Posts Tagged ‘RDC’

Netflix Tie With Apple TV Spurs Options Frenzy As Shares Take Off

Today’s tickers: NFLX, ULTA, BKC, RIG, COH, RDC & BID

NFLX – Netflix, Inc. – Call options on Netflix are in high demand today after Apple, Inc. CEO, Steve Jobs, said the new Apple TV product will allow consumers to stream movies from Netflix for the first time. NFLX shares jumped 8.5% on the news to an intraday high of $136.25 in late afternoon trading. Near-term bullish trading strategies dominated options action on Netflix today as a number of investors picked up calls and sold puts on the stock. Traders purchased approximately 1,400 now in-the-money calls at the September $135 strike for premium of $4.45 apiece. Another 1,500 calls were coveted at the higher September $140 strike at an average premium of $2.55 each. Shares in NFLX must increase another 4.6% in order for traders long the September $140 strike calls to start to accrue profits above the average breakeven price of $142.55 by expiration day. Optimists also scooped up 1,500 calls at the September $145 strike for premium of $1.57 each, and bought approximately 1,300 calls at the September $150 strike. Some put players drew a line of resistance in the sand at $130.00 and sold roughly 2,000 puts at the September $130 strike for an average premium of $4.98 apiece. Put sellers keep the full premium received as long as Netflix shares exceed $130.00 through expiration day. Otherwise, it seems these individuals are happy to have shares of the underlying stock put to them at an effective price of $125.02 each in the event the puts land in-the-money at expiration.

ULTA – Ulta Salon Cosmetics & Fragrance, Inc. – Shares of the operator of full-service salons and retail stores that sell cosmetics, fragrance, haircare and skincare products in off-mall locations earlier declined as much as 8.9% to touch down at an intraday low of $20.67. Ulta’s shares dropped sharply after analysts at Jeffries & Co. lowered their price target on the beauty products provider to $25.00 from $27.00. The stock was able to crawl its way higher throughout the session, however, and is currently down just 2.25% on the day to arrive at $22.19 as of 3:20 pm ET. Options investors populating ULTA picked up put options following the target share price revision, and ahead of the firm’s second-quarter earnings report slated for release after the closing bell tomorrow evening. Traders expecting ULTA’s shares to slip once…
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Buy-Write Strategist Positions for Halliburton Rebound

Buy-write strategist positions for Halliburton rebound

Today’s tickers: HAL, RDC, CHK, AMAT, M, KR, HOLX, XLF, LVS & AVNR

HAL – Halliburton Co. – The provider of services, products, maintenance, engineering and construction to oil and natural gas companies around the globe was rated new ‘accumulate’ with a 12-month target share price of $28.00 at Madison Williams today. Perhaps the new rating inspired the bullish buy-write strategy initiated on the stock in the October contract this afternoon. Halliburton’s shares rallied 1.95% in morning trading to touch an intraday high of $24.14, but inched lower during the session to trade flat at $23.68 as of 2:55 pm (ET). The optimistic options investor enacted the buy-write strategy, or covered call play, by selling 2,500 calls at the October $28 strike price for a premium of $1.17 apiece. The investor likely purchased approximately 250,000 Halliburton shares around the same time for an average price of $23.35 apiece. The sale of the call options effectively reduces the price paid per share to $22.18 each. This strategy positions the investor to accrue maximum gains of 26.23% if HAL’s shares rally above $28.00 by October expiration. If the stock does surge through $28.00, the calls will likely be exercised and the investor will have the underlying shares called from him at $28.00 each, leaving the covered-call seller with significant profits in pocket.

RDC – Rowan Companies, Inc. – Shares of the manufacturer of equipment utilized in the drilling, mining and timber industries are lower by 3.90% to stand at $23.72 in late afternoon trading after the Obama administration extended a ban on offshore drilling. Rowan’s shares have recovered somewhat after plummeting 16.7% from an intraday high of $25.58 in morning trading down to an intraday low of $21.26 this afternoon. Bearish options traders scrambled to establish pessimistic positions in the June contract. Investors purchased 1,600 puts at the June $20 strike for an average premium of $0.41 apiece, suggesting some strategists are bracing for continued share price erosion ahead of June expiration. June $20 strike put buyers make money if Rowan’s shares slide 17.4% from the current price of $23.72 to breach the average breakeven point to the downside at $19.59. Investors also purchased 1,300 puts at the higher June $22.5 strike for a premium of $0.93 each, and picked up roughly 2,400 in-the-money puts at the June $25 strike for an average premium of $1.95…
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Visa-Bulls Covet Call Options

Today’s tickers: V, RDC, VALE, EEM, STX, XRT, FXI, VZ, IPI & MMM

V – Visa, Inc. – Call options on credit card company, Visa, Inc., are in high demand today by investors who appear to be expecting a sharp rally in the price of the underlying stock by April expiration. Visa’s share price increased 0.85% to $91.00 in afternoon trading. Bullish options players purchased about 4,000 calls at the April $95 strike for an average premium of $0.60 apiece. Call-buyers at the April $95 strike stand ready to accrue profits if Visa’s shares rise 5% to surpass the effective breakeven price of $95.60 by expiration day in April. Other optimistic options traders picked up approximately 5,000 calls at the higher April $100 strike for an average premium of $0.15 each. These investors make money if shares of the underlying stock surge 10% to exceed the breakeven price of $100.15 by expiration.

