Posts Tagged ‘SD’

Bullish Bets On Caesers Pay Off For Some Traders As Shares Race Higher

 

Today’s tickers: CZR, SD & LUV

CZR - Caesars Entertainment Corp. – Shares in the casino entertainment company are soaring on Friday, up nearly 30% at $12.88as of 11:40 a.m. in New York trading, on reports that Las Vegas strip casino gambling revenue rose 13.49% in December. The operator of Caesars Palace, Harrah’s and other casino brands reports fourth-quarter earnings at the end of February. Options traders who placed bullish bets on the stock ahead of Friday’s big rally are seeing sizable overnight paper profits on their positions. The largest increase in call open interest yesterday was in the Mar. $10 strike call options. Time and sales data from Thursday suggests some 1,300 of the $10 strike calls were purchased yesterday for an average premium of $0.39 apiece. The last traded price on these contracts just prior to midday on the East Coast is $3.30 each, an eight-fold increase in value overnight. Bullish bets on Caesars were also established at the June $10 strike yesterday, with around 260 of those contracts purchased at a premium of $0.80 apiece. Premium to buy the June $10 strike call options today has jumped to $3.90 per contract of 11:55 a.m. ET on Friday. Overall options volume on CZR is upsharply versus the stocks average daily level, with upwards of 8,700 calls and puts in play on the stock compared to average volume of 819 contracts.

SD - SandRidge Energy, Inc. – A sizable bearish options trade initiated on SandRidge Energy this morning looks for shares in the oil and natural gas company to face limited declines during the first half of the 2012. The stock today trades down 1.2% on the session at $5.87 as of 11:30 a.m. ET. SandRidge reports fourth-quarter and full-year 2012 results after the closing bell on February 28th. The largest transaction in SD options today was the purchased of 12,500 in-the-money puts at the June $6.0 strike at a premium of $1.03 apiece, spread against the sale of 25,000 puts at the lower June $5.0 strike…
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Options on Las Vegas Sands Active Ahead of Earnings

Today’s tickers: LVS, FRX, FCX & SD

LVS - Las Vegas Sands Corp. – A number of options players hit the like button on Las Vegas Sands call options today ahead of the casino operator’s first-quarter earnings report after the final bell on Tuesday. Shares in the LVS increased as much as 2.6% this morning to secure an intraday high of $48.25, but currently stand just 0.60% higher on the session at $47.29 as of 12:50pm in New York. A number of pre-earnings speculators targeted the weeklies to position for the price of the underlying to extend gains ahead of expiration on Friday. Investors purchased around 2,250 calls at the May ’06 $48 strike for an average premium of $1.45 a-pop. Call buyers at this strike profit in the event that the stock rallies 4.6% over the current price to surpass the average breakeven point on the upside at $49.45 by expiration. Bulls paid an average premium of $0.77 per contract to pick up roughly 1,600 calls at the higher May ‘06 $50 strike price. Meanwhile, investors populating the May ’06 $52.5 strike sold 1,300 calls to receive an average premium of $0.28 each. Call selling at this strike may represent a near-term ceiling on shares in LVS for some investors. Traders keep the premium pocketed on the transaction as long as the price of the underlying stock fails to exceed $52.50 at expiration. Low-delta call buying occurred up at the May ’06 $55 strike where some 250 calls were picked up for an average premium of $0.09 per contract. More than 61,900 option contracts have changed hands on Las Vegas Sands as of 1:00pm. Options implied volatility on the stock is up 6.2% to arrive at 46.57% in early afternoon trade, one day ahead of earnings.

