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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Phil's Favorites

Gamestop Monday....WTF Happened?

 

Gamestop's crazy run on Monday didn't stop there. Take a look at Gamestop Tuesday, Gold Edition. The daily chart doesn't show it but GME surged another 60 points in after-hours trading! 

Source: Investors.com

Gamestop Monday….WTF Happened?

Courtesy of Howard Lindzon 

I like this ‘explainer’ post from ...



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ValueWalk

All Eyes On Tesla, Apple, Facebook Q4 Earnings Tomorrow

By Gorilla Trades. Originally published at ValueWalk.

Commenting on Apple, Tesla, Facebook Q4 earnings, and today’s trading Gorilla Trades strategist Ken Berman said:

Q4 2020 hedge fund letters, conferences and more

Stocks Settle Down

Today's low-volatility session was a typical pre-Fed-day one, it’s still a bullish sign following a hectic week of trading. The fact that stocks settled down today, avoiding a deeper pullback shows just how resilient this market is in the face of the growing valuation fears.

Volatility was very low at the level of the key sectors today, and the clear trends of the past weeks were les...



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Kimble Charting Solutions

Largest Bearish Reversal In 20-Years Sends Caution Message To Stocks!

Courtesy of Chris Kimble

Economically sensitive stocks have frequently sent an important message to the S&P 500. Is it possible that the largest bearish reversal pattern in 20-years could be sending an important message?

This chart looks at U.S. Steel (X) on a monthly basis over the past 20-years. Since the 2008 highs, “X” has created a series of lower highs and lower lows, creating a falling channel (2). Over the past 13-years, line (1) has come into play as support and resistance numerous times.

“X” created the largest bullish reversal pattern in 20-years in...



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Zero Hedge

Netherlands Hit With Third Night Of Anti-Curfew Riots 

Courtesy of ZeroHedge View original post here.

Dutch riots unfolded for the third consecutive night as anti-lockdown protesters defied the country's new curfew rules to mitigate the spread of COVID-19, according to RT News

At least 150 people were arrested Monday night in Amsterdam and Rotterdam, where stores were looted and vandalized. 

BLM burned down dozens of American cities & murdered multiple people to potentially get a black person printed on a piece of paper

Biden ...



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Biotech/COVID-19

South African scientists who discovered new COVID-19 variant share what they know

 

South African scientists who discovered new COVID-19 variant share what they know

Health care workers and patients in the temporary outside area Steve Biko Academic Hospital created to screen and treat suspected Covid-19 cases in Pretoria. Alet Pretorius/Gallo Images via Getty Images

Courtesy of Willem Hanekom, Africa Health Research Institute (AHRI) and Tulio de Oliveira, University of KwaZulu-Natal

Late last year the ...



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Digital Currencies

Ethereum Surges To New Record High As DeFi Boom Re-Accelerates

Courtesy of ZeroHedge View original post here.

Coins that power decentralized finance (DeFi) protocols are soaring recently as bitcoin treads water.

While bitcoin grabbed all the headlines early on in the year, it is the rest of the crypto space that is stealing its thunder most recently as Ethereum, the backbone of the smart contracts that define much of the DeFi space, has drastically outperformed...

Source: Bloomberg

That is the highest for ETH relative to BTC since

...

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Politics

Far-right groups move to messaging apps as tech companies crack down on extremist social media

 

Far-right groups move to messaging apps as tech companies crack down on extremist social media

Far-right groups like the Proud Boys, seen here marching in Washington, D.C., on Dec. 12, are increasingly organizing their activities on messaging services like Telegram. Stephanie Keith/Getty Images

Courtesy of Kevin GrishamCalifornia State University San Bernardino

Right-wing extremists called for open revolt against the U.S. government ...



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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: Saturday, 11 July 2020, 05:26:16 PM

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


Comment: This is lack of liquidity means support is likely to break if it is tested hard!



Date Found: Saturday, 11 July 2020, 09:51:58 PM

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


Comment: Nasdaq losing momentum.



Da...

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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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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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