Posts Tagged ‘RRC’

Hewlett-Packard Options Point To Possible Rebound


Today’s tickers: HPQ, NWSA & RRC

HPQ - Hewlett-Packard Co. – Bullish trading in Hewlett-Packard options this morning suggests some traders are positioning for a rebound in battered shares of the tech giant. The stock snapped a four-day losing streak on Tuesday, rallying 2.1% to $21.50 by midday in New York, following the better-than-expected ISM non-manufacturing index report this morning. Shares in HPQ have lost nearly 30.0% of their value since mid-February. Traders picking up in-the-money calls in the July expiry are prepared to benefit should shares in Hewlett continue to recover during the next six weeks. More than 11,500 calls have changed hands at the July $21 strike against open interest of 3,028 positions. It looks like most of the contracts were purchased for an average premium of $1.36 apiece, thus positioning buyers to profit at expiration should HPQ’s shares rally another 4.0% to surpass the average breakeven point at $22.36.

NWSA - News Corp. – A sizable trade in News Corp. call options today appears to be a bet against any significant rally in shares of the international media company during the next eight trading sessions. The stock is currently flat on the day at $18.59 as of 12:15 p.m. ET. News Corp. popped up on our ‘hot by options volume’ market scanner this morning after some 8,295 June $19 strike calls were sold at a premium of $0.20 apiece. The strategy results in maximum possible profits of $0.20 per contract should the options expire worthless next week. Naked short calls leave the seller vulnerable to unlimited losses to the upside in the event of a rally in the price of the underlying above the effective breakeven price of $19.20, however, it’s possible the strategist is long the stock and selling covered rather than uncovered calls against the position. Shares in News Corp. have declined 10.2% in the past four weeks, but need only rally 3.3% over the current price of $18.59 to…
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Bulls Bombard Research in Motion Ahead of BlackBerry 9800 Launch

Today’s tickers: RIMM, INTU, LVS, RRC, MHS, HSP & CHS

RIMM – Research in Motion Limited – Optimistic options players populated the Blackberry maker’s August contract, selling puts and buying calls to prepare for the price of the underlying stock to continue climbing ahead of expiration day next month. RIMM’s shares rallied as much as 4.53% today to an intraday high of $55.59 on reports the Canadian company will reveal its new touch screen BlackBerry in New York next Tuesday. Investors are chomping at the bit to see if the BlackBerry 9800 can give iPhone maker, Apple, a run for its money – or market share. RIMM’s shares have bounced up off their early-July lows, but the recovery could be short-lived if the 9800 turns out to be a disappointment. Traders hoping to see a successful launch of the touch screen device, and subsequent share price appreciation, employed bullish strategies. Investors picked up at least 3,800 calls at the now in-the-money August $55 strike for an average premium of $2.15 apiece. Buying interest spread to the higher August $57.5 strike where 3,900 calls were purchased at an average premium of $1.16 each. Uber-bulls bought roughly 2,900 call options at the August $60 strike for an average premium of $0.68 a-pop. Investors long the August $60 strike calls are poised to profit should RIMM’s shares surge 9.25% to surpass the average breakeven price of $60.68 by August expiration. The sale of out-of-the-money put options is another bullish signal investors are itching for the current rally to continue. Traders sold some 2,000 puts at the August $50 strike for an average premium of $0.55 each, and shed another 5,200 puts at the higher August $52.5 strike for an average premium of $1.21 apiece. In total, options players exchanged more than 91,300 contracts on Research in Motion by 3:40 pm ET. Options implied volatility on RIMM is up 3.4% to 43.85% ahead of the final bell.

INTU – Intuit Inc. – The provider of business and financial management solutions popped up on our ‘hot by options volume’ market scanner late in the trading session after one options strategist initiated a bearish transaction in the October contract. Intuit’s shares are down slightly by 0.15% to stand at $39.50 as of 3:15 pm ET. It looks like the trader bought a plain-vanilla debit put spread, buying 6,346 puts at the October $37.5 strike for a…
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Strangle Strategist Sees Sharp Shifts in Johnson Controls Shares

Today’s tickers: JCI, LEA, X, LFT, TS, MU, LULU, DLB & RRC

JCI – Johnson Controls, Inc. – A long strangle enacted on the maker of batteries for automobiles and hybrid electric vehicles this afternoon implies the firm’s share price could swing dramatically ahead of May expiration. Johnson’s shares gained 0.72% in late afternoon trading to stand at $33.35. Earlier in the session shares of the underlying stock reached a new 52-week high of $33.60. The investor responsible for the long strangle play is expecting to profit if JCI’s shares trade outside of a specified range ahead of expiration day. The volatility player purchased roughly 10,000 puts at the May $32 strike for an average premium of $0.89 apiece and picked up 10,000 calls at the higher May $34 strike for $1.14 each. The net cost of the strangle amounts to $2.03 per contract. Shares must trade above the upper breakeven price of $36.03, or trade beneath the lower breakeven point at $29.97, in order for the strangler to amass profits ahead of May expiration.

