Posts Tagged ‘RVBD’

Riverbed Options Active As Shares Soar

 

Today’s tickers: RVBD, LL & FCN

RVBD - Riverbed Technology, Inc. – Front month trading traffic on Riverbed Technology suggests the profits are flowing for one options strategist that hit it out of the park on a three-legged bullish position initiated ahead of the company’s second-quarter earnings report. Shares in the maker of computer networking products are up better than 26% to stand at $18.35 as of midday on the East Coast after the company posted better-than-expected earnings for the second quarter and said full year revenue is likely to increase more than analysts were expecting. It looks like one trader yesterday sold 2,000 puts at the Aug. $13 strike in order to partially offset premium required to buy a 2,000-lot Aug. $14/$17 call spread, all for a net premium outlay of $0.34 per contract. The sharp move to the upside in Riverbed’s shares overnight far exceeded the more than 15% rally required for the position to realize maximum possible profits. Activity in the options today suggests the trader is raking in the chips, closing out all three legs to enjoy net profits of $2.23 per contract in overnight gains. Meanwhile, traders positioning for Riverbed’s shares to extend gains in the near term picked up another 1,100 calls at the Aug. $19 strike for an average premium of $1.02 apiece. Call buyers may profit in the event shares tack on another 9% to exceed the average breakeven price of $20.02 by expiration next month.

LL - Lumber Liquidators Holdings Inc. – Shares in the retailer of hardwood flooring soared to a record today after the company posted better-than-expected second-quarter earnings and upped its full year profit and revenue forecasts. Lumber Liquidators shares jumped 25% to an intraday and new all-time high of $40.77 at the start of the session, sparking increased activity in options on the stock. Traders positioning for shares in Lumber Liquidators to continue higher in the near term purchased upside calls on…
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Time Warner Cable Call Buyer Tunes in for a Rally

Today’s tickers: TWC, RVBD, EXPE & CL

TWC - Time Warner Cable Inc. – An investor expecting shares in Time Warner Cable to pop ahead of March expiration initiated a large stock and option combination play just before 12:30pm in New York. Shares in the TWC are currently down 0.80% this afternoon to stand at $70.53. It looks like the trader enacted a delta neutral position, selling 150,000 shares of the underlying at $70.60 each, and buying 10,000 calls at the March $75 strike at a premium of $0.25 a-pop, on a 0.15 delta. The risk profile of the transaction is such that the trader may benefit somewhat on the short stock leg of the transaction should shares in the name slip in the near term. But, the profit and loss parameters of the position dictate substantially greater gains if Time Warner’s shares surge ahead of expiration day next month. If shares rally, gains on the long calls, which represent a far larger stake in the underlying than the 150,000 shares of which the investor is short, will trump losses realized on the short stock. The investor is well positioned to benefit nicely should the price of the underlying react as he predicts it will. Time Warner Cable’s reading of options implied volatility is up 5.1% on the session at 21.26% as of 1:30pm.

RVBD - Riverbed Technology, Inc. – Shares in Riverbed Technology increased as much as 4.0% this morning to secure an intraday- and new all-time high of $43.54. One big options player appears to be using call options in the name to position for the bullish momentum to continue through June expiration. It looks like the trader picked up 15,000 deep in-the-money calls at the June $39 strike for a hefty premium of $7.30 each, and sold the…
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Amphenol Corp. Calls in High Demand as Shares Rally to New Heights

