Posts Tagged ‘RHT’

Vivus Call ‘Fly In Play


Today’s tickers: VVUS, NUS & RHT

VVUS - Vivus, Inc. – A large options trade on Vivus, Inc. appears to be a directional bet on the biotech company’s shares ahead of impending recommendations from an advisory panel, as well as a possible decision from FDA regulators, on whether to approve obesity drug, Qnexa. Shares in VVUS are down 1.5% today at $20.06. The large call butterfly spread purchased on Vivus in the first half of the trading day yields maximum possible gains in the event that shares soar more than 50.0% in the next three weeks. The options player responsible for the single largest trade in the name today appears to have purchased 3,250 calls at the April $27 and $35 strikes, and sold 6,500 calls at the April $31 strike, all for a net premium of $0.55 per contract. Profits on the call ‘fly kick in if shares in VVUS rally at least 37.3% to surpass the breakeven share price of $27.55, while the maximum potential payoff of $3.45 per contract is available to the trader as long as the stock jumps 54.5% to settle at $31.00 at expiration next month. The strategist stands to lose the full amount of premium paid to establish the spread if shares settle below $27.00 or above $35.00. A decision from regulators is expected by April 17th, three days prior to options expiration.

NUS - Nu Skin Enterprises, Inc. – Bearish activity in Nu Skin Enterprises, Inc. options is on the rise this morning with shares in the maker of anti-aging skin products and other personal care items trading down 4.4% at $56.85 as of 11:15 a.m. in New York. Traders picking up $55 strike put options in April and May today appear to be positioning for the price of the…
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Red Hat Calls Active Prior To Earnings

 

Today’s tickers: RHT, TSCO & PETM

RHT - Red Hat, Inc. – The software maker popped up on our scanners this morning after sizable trades were initiated in the front month calls. At first glance the activity could be mistaken for a pre-earnings bullish bet on shares in Red Hat ahead of the Company’s fourth-quarter release after the final bell on Wednesday. However, the transaction is likely bearish on RHT as the April expiry call activity appears to be tied to the sale of stock. Shares in Red Hat are up 1.7% at $52.74 in early-afternoon trade. The strategist responsible for the largest trade in RHT options appears to have purchased a 3,848-lot April $55/$57.5 call spread at a net premium of $0.75 per contract. The debit call spread was established seconds before a block of 50,000 shares in RHT sold at $52.70. The stock and options combo play positions the trader to profit on the short stock leg as long as Red Hat’s shares pullback sufficiently from the $52.70-level to offset the cost of buying the options. Meanwhile, the call spread hedges the position, protecting the trader from losses to the upside in the event that shares extend gains.

TSCO - Tractor Supply Co. – Shares in the largest U.S. retail farm and ranch store chain jumped 5.4% on Monday to hit a new 52-week high of $90.66. The Brentwood, Tennessee-based Company is scheduled to present at the Telsey Advisory Group’s 4th Annual Spring Consumer Conference on Wednesday morning. Options activity on Tractor Supply Co. this morning suggests some traders are positioning for the price of the underlying to extend gains in the near term. Around 795 calls changed hands at the May $95 strike against open interest of 51 contracts. It looks like most of these calls…
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Bulls Prepping for a Rally Don Red Hat Call Options

Today’s tickers: RHT, MDRX, CQB & DOW

RHT - Red Hat, Inc. – Options activity in December contract calls on the world’s leading provider of open source solutions suggests shares in Red Hat may rally more than 10.0% to their highest in more than a decade by the end of 2011. The stock gained 1.80% this afternoon to trade at $44.57 by 12:30 pm on the East Coast, paring some losses realized earlier in this week. In the previous four weeks Red Hat’s shares moved up 17.0% on strong first-quarter earnings as well as analyst upgrades. Bullish strategists expecting the company’s shares to extend gains purchased around 4,390 call options at the December $46 strike on open interest of just 242 contracts. Traders paid an average premium of $3.40 per contract and stand ready to profit should Red Hat’s shares surge 10.8% over the current price of $44.57 to exceed the average breakeven point to the upside at $49.40 by expiration day in December. The Raleigh, NC-based company reports second-quarter earnings after the market closes on September 22. Call buyers may see the value of their positions sky-rocket if Red Hat’s second-quarter results send the price of the underlying skyward.

