Posts Tagged ‘PX’

Bearish Player Unfurls Butterfly Wings on Financial Select Sector SPFR Fund (XLF)

Today’s tickers: XLF, CMA, LYV, WYNN, MRVL, AVP & PX

XLF – Financial Select Sector SPDR ETF – The familiar shadow of a put butterfly spread appeared in the August contract on the XLF, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, suggesting shares of the fund may continue to decline in the next couple of months to expiration. Shares of the ETF are currently down more than 3.7% to $13.96 with 25 minutes remaining ahead of the closing bell. The bearish put butterfly spread involved the purchase of 10,000 now in-the-money puts at the August $14 strike for a premium of $0.62 apiece [wing 1], and the purchase of 10,000 puts at the lower August $12 strike for a premium of $0.17 each [wing 2]. The investor sold 20,000 puts at the central August $13 strike for a premium of $0.32 a-pop [body]. The net cost of the pessimistic play amounts to $0.15 per contract, thus preparing the investor to make money if shares slip beneath the upper breakeven price of $13.85 ahead of expiration day in August. Maximum available profits of $0.85 per contract are safe in the investor’s piggy bank if shares of the underlying fund decline another 14% from the current price of $13.96 to settle at $12.00 at expiration. Options implied volatility on the XLF jumped 17.5% to 35.96% by 3:38 pm (ET).

CMA – Comerica Inc. – Shares of the financial services firm edged 3.45% lower to stand at $37.25 with just 20 minute remaining in the trading session. Bearish investors dominated activity in CMA options this afternoon, with nearly all of the day’s volume centering on the put side of the field. One investor purchased a debit put spread, buying 7,500 now in-the-money puts at the August $37.5 strike for a premium of $2.50 each, and selling the same number of puts at the lower August $32.5 strike for a premium of $0.80 apiece. The net cost of the spread amounts to $1.70 per contract, and prepares the investor to make money should Comerica’s shares decline another 3.90% to breach the average breakeven point to the downside at $35.80 by expiration day in August. Maximum potential profits of $3.30 per contract are available to the responsible party if CMA’s shares plummet 12.75% from the current…
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Zero Hedge

Japan Increases Lead Over China As Largest Foreign Holder Of U.S. Treasurys

Courtesy of ZeroHedge View original post here.

For much of 2019, many were wondering if, or rather when, as a result of the ongoing trade war, China would lose its status as the largest US foreign creditor. The answer was revealed last month, when in June, Japan finally surpassed China as the top foreign US creditor, however due to a plunge in Chinese TSY holdings, but due to a jump in Japanese holdings of US paper. One month later, the trend continued as Japan extended its gain on China as the largest US creditor .

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Phil's Favorites

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

 

Suddenly, the world's biggest trade agreement won't allow corporations to sue governments

The 16 nations negotiating the Regional Comprehensive Economic Partnership account for almost half the world’s population. Shutterstock/Datawrapper

Courtesy of Pat Ranald, University of Sydney

The Regional Comprehensive Economic Partnership has been touted as the best hope for keeping world trade flowing after the attacks on the World Trade Organisation.

The WTO isn’t dead yet, but in a two-pronged attack, US P...



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Kimble Charting Solutions

Crude Oil Create A Panic Peak This Week?

Courtesy of Chris Kimble

Yesterday Crude Oil rallied nearly 15%. How often does Crude rally this much in a day? Not often!

How many times has Crude rallied nearly 15% in the past 20-years? Only one other time, which suggests that yesterdays move was a rare event.

This chart looks at Crude Oil on a weekly basis over the past 2-years. Last year Crude Oil created a bearish reversal pattern at the 2018 highs and a bullish reversal pattern at the 2018 lows.

Earlier this year, Crude created a bearish reversal pattern (bearish wick pattern), while testing its 61% retracement level of last years hig...



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The Technical Traders

VIX To Begin A New Uptrend and What it Means

Courtesy of Technical Traders

The news of the drone attack on Saudi Arabia over the weekend prompted a big upside move in Oil (over 10%) and a moderate downside rotation in the US major indexes/stock market.  Although prices had recovered slightly by the opening bell on Monday, September 16, the shock wave resulting from this disruption in oil supply is just now starting to play out.

The long term uncertainty in the markets, as well as the rotation in the US Dollar and other foreign currencies, could play a bigger role in the type of volatility and extend of the immediate price rotation that may result from this external news event.  Our VIX predictions and ADL predictive modeling system are suggesting volatility wi...



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Insider Scoop

3 Takeaways From SeaWorld CEO's Surprise Resignation

Courtesy of Benzinga

SeaWorld Entertainment Inc (NYSE: SEAS) announced Monday evening that Gustavo Antorcha resigned as CEO and board member due to a "difference of approach."

What Happened

Antorcha's resignation will be effective immediately and he will be replaced with CFO Marc ...



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Lee's Free Thinking

Is The Drone Strike a Black Swan?

Courtesy of Lee Adler

Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.”

According to Investopedia:

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.

I seriously doubt that no one expected or could have predicted a drone strike on a Saudi oil facility.

Call Me A B...

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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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Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



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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

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

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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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