LEA – Lear Corp. – Bullish options activity on the manufacturer of automotive seat systems suggests at least one investor is preparing for shares to trade at a significantly higher price by expiration in September. Lear’s shares increased 0.85% to $80.37during the current session to trade just $0.53 below the current 52-week high on the stock of $80.90. The optimistic options strategist initiated a debit call spread by purchasing 2,500 calls at the September $85 strike for a premium of $5.40 apiece, and by selling the same number of calls at the higher September $95 strike for $2.10 each. Net premium paid for the transaction amounts to $3.30 per contract. Thus, the trader stands ready to accrue maximum potential profits of $6.70 per contract if Lear’s shares surge 18.20% from the current price to $95.00 by expiration day in September.

X – United States Steel Corp. – Bullish options trading on U.S. Steel Corp. today follows news reports that steelmakers are set to hike prices globally as the economic recovery drains inventory levels and boosts demand and prices for raw materials. The price of steel, according to a Bloomberg News article, increased 9.1% in the U.S. during the month of February. U.S. Steel’s shares rallied 2% during the first half of the trading session to stand at $64.77, and earlier this morning traded up to…
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Steve Eisman: Bank Industry Owes Incredible Debt Of Gratitue To Fed's Tarullo

By VW Staff. Originally published at ValueWalk.

On the tenth anniversary of the Bear Stearns bailout, Steve Eisman, Neuberger Berman managing director and profiled in “The Big Short,” discusses the banking industry now and then. Mike Mayo, Wells Fargo, also weighs in.

‘Big Short’ Steve Eisman: Bank industry owes incredible debt of gratitue to Fed’s Tarullo from CNBC.

Image source: ...

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Zero Hedge

Hedge Fund Suffer Worst Month Since January 2016, Greenlight Dead Last

Courtesy of ZeroHedge. View original post here.

For much of 2017, hedge funds - most of which again underperformed both their benchmark and the broader market - complained that they were not generating alpha for one reason: there was no volatility. Well, they got their wish in February when after months of record low, single digit VIX, equity vol exploded 47% resulting in a 3.9% slide in the S&P 500 and as 10-year yields backed up to 2.86%.

And so with volatility spiking, and what every commentator has said is a "stockpicker's market" hedge fund surely had a blockbuster month, right. Well, no, quite the opposite i...

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Insider Scoop

The Market In 5 Minutes: AT&T, Facebook Data, Apple Screens, Google Shopping And More

Courtesy of Benzinga.

Related SPY What You Need To Know About Larry Kudlow, Trump's New Economic Advisor Appeals Court Overturns Fiduciar... more from Insider

Digital Currencies

Bitcoin Soars $1000 Off The Lows After G-20 Rejects Crypto Crackdown

Courtesy of ZeroHedge. View original post here.

While advertising bans and Mt.Gox Trustee overhangs remain, the FUD of a possible global regulatory crackdown in the G-20 Communique was a major driver of this weekend's weakness... until Les Echos confirms FSB has rejected calls for regulation.

After headlines suggesting a global crackdown on cryptocurrencies spooked the markets on Friday, ...

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Phil's Favorites

Low-carbon computing is needed to avoid a technological collapse


Low-carbon computing is needed to avoid a technological collapse

wk1003mike / shutterstock

Courtesy of Oscar Céspedes, University of Leeds

Human society has come to rely on superior gadgets being produced every year. Each year, new phones or laptops are faster, sleeker and have even more capabilities. However, electronics are rarely recycled, and the carbon footprint of the internet already exceeds that of air travel. The internet also relies on “rare earths” and ...

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Members' Corner

"If you want to fundamentally change society, you first have to break it."


"If you want to fundamentally reshape society, you first have to break it." ~ Chistopher Wylie

[Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

Here are a number of disturbing, overlapping articles discussing an enormous socio-political venture into thought- and election-manipulation that took place leading up to and during the US 2016 presidential election. Key players include: ...

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Chart School

Bitcoin Update, demand is present

Courtesy of Read the Ticker.

When a Wyckoff trader looks at a stock chart of price and volume one looks for foot prints of material demand and supply. The current bitcoin chart shows very significant demand prints.

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Sure fundamentals do matter, and so does market timing (entry, stops and exit), here at we believe a combination of Gann Angles, Cycles...

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How your brain is wired to just say 'yes' to opioids

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


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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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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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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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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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.

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