Posts Tagged ‘PG’

P&G Put Options In Play Ahead Of Earnings

PG – Procter & Gamble Co. – Far out of the money put options purchased on consumer products giant Procter & Gamble this morning suggests one or more traders may be establishing cheap bearish positions on the stock ahead of the company’s first-quarter earnings report prior to the opening bell on Friday. Shares in P&G are down more than 1.0% today at $78.56 as of 11:20 a.m. ET.

The most-traded options contracts on PG as measured by volume this morning are the regular Nov $65 strike puts, with around 5,000 contracts in play against open interest of 957 contracts. Time and sales data indicates most of the volume was purchased in the early going at a premium of $0.09 each. Buyers of the $65 strike puts may see the value of the contracts increase in the event that PG shares slip after earnings. The contracts are profitable at expiration next month if shares in Procter & Gamble plunge 17% from the current price to trade below the effective breakeven point at $64.91. Shares in P&G last traded below $64.91 back in August of 2012.


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Sizable Put Spread Cautious On P&G Through Year End

 

Today’s tickers: PG, F & LL

PG - Procter & Gamble Co. – Consumer products giant, Procter & Gamble, is trading higher today in advance of the company’s first-quarter earnings report ahead of the opening bell on Thursday. Shares in P&G are currently up 1.25% to stand at $68.28 as of midday in New York. A sizable ratio put spread initiated on the stock this morning indicates one strategist is prepared for limited bearish movement in the price of the underlying through year end. It looks like the trader purchased 2,000 puts at the Dec. $67.5 strike for a premium of $1.22 apiece and sold 4,000 puts at the lower Dec. $65 strike at a premium of $0.56 each. Net premium paid to establish the position amounts to $0.10 per contract and provides downside protection – or profits – beneath a breakeven share price of $67.40 through December expiration. Maximum potential profits of $2.40 per contract are available on the ratio spread should P&G’s shares slide 4.8% from the current level to settle at $65.00 at expiration. Shares in Procter & Gamble last traded at $65.00 in the first week of August.

F - Ford Motor Co. – Shares in the automaker tacked on 1% this morning to stand at $10.10 by 10:50 a.m. ET on reports the company plans to close its last remaining vehicle-making plant in the United Kingdom. Near-term bullish positioning in Ford options straight out of the gate this morning suggests some traders anticipate further gains in the price of the underlying during the next couple of trading sessions. The most heavily trafficked of the Oct. 26 ’12 options contracts are the $10 strike calls, which changed hands more than 7,800 times against open interest of 2,843 lots. It looks like most of the in-the-money calls were purchased in the first 10 minutes of the trading session at an average premium of $0.17 apiece, thus preparing buyers to profit at expiration…
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XLF Puts See Heavy Volume; FactSet Options Active Ahead Of Earnings

 

Today’s tickers: XLF, FDS & PG

XLF - Financial Select Sector SPDR ETF – US stocks are moving lower on Monday as European concerns creep back into the conversation, yet financial stocks are managing to hold onto slight gains this afternoon, with shares in the XLF up 0.06% at $15.84 as of 12:40 p.m. in New York. Put options on the Financial Select Sector SPDR ETF saw heavy volume near the open after one big options market participant established a large bear put spread. It looks like the strategist purchased a 165,000-lot Dec. $13/$15 put spread, paying a net premium of $0.265 per contract. The trade makes money if shares in the XLF decline 7% to trade below $14.735, while maximum potential profits of $1.735 per contract are available on the position in the event XLF shares plunge 18% from the current level to settle at or below $13.00 at December expiration. Shares in the XLF last traded below $13.00 in December 2011.

FDS - FactSet Research Systems, Inc.– Options on the provider of financial and economic data are active today ahead of FactSet’s fourth-quarter earnings report scheduled for release prior to the opening bell on Tuesday. Shares in FactSet Research Systems are up 2.5% at $103.05 as of 12:05 p.m. ET. Some options traders appear to be bulking up on downside puts ahead of earnings, while others are getting long bullish calls in anticipation of further gains in the price of the underlying shares in the near term. Strategists prepared to benefit from a pullback in the stock picked up around 450 puts at the Oct. $95 strike in the first hour of the trading week for a premium of $1.40 apiece. Put buyers may profit at expiration next month in the event FDS shares drop 9% to trade below the effective breakeven price of $93.60. Volume in FDS options is heaviest in the Oct. $100 strike where more than 2,000 puts changed hands…
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Friday Failure – Weak Bounce Levels Turn Into Resistance

Resistance is, unfortunately, not futile for our indices.  

