Posts Tagged ‘PNC’

Options Trade Extends Downside Protection On Vale

 

Today’s tickers: VALE, LCC & PNC

VALE - Vale SA – The Brazilian metals and mining company’s shares have sustained sharp losses since last summer, with the stock currently trading at a 45.0% discount to the July 26th 52-week high of $33.74. Shares in Vale are in positive territory today, up 1.3% at $18.59 as of 11:00 a.m. in New York; however, the largest prints in the iron ore producer’s options today point to the potential for fresh two-year lows in the next few months. It looks like one strategist is rolling a bearish position from the front month out to the September expiry, selling a 2,592-lot Jun. $20/$23 put spread at $2.97 per contract to buy the 2,592-lot Sept. $16/$18 spread at a net premium of $0.69 each. Open interest in the front month puts is sufficient to cover the size of the transaction, although it is difficult to determine when and at what price the spread might have originally been purchased. The put spread could be a hedge to offset losses on a long position in the shares, or an outright bearish bet that shares in Vale have further to fall this year. The new Sept. $16/$18 spread yields profits – or downside protection – should shares in Vale decline 6.9% to trade below the breakeven price of $17.31 by expiration.

LCC - US Airways Group, Inc. – A sizable position was initiated in US Airways Group put options this morning ahead of the airline operator’s annual shareholder meeting on Thursday and prior to second-quarter earnings due out next month. Shares in LCC are up 1.15% just before midday to stand at $11.50 and stand 120.0% higher since the beginning of the calendar year. It looks like approximately 5,000 put options were purchased at the July $10 strike for an average premium of $0.57 apiece, perhaps as some strategists lock in gains or speculate on a possible pullback. The cheapened cost of downside…
continue reading


Tags: , ,




Three-Legged Bull Prepares for a PNC Rally

Today’s tickers: PNC, CEDC, SPLS & GILD

PNC - PNC Financial Services Group, Inc. – Shares in the financial services firm are down 1.00% at $60.34 in early-afternoon trade, but activity in May contract call and put options suggests one strategist sees shares in PNC rising sharply in the next few months. The three-legged bullish player appears to have sold 5,000 puts at the May $55 strike for a premium of 1.39 each, purchased the same number of calls at the May $62.5 strike for a premium of $2.15 per contract, and shed 5,000 calls up at the May $67.5 strike at a premium of $0.68 a-pop. The options trader paid a net premium of $0.08 per contract for the transaction, and stands ready to profit should PNC’s shares reverse course and rally 3.7% over the current price of $60.34 to exceed the average breakeven price of $62.58 by expiration day in May. The investor responsible for the trade could accumulate maximum potential profits of $4.92 per contract if the firm’s shares jump 11.9% to trade above $67.50 before the options expire. PNC’s shares last traded above $67.50 back in May 2010. The financial services provider reports first-quarter earnings before the opening bell on April 21, 2011.

CEDC - Central European Distribution Corp. – Near-term options activity on the vodka producer this morning suggests some investors expect the pain of Central European Distribution Corp.’s post-earnings hangover to stick around through March expiration. Shares in CEDC lost 11.2% today to trade at $12.38, the lowest recorded price for the stock since April 2009. The alcohol beverage provider’s shares dropped 45.8% during the trading week, from a closing price of $22.85 on Monday, to today’s low of $12.38. Put buyers in the March contract, however, do not seem to think CEDC has hit…
continue reading


Tags: , , ,




Mixed Trading in Career Education Corp. Options

Today’s tickers: CECO, ROST, LSI, ADBE, AVNR, PNC & ODP

CECO – Career Education Corp. – Shares of the for-profit provider of education geared toward career-oriented disciplines rallied as much as 10.9% during the session to secure an intraday high of $23.00 on analyst reports stating the industry is likely to rebound as bearish investors close out short positions. Options traders employed a mix of bullish and bearish strategies on the stock ahead of the release of the Education Department’s timeline for regulations on for-profit education industry firms tomorrow. One cautious investor prepared for CECO’s shares to falter ahead of October expiration by purchasing a ratio put spread. The options trader picked up 500 puts at the October $22 strike at a premium of $1.15 each, and sold 1,000 puts at the lower October $19 strike at a premium of $0.20 apiece. The net cost of the transaction amounts to $0.75 per contract. The investor is poised to profits should Career Education’s shares fall 7.6% from today’s high of $23.00 to breach the effective breakeven price of $21.25 by expiration day next month. Maximum potential profits of $2.25 are available to the trader if CECO shares plummet 17.4% to settle at $19.00 at expiration. In contrast, bullish players looking for a near-term rally picked up roughly 3,200 calls at the October $23 strike for an average premium of $1.02 each. Investors make money if shares gain 4.4% to surpass the average breakeven point at $24.02 by October expiration. The most optimistic traders purchased approximately 1,000 calls at the October $25 strike for an average premium of $0.43 a-pop. Call buyers at this strike stand ready to profit should shares surge 10.55% and exceed the average breakeven price of $25.43. Options implied volatility on stock is up sharply ahead of the Education Dept. announcement, and currently stands 11.6% higher on the day at 61.28%, as of 3:40 pm ET.

