 

The metaverse is money and crypto is king – why you’ll be on a blockchain when you’re virtual-world hopping

In the metaverse, your avatar, the clothes it wears and the things it carries belong to you thanks to blockchain. Duncan Rawlinson - Duncan.co/Flickr, CC BY-NC

Courtesy of Rabindra Ratan, Michigan State University and Dar Meshi, Michigan State University ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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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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