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

Biden, Keystone XL and a Green New Deal could shake up Canada's energy industry

 

Biden, Keystone XL and a Green New Deal could shake up Canada's energy industry

Joe Biden has vowed to kill the Keystone XL pipeline if he is elected president in November. THE CANADIAN PRESS/Alex Panetta

Courtesy of Warren Mabee, Queen's University, Ontario

U.S. Democratic presidential candidate Joe Biden recently reiterated his desire to stop the Keystone XL oil pipeline project. “I’ve been against Keystone from the beginning. It is tarsands that we don’t need — that in fact is a very, very high pollutant,” he said.

This is just the latest mo...



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Biotech/COVID-19

How coronavirus contact tracing works in a state Dr. Fauci praised as a model to follow

 

How coronavirus contact tracing works in a state Dr. Fauci praised as a model to follow

Pairing widespread testing with fast, effective contact tracing is considered essential for controlling the coronavirus’s spread as the U.S. passes 100,000 deaths. AP Images/Rick Bowmer

Courtesy of Jenny Meredith, University of South Carolina

After weeks of keeping people home to “flatten the curve,” restrictions on U.S. businesses are loosening and the coronavirus pandemic response is moving ...



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ValueWalk

Don't expect a second round of stimulus checks in June

By Michelle Jones. Originally published at ValueWalk.

Lawmakers from both parties are finally starting to agree that a second round of coronavirus stimulus checks may be needed. However, they are still a long way from making a final decision that will actually result in another round of checks for everyone. Here’s the current status on a second round of stimulus checks.

Q1 2020 hedge fund letters, conferences and more

Coronavirus stimulus checks: second round status

The Democrat-led House of Representatives passed the Health and Ec...



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Zero Hedge

Futures Tread Water In Calm Before US-China Storm, Trump Twitter Crackdown

Courtesy of ZeroHedge View original post here.

The S&P's remarkable stretch of posting gains in the overnight session continued for another day, with the S&P rising as high as 3,053, and last trading 9 points higher at 3,044, tracking global stocks higher, with Europe's Stoxx 600 rising 1.3% to session highs as investors weighed again increased friction between America and China and the official passage of China's National Security Law in defiance of Trump, against fresh fiscal stimulus promised by the European Union. Treasuries edged up, while the dollar was modestly lower even as traders "treaded water...



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Kimble Charting Solutions

Tech Indicator Suggesting A Historic Top Could Be Forming?

Courtesy of Chris Kimble

Tech stocks have been the clear leader of the stock market recovery rally, this year and since the lows back in 2007!

But within the ranks of leadership, and an important ratio may be sending a caution message to investors.

In today’s chart, we look at the ratio of large-cap tech stocks (the Nasdaq 100 Index) to the broader tech market (the Nasdaq Composite) on a “monthly” basis.

The large-cap concentrated Nasdaq 100 (only 100 stocks) has been the clear leader for several years versus the ...



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The Technical Traders

M2 Velocity Collapses - Could A Bottom In Capital Velocity Be Setting Up?

Courtesy of Technical Traders

M2 Velocity is the measurement of capital circulating within the economy.  The faster capital circulates within the economy, the more that capital is being deployed within the economy to create output and opportunities for economic growth.  When M2 Velocity contracts, capital is being deployed in investments or assets that prevent that capital from further circulation within the economy – thus preventing further output and opportunity growth features.

The decline in M2 Velocity over the past 10+ years has been dramatic and consistent with the dramatic new zero US Federal Reserve interest rates initiated since just after the 2008 credit crisis market colla...



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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Chart School

Is this your local response to COVID 19

Courtesy of Read the Ticker

This is off topic, but a bit of fun!


This is the standard reaction from the control freaks.








This is the song for post lock down!







What should be made mandatory? Vaccines, hell NO! This should be mandatory: Every one taking their tops off in the sun, they do in Africa!

Guess which family gets more Vitamin D and eats less sugary carbs, TV Show



...



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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

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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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.