RDC – Rowan Companies, Inc. – Shares of the onshore and offshore contract drilling company leapt up 6.4% to briefly touch a new 52-week high of $29.40 in afternoon trading perhaps on news Rowan has “made no change in plans to shed its onshore oil and gas drilling business and LeTourneau Technologies Inc. manufacturing unit to focus on offshore projects.” Rowan’s shares are still net up for the session by 1.95% to $28.17 as of 2:50 pm (ET). Bullish options traders scooped up nearly 8,000 call options at the April $30 strike for an average premium of $0.45 per contract. Call-buyers are positioned to make money if Rowan’s shares jump 8% from the current value of $28.17 to breach the breakeven point at $30.45 ahead of April expiration day. Investors exchanged more than 25,500 contracts on the stock throughout the session, which represents 46.75% of total open interest on RDC of 54,546 lots.

VALE – Vale S.A. – Covered-call selling on Brazilian iron ore producer, Vale S.A., indicates one investor is expecting shares of the underlying stock to continue to rally to new highs for the year through May expiration. Vale’s shares gained 2% earlier in the current session to attain a new 52-week high of $32.66, exceeding yesterday’s new high of $32.00. The so-called buy-write strategy observed today took place at the May $33 strike where one optimistic individual shed 10,000 calls for a premium of $1.33 apiece. At the same time, the investor purchased an equivalent…
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Human Genome Call Options Active Ahead of Phase 3 Trial Results

Today’s tickers: HGSI, MSTR, INTC, FXI, EFA, AA, AVP, RDC, PLL, FSLR, MOT & AKAM

HGSI – Human Genome Sciences, Inc. – Shares of the biopharmaceutical company made a miraculous recovery since yesterday’s slaughter by exploding 13.25% higher during the session to $20.40. Traders populated various contracts with bullish plays after HGSI was raised to ‘overweight’ from ‘neutral’ with a 12-month target share price of $25.00 at JPMorgan. Heavy call volume in the November contract was likely driven by traders anticipating results of Phase 3 trials employed to evaluate the efficacy of HGSI’s potential drug treatment for lupus, Benlysta. Trading at the November 20/25/30 strike prices mimicked the butterfly spread strategy, and suggests perhaps that traders expect shares to rise to $25.00 by expiration. Investors bought at least 3,500 calls at the November 20 strike for 1.88 apiece as well as purchased 3,500 calls at the November 30 strike for 60 cents each. These contracts effectively mimic the wings of the spread while the 9,000 calls sold at the central November 25 strike perhaps represent the body of the spread. Call spreads were initiated in both the December and January contracts. The December transaction, for example, involved the purchase of 1,000 calls at the December 25 strike for 2.60 each, spread against the sale of 1,000 calls at the higher December 30 strike for 1.00 apiece. The net cost of the trade amounts to 1.60 per contract. Thus, the investor may accumulate maximum potential profits of 3.40 per contract if shares of HGSI rally up to $30.00 by expiration day in December.

MSTR – Microstrategy, Inc. – The software company appeared on our ‘hot by options volume’ market scanner this afternoon due to bullish options activity. Investors initiated optimistic plays on the stock despite the 1% decline in shares to $73.03. Profit-taking action appeared in the January 2010 contract while fresh positions were taken in the April 2010 contract. It looks like one investor originally purchased 3,600 calls at the now in-the-money January 70 strike for an average premium of between 3.00 to 3.50 per contract back on July 31, 2009. Today the trader sold the calls for a whopping 7.20 apiece. Net profits enjoyed on the closing sale amount to a minimum of 3.70 up to 4.20 each. Thus, total potential profits earned by the trader are anywhere from $1,332,000 to $1,512,000. In the April contract a bullish risk…
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Carter’s Earnings Cancel Sends Implied Options Volatility Skywards

Today’s tickers: CRI, RDC, XL, VIX, XHB, XRX, EFA, WYNN, BIDU & XHB

CRI – Carter’s Inc. – The more than 20,500 option contracts exchanged thus far today on the children’s apparel company trumps existing open interest of just 3,342 lots by a factor of 6. Shares of Carter’s are suffering significant erosion after the firm announced plans to delay its third-quarter earnings release, originally scheduled for this evening, perhaps until November 12, 2009. News of the postponement sent shares tumbling 25.5% lower to $21.16. Investor uncertainty jumped through the roof as evidenced by the massive 66% rise in option implied volatility this morning to an intraday high of 90%. Bullish investors took advantage of today’s declines by trading near-term call options. One trader put on a ratio call spread by purchasing 1,000 calls at the in-the-money November 20 strike for 2.30 apiece, and by selling 2,000 calls at the higher November 25 strike for 55 pennies each. The net cost of buying the calls is reduced to 1.20 per contract. The effective breakeven price of $21.20 on the transaction allows the investor to profit by expiration in November if shares of CRI rise at least 4 cents. Maximum potential profits of 3.80 per contract are available if the stock recovers up to $25.00. Losses would begin to accumulate if any rally lifted the share price above $28.80.