Today’s tickers: APH, CAVM, PCX & RVBD

APH - Amphenol Corp. – Call options on the manufacturer of electrical, electronic and fiber optic connectors, interconnect systems and coaxial and specialty cable are in high demand this afternoon with shares trading up 3.2% to reach an all-time high of $57.10 by 12:25pm. Investors expecting Amphenol’s shares to continue to rise in the near term purchased in- and out-of-the-money call options in the February contract. More than 4,200 in-the-money calls changed hands at the February $55 strike on paltry previously existing open interest of 561 contracts. It looks like the majority of the calls were purchased for an average premium of $2.38 a-pop. Investors long the calls are poised to profit should shares in Amphenol Corp. surpass the average breakeven price of $57.38 ahead of February expiration. Bullish players looked up to the February $50 strike, as well, exchanging more than 1,400 calls at that strike on scant open interest of 10 contracts. Approximately 1,000 of the higher-strike call options traded on the ask for an average premium of $0.40 each. Traders purchasing the calls start to make money in the event that APH shares gain another 5.8% to exceed the average breakeven price of $60.40 before the contracts expire in a few weeks.

CAVM - Cavium Networks, Inc. – Shares in the provider of semiconductor processors shot up 14.7% in the first 15 minutes of the trading session to secure an intraday high of $45.35 following the firm’s better-than-expected fourth-quarter earnings report released after the close of trading on Monday. Cavium also revealed its forecast for first-quarter profit is greater than that of Wall Street, which helped shares higher and spurred a number of analyst upgrades today. Although signs of optimism on CAVM abound, a more pessimistic view appears to be playing…
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Creeping Confidence Emerging In Citi?

Today’s tickers: C, WLP, ORCL, PCAR, EK, TLB & RVBD

C – Not sure what’s going on at Citigroup today, at least in the options patch. Base salaries might be up 50% for some employees who chose to weather the storm as its share took a battering along the way to ceding some ownership to the government, but one options strategy today could imply better times for the banker within 18 months. Using the January 2011 put options, we spy a 20,000 lot spread in which we observe the 2.5 puts were bought for 74 cents. Against this, we see identical volume at the 7.5 strike, which by the spread definition must have been sold at 4.84. That combination would leave the investor with a credit spread for a premium coming his way of 4.10. Losses accrue beneath a share price of $3.40, which is the point of using the 2.5 strikes to limit losses. If we’re looking at this trade correctly and both sides were opening bargains, then this investor would appear to be predicting better times ahead for Citi on the assumption that it’s getting its house in order. The question mark becomes whether the investor is closing old positions at either strike, where admittedly there is a ton of open interest. – Citigroup Inc.

WLP– The Indiana-based health benefits company edged onto our ‘most active by options volume’ market scanner after one investor appears to have established a ratio call spread in the August contract. Shares of the firm are up slightly by about 1.5% to $49.71. Hoping for continued bullish movement, the trader purchased 5,000 calls at the just out-of-the-money August 50 strike price for a premium of 3.50 each and simultaneously sold 10,000 calls at the higher August 55 strike for 1.54 per contract. The net cost of the transaction amounts to 42 cents and yields maximum potential profits of 4.58 if shares can rally up to $55.00 by expiration. The investor would begin to amass profits if shares increase just 71 cents from the current price to surpass the breakeven point at $50.42 by expiration in a couple of months. – WellPoint, Inc.

ORCL – Shares of the second-largest software maker have surged 8% to $21.41 and bullish option traders have taken the rally in stride by getting long call options on the stock in the August contract. The rise in shares is
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DryShips upgrade attracts option investors to upper deck

Today’s tickers: DRYS, XTO, LGF, MCRI, RVBD, RF, HA, CBS, PCLN

DRYS DryShips, Inc. – The drybulk carrier’s share price rally of more than 25% to $6.94 breathes new life into DryShips’ sails today amid an upgrade to ‘outperform’ from ‘market perform’ by an analyst at Oppenheimer & Co. this morning. The company has also managed to raise $500 million via equity offering that it plans to use to decrease its massive debt. Option investors saluted the bullish news by purchasing calls in the May contract. At the May 7.5 strike price 7,300 calls were picked up for an average premium of 59 cents apiece. Shares need only rise by an additional 7% in order for the May 7.5 strike calls to land in-the-money by expiration next month. More optimistic traders selected the May 9.0 strike and bought 3,000 calls for about 28 cents per contract. Another positive sign for the cargo-carrier was the sale of 1,400 puts at the May 6.0 strike price for 74 cents each as some investors hope that shares remain above the breakeven on the trade at $5.26 by expiration. While much of the activity we observed was bullish in the May contract, we did notice that some downside protection was sought at the May 7.5 strike price as about 2,100 in-the-money puts were picked up at an average premium of 1.55 each.