FRX - Forest
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Investors Hungry for Smithfield Foods Options as Shares Rally

Today’s tickers: SFD, SD, CBS & BMTI

SFD - Smithfield Foods, Inc. – Shares in the hog producer and pork processing company rallied as much as 5.95% this afternoon to touch an intraday- and more than two-year high of $24.04 following an upgrade to ‘buy’ from ‘hold’ with a 12-month target share price of $28.00 at BB&T Capital Markets. Options on Smithfield Foods are more active than usual today, but investors are favoring puts over calls as of 12:40pm. More than 2.6 puts are trading on SFD at present for each single call in action. Put volume is heaviest at the July $23 strike where more than 4,340 contracts have changed hands on open interest of just 609 lots. Investors bought almost all of the put options at the July $23 strike for a premium of $1.50 apiece. Put buyers make money if shares in the packaged meat provider plunge 10.6% from today’s high of $24.04 to breach the effective breakeven price of $21.50 ahead of July expiration. Demand for puts on the stock spread to the lower July $22 strike where more than 1,750 puts were picked up at a premium of $1.10 each, versus previously existing open interest of 213 contracts. Traders long the puts stand prepared to profit in the event that Smithfield’s shares drop 13.0% in the next four months to trade below the effective breakeven price of $20.90 by expiration day. The closeness in the timing of the put transactions at these strikes suggest one investor could be responsible for most if not all of the put activity described. The trader or traders responsible for the put buying may be outright bearish on Smithfield Foods through July expiration, or are perhaps building up downside protection on a long position in the underlying stock. The pork producer is scheduled to report fourth-quarter earnings ahead of the opening bell on June 16, 2011.…
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Impending FDA Decision Spurs Options Traders to Action at Human Genome Sciences

 Today’s tickers: HGSI, MDRX, JPM, ESV, FLR & SD

HGSI - Human Genome Sciences, Inc. – Shares in biotechnology company Human Genome Sciences are down 3.95% this afternoon at $25.23 as of 3:15 pm, but one options trader populating the December contract today is positioning for the stock to rebound ahead of a key FDA decision on its lupus drug treatment, Benlysta. A preliminary FDA review is set for release in one week, while an advisory panel with outside experts is scheduled to provide their input before the FDA provides a final ruling by December 9, 2010. The optimistic options player is well positioned to benefit from a strong rally in the biotech firm’s shares should approval of the lupus treatment become a reality. The trader purchased 5,000 calls at the December $26 strike for a premium of $4.30 each, and sold the same number of calls at the higher December $32 strike at a premium of $1.36 apiece. Net premium paid for the spread amounts to $2.94 per contract. Thus, the investor makes money if Human Genome’s shares reverse course and rally 14.7% over the current price of $25.23 to surpass the effective breakeven point to the upside at $28.94 by expiration day. The call-spreader stands ready to amass maximum potential profits of $3.06 per contract if shares jump 26.8% to trade above $32.00 by December expiration. Options implied volatility on the biotechnology company is up 12.1% at 141.59% as of 3:30 pm, and will likely continue to ascend ahead of the FDA’s critical ruling.

MDRX - Allscripts-Misys Healthcare Solutions, Inc. – Call options on the provider of clinical software, services, information and connectivity solutions to physicians and other healthcare providers are in high demand today ahead of the firm’s third-quarter earnings report, which is scheduled for release after the market closes on Monday. Shares in Allscripts are currently up 1.3% at $19.44 as of 2:15 pm. Plain-vanilla call buyers were the first to arrive on the scene, but the majority of the options volume…
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Options Trader Constructs Bullish Risk Reversal on SandRidge Energy, Inc.

Today’s tickers: SD, DTV, YHOO, SLXP, MDVN, PDCO, XLE, LOW, AIG & CA

SD – SandRidge Energy, Inc. – A bullish risk reversal on natural gas and oil exploration and development company, SandRidge Energy, Inc., suggests one investor may be positioning for a rally in the value of the underlying shares by expiration in June. SandRidge’s shares slipped 0.50% during the session to stand at $8.52. The trader sold 10,000 put options at the June $7.5 strike for an average premium of $0.53 apiece in order to offset the cost of buying 10,000 calls at the higher June $9.0 strike for $0.90 each. The net cost of the reversal play amounts to $0.37 per contract. Shares of the energy firm must rally approximately 10% over the current day’s price in order for the trader to break even on the transaction at $9.37. Profits are available to the upside beyond the breakeven point at $9.37 through expiration day in June.

