Posts Tagged ‘SHPGY’

Rumor Mill Sends Traders to Shire Options, Drives Shares to All-Time High

 Today’s tickers: SHPGY, ODP, SKX & GNW

SHPGY - Shire PLC – The maker of Adderall XR and other pharmaceutical products attracted a diverse crowd of bullish options strategists during the session on speculation there are parties interested in acquiring the biopharmaceutical company. Shares in Shire are currently up 2.95% to arrive at an intraday- and new all-time high of $96.00. Plain-vanilla call buyers flocked to front month to position for continued new highs in Shire’s shares ahead of May expiration. Meanwhile, June contract put options provided the medium for a different type of bullish play today. Speculators engaging near-term call options picked up in- and out-of-the-money contracts, purchasing around 500 calls as high as the May $100 strike for an average premium of $0.23 each. Call buyers at the May $100 strike profit at expiration if shares in Shire are trading above $100.23. Investors may also choose to sell the calls ahead of expiration at an advantageous price should takeover chatter continue to bump up the price of the underlying, and perhaps more importantly, options implied volatility. Shire’s overall reading of implied volatility is up 24.5% to stand at 26.59% as of 2:15pm in New York. The options trader targeting put options is positioning to maximize profits on a credit spread should shares in Shire exceed $92.50 through June expiration. It looks like the investor sold approximately 2,400 puts at the June $92.5 strike for a premium of $1.63 each, and purchased roughly the same number of puts at the lower June $85 strike at a premium of $0.45 apiece. The investor pockets a net credit representing maximum potential profits on the spread of $1.18 per contract, and keeps all of it as long as the put options expire worthless at expiration. The risk involved in this type of strategy is not for the faint of heart. Shares in SHPGY could potentially reverse course ahead of expiration. In such a case, the trader starts losing money below a breakeven share price of $91.32. Maximum potential losses on the transaction, while limited to $6.32 per contract, far exceed the net credit received for bearing the risk. However, it seems the investor is willing to tolerate this risk-reward profile…
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Cemex Share Issue Has Bears Target Option Risk-Reversals

Today’s tickers: CX, RIMM, FCX, LAVA, XLF, M, MBI, JDSU & SHPGY

CX - The Mexican cement company’s shares have edged slightly lower by less than 0.5% to $13.04 this afternoon due to the firm’s plan to issue stock to pay down debt. Option traders have braced for further declines by employing bearish risk reversals in the October contract. It appears investors shed 6,500 calls at the October 14 strike for 43 cents apiece in order to partially finance the purchase of 6,500 puts at the lower October 12 strike for 45 cents each. The net cost of picking up protective put options is reduced to just 2 pennies per contract. If traders are long the underlying stock, downside protection will kick in if shares slip beneath the breakeven point at $12.98 by expiration next month. – Cemex SAB de CV –

RIMM - Blackberry producer, Research in Motion, attracted bullish investors who initiated call spreads on the stock today. Shares are slightly higher by less than 0.25% to stand at the current price of $84.25. One investor targeted the November contract where it appears put options were sold to offset the cost of purchasing a call spread. The spread involved the purchase of 6,000 calls at the November 105 strike for 1.28 each against the sale of 6,000 calls at the higher November 120 strike for 33 cents per contract. Finally, the November 70 strike had 6,000 puts shed for an average premium of 1.87 apiece. The investor receives a net 91 cent credit on the three-legged strategy. He will retain the full premium as long as shares of RIMM remain higher than $70.00 by expiration day. Additional profits are available to the trader if the stock surges 25% from the current price to breach the $105.00 level. Maximum potential profits of 15.00 per contract would be attained if Research in Motion skyrocketed 42% to $120.00. Another trader put on a ratio call spread in the January contract. The bullish trade was established through the purchase of 1,500 calls at the January 90 strike for 6.81 spread against the sale of 3,000 calls at the higher January 115 strike for a premium of 1.42 apiece. The net cost of the transaction amounts to 3.97 per contract. The investor will begin to garner profits if shares rise through the breakeven point at $93.97 by January’s expiration. – Research in Motion Limited…
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Zero Hedge

40 Shipping Containers Adrift Off US Pacific Coast After Vessel Hit By Rough Seas 

Courtesy of ZeroHedge View original post here.

The global supply chain is more snarled than ever, forcing container ships to stack truck-size intermodal containers to the brim in a technique called containerization. The more shipping containers loaded up on a vessel, the more prone i...



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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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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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