RDC – Rowan Companies, Inc. – Option traders scooped up put options on the provider of contract drilling services while shares slumped 2.75% to $24.90. The January 2010 22.5 strike had at least 1,400 puts purchased for an average premium of 1.16 apiece. The now in-the-money January 25 strike attracted traders who picked up 1,300 puts for about 2.15 each. Bearish sentiment spread to the April contract where another 2,000 puts were coveted at the April 22.5 strike for 2.02 a-pop. Finally, the most action took place at the in-the-money April 25 strike where 9,800 puts were purchased for an average of 3.18 each. Perhaps put-buying investors are aiming to protect the value of long positions in the underlying. Otherwise, traders placing bearish bets on RDC hope to accumulate profits on further share price weakness over the next several months.

XL – XL Capital Ltd. – Bullish investors took aim at XL Capital put options in the January contract this afternoon. Shares of XL are slightly higher by less than 0.25% to…
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Phil's Favorites

Fighting historic wildfires amid bad ideas and no funding

 

Fighting historic wildfires amid bad ideas and no funding

A firefighter runs while trying to save a home near Lakeport, Calif. on July 31, 2018. AP Photo/Noah Berger, File

Courtesy of Edward Struzik, Queen's University, Ontario

Shortly after my book “Firestorm, How Wildfire Will Shape Our Future” was published in late 2017, I received a flurry of invitations to speak about the challenges of dealing with fires that are burning bigger, hotter, more often — and in increasingly unpredictable ways.

The invitations came from all over, from Los Angeles to Whiteh...



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Zero Hedge

Hedge Funds Piled Into Facebook Just Before The Crash: Full Q2 13-F Summary

Courtesy of ZeroHedge. View original post here.

It wasn't just David Einhorn who picked just the wrong time to dump most of his Apple stock: in the second quarter, some of the most iconic hedge funds like Duquesne’s Stanley Druckenmiller, Moore Capital Coatue Management and Jana Partners either bought or added to stakes in Facebook in the second quarter... just days before the company's biggest crash in history.

Other weres luckier, and the rich(est) got richer, as Warren Buffett’s Berkshire Hathaway boosted its stake in...



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Kimble Charting Solutions

Junk Bond 12-month divergence matter this time?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Above compares the Pimco High Yield Fund (PHDAX) to the S&P 500 over the past 20-years.

Junk bonds diverged from the S&P 500 for nearly 24-months, prior to stocks peaking in 2000.

Junk bonds diverged from the S&P 500 for nearly 7-months, prior to stocks peaking in 2007.

Junk bonds have been diverging from the S&P 500 for the past 12-months. Will it be different this time?

At this time “It Doesn’t Matter Until It M...



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Insider Scoop

Morgan Stanley Incrementally Bullish On Salesforce, Says MuleSoft Deal Underappreciated

Courtesy of Benzinga.

Related CRM 10 Biggest Price Target Changes For Tuesday Insider Buys Of The Week: AT&T, GE, Salesforce ...

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Chart School

Bitcoin Update - 6000 is support

Courtesy of Read the Ticker.

Demand shows it hand at support levels, well it obvious that $6000 BTCUSD is support so far.

More from RTT Tv , Ref: Brazil bitcoin currency , Brazil New Accounts
 


 

Main Chart in video



 

Sure fundamentals...



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ValueWalk

Hedge Funds Spending Close To $1M A Year On Alternative Data, But Show Me The Alpha

By Mark Melin. Originally published at ValueWalk.

It should come as no surprise to ValueWalk readers that alternative data has an obsolescence value that is negatively correlated to adoption rates. While we have noted data value dropping as usage and knowledge rise, a known concept in the hedge fund industry. What has been unknown until now is the levels to which fund managers must go to ensure the value of their alternative data does not get lost to the dulling mainstream consensus.

...

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Biotech

Here's what we know about CRISPR safety - and reports of 'genome vandalism'

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

 

Here's what we know about CRISPR safety – and reports of 'genome vandalism'

A standee of the movie ‘Rampage’ at a theater in Bangkok, Thailand. Scientists in the film used CRISPR to create a monster. By Sarunyu L/shutterstock.com

Courtesy of Jianhua Luo, University of Pittsburgh

A movie just recently released called “Rampage” features Dwayne “The Rock” Jo...



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Digital Currencies

What is a blockchain token?

 

What is a blockchain token?

What’s this digital token good for, anyway? knipsdesign/Shutterstock.com

Courtesy of Stephen McKeon, University of Oregon

People are just becoming acquainted with the idea of digital money in the form of cryptocurrencies like bitcoin, where transactions are recorded on a secure distributed database called a blockchain. And now along comes a new concept: the blockchain-based token, which I’ve been following as a blockchain researcher a...



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Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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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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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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