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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Phil's Favorites

COVID Concerns Send Casino Stocks Tumbling As Recovery Dims

Courtesy of ZeroHedge

As the recovery stalls, states are pausing and or reversing reopenings as coronavirus cases surge. Mobility trends show retail and or corporate workspace activity slowed in late June, sparking new concerns the casino recovery could be coming to an end. 

The S&P500 Casino and Gaming (Sub Ind) is down 1% in late afternoon trading on Monday. From ...



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Zero Hedge

COVID Concerns Send Casino Stocks Tumbling As Recovery Dims

Courtesy of ZeroHedge

As the recovery stalls, states are pausing and or reversing reopenings as coronavirus cases surge. Mobility trends show retail and or corporate workspace activity slowed in late June, sparking new concerns the casino recovery could be coming to an end. 

The S&P500 Casino and Gaming (Sub Ind) is down 1% in late afternoon trading on Monday. From ...



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ValueWalk

New Climate Risk Rating Of Companies For Investors

By Jacob Wolinsky. Originally published at ValueWalk.

  • New dataset gives investors temperature ratings for 4,000 global companies, based on targets to cut all GHG emissions they are responsible for.
  • Based on a new approach currently being developed by CDP and WWF, CDP temperature ratings can be used for gauging the temperature pathway of investor portfolios, funds and stock indices.
  • Europe’s largest asset manager Amundi first to use the rating as part of its ESG analysis, and for the monitoring of four global multisector equity funds[1].

Q1 2020 hedge fund letters, conferences and more

CD...

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Kimble Charting Solutions

Shangai Index Soars Higher, Testing 11-Year Breakout Level!

Courtesy of Chris Kimble

Is the Shanghai Index (SSE) about to experience a long-term breakout and send the world a bullish message?

An 11-year breakout test is in play that will answer this question.

The Shanghai index trend continues to send a bullish message, as it has created a series of higher lows for the past 24-years above line (1).

This long-term support line was tested at the March lows at (2) and it held.

The rally off the lows has the index testing dual resistance at (3).

Will this important index succeed in breaking out? If it does at (3), it will send a very bu...



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Biotech/COVID-19

As U.S. buys up remdesivir, 'vaccine nationalism' threatens access to COVID-19 treatments

 

As U.S. buys up remdesivir, ‘vaccine nationalism’ threatens access to COVID-19 treatments

Are we really all in this together? ‘Vaccine nationalism’ must be addressed to ensure equitable distribution of a COVID-19 vaccine. (Pixabay)

Courtesy of Joel Lexchin, University of Toronto

At the end of June, the United States government announced that it had ...



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Chart School

Golds quick price move increases the odds of a correction

Courtesy of Read the Ticker

Every market corrects, maybe profit taking, maybe of allowing those who missed out, to get in!


The current open interest on the gold contract looks to high after a very fast price move, it looks like 2008 may be repeating. A quick flushing out of the weak hands open interest may take place before a real advance in price takes place. The correction may be on the back of a wider sell off of risk assets (either before of after US elections) as all assets suffer contagion selling (just like 2008).

This blog view is a gold price correction of 10% to 20% range is a buying opportunity. Of course we may see  a very minor price correction but a long time correction, a price or time is correction is expected, we shall watch and...

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The Technical Traders

Wild Volatility Continues As US Markets Attempt To Establish New Trend

Courtesy of Technical Traders

We’ve continued to attempt to warn investors of the risks ahead for the US and global markets by generating these research posts and by providing very clear data supporting our conclusions.  Throughout the entire months of May and June, we’ve seen various economic data points report very mixed results – and in some cases, surprise numbers as a result of the deep economic collapse related to the COVID-19 virus event.  This research post should help to clear things up going forward for most traders/investors.

As technical traders, we attempt to digest these economic data factors into technical and price analysis while determining where and what ...



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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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Members' Corner

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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Promotions

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

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! 

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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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