On Monday we discussed our expectations for a 2% weak bounce for the week, which would be a 20% retrace of the 10% drop I had predicted we'd have way back (and a bit early) in March.  That constitutes a WEAK bounce and not a rally and they almost fooled us on Monday by taking back most of that 2% on day one but, since then – it's been pathetic and we've essentially done nothing the rest of the week.  

The levels we were looking for were laid out in Monday's Member Chat and in Tuesday morning's post and were:

  • Dow – 12,750 (12,540 is 20% retrace/weak bounce), now 12,529 – off by 11
  • S&P – 1,343 (1,319), now 1,320 – off by 1
  • Nas – 2,900 (2,840) , now 2,839 – off by 1
  • NYSE – 7,720 (7,560), now 7,552 – off by 8 
  • RUT – 780, (765), now 766


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Deckers Options Active As Earnings Report Sparks UGG-ly Selloff In Shares

 

Today’s tickers: DECK, LULU & PG

DECK - Deckers Outdoor Corp. – Shares in Deckers Outdoor Corp. fell as much as 12.15% to as low as $79.25 on Friday after the Company behind footwear brands UGG and Teva said 2012 earnings will be unchanged at $5.07 a share, missing average analyst expectations of $5.80 a share. Put buying in the March expiry suggests some traders are prepping for the stock to take a few more kicks to the face in the near term. Options traders appear to have purchased more than 2,150 puts at the Mar. $75 strike for a premium of $1.50 apiece. Put buyers may profit at expiration next month in the event that Deckers Outdoor’s shares shed another 7.25% to trade below the average breakeven price of $73.50. Bearish positions are also building at the Mar. $72.5 strike, where more than 1,100 puts were picked up for an average premium of $1.00 a-pop. Front month put positioning contrasts with April expiry activity in far out-of-the-money put options. It looks like strategists betting the stock is unlikely to crash much lower ahead of April expiration sold around 6,000 puts at the $70 strike at a premium of $1.51 each, and sold another 1,900 puts at the lower $65 strike for an average premium of $0.76 apiece. Put sellers walk away with the full amount of premium received on the trades as long as DECK’s shares keep their footing above the strike prices described at April expiration.

LULU - Lululemon Athletica, Inc. – Traders appear to be bulking up on bullish Lululemon options today, with shares in the retailer of high-end athletic apparel earlier rallying to a record high of $67.57. Call buying in the March expiry this morning may be the work of strategists preparing for…
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Procter & Gamble Weekly Call Volume Jumps Ahead Of Conference

Today’s tickers: PG, CHS & FIRE

PG - Procter & Gamble Co. – A burst of call buying in the weekly options on consumer products giant Procter & Gamble appears to be a sizable bullish bet that shares will rally heading into the weekend. Shares in PG are up 0.30% today at $64.61 ahead of the Consumer Analyst Group of New York Conference in Boca Raton, Florida on Thursday. Statements from P&G’s top management, particularly regarding details of the Company’s cost cutting plans, could move the stock tomorrow. The investor or investors responsible for exchanging more than 16,000 calls at the Feb. ’24 $65 strike against open interest of 2,037 contracts for an average premium of $0.15 each, may profit at expiration should shares settle above the average breakeven price of $65.15.

