Posts Tagged ‘SH’

Litany Of Woes Sparks Renewed Bearish Options Trades On Inverse ETF

 
Today’s tickers: SH, CLX, NABI & HWD

SH - ProShares Short S&P 500 – Bearish investors are scooping up calls on the ProShares Short S&P 500 ETF this morning with 95% of stocks in the U.S. benchmark Index trading in the red today. Shares in the SH, an exchange-traded fund designed to correspond to the inverse of the daily performance of the S&P 500 Index, are up 1.45% to arrive at $41.55 as of 12:00 pm on the East Coast. Investors exchanged more than 8,000 calls at the August $44 strike against previously existing open interest of 2,231 contracts. It looks like most of the calls were purchased for an average premium of $0.25 a-pop. Perhaps call buyers are hedging long exposure to the index, or snapping up the calls to take an outright bearish stance on the near-term performance of the Index. The ongoing debt crisis in Europe, mind-numbing squabbling amongst U.S. lawmakers tasked with raising the debt ceiling, and concerns the economic recovery continues to soften are weighing down equities today. Signs that any of these factors are worsening could send the S&P 500 Index lower to the delight of call buyers. Investors holding the August $44 strike calls profit if shares in the SH rise 6.5% to exceed the effective breakeven price of $44.25 by expiration next month. The SH last traded above $44.25 back in December 2010, when the S&P 500 Index was hovering around 1243. Meanwhile, traders casting doubt on the likelihood of a sharp correction in the Index through August expiration sold around 1,500 calls at the August $45 strike to pocket an average premium of $0.15 each. Call sellers keep the full amount of premium as long as the contracts expire worthless at expiration next month.

CLX - Clorox Co. – A sizable ratio put spread on the maker of cleaning supplies and Hidden Valley Ranch Dressing indicates one strategist is positioning for limited bearish movement in the price of the underlying shares through August…
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Contrarian Strategists Dominate XLF Options

 

Today’s tickers: XLF, COH, OXY & SH

Higher than estimated initial jobless claims of 429,000 compounded a revision higher to prior data in a sign the economic recovery remains anemic. Lowered growth forecasts and some earlier words of caution from central bankers Trichet and Bernanke reminded investors of what many already knew to be true: strong headwinds such as the European debt crisis, stubbornly high U.S. unemployment, and data showing manufacturing is slowing in the U.S. and Europe – just to name a few – represent serious threats to growth. Even the pace of China’s manufacturing appears to be slowing, possibly rising at its slowest pace in nearly a year, as weaker demand translates into fewer export orders amid the central bank’s efforts to combat inflation with interest rate hikes and higher reserve requirements. Add to all of that the International Energy Agency’s most recent announcement and it’s no wonder global markets are on the decline. The opening bell in U.S. trading on Thursday saw the VIX spike well above 10%, crossing the psychological 20-level for the 5th time in the past 7 trading sessions, as renewed fears drove sellers to the marketplace.

XLF - Financial Select Sector SPDR ETF – Contrarian strategists are out in numbers today while other market participants watching the broad-market decline accelerating are opting to head for the hills. Financials are not the worst performing sector today, but shares in the XLF, an exchange-traded fund that tracks the performance of the Financials sector of the S&P 500 Index, did decline as much as 2.2% this morning to $14.67. Options volume on the financials ETF jumped after a massive bullish transaction was initiated in the September contract. It looks like one or more traders purchased a call butterfly spread, buying a total of 27,000 calls…
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Options Traders Position for Pullback in S&P 500 Index

 Today’s tickers: SH, APC, BCSI & SNV

SH - ProShares Short S&P500 ETF – Call buying on the ProShares Short S&P500, an exchange-traded fund that seeks daily investment results that correspond to the inverse of the daily performance of the S&P 500 Index, indicates options traders expect the pullback in the market to continue through February expiration. The massive run up in stocks since September 2010 drove the ProShares Short S&P500 ETF to a 52-week low of $42.63 last Friday. But, shares in the fund have started to climb with rising fears over dampening economic growth, pushing the price of the underlying up 0.55% today to $43.21 as of 12:15pm in New York. Bearish players picking up call options foresee shares in the fund rising, and consequently the S&P 500 Index falling ahead of February expiration. More than 6,790 calls changed hands at the February $45 strike on open interest of just 978 contracts. It looks like the majority, or roughly 5,140 of the calls, were purchased for a premium of $0.20 a-pop. Investors purchasing the call options make money if shares in the fund rally another 4.6% to surpass the effective breakeven price of $45.20 ahead of expiration day next month. Total volume in options traded on the ProShares Short S&P500 has climbed to 9,083 in early afternoon trade today, which is substantial compared to the 14,880 lots of overall previously existing open interest on the fund. Options implied volatility on the ETF has inched up 5.1% to 16.14% as of 12:20pm.

APC - Anadarko Petroleum Corp. – Shares of the oil and gas exploration and production company are currently down 1.90% to stand at $75.00 as of 11:10am in New York, but it looks like one optimistic options player is taking advantage of the pullback by placing a bullish bet on the stock in May contract. Anadarko is scheduled to report earnings for the fourth quarter after the market closes on January 31, 2011. The debit call spread strategy employed on APC this morning…
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Phil's Favorites

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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Members' Corner

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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Zero Hedge

Easily Overlooked Issues Regarding COVID-19

Courtesy of ZeroHedge View original post here.

Authored by Gail Tverberg via Our Finite World,

We read a lot in the news about the new Wuhan coronavirus and the illness it causes (COVID-19), but some important points often get left out.

[1] COVID-19 is incredibly contagious.

COVID-19 transmits extremely easily from person to person. Interpersonal contact doesn’t need to be...



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The Technical Traders

Gold Rallies As Fear Take Center Stage

Courtesy of Technical Traders

Gold has rallied extensively from the lows near $1560 over the past 2 weeks.  At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018.  Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer-term fear that is build...



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Kimble Charting Solutions

Precious Metals Eyeing Breakout Despite US Dollar Strength

Courtesy of Chris Kimble

Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.

The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).

What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.

In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.

The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further ...



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Insider Scoop

68 Stocks Moving In Friday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
  • TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
  • ...


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Biotech & Health

Deep learning AI discovers surprising new antibiotics

 

Deep learning AI discovers surprising new antibiotics

A colored electron microscope image of MRSA. NIH - NIAID/flickr, CC BY

Courtesy of Sriram Chandrasekaran, University of Michigan

Imagine you’re a fossil hunter. You spend months in the heat of Arizona digging up bones only to find that what you’ve uncovered is from a previously discovered dinosaur.

That’s how the search for antibiotics has panned out recently. The relatively few antibiotic hunters out there ...



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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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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: Tuesday, 01 October 2019, 02:18:22 AM

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


Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

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Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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