Posts Tagged ‘RIO’

Frenzied Call Buying At Family Dollar As Shares Hit Record High

Today’s tickers: FDO, BBBY & RIO

FDO - Family Dollar Stores, Inc. – Call buyers flocked to Family Dollar Stores today, with shares in the operator of general merchandise retail discount stores trading up as much as 4.6% to a record high of $62.84 on the heels of encouraging consumer sentiment and spending data. The stock posted big gains in the month of March, gaining 15.5% in the past four weeks, and it looks like some traders are positioning for the good times to continue. Bullish trading in the front month calls is heaviest at the April $65 strike where more than 5,000 calls have changed hands against open interest of 324 contracts, as of 12:50 p.m. in New York. It looks like the majority of the $65 calls were purchased for an average premium of $0.45 apiece, thus positioning buyers to profit in the event that shares in FDO add another 4.2% to top $65.45 by expiration next month. Lighter-volume call buying spread to the May $60, $62.5 and $65 strikes, as well as the July $65 strike calls. Nearly 10,000 option contracts are in play on Family Dollar Stores this afternoon, a more than ten-fold increase over the stock’s 90-day average options volume of 925 contracts.

BBBY - Bed Bath & Beyond, Inc. – Shares in the operator of retail chain stores Bed Bath & Beyond, Christmas Tree Shops and others, kicked off the final trading session of the week in positive territory, but have since surrendered earlier gains to trade 0.60% lower on the session at $66.30 as of 11:30 a.m. in New York. Call volume on Bed Bath & Beyond spiked this morning after one strategist initiated a ratio spread in the May expiry. The trader appears to have purchased 2,000 calls at the May…
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Broadcom bears use put spread and call sales

Today’s tickers: BRCM, BNI, EMC, RIO, GM, VIX, XLF, BAC & ARNA

BRCM Broadcom Corp. Class A – Shares are currently off by 3% to $20.01 for Broadcom, which is engaged in semiconductors for wired and wireless communications. Options activity was largely contained to the May contract. One investor established a put spread by purchasing 7,500 puts at the May 20 strike for 2.00 each, and selling 7,500 puts at the May 18 strike for a premium of 1.15 apiece. The net cost of the trade amounts to 85 cents and yields a maximum potential profit of 1.15 if shares fall to $18.00 by expiration. Further evidence of investor bearishness on BRCM came in the form of 5,000 sold calls at the May 20 strike price for a 2.00 premium per contract. Apparently investors agree that, at least in the near-term, the current $20.01 share price is due for a decline. Option implied volatility has jumped from Friday’s reading of 64% to the current value of 70%.

BNI Burlington Northern Santa Fe Corporation – When you need your share price to rise in the face of a 4.3% equity market decline you could do one of two things. First, have Goldman Sachs upgrade the company or second, find someone to suggest out loud that your shares might be bought by legendary investor, Warren Buffett. Sadly, neither seems to have worked for the operator of one of the largest railroad networks in North America, which has seen its shares dip slightly by 2% to stand at $60.71. BNI was upgraded to ‘buy’ from ‘neutral’ at Goldman Sachs amid rumors about a possible purchase of the company by Berkshire Hathaway. Option traders reflected the bullish upgrade by purchasing calls in the April contract. At the April 65 strike price 3,300 calls were scooped up for an average price of 1.50, while at the higher April 70 strike more than 3,200 calls were bought for a 55 cent premium. In order for the April 70 calls to turn profits for optimistic traders, shares would need to rally by 16% to the breakeven share price of $70.55 by expiration.