CHS - Chico’s FAS, Inc. – Bullish traders who purchased Chico’s call options in advance of the retailer’s positive earnings surprise on Wednesday, in some cases, doubled their money overnight. Shares in the seller of women’s clothing and accessories rallied as much as 15.5% to $14.80 this morning after the Company beat top- and bottom-line fourth quarter estimates, and forecast higher than expected full year sales of $2.5 billion. Options players speculating shares in Chico’s could surge after earnings snapped up call options in the front month that today trade at substantially higher premiums. One strategist appears to have purchased around 1,400 calls at the Mar. $14 strike for a premium of $0.25 each yesterday afternoon. The sharp rise in CHS shares this morning now has the $14 strike calls trading at more than twice that amount, with a last traded price of $0.70. Call selling at the $14 strike today may represent profit taking on the position. Meanwhile, fresh call selling up at the April $15…
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BOEasy Money Thursday – Greasing the Wheels

More free money!

That's the way we like to start the day as the BOE pumps another $75Bn into the mix and, best of all, their currency went UP on the news because "whisper numbers were for $100Bn."  Now that we know the magic formula, we can start a rumor that the Fed will print $3Tn and then, when they ONLY print $2.5Tn – the Dollar will become much more valuable.  See, I'm starting to think like a Central Banker!  

Also in the "bad news must be good news" pile as Greek Finance Minister Evangelos Venizelos (wouldn't it suck to live in Greece with a name like Bob Smith?) heads to Brussels with NO DEAL.  That's right there is still no deal on the Greek bailout that has boosted the markets by 22% since October.  They do claim that the only remaining issue is pension cuts but all the Florida voters who picked Romney will soon find out how easy that is to accomplish. 

Just last February, I was writing a Thursday post titled "Greece is the Word" where I warned that the 4.23% CDS rate hitting Greek bonds was unsustainable and that turned us bearish right at the top of the rally at S&P 1,344.  Yesterday, the S&P was back to 1,349 and I wonder if Greece never happened – would I have continued to be bullish with the markets at this level?  

On the whole, even WITH the snowballing Greek crisis, we "only" fell to 1,249 in March so, with Greece all fixed – maybe we can afford to be a bit more bullish.  I'll be more comfortable with the upside once we see that Greece is not a "sell on the news" event but, as I noted yesterday, our last 10 bullish picks did quite well and a few of them are still playable and certainly there are still opportunities out there to pick up good stocks fairly cheaply.  

Take DMND, for example.  Last night, the stock fell from $37 to $20.50 as the beleaguered company will have to restate their last two years of earnings and that sent the CEO and two CFO's out the door and does, in fact, constitute a "material adverse change" that will allow PG to, at…
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Short-Term Bullish Bets Mount As Las Vegas Sands Extends Rally

 

Today’s tickers: LVS, S & PG

LVS - Las Vegas Sands Corp. – Weekly call options on the casino operator continue to see heavy action as shares in Las Vegas Sands extend their sharp run to the upside. The stock is up more than 12.0% year-to-date and some options traders are positioning for the momentum to continue, abandoning concerns that slowing growth in China may curtail activity in Macao. Optimism the Chinese New Year will boost revenues in the Asian gambling hub is also helping the stock’s fast-and-furious drive toward the February 3, 2011, 52-week high of $50.65. Shares are currently up 2.9% on the day to arrive at $49.31 as of 1:30 p.m. in New York. Traders exchanged more than 3,200 now in-the-money calls at the Jan. ’27 $49 strike, with much of the volume generated by buyers shelling out an average premium of $0.43 per contract. Investors long the $49 strike calls may walk away with profits at week’s end as long as shares in LVS exceed the average breakeven price of $49.43. Bullish positioning spread to the higher Jan. ’27 $50 strike where more than 1,300 calls were purchased at an average premium of $0.17 apiece. Weekly call buyers profit if shares in the owner of casino resorts extend gains heading into the weekend, but are not exposed to the reaction of shares following Las Vegas Sands Corp.’s earnings release next Thursday.

S - Sprint Nextel Corp. – Big prints in Sprint puts made the wireless communications company one of the most active names by options volume today. Shares in the wireless provider are down 1.4% at $2.14 in early-afternoon trade, hovering just four pennies above the October 10, 2011, multi-year low of $2.10. Options volume on Sprint Nextel…
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Tuesday – Topping Out or Just Pinning the Fed?

Tough call today

The Dollar bounced off 79.75 this morning, nothing to crow about for Dollar bulls as the Euro remains just over the critical $1.30 mark and the Pound is solidly over $1.55 for the moment.  

