Posts Tagged ‘SINA’

EBIX Options Active As Shares Slide

 

Today’s tickers: EBIX, SINA & COL

EBIX - Ebix, Inc. – Shares in the maker of insurance software products are down sharply today on reports the SEC is investigating the company’s accounting practices. The stock dropped as much as 32% earlier in the session to an intraday low of $15.26, with the shares currently down roughly 21% to stand at $17.68 as of 11:55 a.m. ET. Options on EBIX are more active than usual as some traders scramble in reaction to the big move in the price of the underlying shares. Upside call buying in the November and December expiry options suggest some traders are positioning for EBIX shares to rebound in the near term. Bullish strategists picked up around 170 of the Nov. $18 strike calls for an average premium of $1.20 apiece. These traders may profit at expiration in a couple of weeks in the event that the software maker’s shares rally 8.6% over the current price of $17.68 to top the average breakeven point at $19.20. Like-minded bulls snapped up roughly 200 calls out at the Dec. $15 strike at a premium of $2.00 each. Profits are available to buyers of the Dec. $15 strike calls as long as shares in Ebix, Inc. exceed $17.00 at expiration next month. Not all traders, however, are positioning for a recovery story to play out. Some strategists are trading bearish puts at the Nov. $15 strike, where more than 750 contracts changed hands against zero previously established positions. Meanwhile, out in December expiry puts, it looks like one trader rolled a position in downside puts to a lower striking price. The options player appears to have sold 493 puts at the Dec. $21 strike for a premium of $4.70 apiece in order to buy the same number of puts at the Dec. $15 strike at a premium of $1.70 each. The Dec. $15 strike puts make money if shares in Ebix extend losses ahead of expiration. Ebix, Inc. is scheduled to report third-quarter earnings ahead of the opening bell on Thursday.…
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Will We Hold It Wednesday – NOW It’s May

SPY 5 MINUTEYesterday did not count.

Until the end of day, the volume was low and, as you can see from Dave Fry's SPY chart, the morning pump was mostly erased by the end of the day.  In fact, on the Russell and Nasdaq – it was entirely erased.  What a friggin' joke, yet no one will investigate it and few will even question it.  

As we often say at PSW – We don't care IF the game is rigged, as long as we know HOW the game is rigged and get to place our bets accordingly.  In my Morning Alert to Members at 10:05, my comment on the move up was: 

Not too many markets are open so super low-volume means we can pretty much ignore whatever's happening.  Some wild gyrations at the open already with AAPL popping $10 to goose the Nas and they are spiking us up and down at will on this low volume.   

At 12:02 we made our planned adjustments to our 4 active virtual portfolios, taking advantage of the big, bad spike to move to cheap June bear positions and cash out our long plays and just get generally more aggressively bearish at what we thought was going to be the top for the day.  The most aggressive move was made in our most aggressive, $25,000 Portfolio (pictured here from its 10am status BEFORE many changes were made), where we flipped our protective TNA hedge  from bullish to very bearish – shifting the balance of the portfolio much more bearish with a single move:  

TNA – $60s are now $4 so let's take that and run on 5 (1/2), as that's more than we paid for the spread and we'll ride the $63s half-covered with a stop on 5 at $3 (now $2.25).  Also, a stop on the 5 remaining $60s at $3, at which point we would reset the stop on the $63s, of course. 

Needless to say, that trade worked out huge already as the $60s all stopped out at a $3.50 average ($3,500), which is $500 more than our max potential gain on the spread and the $63 calls already finished the day at $1.10 ($1,100) for a net of $2,400 (so far) off our $1,450 entry on 4/26 – so up 65% in less than a week on the trade we used to…
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Monday Musings – New Quarter Not So Shiny

I played poker this weekend.

I entered a few tournaments in Atlantic City, made it to a couple of final tables but didn't win any.  It did remind me that a bluff can only get you so far – at a certain point, you have to actually have the cards in order to win.  As I pointed out to Members this morning – the Global Markets have bluffed their way through the first quarter and now comes earnings season and it's time for the economy to show it's cards and now we'll see who ends up with all the chips!  