MDRX - Allscripts-Misys Healthcare Solutions, Inc. – Allscripts shares rose 1.1% to $19.96 this morning after the company said it expects adjusted earnings and revenues for the second quarter to come in better than analysts’ estimates. Despite positive comments from the Chicago, IL-based company, it looks like some options traders are positioning for shares in the healthcare information services company to pullback ahead of August expiration. Allscripts reports second-quarter earnings on August 4. MDRX shares rose 9.1% in the past two weeks, but put buyers populating the stock today are prepared to benefit should shares erase recent gains in the next…
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Pessimistic Player Targets Momenta Pharmaceuticals Put Options

 Today’s tickers: RHT, XLF, MNTA, ODP, AA & CVBF

RHT - Red Hat, Inc. – Shares of the software company are down 2.5% at $46.67 in the final hour of the trading session, but near-term options activity on the stock suggests investors are hoping for the stock to rally ahead of January expiration. Red Hat’s better-than-expected forecast for fourth-quarter profits of $0.21 to $0.22 a share, released during the company’s third-quarter earnings report after the close of trading yesterday, inspired a plethora of analyst upgrades and hikes in share price targets. Investors expecting shares to rebound in short order took advantage of the decline in premium on out-of-the-money calls, and purchased the majority of some 7,850 contracts exchanged at the January 2011 $48 strike today. It looks like bulls bought approximately 4,000 of the call options for an average premium of $0.87 apiece. Call buyers are prepared to make money should Red Hat’s shares rally 4.7% over the current price of $46.67 to surpass the average breakeven price of $48.87 by January expiration. Following earnings, the overall reading of options implied volatility on the world’s largest distributor of the open-source Linux operating system plunged 27.7% to 29.90% by 3:45pm.

XLF - Financial Select Sector SPDR ETF – The purchase of a massive chunk of March 2011 contract put options on the financials SPDR ETF appears to be the work of a cautiously optimistic options strategist hedging a large position in the underlying shares. Shares in the XLF, an exchange-traded fund designed to track the performance of the Financial Select Sector of the S&P 500 Index, are up 0.90% to stand at $15.95 as of 3:45pm in New York. The investor appears to have established a delta neutral hedge, buying 1,500,000 shares of XLF, and picking up 50,000 protective puts at the March 2011 $15 strike for a premium of $0.39 per contract on a 0.30 delta. It seems the trader is positioning for continued bullish movement in the price of XLF shares, but opting to shell out…
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Bullish Options Combo Player Foresees Rally in Goldman Sachs’ Future

Today’s tickers: GS, BA, RHT, DTG, DELL, ISLN & WHR

GS – Goldman Sachs Group, Inc. – A three-legged bullish options combination play initiated on Goldman Sachs this afternoon indicates one strategist is positioning for a sharp rebound in the price of the underlying stock by October expiration. GS shares, unable to hold onto gains realized earlier in the session, are currently down 0.65% to arrive at $147.27 just after 3:30 pm ET. It looks like the options optimist sold puts in order to partially finance the purchase of a debit call spread. The investor shed approximately 2,000 puts at the October $135 strike for an average premium of $2.74 each, purchased roughly the same number of calls at the October $150 strike for an average premium of $5.46 apiece, and sold about 2,000 calls at the higher October $160 strike at a premium of $1.89 a-pop. The average net cost of the transaction is reduced to just $0.83 per contract. Thus, the options player responsible for the trade is positioned to make money as long as Goldman’s shares rally 2.4% over the current price of $147.27 to surpass the average breakeven price of $150.83 by October expiration day. The trader may accumulate profits of up to $9.17 per contract if GS shares surge 8.6% to trade above $160.00 at expiration in a couple of months. Goldman Sachs’ shares last traded above $160.00 back on April 29, 2010.

BA – Boeing Co. – The second-largest U.S. satellite maker attracted the attention of one bullish options player this afternoon perhaps on news the firm expects to receive a minimum of $2 billion of orders for military communications satellites from a Defense Department contract announced in the previous week. Boeing’s shares slipped 1.95% to $63.34 in late afternoon trading, but the price erosion did not deter one trader from initiating a bullish risk reversal on the stock. It looks like the investor sold 7,000 puts at the October $60 strike for an average premium of $1.83 each in order to buy the same number of calls at the higher October $70 strike for premium of $0.95 apiece. The risk reversal was tied to the purchase of some 371,000 shares of the underlying at a price of $63.94 each. The responsible party received a net credit of $0.88 per contract on the reversal play. The investor is long the stock, short put…
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Strangle Strategist Tightens Grip on JPMorgan