You could say it's a bearish sign that the Dow and the NYSE stopped dead at our breakout levels but that's to be expected on a first attempt at breaking out – even if they have already attempted the same move back in late October, when the Dow was 5% lower in it's test and the NYSE was testing the same line (7,866).  

Our broadest market index is the one that's holding everyone back as what little volume there has been in this rally has been fairly narrowly focused on certain leaders.  Now a pessimist might say that this is a reflection of the blatant manipulation of the indexes in which certain Banksters place buys on stocks that have disproportionate positive effects on the junior indexes in order to fool retail traders into believing there is a rally while the Banksters drive the VIX down to multi-year lows, dump all their stocks on the bagholders and prepare to cash in by crashing the markets on a major event like tomorrow's FOMC Rate Decision which is, in fact, very unlikely to have any language specific to the QE3 that has been promised by the MSM since Thanksgiving.  

SPY DAILY An optimist would say – well, you can read almost any MSM site for that.  It's lonely at the top of the range when you are bearish, one by one the other bears capitulate and soon you are there all by yourself with your shorts – your lovely, lovely, cheap shorts!  The Dow shot up yesterday to just over the 12,749 breakout line we have as the tippy top of the range on our Big Chart so of course I called for DIA puts in Member Chat.  The DIA Feb $123 puts, which came in around .75 and finished the day not much higher at .78 after topping out at .95.  Ranges usually hold – if you're not going to have conviction at the very top of a range to short – when will you?  For one thing – you have a very good stop line to watch!

As noted by Dave Fry in his SPY chart, the bulls have engineered their golden cross…
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Options Feeding Frenzy Gains Momentum as Shares in Ford Motor Co. Hit 8-Year High

Today’s tickers: F, ALU, WMB, TLCR, PG & LNG

F - Ford Motor Co. – The automaker’s shares jumped 6.80% during the session to an intraday high of $17.41, the highest recorded share price for Ford Motor Co. since June 3, 2002. Options on Ford are extremely well trafficked today with shares surging to new heights and the market eagerly awaiting rival General Motors Company’s public stock offering. More than 2.2 call options are changing hands on the stock for each single put in play out of the more than 704,650 contracts exchanged on the automobile maker as of 3:45 pm in New York. Nearer-term call options are the most active, with volume in November $17 strike calls exceeding 70,800 lots ahead of the closing, bell versus previously existing open interest of 45,757 contracts at that strike. The majority of those in-the-money call options were purchased for an average premium of $0.46 apiece. Call buyers at this strike make money if Ford’s shares exceed $17.46 ahead of expiration on Friday. Buying interest spread all the way up to the sky-high November $20 and $21 strikes. More than 5,000 of the November $20 strike calls were picked up for an average premium of $0.03 a-pop. The premium on these contracts will continue to rise as long as Ford’s shares head higher in the next 4 trading sessions, and may provide call buyers the opportunity to bank handsome profits ahead of expiration day. The December $20 strike calls were even more popular, with some 17,000 lots purchased at an average premium of $0.15 each. Bullish players were also seen selling in- and out-of-the-money put options across multiple expiries. Near-term November $16 strike puts were the most heavily populated as upwards of 53,250 contracts changed hands by 3:50 pm. Strong demand for the automaker’s option contracts, GM’s impending IPO and the sharp shift in Ford’s share price today helped lift the overall reading of options implied volatility on the stock 9.4% to 45.92% late in the…
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Phil's Favorites

Ruth Bader Ginsburg helped shape the modern era of women's rights - even before she went on the Supreme Court

Supreme Court Justice RBG passed away from complications of metastatic pancreatic cancer yesterday. RIP, the Notorious RBG.

Ruth Bader Ginsburg helped shape the modern era of women's rights – even before she went on the Supreme Court

Judge Ruth Bader Ginsburg paying a courtesy call on Sen. Daniel Patrick Moynihan, D-N.Y., left, and Sen. Joseph Biden, D-Del., in June 1993, before her confirmation hearing for the Supreme Court. AP/Marcy Nighswander

Courtesy of Jonathan Entin, Case Western Reserve University

Justice Ruth Bader Ginsburg died on Friday, the Supreme Court announced.