ROST – Ross Stores, Inc. – Shares of the operator of off-price retail apparel and home accessories stores increased as much as 2.3% during the trading session to secure an intraday high of $56.12. Ross Stores appeared on our scanners due to near-term activity in call options. It looks like the majority of trading in October contract calls is the work of one investor booking profits and rolling a previously purchased chunk of calls to a higher strike price. The investor likely…
continue reading


Tags: , , , , , ,




Wrong Way Weekly Wrap-Up

This whole week did not feel right to me.

We were too bearish as I had expected a bogus commodity rally in last weekend's wrap-up but I didn't expect it to persist for a week, even as the dollar held it's ground above 80, a 10% pullback off the top, when oil was $40, copper was $1.50 and gold was $850.  Now oil is $80 (up 100%), copper is $3.35 (up 123%) and gold is $1,135 (up 33%).  Let's say gold is a true indicator of dollar weakness – that means that only 33% of oil and copper's move up can be attributed to the 10% drop in the dollar (not that even that makes sense but we'll give it to them).  Can the rest be attributed to demand?

Certainly not with copper.  Global copper consumption was down 1.9% in 2009 and Q1 2010 is lower than any quarter since Q1 2009 and even Barclays' very aggressive targets for China growth only bring global demand up 2.5% this year – whch would just about bring us back to 2007 levels of consumption.  That, of course, also assumes a rebound in housing construction – something we are not seeing at the moment.   Also, China spent $700Bn last year stimulating their economy and one of the ways they did this was to stockpile copper.  As you can see from the chart – that too appears to be winding down and even Goldman Sachs has abandoned the bullish side of copper at this point.

 

Oil is just as silly.  According to the EIA, global oil consumption is not expected to return to 2007 levels until late 2011 – and that is with some very rosey estimates of a global econonomic recovery – exactly the type of thing that can be derailed by high oil prices!  Mighty China's consumption is projected to go from 8.66Mbd this year to 9.13Mbd in 2011, a 500,000 barrel increase.  Last week, the US had a build in inventories of 4Mb – we just send those over to China and everyone is happy!  I've already had my say on oil demand this this weekend, so let's just move on…

Let's just say I'm a little skeptical about any market moves that are
continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , ,




Microsoft Option Traders Geared Up For Disappointment

Today’s tickers: MSFT, CMCSK, HIG, PNC, F, WFC, XLU & FXI

MSFT – Shares of the software company are currently higher by about 3% to $25.53, but options activity on the stock suggests investors are bracing for bearish movement in the price of the underlying through expiration in September. Traders may be feeling a bit nervous ahead of MSFT’s fourth-quarter earnings report, as the firm is expected to reveal that earnings declined to 36 cents from 46 cents in the same period last year. Investors acted on fears of potential declines in the stock by selling approximately 10,000 calls short at the September 26 strike price for a premium of 85 cents apiece in order to finance the purchase of some 10,000 puts at the September 25 strike for 1.11 per contract. The net cost of getting long protective put options amounts to 26 cents. Traders will begin to amass profits, or protect long positions in the underlying, if shares slip beneath the breakeven point to the downside at $24.74. – Microsoft Corp.

CMCSK – The provider of entertainment announced that it will be the first cable provider to offer full HBO On Demand service in high definition (HD) to its customers. Shares of CMCSK have rallied approximately 1% to $13.70 during today’s trading session. Comcast appeared on our ‘hot by options volume’ market scanner after option traders took bullish stances on the firm in the near-term August contract. Hoping for continued upward movement in the stock, investors purchase about 8,900 calls at the August 15 strike price for an average premium of 22 cents apiece. In order for these individuals to amass profits by expiration, shares would need to surge at least 11% to surpass the breakeven point at $15.22. Option implied volatility edged slightly higher to 41% this afternoon from the opening reading of 38%. – Comcast Corp.