EMC EMC Corporation – The IT support company has experienced a share price decline of about 3.5% to $11.17. EMC edged onto our ‘most active by options volume’ market scanner after some large volume trades were initiated in the April and May contracts. It…
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Dividend cut sparks put buying at Alcoa

Today’s tickers: AA, RIO, TGT, HD, IP, VIX, ORCL, COGO & FRED

AA Alcoa Inc. – The producer of aluminum has dropped more than 9% to $5.55 after the company slashed its dividend by 3 cents in an effort to cut back on capital spending. AA hopes these measures will help strengthen its position in the case of a lengthy economic downturn. Most of the action in options-land occurred on the put side as investors seek to profit from declines in the share price. Fresh buying was observed at the March 5.0 strike price where around 25,000 puts were picked up for an average of 15 cents apiece out of the 47,000 puts traded at the strike. Shares of Alcoa would need to fall another 12% by Friday in order to reach the breakeven price of $4.85 – the price at which put-buyers begin to amass profits. Similar purchases were observed at the 5.0 strike in April where some 53,000 puts changed hands throughout the day at an average premium of 52 cents per contract. Interestingly, one investor was seen looking for recovery in the October contract by purchasing 4,000 calls at the 7.5 strike for 1.10 each. We believe this transaction was funded by the sale of 8,000 calls at the April 7.5 strike price for a premium of 23 cents each. This investor does not see Alcoa rebounding in the next 30 days, but he is optimistic that shares will increase by about 35% in order for the calls to land in-the-money by expiration in October. In stark contrast to the optimism seen in the previous trade, one investor picked up 12,000 puts at the 2.5 strike price in January 2010 at a cost of 50 cents per contract. This trade predicts nothing but doom-and-gloom for Alcoa all the way through to the start of next year.

RIO Companhia Vale do Rio Doce ADS – Shares of the metals and mining company have rallied 2% to $13.73 perhaps due to the selection of a new chairman-designate who stated that his immediate focus would be centered on finalizing the transaction with Chinalco (Aluminum Corp. of China). Global economic conditions continue to thrash commodity markets and Rio Tinto sees little chance of a rebound this year. Thus, the new chairman (Jan du Plessis) is hoping that finalized deal – which would increase Chinalco’s stake in RIO to 18% – will…
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Hartford covered call writer strikes gold, albeit rather early in the game

Today’s tickers: HIG, ORCL, LDK, AXP, MS, JNPR, RIO & BWA

HIG – The Hartford Financial Services Group, Inc. – The roof is on fire at HIG after shares sky-rocketed up by over 23.5% to $8.25. But, one investor appears to have jumped the gun today by initiating the sale of over 17,000 calls at the January 2011 7.5 strike price for a premium of 3.90 at which point the tinder was aflame, but the roaring blaze was yet to come. We believe the sale was part of a covered call in which the underlying shares were purchased simultaneously. The investor appears to have been selling volatility which was 130.3% at the 7.5 strike when shares were at $6.65. It is likely that he was happy with the 3.90 in premium coupled with the hope inherent in this trade of a 13% rally in shares to $7.50. The investor was likely thinking that if shares rose to meet the strike price, the underlying stock would likely get called away from him at expiration. However, in hindsight it seems the timing of his trade was poor as premiums have since soared to 5.20 and shares have exited the building (so to speak).

ORCL – Oracle Corporation – Shares of the software and services company have increased by roughly 3% to stand at $16.35. ORCL caught our attention due to a number of noteworthy options trades that played out today. A sold strangle was initiated in April by selling 7,500 puts at the 14 strike price for a premium of 50 cents, and by selling 7,500 calls at the April 18 strike for a premium of 53 cents each. The gross premium pocketed by this investor amounts to 1.03 on the trade. Thus, it appears that this trader does not see much by way of recovery for Oracle in the next couple of months, rather seeks experience maximum retention of the 1.03 premium if shares remain within the borders set by the April strikes selected. If shares were to swing outside the strikes, this investor would experience losses beginning at $12.97 on the downside and at $19.03 on the upside. Looking past April showers, a number of bulls were observed scooping up calls in June. Purchases were made at a number of strikes and settled as far up as the June 22 strike price, where 6,000 calls were bought for 15 cents…
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Phil's Favorites

Consumer Bureau To Decide Who Owns Your Financial Data

 

Consumer Bureau To Decide Who Owns Your Financial Data

What Should Banks, Fintechs Be Allowed to Do With All that They Know About You?