Chief Justice John Roberts ...



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Politics

Ruth Bader Ginsburg helped shape the modern era of women's rights - even before she went on the Supreme Court

Supreme Court Justice RBG passed away from complications of metastatic pancreatic cancer yesterday. RIP, the Notorious RBG.

Ruth Bader Ginsburg helped shape the modern era of women's rights – even before she went on the Supreme Court

Judge Ruth Bader Ginsburg paying a courtesy call on Sen. Daniel Patrick Moynihan, D-N.Y., left, and Sen. Joseph Biden, D-Del., in June 1993, before her confirmation hearing for the Supreme Court. AP/Marcy Nighswander

Courtesy of Jonathan Entin, Case Western Reserve University

Justice Ruth Bader Ginsburg died on Friday, the Supreme Court announced.

Chief Justice John Roberts ...



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Chart School

Stocks are not done yet - Update

Courtesy of Read the Ticker

There are a few times in history when a third party said this US paper (stocks, funds or bonds) is worthless.

Here is two.

1) 1965 Nixon Shock - The French said to US we do not want your paper dollars please pay us in gold. This of course led to the US going off the gold standard.

2) 2007 Bear Stern Fund Collapse - Investors said their funds collateral was worth much less than stated. This of course was the beginning of the great america housing bust of 2008.


In both cases it was stated .."look the Emperor is naked!"... (The Empe...

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Zero Hedge

The Ultra Wealthy Are Selling Billions Of Dollars In Stock

Courtesy of ZeroHedge View original post here.

As the market has "rebounded" off its lows back in March, the world's super wealthy are jumping at the chance to offload billions of dollars in stock while global central banks - and most notably the Federal Reserve - keeps a bid under the market and acts as a Mr. Magoo-like counterparty.

Many investors have been prompted to sell by market volatility over the last two weeks, which appears as though it could be signaling an end to the V-shaped recovery. This has likely helped spook the ultra wealthy into take some cash off the table. 

Seo Sang-young, an analy...



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ValueWalk

Markets Crash Two Days In A Row: The American Dream Is Dead

By Eloise Williams. Originally published at ValueWalk.

The American dream is dead, she thinks to herself. After all her hard work. All the blood, sweat and tears. Long nights in the office away from her family.  Diligently saving up every penny so they could have that white picket fence. A big screen television. And even an iPhone 11 Pro.

Q2 2020 hedge fund letters, conferences and more

The American Dream Is Officially Dead

Emma slowly sips her bourbon while sitting on her porch. Deep wrinkles caused by stress are embedded into her once smooth face. A chunk of her blonde hair falls to the ground.&#x...



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Kimble Charting Solutions

Gold Breakout Triggers Buy Signal, Is $3000 Next Target?

Courtesy of Chris Kimble

90-days ago this cup & handle pattern was discussed on See It Market when Gold was trading at 1717.

Fast-forward to today and Gold is up 15 percent. So it’s time for an update!

As we pointed out 90-days ago, the initial price magnet for the rally was the 261.8 Fibonacci extension that marked the 2011 high at (1).

That high has served as price resistance for nearly 9 years! …But it may be ...



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Biotech/COVID-19

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

 

Smoke from wildfires can worsen COVID-19 risk, putting firefighters in even more danger

Firefighters have battled camp crud before, but COVID-19 brings new risks with the potential for heart and lung damage. Robyn Beck/AFP/Getty Images

By Luke Montrose, Boise State University

Two forces of nature are colliding in the western United States, and wildland firefighters are caught in the middle.

Emerging research suggests that ...



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Digital Currencies

Cryptocurrencies Rarely Used To Launder Money, Fiat Preferred

Courtesy of ZeroHedge View original post here.

Authored by Shaurya Malwa via Decrypt.io,

Traditional channels continue to dominate the estimated $2 trillion global money laundering racket instead of cryptocurrencies, a report says.

In brief
  • Money laundering via cryptocurrencies is not a preferred tool for criminals, a report said...



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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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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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