Posts Tagged ‘PXP’

Bullish Options Play Eyes Upside Potential In Plains Exploration

Today’s tickers: PXP, XLF, TPX & HPQ

PXP - Plains Exploration & Production Co. – A large bullish options combination play yields maximum profits to its owner if shares in Plains Exploration & Production Co. rally more than 20.0% by November expiration. The oil and gas exploration and production company’s shares are up 6.6% at $25.44 this afternoon, bringing the stock’s gains in the past week to more than 20.0%. One strategist expecting the stock to continue its run-up initiated a three-legged spread in the November contract. The trader may be looking for shares to extend gains following the company’s third-quarter earnings report on November 4.

It looks like the bullish player sold 10,000 puts at the Nov. $22 strike for a premium of $0.96 each, in order to purchase a 10,000-lot Nov. $26/$31 call spread at a net premium of $1.47 apiece. The sale of the puts reduces the price tag on the debit spread to $0.51 each, thus preparing the strategist to profit should PXP’s shares increase 4.2% over the current price of $25.44 to surpass the effective breakeven point at $26.51 at expiration. Maximum potential profits of $4.49 per contract are available to the trader in the event that shares in Plains Exploration & Production Co. jump 21.8% to exceed $31.00 by expiration day next month. Shares in PXP last traded above $31.00 back on August 17. The stock has lost nearly 40.0% of its value since it secured a multi-year high of $41.96 on July 21.

XLF - Financial Select Sector SPDR ETF – Financials kicked off the new trading session with a…
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Bullish Strategist Positions for Rebound in Plains Exploration & Production Co. Shares

Bullish strategist positions for rebound in Plains Exploration & Production Co. shares

Today’s tickers: PXP, MRVL, SRE, RIMM, MU, AFL, BMY & DELL

PXP – Plains Exploration & Production Co. – The implementation of a three-legged bullish options combination play on Plains Exploration & Production Co. drew our attention to the November contract where one investor utilized call and put options to position for a rebound in the price of the underlying stock. Shares of the independent oil and gas company soured in late afternoon trading, slipping 3.2% lower to stand at $20.98 by 3:35 pm (ET). PXP’s current price of $20.98 represents a 40.4% decline in value since April 15, 2010, when the stock touched an intraday high of $35.41. But, the options activity observed in the November contract today indicates one trader is expecting the stock to rebound sharply ahead of expiration in five months time. The investor essentially sold short put options in order to partially finance the purchase of a debit call spread. The trader purchased 10,000 calls at the November $22.5 strike for a premium of $2.45 each, sold 10,000 calls at the higher November $28 strike for a premium of $0.70 each, and finally sold 10,000 puts at the November $17.5 strike for a premium of $1.30 a-pop. The net cost of the transaction amounts to $0.45 per contract. Thus, the investor responsible for the three-legged play is positioned to make money as long as PXP’s shares rally 9.4% to surpass the effective breakeven price of $22.95 by expiration day in November. Maximum potential profits of $5.05 per contract are available to the trader if Plains’ shares surge 33.5% to surpass $28.00 by November expiration.

MRVL – Marvell Technology Group Ltd. – Global semiconductor maker, Marvell Technology Group Ltd., popped up on our ‘most active by options volume’ market scanner in the second half of the trading session due to rampant bearish options activity in the July and August contracts. Marvell’s shares edged 1.50% lower this afternoon to stand at $17.11 just ahead of the closing bell. Pessimistic traders expecting shares to continue lower ahead of July expiration sold 3,100 calls at the July $17 strike for an average premium of $0.74 each. Call selling spread to the August $15 strike where 2,300 in-the-money calls were sold at an average premium of $2.52 per contract. Perhaps in-the-money call sellers are hoping to keep…
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Chunky Put Play Hits Natural Gas ETF

Today’s tickers: UNG, QCOM, PXP, XRX, ALL, AMAT, MU & CMCSA

UNG - Shares of the natural gas exchange-traded fund are currently off by more than 1% to $11.80. One investor has picked up some serious downside protection on the fund today by purchasing a large chunk of put options in the April 2010 contract. We believe the trader is likely holding a long stock position in the UNG. It appears the trader purchased 31,000 puts at the April 9.0 strike for a premium of 75 cents per contract. The net cost of the put options amounts to $2,325,000. Shares of UNG would need to decline 30% from the current price before downside protection kicks in beneath the breakeven point at $8.25. Perhaps the put buyer expects the fund to reach a new 52-week low by expiration in April. The current 52-week low of $8.94 was attained on September 3, 2009. We note that it is always possible the trader is essentially shorting the stock and placing a large bearish bet on the ETF in order to profit from downward movement in the share price. – United States Natural Gas ETF –

