Posts Tagged ‘ROK’

Oracle Bulls Envision 10% Rally in Shares by June Expiration

Today’s tickers: ORCL, KFT, CLF, JPM, JCP, MCD, ROK, HK, TIE & LXK

ORCL – Oracle Corp. – Options players are initiating bullish stances on software development firm, Oracle Corp., today ahead of the company’s third-quarter earnings report scheduled for Thursday after the closing bell. Oracle’s shares rallied 0.95% during the current session to trade at a new 52-week high of $25.80. Medium-term optimists scooped up 10,600 call options at the June $28 strike for an average premium of $0.37 per contract. Perhaps plain-vanilla call buyers foresee continued bullish movement in the price of Oracle’s shares through expiration in June. Investors long the calls accrue profits if shares of the underlying stock surge 10% from the current price to breach the breakeven point at $28.37 by expiration day.

KFT – Kraft Foods, Inc. – Voracious investor appetite for call options on Kraft Foods this afternoon pushed the KFT ticker symbol onto our ‘most active by options volume market scanner’ as shares of the U.S. food maker jumped 2.25% to a new 52-week high of $30.40. It looks like one particularly bullish individual satisfied his hunger for Kraft-calls by purchasing a large chunk of 16,000 contracts at the September $32 strike for a premium of $0.69 apiece. The investor holding the call options is prepared to reel in profits on the position if Kraft’s shares rally another 7.50% from the current value to surpass the breakeven price of $32.69 by expiration day in September.

CLF – Cliffs Natural Resources, Inc. – Shares of iron ore pellet producer, Cliffs Natural Resources, jumped more than 6.00% during the trading day to arrive at a fresh 52-week high of $69.34. Investors celebrated Cliffs’ new high by enacting a plethora of bullish options strategies on the stock. One such individual established a ratio risk reversal in order to cover the cost of taking a long position in Cliffs-calls. The optimistic trader sold 1,500 deep in-the-money put options at the July $75 strike for a premium of $11.50 per contract, and purchased 3,000 calls at the same strike for an average premium of $4.51 each. The reversal player pockets a net credit of $2.48 per contract on the transaction, which he keeps if shares of the underlying stock rally up to or above $75.00 by expiration. Additional profits also accumulate for the trader should shares breach the effective breakeven price of $75.00. Other bullish investors initiated…
continue reading


Tags: , , , , , , , , ,




CAT-Bears Brace for Rocky Start to 2010

Today’s tickers: CAT, MS, UUP, STI, WFC, MCO, M, ROK, BBY, JAVA & HMY

CAT – Caterpillar, Inc. – Bearish option traders are bracing for potential CAT-share price erosion through expiration in February 2010. Shares edged nearly 0.75% lower in late afternoon trading to stand at $57.94. One pessimist purchased a put spread to prepare for potential declines. The transaction involved the purchase of roughly 7,000 puts at the February 55 strike for a premium of 2.35 apiece, marked against the sale of 7,000 puts at the lower February 35 strike for 49 cents premium each. The net cost of the trade amounts to 1.86 per contract. The investor responsible for the spread probably holds a long position in the underlying. Under this assumption, the trader has established downside protection, which kicks in if Caterpillar’s shares fall beneath the breakeven price of $53.14 by expiration day in February.

MS – Morgan Stanley – Analysts at Barclays Capital slashed fourth-quarter earnings estimates for Morgan Stanley to 40 cents from 90 cents today. Perhaps the bearish options activity observed on MS during the trading session was partly inspired by the significant profit-forecast revision at Barclays. Either way, investors populating Morgan Stanley’s January 2010 contract appear pretty pessimistic on the second-largest U.S. securities firm. Traders threw in the towel on MS by shedding nearly 20,000 calls at the January 31 strike for an average premium of 75 cents apiece. Some investors may be closing out previously established long call positions. Analysis of the existing open interest at that strike suggests traders are likely cutting their losses by selling the calls today. Investors abandoning bullish bets do not paint a rosy picture of where MS’s share price may settle during the first weeks of 2010.