XTO XTO Energy, Inc. – Shares of the oil and gas exploration company have rallied by more than 3% to $35.20. XTO edged onto our ‘most active by options volume’ market scanner after one investor took profits by closing a short put position. It appears that this individual originally established a short position on March 11, 2009, by selling 19,500 puts at the August 22.5 strike price for a premium of 1.86 apiece. Today, he purchased the lot of 19,500 puts at the same strike for an average price of 75 cents apiece. The difference between the two put premiums yields this investor 1.11 today for closing the position. It looks as though he plans to once again profit from a similar trade as he sold 15,000 puts at the August 26 strike price for an average premium of 1.35 apiece.

LGF Lions Gate Entertainment Corporation – The diversified independent producer and distributor of motion pictures jumped to the top of our ‘hot by options volume’ market scanner after one investor…
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Phil's Favorites

Why are Atlantic and Gulf coast property owners building back bigger after hurricanes?

 

Why are Atlantic and Gulf coast property owners building back bigger after hurricanes?

Surf threatens beach houses on Dauphin Island, Alabama, September 4, 2011 during Tropical Storm Lee. AP Photo/Dave Martin

Courtesy of Eli Lazarus, University of Southampton and Evan B. Goldstein, University of North Carolina – Greensboro

U.S. coastal counties are densely populated and extensivel...



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Zero Hedge

Russian And South Korean Fighter Jets Face Off In "Mid-Air Confrontation"

Courtesy of ZeroHedge. View original post here.

For the first time since the fall of the Soviet Union, Russian jets flying through South Korean airspace provoked the South Korean military into a "midair confrontation" that involved firing hundreds of warning shots. All told, South Korean jets fired 360 machine-gun rounds and at least 20 flares, Bloomberg reports.

Three Russian military planes (two Tu-95 bombers and one A-50 airborne early warning and control aircraf...



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Insider Scoop

The Daily Biotech Pulse: Acadia Schizophrenia Drug Fails, Viveve Plummets, Eisai Gets Breakthrough Therapy Designation

Courtesy of Benzinga.

Here's a roundup of top developments in the biotech space over the last 24 hours.

Scaling The Peaks

(Biotech stocks hitting 52-week highs on July 22)

  • Acasti Pharma Inc (NASDAQ: ACST)
  • Apellis Pharmaceuticals Inc (NASDAQ: APLS)
  • Arcturus...


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Kimble Charting Solutions

Is Crude Oil Sending a Bearish Message to the Stock Market?

Courtesy of Chris Kimble.

Crude Oil (NYSEARCA: USO) and the S&P 500 Index (INDEXSP: .INX) have peaked and bottomed together several times in the past 9 months. See points (1) and (2) on the chart above.

In summary, the correlation between Oil and the stock market has been quite interesting and demands investors attention.

Crude Oil has been creating lower highs of late and is breaking price support at (3).

If the correlation remains the same, Crude Oil may very well be sending a bearish message to stocks.

Tricky spot for active investors – careful here.

...

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Chart School

RTT Plus Chart Book (Sneak Peak)

Courtesy of Read the Ticker.

The magic of support and resistance channel lines and how they direct price. Here are some chart disclosed to members via the RTT Plus service. All charts are a few weeks old. 


XAU bound by parallel channel lines.


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Newmont Mining support from Gann Angles.



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US Dollar index (DXY) dominate cycle ...

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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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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...



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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...



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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 ...



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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

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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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