Just this morning we got this disturbing data:  

These are NOT cards you want to be playing with unless you are forced.  That's the thing, GS, JPM, MS, Fund Managers, etc – they HAVE to play.  Since they have to play whatever cards that are dealt – they do the logical thing – THEY BLUFF!  Although what's scary about the Banksters is that, when they bluff, it's like the dealer bluffing because they control so much of the game and their only real goal is to get you to play so they can rake…
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SINA Corp. Puts In High Demand As Shares Slide

Today’s tickers: SINA, BLK, KKD & SCHW

SINA - Sina Corp. – Shares in SINA Corp. quickly surrendered gains enjoyed at the open of U.S. markets, plunging as much as 11.2% to $56.05 before recovering somewhat to stand 4.5% lower on the day at a fresh 52-week low of $60.30, as of 11:30 AM in New York trade. The steep drop in SINA’s shares reportedly followed what some say is the misreading of an article in the Chinese-language version of the Wall Street Journal that mentioned the company in close proximity to research firm Muddy Waters. Shares are well off their lowest point of the session, but have not fully recovered from the selloff. Investors were quick to initiate bearish stances on the stock using put options after the stock turned-tail in early trade. Heavy trading traffic in the weekly put options indicates some traders are taking short-term bearish positions on the Chinese internet company in case shares in the name continue to come under fire over the next several sessions to expiration. Deep out-of-the-money puts are attracting substantial volume, with more than 3,900 puts changing hands at the Dec. ’02 $50 strike against open interest of just 14 contracts. It looks like investor purchased the majority of the puts at this strike for an average premium of $0.85 a-pop. Put volume exceeds 3,500 contracts up at the Dec. ’02 $55 and $57.5 strikes, as well. Options expiring on December 16 are quite active this morning, although not all transactions appear to be the work of bearish players. One investor sold a block of 3,881 puts at the Dec. $40 strike to pocket premium of $0.50 per contract. The trader walks away with the full amount of premium as long as shares in SINA Corp. top $40.00 at December expiration. SINA’s shares are down roughly 60.0% off their April 19, 2011, 52-week high of $147.12. Put buyers may profit if shares in the name continue to slide in the next few weeks.

BLK - BlackRock, Inc. – The investment management company’s shares took off this morning, rallying as much as 6.0% to an intraday high of $160.34. The sharp rebound erases the prior week’s pullback, although the stock continues to trade at a roughly 25% discount to its March 3, 2011, 52-week high of $209.77. One investor responsible for big prints in Jan. 2012 contract put options is prepared in the event that BlackRock’s…
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Bull Eyes New Highs in United Continental Shares by Year’s End

Today’s tickers: UAL, KSS, ANN, KO, SINA, XLF, FRX & OI

UAL - United Continental Holdings, Inc. – The world’s largest carrier jumped up on our ‘most active by options volume’ market scanner earlier today after one bullish options player purchased a large call spread in the December contract. Shares in United Continental rose 0.90% this afternoon to trade at $27.42 as of 3:00 pm. The investor purchased approximately 11,200 calls at the December $29 strike for a premium of $0.72 each, and sold the same number of calls at the higher December $31 strike at a premium of $0.32 each. Paying a net $0.40 per contract for the spread, the investor is prepared to profit should shares in UAL surge 7.2% over the current price of $27.42 to surpass the effective breakeven point to the upside at $29.40 by expiration day. The trader is poised to accumulate maximum potential profits of $1.60 per contract, roughly $1.792 million, if the airline operator’s shares jump 13.05% and trade above $31.00 by expiration in December.

KSS - Kohl’s Corp. – Massive prints in Kohl’s Corp. call and put options caught our eye this afternoon. Shares of the department store operator that sells nationally recognized as well as privately branded goods increased as much as 4.165% in the second half of the session to touch an intraday high of $52.76. It looks like the investor responsible for the mammoth transaction sold 50,000 puts at the December $50 strike for a premium of $0.85 each, and purchased the same number of calls up at the December $57.5 strike at a premium of $0.30 apiece. The risk reversal was tied to the sale of 2.15 million shares of the underlying stock at a price of $52.12 on a 0.43 delta. The investor receives a net credit…
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Dow Chemical Option Bulls and Bears on the Prowl

