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…
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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…
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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…
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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
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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.
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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…
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Zero Hedge

Iran Suffers Most Daily Death Toll Since COVID-19 Outbreak Began; NY Adds 3 More States To 'Mandatory Quarantine' List: Live Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • NY releases latest numbers, adds 3 more states to quarantine list
  • Trump touts COVID-19 mortality rate improvement
  • GOP moves to test all convention attendees
  • Worker 'revolt' at University of Georgia
  • Beijing reports 8 foreign cases
  • South Korea reports 40+ new cases
  • Melbourne enters 6-week lockdown
  • India passes 700k cases
  • Iran sees record jump in deaths
  • South Africa tops 200k

* * *

Update (...



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Phil's Favorites

Up and Down

 

Up and Down

Courtesy of 

This stat from @SentimentTrader blew me away:

“The S&P 500 fund, SPY, has been up at least 0.5% for 5 straight days. That’s tied for the longest streak since its inception.”

I wasn’t taken aback because of how strong the markets have been recently, but that streak of five days sounded really small to me. I almost couldn’t believe it was right. But after looking at the data, the shock wore off.

The S&P 500 has gained >0.5% on 28% of all days (going back to 1993), so the likelihood of...



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The economic impact of coronavirus restrictions can also take a human toll. mladenbalinovac via Getty Images

Courtesy of Olga Yakusheva, University of Michigan

The Research Brief is a short take about interesting academic work.

The big idea

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Error-Ridden PPP Data Show Taxpayer Funds Funneled to the Wealthy & Well-Connected

By Anna Peel. Originally published at ValueWalk.

Yesterday, the Trump administration released a limited collection of data about recipients of Paycheck Protection Program (PPP) assistance. The program has been rampantly mismanaged from the start, allowing big businesses and publicly-traded companies to exploit the program with little transparency or oversight. The data released yesterday has been riddled with errors, raising questions about the PPP’s integrity. All the while, actual small businesses – especially those run by people of color – have been left to struggle or close entirely.

Q2 2020 hedge fund...



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Kimble Charting Solutions

Here's Why QQQ and Large Cap Tech Stocks May Rally Another 10%!

Courtesy of Chris Kimble

The long-term trend for large-cap tech stocks remains strongly in place.

And despite the steep rally out of the March lows, the index may be headed 10 percent higher.

Today’s chart highlights the $QQQ Nasdaq 100 ETF on a “monthly” basis. As you can see, the large-cap tech index touched its lower up-trend channel support in March at (1) before reversing higher.

It may now be targeting the top of the trend channel at (2), which also marks the 261.8 Fibonacci extension (based on 2000 highs and 2002 lows). That Fib level is $290 on $QQQ.

If so, this upside target for $QQQ is still 10% above current prices. Stay tuned!

This article was first written ...



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Chart School

RTT browsing latest..

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Date Found: Saturday, 14 March 2020, 05:51:16 PM

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Comment: Crash in perspective - its Bad, and not over!



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The Technical Traders

Big Funds to Pull Money OUT of Stocks: 2nd Wave to Hit Economy

Courtesy of Technical Traders

TOPICS IN THIS INTERVIEW:

-Big funds to pull money out of markets.

-Falling dollar to really start to benefit gold

-Gold miners showing signs of life.

-$2,000 gold will change people’s mindsets in gold.

-Gold or silver-backed currency will send metals through the roof.

Get Chris Vermeulen’s Trades – Click Here

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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

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How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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