Today’s tickers: JPM, TIVO, RHT, UTX, CSCO, CI, BA, XRX, DIS, AKS & M

JPM – JPMorgan Chase & Co. – A long strangle enacted on JPMorgan today indicates one investor is expecting the firm to experience a significant shift in the price of its shares by June expiration. The investment banking and financial services giant realized a 1% rally in share price during the current session to $41.94. The investor initiated the strangle strategy by purchasing 9,000 calls at the June $46 strike for a premium of $1.06 apiece and by picking up 9,000 puts at the June $36 strike for $0.96 each. The net cost of the transaction amounts to $2.02 per contract. Strangle-players benefit from drastic moves in share price, but lose out if the value of the stock stagnates. In this specific trade, the investor profits if JPM’s shares rally above the upper breakeven price of $48.02 by expiration, or if shares trade below the lower breakeven point at $33.98, by June expiration. The trader is looking for increased volatility in the price of the underlying shares, but also may benefit from higher options implied volatility. Moves higher in options implied volatility corresponds with greater option premium on both calls and puts. Thus, the investor could potentially sell the strangle at a profit ahead of expiration day if combined premium on the trade exceeds the $2.02 per contract paid today. We note that JPM’s shares have not exceeded $47.47 in the past year, but did trade as low as $14.96 back on March 6, 2009.

TIVO – TiVo, Inc. – Shares of the innovator of digital-video recording services surged as much as 61.30% to an intraday high of $16.42, the highest price recorded for TiVo’s shares in at least five years. TiVo was named the victor today after a U.S. appeals court ruled that Dish Network Corp. and EchoStar Corp. are “still infringing its patent and should stop providing digital-video recording services.” Options traders had a field day with the news and exchanged upwards of 275,300 contracts on the stock by 3:10 pm (ET). Today’s options trading volume on TiVo represents just under 80% of the total existing open interest on the stock of 348,203 contracts. Investors populated the stock with a plethora of trading strategies. Some traders banked profits on the rally, while others employed the use of strangles. Plain-vanilla call buying and put selling…
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Sizeable Combination Trade in Regions Financial

Today’s tickers: RF, GNW, EEM, RHT, MRVL, CMCSA & LEAP

RF - Banking services firm, Regions Financial, jumped onto our ‘most active by options volume’ market scanner this afternoon after one investor exchanged 120,000 option contracts on the stock. The investor made bullish moves on RF despite the more than 3.5% decline in shares to $5.97. It appears the trader sold puts short 40,000 times at the May 6.0 strike for an average premium of 1.30 apiece, in order to finance the purchase of a bull call spread. The investor constructed the spread by buying 40,000 calls at the January 6.0 strike for one dollar each and simultaneously selling 40,000 calls at the higher January 10 strike for 12 pennies apiece. The trader receives a net credit of 42 cents per contract on the three-legged strategy. He retains the full credit of $1,680,000 as long as shares remain higher than $6.00 through expiration in May of 2010. However, additional profits are available if shares of Regions Financial rally by expiration in January. Maximum potential profits on the call spread amount to 4.0 per contract – or a total of $16,000,000 – if shares of RF surge 68% from the current price to $10.00 before the calls expire in January. – Regions Financial Corp. –

GNW - The financial security company experienced a more than 5.5% decline in shares to arrive at the current price of $11.28. Bearish investors active on GNW today exchanged more than 3.5 put options to every single call option in play on the stock. One investor took a long-term pessimistic stance by initiating a ratio calendar spread. The transaction involved the purchase of 10,000 puts at the December 10 strike for an average premium of 1.22 per contract, spread against the sale of 15,000 puts at the lower January 2011 7.5 strike for 1.70 each. The investor takes a credit on the trade because he received richer option premium on the sale of a greater number of puts set to expire in January 2011. The placement of this trade suggests the investor is bracing for potential declines in GNW through expiration in December. – Genworth Financial, Inc. –

EEM - Shares of the emerging markets exchange-traded fund have dipped 2.5% lower to $37.90, prompting one trader to establish a bearish risk reversal in the January contract. The trader targeted the January 38 strike to sell 12,000 just out-of-the-money…
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Blackstone bulls line up

Today’s tickers: BX, GCI, AA, LVS, XLF, JPM, C, AGN, RHT, SU & SWY

BX The Blackstone Group L.P. – The broader market experienced gains after fresh information from the Treasury Department was released regarding its plan to utilize private and public funds to relieve banks of bad credit and toxic assets. Shares of BX soared on the news by 23% to $7.77 because it is has now been widely reported that hedge funds and private-equity firms are likely to reap substantial gains from the public-private partnership. Blackstone jumped to the top of our ‘hot by options volume’ market scanner after one investor established a sold straddle in the May contract. At the May 7.5 strike price 10,000 calls were sold for 1.60 each while 10,000 puts were also sold for 1.10 each. The gross premium pocketed on the trade amounts to 2.70 and is fully retained if shares settle at $7.50 by expiration. Call volume has far outweighed put volume with a ratio of 2.4 calls to each put traded. We observed pure call buying in the April contract where traders picked up lots as high up as the 10 strike for a premium of 33 cents each. One investor paid a net cost of 40 cents in order to roll 4,350 in-the-money calls at the June 2.5 strike price forward to the same low strike expiring in January 2010. Optimistic traders also picked up 3,000 calls at the January 10 strike price for 1.86 each. Option implied volatility peaked at 120% today, but has since come off to the current reading of 105%.