Courtesy of Jillian S. Ambroz, DCReport

A federal agency is gearing up to make wide-ranging policy changes on consumers’ access to their financial data.

The Consumer Financial Protection Bureau (CFPB) is looking to implement the area of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act pertaining to a consumer’s rights to his or her own financial data. It is detailed in section 1033.

The agency has been ...



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Zero Hedge

Cali Mansion Once Listed For $100 Million Sells For "Only" $48.4 Million

Courtesy of ZeroHedge View original post here.

Today in "a look into a luxury real estate market you will never likely participate in" news...

A famous L.A. mansion called "Opus" that was once listed for $100 million and has been on the market for over three years has finally sold - at a more than 50% haircut.

The 20,000 square foot mansion sold for $48.4 million this week, furniture included, according to Bloomberg. It is also the lates...



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Politics

Mythmakers: The Men Who Created Donald J. Trump

 

Mythmakers: The Men Who Created Donald J. Trump

Mark Burnett, Jeff Zucker, and the Trustwashing of a Fake President

Courtesy of Greg Olear, Prevail, author of Dirty Rubles: An Introduction to Trump/Russia 

...

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ValueWalk

Einhorn's Greenlight Capital Re And Icahn's Icahn Enterprises

By The Acquirer's Multiple. Originally published at ValueWalk.

During their recent episode of the VALUE: After Hours Podcast, Taylor, Brewster, and Carlisle discussed Einhorn‘s Greenlight Capital Re (NASDAQ:GLRE) and Icahn’s Icahn Enterprises LP (NASDAQ:IEP). Here’s an excerpt from the episode:

Q3 2020 hedge fund letters, conferences and more

Einhorn's Greenlight Capital Re And Icahn's Icahn Enterprises

Tobias: Einhorn genius for a decade. The GOAT for a decade, a GOAT for the last decade. I think it could be back to the GOAT stage, possibly for the...



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Biotech/COVID-19

Oxford-AstraZeneca vaccine is cheaper than Pfizer's and Moderna's and doesn't require supercold temperature

 

Oxford-AstraZeneca vaccine is cheaper than Pfizer's and Moderna's and doesn't require supercold temperature

Now there is a third possible vaccine for fighting the COVID-19 pandemic. Jakub Porzycki/NurPhoto via Getty Images

Courtesy of Sanjay Mishra, Vanderbilt University

The biopharmaceutical company AstraZeneca has released data on what is now the third promising vaccine candidate against COVID-19 – and it has several advantages over those of its competitors, ...



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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: Friday, 12 June 2020, 08:06:43 PM

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


Comment: Interesting (2)



Date Found: Saturday, 13 June 2020, 12:27:02 AM

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


Comment: Recession Forecasts Time Frame



Date Found: Monday, 15 June 2020, 11:07:52 PM

...

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Kimble Charting Solutions

Transports Sending Strong Bullish Message To Other Dow Indices?

Courtesy of Chris Kimble

Are Transportation stocks about to send a quality bullish message to other Dow indices this month? Sure could be!

This 3-pack looks at the Dow Jones Industrials, Transports, and Utilities indices on a monthly basis.

One week from the end of a month, the DJ Transports are attempting an important bullish breakout at (1). Unless a sharp reversal takes place in the next week, Transports could close out the month at new monthly closing highs!

The Dow is attempting to close at all-time highs this month, while the Dow Utilities Index remains a few percent below 2020 highs....



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Digital Currencies

Dalio Admits "I Might Be Missing Something" As Bitcoin Surges Above $18,000

Courtesy of ZeroHedge

Since the US election, Bitcoin prices (in USD) have surged a stunning 40%, also lurching higher after each vaccine headline hit.

Source: Bloomberg

Getting ever closer to its all-time record high...

Source: Bloomberg

As crypto prices soared overnight, Bridgewater Associates founder Ray Dalio stepped back into the fray, saying in a Twitter thread that “I might be missing something about Bitco...



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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

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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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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