QCOM - A tech-sector rally fueled by an analyst upgrade of Cisco Systems (CSCO) this morning helped boost shares of QCOM 2.5% during the trading session to $45.82. The manufacturer of wireless network products attracted optimistic option traders to the November contract. We observed plain-vanilla put selling at the November 42 strike where it appears 5,000 lots were sold short for an average premium of 92 cents apiece. Investors shorting the contracts will retain the full 92 cent premium as long as shares of QCOM remain higher than $42.00 through expiration. But, if the November 42 strike puts land in-the-money, investors short the contracts will have shares of the underlying put to them at $42.00 each. Finally, a sold strangle was initiated through the sale of 1,200 puts at the November 43 strike for 1.07 apiece, in combination with the sale of 1,200 calls at the higher November 50 strike for 81 pennies each. Investors ‘strangling’ QCOM receive a gross premium of 1.88. The full premium is retained by these individuals as long as the stock trades within the confines of the strike prices described through expiration in November. Traders face losses in the event that shares swing 13% higher to surpass the upper breakeven point at $51.88, or if…
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Zero Hedge

Experts Fear 'Suicide Wave' As The Social Fabric Of America Becomes "Unstitched"

Courtesy of ZeroHedge View original post here.

Millions of Americans have just lost their jobs in the last several weeks due to the COVID-19 outbreak shutting down large swaths of the US economy. Households are coming under severe financial stress, with no savings, insurmountable debts, and job loss. Many are waiting for President Trump’s stimulus check to arrive in the mail, some have skipped out on their rent or ...



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ValueWalk

Pandemic-related deterioration may cause a drop in PMI

By Gorilla Trades. Originally published at ValueWalk.

In an intra Day note to investors, Gorilla Trades strategist Ken Berman, while commenting on the pandemic-related deterioration, said:

The major indices are all trading lower at midday following another choppy and bearish morning session on Wall Street. The continued exponential growth in the number of U.S. COVID-19 cases and the weak economic data have been weighing on investor sentiment, but stocks are holding up relatively well following yesterday’s bounce. The government jobs report was at the center of attention this morning following yesterday’s record number of new jobl...



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Phil's Favorites

Unmasking the Truth on Masks to Protect Against Coronavirus: Fire the Surgeon General

Courtesy of Pam Martens

By Pam Martens and Russ Martens: April 3, 2020 ~

On March 23 we wrote this:For want of a mask the largest economy in the world has been gutted, with Goldman Sachs now projecting that U.S. GDP could contract by as much as 24 percent in the second quarter.” Now, in the past two weeks, 10 million Americans have filed claims for unemployment. Let that sink in, 10 million of our fellow citizens have l...



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Kimble Charting Solutions

Depression Coming or Is the Bottom Already In? Joe Friday Says Your Answer Lies Here!

Courtesy of Chris Kimble

Are we headed towards a Depression or is the worst already behind us? In today’s world, comparisons to the great depression are easy to find.

Are the Depression concerns well founded or are the declines of late already pricing in a bottom?

In my humble opinion, this chart and the upcoming price action of this index will go miles and miles towards telling us if we are headed towards very tough times or if the huge declines of late are actually in a bottoming process.

This chart looks at the Thomson Reuters Equal Weighted Commodity Index on a monthly basis over the past 54 years. The index has been heading south, reflecting weakness in demand for basi...



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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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Biotech/COVID-19

Antibodies in the blood of COVID-19 survivors know how to beat coronavirus - and researchers are already testing new treatments that harness them

 

Antibodies in the blood of COVID-19 survivors know how to beat coronavirus – and researchers are already testing new treatments that harness them

A person who has recovered from COVID-19 donates plasma in Shandong, China. STR/AFP via Getty Images

Ann Sheehy, College of the Holy Cross

Amid the chaos of an epidemic, those who survive a disease like COVID-19 carry within their bodies the secrets of an effective immune response. Virologists like me...



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The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

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! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.