Posts Tagged ‘PWR’

Bulls Bubbly On PepsiCo, Marathon Petroleum Bears Bank Profits

Today’s tickers: PEP, MPC, HWD & PWR

PEP - PepsiCo, Inc. – The global food and beverage company saw heavy call action on Wednesday after the New York Post reported that the company’s board is divided on the subject of possibly splitting up the company, and that PepsiCo CEO, Indra Nooyi, may be close to making two large international acquisitions. PEP shares are up 2.0% at $65.79 as of 12:05 PM ET. Notable bullish interest is building in the Dec. $67.5 strike call, where is appears a number of strategists are positioning for shares in Pepsi to continue to climb. Investors exchanged more than 11,600 calls at the Dec. $67.5 strike against open interest of 4,317 contracts. Traders appear to have purchased the majority of the calls for an average premium of $0.51 apiece. Call buyers stand prepared to profit should shares in PepsiCo rally another 3.4% to surpass the average breakeven point on the upside at $68.01 by expiration day next month. Shares in PEP last traded above $68.01 back on July 20.

MPC - Marathon Petroleum Corp. – Shares in the largest Midwest oil refiner dropped like rock Wednesday morning, but it looks like the sharp decline today comes as no surprise to some options strategists who appear to have snapped up puts on Marathon Petroleum Corp. earlier this week. Refiners’ shares retreated as the spread between WTI and Brent oil narrowed, a sign that profit margins at these companies may decline. Marathon’s shares are off their lows of the session but remain deeply in the red, down 6.7% at $34.52 as of 11:30 AM in New York. Investors prepared to profit from Marathon Petroleum’s pain purchased put options on Monday and Tuesday for a fraction of their cost today. It looks like traders picked up roughly 3,500 puts at the Nov. $37.5 strike for an average premium of $1.60 this week, as well as purchased more than 3,000 puts at the lower Nov. $35 strike at an average premium of $0.67 a-pop. Today, premium required to buy downside protection is substantially higher. The Nov. $37.5 strike puts currently cost $3.70 per contract, while the Nov. $35 strike puts cost $1.05 each. Put selling initiated at both of these strikes in the first hour of the trading session this morning suggests traders may be taking quick profits off the table.

HWD - Harry Winston Diamond Corp. – One bullish options play on Harry Winston…
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Valero Upgrade Prompts Call Buying

Today’s tickers: VLO, SU, EEM, MRVL, PWR, IMAX & AMED

VLO – Valero Energy Corp. – New ratings coverage of ‘equal weight’ by analysts at Morgan Stanley today sent option traders into a call buying frenzy on the oil refining company. Shares of VLO are currently soaring 6.5% higher to stand at $20.03. Call-volume surged at the October 20 strike where more than 16,100 contracts were purchased for an average premium of 8 pennies apiece. The October 20 strike is now in-the-money by 3 cents, allowing investors to exercise their right to buy shares of the underlying stock for an effective price of $20.08 each. Traders may also decide to accumulate short term gains if shares rally through the breakeven point at $20.08 ahead of expiration tomorrow.

SU – Suncor Energy, Inc. – A couple of bullish calendar rolls caught our attention this afternoon on Suncor Energy. Shares of the Canada-based energy firm slipped nearly 1% lower to stand at $38.99. The first of the two calendar rolls involved 2,000 calls at the December 32 strike which were originally purchased for 3.50 apiece on September 9, 2009, and sold today for 7.50. Net profits on the sale amount to 4.00 per contract. The trader expanded the size of the new call position at the January 47.5 strike by buying 3,000 lots for about 75 cents apiece. The larger of the two transactions involved a larger number of call options. Approximately 11,000 calls were originally bought for a maximum of 2.30 each on September 8, 2009. Today the position was closed by the investor who sold the calls for 5.05 per contract. Net profits on the transaction amount to an average 2.75 per contract. Again, the calls were rolled to the January contract but this time the investor paid 1.85 to buy 18,000 calls at the January 42.5 strike. Profit-taking aside, the investor or investors responsible for the calendar rolls are expecting shares of SU to rise by expiration in January.

EEM – iShares MSCI Emerging Markets Index ETF – Shares of the emerging markets fund fell 0.5% this afternoon to $41.32. We observed bullish transactions take place on the stock despite the decline in shares. One investor banked gains by rolling a bullish call position forward in the December contract. It appears the trader originally purchased 10,000 calls at the now December 42 strike for 1.08 apiece on October…
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The Technical Traders

Massive Price Reversion May Be Days or Weeks Away

Courtesy of Technical Traders

Our researcher team believes a massive global market price reversion/correction may be setting up and may only be a
few days or weeks away from initiating. 
Our team of dedicated researchers and market analysts have been studying the markets, precious metals, and most recently the topping formation in the ES (S&P 500 Index).  We believe the current price pattern formation is leading into a price correction/reversion event that could push the US major indexed lower by at least 12 to 15%.

Historically, these types of price reversion events are typically considered “price exploration”.  Over time, investors push a pricing/valuation bias into the ma...



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Zero Hedge

Jeffrey Epstein Paid Doctors To Drug 'Sex Slaves': Report

Courtesy of ZeroHedge View original post here.

Victims of dead pedophile Jeffrey Epstein say he paid doctors and psychiatrists to dope them up with anti-anxiety and antidepressant medications, according to a new report in the Miami Herald

"There were doctors and psychiatrists and gynecologist visits. There were dentists who whitened our teeth. There was a docto...



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Insider Scoop

Notable Insider Buys In The Past Week: AbbVie, Kraft Heinz And More

Courtesy of Benzinga

Insider buying can be an encouraging signal for potential investors.

A packaged food giant and two drugmakers saw notable insider buying activity this past week.

Some of this insider buying occurred alongside insider sales.

Conventional wisdom says that insiders and 10% owners really only buy shares of a company for one reason — they believe the stock price will rise and they want to profit. So insider...



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Phil's Favorites

Peloton IPO Guide... And Why It Makes No Sense

Courtesy of ZeroHedge

By Scott Willis via Grizzle.com

BOTTOM LINE

At the end of the day, Peloton is a gym membership pretending to be a tech company.

We fully admit the product is exciting and unique in the market, but Peloton still faces the same problem...



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Digital Currencies

Buyer beware: How Libra differs from Bitcoin

 

Buyer beware: How Libra differs from Bitcoin

Recent revelations about the lack of privacy protections in place at the companies involved in Facebook’s new Libra crytocurrency raise concerns about how much trust users can place in Libra. (Shutterstock)

Courtesy of Alfred Lehar, University of Calgary

Facebook, the largest social network in the world, stunned the world earlier this year with the announcement of its own cryptocurrency, Libra.

The launch has raised questions about the difference between Libra and existing cryptocurrencies, as well as the implications of private companies competing with s...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Kimble Charting Solutions

India About To Experience Major Strength? Possible Says Joe Friday

Courtesy of Chris Kimble

If one invested in the India ETF (INDA) back in January of 2012, your total 7-year return would be 24%. During the same time frame, the S&P 500 made 124%. The 7-year spread between the two is a large 100%!

Are things about to improve for the INDA ETF and could it be time for the relative weakness to change? Possible!

This chart looks at the INDA/SPX ratio since early 2012. The ratio continues to be in a major downtrend.

The ratio hit a 7-year low a few months ago and this week it kissed those lows again at (1). The ratio near weeks end is attempting to...



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Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

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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.

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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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