DTV – The DIRECTV Group, Inc. – Investors sold strangles on the subscription television services company today amidst a 0.55% rally in the price of the underlying stock to $33.83. The use of the short strangle strategy implies traders anticipate reduced volatility in the price of DTV shares and expect the share price to remain range-bound through expiration in June. Throughout the trading session options traders sold approximately 15,000 calls at the June $35 strike for an average premium of $1.77 apiece in combination with the sale of 15,000 puts at the lower June $30 strike for a premium of $0.78 each. Strangle-sellers pocket a gross premium of $2.55 per contract, which they keep if Directv’s share price trades within the range of $30.00 to $35.00 through expiration. The premium received on the transaction provides limited protection against losses should DTV’s shares swing outside of the strike prices described. Stranglers accumulate losses if shares of Directv trade above the upper breakeven price of $37.55, or if shares decline beneath the lower breakeven point at $27.45, by expiration day.

YHOO – Yahoo!, Inc. – The slight 0.15% decline in the price of Yahoo’s shares to $15.55 today did not some options traders from establishing bullish stances on the stock. One individual initiated a bullish risk reversal to position for a rebound in shares by expiration in January of 2011. The investor sold 15,000 put options at the January 2011 $15 strike for…
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Zero Hedge

German Official Warns Risk Of Electric Vehicle Fires Is "Completely Unaddressed" 

Courtesy of ZeroHedge View original post here.

Last month, a massive fire broke out at a German bus depot, destroying 20 electric buses. First responders weren't prepared nor properly trained in extinguishing lithium-ion fires. The fire prompted one German official to question the zero-emissions vehicles as the "spontaneously" combustion of the batteries "is completely unaddressed," according to RT News

"The risk of these fires, including in other locations ...



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Phil's Favorites

Leveling the Playing Field With Cloud Gaming

 

Leveling the Playing Field With Cloud Gaming

Everyone Needs Access To Games

Courtesy of Reed Berkowitz at CuriouserInstitute

A friend of mine noticed something interesting. His teen was playing a game online with a group of other kids, but no one was actually “playing.” The characters were just kind of standing around chatting with each other as the game went on without them. The game had become secondary to the conversation. He mentioned it in our group chat and everyone with teens had noticed something similar. We had all seen our kids chatting on Discord or some other software and hanging out in-game.

It turns out that, without much fanfare, gaming has become one ...



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Politics

Trump wants the National Archives to keep his papers away from investigators - post-Watergate laws and executive orders may not let him

 

Trump wants the National Archives to keep his papers away from investigators – post-Watergate laws and executive orders may not let him

Nixon resigned after tapes he had fought making public incriminated him in the Watergate coverup. Bettmann/Getty

Courtesy of Shannon Bow O'Brien, The University of Texas at Austin College of Liberal Arts

The National Archives is the United States’ memory, a repository of artifacts that includes everything from half-fo...



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Biotech/COVID-19

An infectious disease expert explains new federal rules on 'mix-and-match' vaccine booster shots

 

An infectious disease expert explains new federal rules on ‘mix-and-match’ vaccine booster shots

Discuss with your doctor whether or not you need a booster – and if so, which vaccine will work best for you. Justin Sullivan/Getty Images News via Getty Images

Courtesy of Glenn J. Rapsinski, University of Pittsburgh Health Sciences

Many Americans now have the green light to get a COVID-19 vaccine booster – and the flexibility to receive a different brand than the ori...



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Digital Currencies

Bitcoin: why its value has rocketed once again

 

Bitcoin: why its value has rocketed once again

Shutterstock/rzoze19

Courtesy of Andrew Urquhart, University of Reading

Bitcoin’s journey into mainstream finance has reached another major milestone – and another record price. The cryptocurrency was trading at US$66,975 (£48,456) following the launch of an exchange traded fund (ETF) in the US w...



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Chart School

Price and Volume Swing Analysis on Bitcoin and Silver

Courtesy of Read the Ticker

Many take guidance from news, pundits or advisors. Well sometimes the swings of price and volume are a better measure of what happens next.

The big boys do not accumulate or distribute in single 1 second trade, they build positions over weeks, months and years. They use price swings in the market to build or reduce positions, and you can see their intent by studying swings of price and volume and applying Tim Ord logic as written in his book called 'The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks'.

Tim Ord is a follower of Richard Wyckoff logic, his book has added to the studies of Richard Wyckoff, Richard Ney and Bob Evans.

Richard Wyckoff after years of...

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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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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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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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