GCI Gannett Co., Inc. – Shares of the international news and information company are up by more than 7% to stand at $2.30. GCI appeared on our ‘hot by options volume’ market scanner after one trader utilized options in search of gains on the rising stock. We believe that this investor likely purchased 1,000,000 shares of the underlying stock and simultaneously sold 10,000 calls at the April 2.5 strike price for a 15 cent premium. By selling the option contracts the trader effectively reduced the price of the shares to $2.00 each because the stock was trading at $2.15 at the time of the trade. Should the 2.5 calls land in-the-money by expiration this investor will have sustained gains of 23% if the shares get called away from him at the end of the…
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ValueWalk

Mixed Trick or Treat Bag for US Retailers this Halloween

By Refinitiv. Originally published at ValueWalk.

As a result of the coronavirus restraining normal activities, including traditional Halloween events, such as trick or treating and costume parties, retailers are feeling the pinch of a scary Halloween season.

Q3 2020 hedge fund letters, conferences and more

In collaboration with StyleSage, Refinitiv reviews this year’s Halloween discounts and consumer purchasing behavior in the report: It’s a Mixed Trick or Treat Bag at Hallowee...



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Kimble Charting Solutions

Are the S&P 500 Index and Crude Oil Peaking Together Again?

Courtesy of Chris Kimble

The price of crude oil has been an important indicator of the economy for quite some time. When oil is in demand and performing well, the economy likely is. And when oil is not performing well, the economy likely isn’t either.

Taking this one step further, it’s easy to see how crude oil can be a solid indicator of the stock market as well.

Often times, investors receive a bearish or bullish message from this relationship. In today’s chart 2-pack, we illustrate how the relationship between the S&P 500 Index and the ...



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Phil's Favorites

Despite Its Five Felony Counts, the Federal Reserve Has Entrusted $2 Trillion in Bonds to JPMorgan Chase

Courtesy of Pam Martens

Imagine that your neighbor across the street had been criminally charged with five felony counts for financial crimes in the past six years and admitted to committing each and every crime to the U.S. Department of Justice. Would you put one-third of all of your money in a safe, give that neighbor the combination, and ask him to hold the safe in his house for you? You would probably be suited up for a straight jacket if you did something like that.

That’s effectively what the Federal Reserve, the central bank of the United States, has done when it comes to JPMorgan Chase. As of this past Wednesday, the Fed ...



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Zero Hedge

In Unprecedented Cost-Cutting, Exxon Is Firing 15% Of Its Workers To Keep Dividend

Courtesy of ZeroHedge View original post here.

It may sound unbelievable that just seven years ago Exxon was the world's largest company.

Of course, all that changed with the advent of the FAAMGs and the Fed blowing the biggest tech bubble in history which together with the plunge in the price of oil, meant the market cap of Exxon has tumbled to just $136BN, below that of Zoom. Yes, we have gotten to the point in the bubble where a video chat with no barriers to entry, zero infrastructure and barely any profit is more val...



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Biotech/COVID-19

Achieving COVID-19 herd immunity through infection is dangerous, deadly and might not even work

 

Achieving COVID-19 herd immunity through infection is dangerous, deadly and might not even work

Under relaxed public health restrictions, deaths will spike far before herd immunity is achieved. AP Photo/Mark Lennihan

Courtesy of Steven Albert, University of Pittsburgh

White House advisers have made the case recently for a “natural” approach to herd immunity as a way to reduce the need for ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Monday, 18 May 2020, 03:35:21 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Ooh so pretty, so pretty, ooh so!



Date Found: Thursday, 21 May 2020, 01:03:17 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Charlie Lee: All Things Litecoin (#MimbleWimble, ...



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Politics

How to track your mail-in ballot

 

How to track your mail-in ballot

Make sure you know when your ballot is arriving, and whether it’s been accepted for counting back at your election office. erhui1979/DigitalVision Vectors via Getty Images

Courtesy of Steven Mulroy, University of Memphis

Many voters who want to participate in the election by mail are concerned about when they’ll receive their ballot – and whether it will get back in time to be counted.

The pandemic has caused interest in ...



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Digital Currencies

Bitcoin: the UK and US are clamping down on crypto trading - here's why it's not yet a big deal

 

Bitcoin: the UK and US are clamping down on crypto trading – here's why it's not yet a big deal

Where there’s a bit there’s a writ. Novikov Aleksey

Courtesy of Gavin Brown, University of Liverpool

The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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! 

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! 

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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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