UUP – PowerShares DB US Dollar index Bull Fund – The U.S. dollar is brimming with confidence on the first of a two-day FOMC meet in Washington and while investors are not expecting any signs of a policy change, there is certainly a firmer tone underlying the dollar in the past 72 hours or so. Option traders placed extremely bullish bets using call options on the bullish dollar index fund, whose shares currently stand 0.9% higher on the day at $22.82. Investors bought a huge chunk of 100,000 long-dated options reserving buying rights over the dollar at a fixed $24.00 before the contract expires in January 2011. That leaves…
continue reading


Tags: , , , , , , , , , ,




Western Digital in the Hot Seat

Today’s tickers: WDC, XLF, EEM, RRI, MYL, XHB, ROK, IACI, & XME

WDC – The manufacturer of hard disk drives has enjoyed a 3% rally today to stand at $31.31. Near-term bullish bets were initiated by option traders expecting further gains in the stock. It appears that some investors established call spreads on WDC by purchasing 14,000 calls at the now in-the-money August 31 strike price for an average premium of 1.77 each, and simultaneously selling 14,000 calls at the higher August 35 strike for about 37 cents per contract. The net cost of the spreads amount to approximately 1.40 apiece. Call-spreaders will begin to realize profits on today’s transaction if WDC can climb 3.5% higher to the breakeven point at $32.40. Maximum profits of 2.60 would be attained by investors if the stock increases to $35.00 by expiration. Finally, plain-vanilla call buying was observed at the August 32 strike where some 3,200 calls were coveted for an average premium of 1.12 per contract. We note that the volume of more than 45,433 contracts seen on WDC today represents 45% of the total existing open interest on the stock of 101,598 lots. – Western Digital Corp.

XLF – The financials ETF has climbed 1.5% higher to $12.61. Notable bullish action was observed at the December 13 strike price this afternoon where it seems some 35,000 calls were purchased for an average premium of 93 cents per contract. Shares of the XLF would need to rally 10% higher and surpass the breakeven point at $13.93 in order for traders to begin to amass profits by expiration at the conclusion of 2009. – Financial Select Sector SPDR

EEM – A mess of deep in-the-money put purchases were initiated on the emerging markets fund today amid a 0.5% increase in the price of the underlying shares to $35.60. The greatest volume was seen at the March 2010 38 strike price where about 7,400 puts were picked up for 5.70 apiece. The March 40 strike appears to have had 2,700 puts purchased for 7.00 each while the higher March 41 strike had 1,200 puts bought for 7.71 per contract. Put-buying continued at the March 42 strike price with 1,600 lots lifted for a premium 8.46 each. The higher March 43 strike had 2,300 puts purchased for 9.22 apiece while the March 44 strike had 1,000 puts coveted for a whopping 10.01 per contract.
continue reading


Tags: , , , , , , , ,




NetApp option implied volatility jumps as call demand surfaces

Today’s tickers: NTAP, AXP, MOS, SEPR, GM, JNPR, ROK, VIX, TGT & TCK

NTAP NetApp, Inc. – Option implied volatility has skyrocketed from yesterday’s value of 56% to the current reading of 74% as merger fever has set its sights on the company. Shares have jumped more than 10% to $16.47 today, attracting many a bullish option trader hungry for some hot call action. Option volume has risen above 103,000 contracts on the day, with 3.65 calls traded for each put in action. The April 17.5 strike price saw some 10,700 calls purchased for 32 cents each while calls as high up as the April 22.5 strike were coveted for 5 cents per contract. More volume was seen building on the call side in the May contract with 9,100 calls bought at the May 17.5 strike for an average premium of 79 cents. Again, the most bullish traders selected the May 22.5 strike and picked up 3,700 calls for 16 cents apiece. Shares would need to continue to rally by 38% in order for the 22.5 strikes to land in-the-money by expiration. When looking for downside protection, investors clustered at the April 16 strike price and scooped up 7,400 puts at an average premium of 58 cents per contract.