HIG – Frenzied call-buying by bullish option traders was apparent on the insurance and financial services firm today, amid a share price rally of more than 14% to $14.03. Call options were traded five times to each put option in action on the stock, as evidenced by the call-to-put ratio of more than 5-to-1. The near-term August 14 strike had about 5,200 in-the-money calls picked up for an average premium of 73 cents apiece. We note that now the same in-the-money calls tote an asking price of 1.25 each.
continue reading


Tags: , , , , , , ,




PNC Short Sellers Wade In

Today’s tickers: PNC, GT, ROH, WMT, CX, PG & XLF

PNC – PNC Financial Services Group – Shares have fallen over 12% to $17.60 and put action today indicates that there may be more down-days to come. At the March 15 strike price nearly 14,000 puts were sold for an average premium of 1.78 per contract. We believe this sale could be the work of an investor who is short the stock initiating a covered put strategy. By taking in the premium today, this investor stands ready to take delivery of the shares at $15 come expiration. The risk to this trader is that shares are remain stable above the strike ahead of delivery and thereafter rebound, in which case he has to buy back at some point. But, the trade would yield a satisfactory outcome if shares continue to fall below $15 by expiration in which case the investor has his short position alleviated with a long put holder putting the stock to him. In the meantime this investor retains the full premium of 1.78. At the April 10 strike price, more typical put buying was seen given the fall in shares today. Over 5,500 puts were picked up for about 1.65 apiece, indicating that investors do expect that shares will continue to fall.

GT – The Goodyear Tire & Rubber Company – A victim of the decline in auto sales, Goodyear has fallen 4.5% to a new 52-week low, touching down at $3.40 today. Despite the depressing news plaguing the auto industry from all sides, one option investor sees the world through rose-tinted shades and initiated to purchase of 20,000 calls at the January 2010 7.5 strike price for 50 cents per contract. Shares will need to rally like there’s no tomorrow and increase by 135% in order to breach the breakeven share price of $8.00 by expiration next year. Option implied volatility for GT currently stands at 128%. Lately we have noticed similar structured trades using optimistic options plays in both Ford and GM.

ROH – Rohm and Haas Company – Shares have jumped over 17% to $63.60 amid news that discussions over merger resolution have resumed between ROH and Dow Chemical Co. We can only speculate as to how the discussion will turn out and scant information is available at the present time. The uncertainty has created a veritable hot bed of frenzied trading among option…
continue reading


Tags: , , , , , ,




 
 
 

Phil's Favorites

Boris Johnson: populists now run the show, but what exactly are they offering?

 

Boris Johnson: populists now run the show, but what exactly are they offering?

Move aside. Shutterstock

Courtesy of Richard Carr, Anglia Ruskin University

According to the Conservative member of parliament for Witham, ...



more from Ilene

Zero Hedge

Russian And South Korean Fighter Jets Face Off In "Mid-Air Confrontation"

Courtesy of ZeroHedge. View original post here.

For the first time since the fall of the Soviet Union, Russian jets flying through South Korean airspace provoked the South Korean military into a "midair confrontation" that involved firing hundreds of warning shots. All told, South Korean jets fired 360 machine-gun rounds and at least 20 flares, Bloomberg reports.

Three Russian military planes (two Tu-95 bombers and one A-50 airborne early warning and control aircraf...



more from Tyler

Insider Scoop

The Daily Biotech Pulse: Acadia Schizophrenia Drug Fails, Viveve Plummets, Eisai Gets Breakthrough Therapy Designation

Courtesy of Benzinga.

Here's a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech stocks hitting 52-week highs on July 22)

  • Acasti Pharma Inc (NASDAQ: ACST)
  • Apellis Pharmaceuticals Inc (NASDAQ: APLS)
  • Arcturus...


http://www.insidercow.com/ more from Insider

Kimble Charting Solutions

Is Crude Oil Sending a Bearish Message to the Stock Market?

Courtesy of Chris Kimble.

Crude Oil (NYSEARCA: USO) and the S&P 500 Index (INDEXSP: .INX) have peaked and bottomed together several times in the past 9 months. See points (1) and (2) on the chart above.

In summary, the correlation between Oil and the stock market has been quite interesting and demands investors attention.

Crude Oil has been creating lower highs of late and is breaking price support at (3).

If the correlation remains the same, Crude Oil may very well be sending a bearish message to stocks.

Tricky spot for active investors – careful here.

...

more from Kimble C.S.

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.


Click for popup. Clear your browser cache if image is not showing.



Newmont Mining support from Gann Angles.



Click for popup. Clear your browser cache if image is not showing.



US Dollar index (DXY) dominate cycle ...

more from Chart School

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...



more from Bitcoin

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, ...



more from Biotech

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.

...

more from ValueWalk

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...



more from Our Members

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...



more from M.T.M.

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 ...



more from OpTrader

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

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.

Market Shadows >>