AXP American Express Company – The global payments and travel company has enjoyed a 3.5% share price rally to $15.54 after it received an upgrade from Citigroup yesterday following Goldman Sachs’s decision to remove AXP from its ‘conviction sell’ list on Friday. Investor bullishness was apparent at the April 17 strike price where about 5,200 calls were purchased for an average of 20 cents apiece. Other optimists were observed picking up 1,000 calls at the April 19 strike price at a price of 5 cents per option contract. Volatility on the stock is on the rise, up from the low for the day of 82% to the current value of 89%.

MOS The Mosaic Company – The producer of potash and animal feed has made a comeback since this morning with its shares currently up 5% to $45.15 after having fallen 4% in pre-market trading. Shares started down due to disappointing third-quarter results, which revealed that profits declined dramatically to just 13 cents a share as compared with $1.17 per share one year ago. The company’s CEO, James T. Prokopanko, is looking for Mosaic’s financials to improve in the fourth quarter.…
continue reading


Tags: , , , , , , , , ,




 
 
 

Phil's Favorites

Identifying a fake picture online is harder than you might think

 

Identifying a fake picture online is harder than you might think

If you know how photo editing works, you might have a leg up at spotting fakes. Gorodenkoff/Shutterstock.com

Courtesy of Mona Kasra, University of Virginia

It can be hard to tell whether a picture is real. Consider, as the participants in our recent research did, these two images and see whether you think neither, either or both of them has been doctored.

...



more from Ilene

Zero Hedge

Shocking Before & After Photos Reveal Awful Truth About Widespread US Crop Failures In 2019

Courtesy of Michael Snyder, The Economic Collapse

Torrential rains have been hammering the heartland of America for months, and at this point vast stretches of farmland in the middle of the country are nothing but mud.  As a result of the endless rain and unprecedented flooding that we have witnessed, millions of acres of farmland will have nothing planted on them at all in 2019, and that is a major national crisis.  But most farmers were able to get seeds planted in the deplorable conditions, and now they are desperately hoping that something will actually grow.  Unfortunately, on farm after farm what is coming out of the ground looks absolutely terrible.  Even if we get ideal weather conditions for the rest of the summer, there is no way that many of t...



more from Tyler

Kimble Charting Solutions

Wilshire 5000 Creating A Triple Top? An Important Breakout Test Is In Play!

Courtesy of Chris Kimble.

The stock market has been on fire of late, rallying up to the edge of price resistance on several indexes. Today, we look at one of those stock market indexes: the Wilshire 5000.

The Wilshire 5000 tracks all of the stocks in the US market, so it is a broad-based index that carries significant importance when gauging the health of the overall US stock market.

Looking at the long-term “weekly” chart above, it is pretty clear that the index is at an important price juncture.

The Wilshire 5000 spent the last 25 years trading within a rising price channel (1)...



more from Kimble C.S.

Insider Scoop

Jefferies Upgrades Deere, Cites 'Significantly Improved Farmer Income Outlook'

Courtesy of Benzinga.

Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE: DE), according to Jefferies.

The Analyst

Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190....



http://www.insidercow.com/ more from Insider

Chart School

Formula for when the Great Stock Market Rally ends

Courtesy of Read the Ticker.

When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.

This is when a seriously over valued market is screaming at you.

Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT). 

To see when water company's (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The c...

more from Chart School

ValueWalk

The "Tesla Killer" Car Is Nowhere In Sight

 

The “Tesla Killer” Car Is Nowhere In Sight

By Jacob Wolinsky, ValueWalk

Here’s some catnip for the Tesla bulls on this email list: my analyst, Kevin DeCamp, a longtime TSLA shareholder and car owner, took a test drive of the Jaguar I-PACE and, while it “looks great and is fun to drive… it is lacking in a few areas where Tesla really shines.” He concludes that “Tesla may end up killing itself, but the “Tesla killer” car is nowhere in sight.”

The Tesla Killer Hasn’t Arrived Yet: My Test Drive of the Jaguar I-PACE

By Kevin DeCamp

As a long-time, devoted Tesla...



more from ValueWalk

Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



more from Bitcoin

Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



more from Biotech

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



more from M.T.M.

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 ...



more from OpTrader

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

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.

Market Shadows >>