Today’s tickers: DOW, GLD, ISIS, DTV, SINA, XOM, SPWRA, AGO & SINA

DOW – The Dow Chemical Co. – Shares of the manufacturer of chemicals and plastic materials increased 2% during the trading session to $29.45. We observed a mix of bullish and bearish option plays on the stock today. One investor appears to have unraveled an in-the-money ratio call spread in the December contract in order to finance the purchase of 7,500 calls at the December 28 strike for 1.92 apiece. Further along, in the January 2010 contract, another bullish player rolled a long call position to a higher strike price. It looks like the investor originally paid between 2.35 to 3.30 in premium to buy 5,000 calls at the now deep-in-the-money January 24 strike back on September 14, 2009. Today the trader closed out the December 24 strike calls by selling 5,000 contracts for 5.30 each. The closing sale of the calls was spread against the purchase of 5,000 fresh call options at the higher January 28 strike for about 2.45 premium per contract. Finally, protective plays dominated the March 2010 contract. Two put spreads were established this afternoon. The first transaction involved the purchased of 5,000 puts at the March 27 strike for 2.08 each, marked against the sale of the same number of puts at the lower March 20 strike for 47 cents apiece. The net cost of the trade amounts to 1.61 per contract and yields protection beneath the breakeven price of $25.39. The other put spread involved the same number of put options but was transacted at the March 26/19 strikes at a net cost of 1.38 per contract. Downside protection on this play kicks in if shares decline through the breakeven point at $24.62 by expiration day in March.

GLD – SPDR Gold Trust ETF – More than 253,800 option contracts changed hands on the GLD with about 30 minutes remaining in the trading day. Investors traded calls on the exchange-traded fund more than 1.8 times to each put option in play. Shares of the GLD, which replicates the performance of the price of gold bullion, are up 0.25% in late-day trading to stand at $111.90. A large-volume ratio call spread on the fund suggests some investors expect the price of gold to rise sharply by expiration in January 2010. Bullish traders bought approximately 15,000 calls at the January 112 strike for an…
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Phil's Favorites

Do Public Markets Matter Like They Used To?

 

Do Public Markets Matter Like They Used To?

Courtesy of Howard Lindzon

The new hip mantra is ‘public markets DON’T matter as much anymore‘ and a lot of the smart money has moved to the private markets- see Matt Levine’s great post.

?The people that say this loudest are journalists, fintwit opinionados , underperforming hedge funds and billionaires.

The truth is OF COURSE public markets matter depending on where you sit.

My friend Ba...



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Zero Hedge

"He Abandoned The Deadly Cargo": Meet The Mysterious Businessman At Center Of The Beirut Blast Saga

Courtesy of ZeroHedge View original post here.

Thus far an official ongoing investigation by Lebanese authorities into the cause of Tuesday's Beirut port blast, now considered the largest non-military munitions explosion in history, has dubbed it severe "negligence". 

It's now well known that over 2,500 tons of ammonium nitrate, an ultra-combustible chemical compound utilized in fertilizers and production of ...



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ValueWalk

Coronavirus stimulus checks: McConnell ready to delay Aug recess

By Aman Jain. Originally published at ValueWalk.

We are now just days away from the August 7 deadline for the next coronavirus package. Though negotiators are working hard to come up with a deal, there are still differences between the two sides. In case there is no decision on the coronavirus stimulus checks deal by August 7, Senate Majority Leader Mitch McConnell has assured that they will delay the scheduled recess. Presently, the last day in session is scheduled for August 7, after which the Senate will go on a month-long break until September 8.

Q2 2020 hedge fund letters, conferences and more

Coronavirus stimulus: pr...

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Kimble Charting Solutions

Silver Headed Back To $50, Top Of The Cup & Handle Pattern?

Courtesy of Chris Kimble

Could Silver be creating a multi-decade bullish “Cup & Handle” pattern? Possible!

Did a retest of a handle breakout take place in March at (1), where Silver created one of the largest bullish reversals in decades? Possible!

Could Silver be creating a 40-year bullish pattern? Anything is possible! I humbly have to say share this; I’ve been in the business for 40-years and I haven’t seen anything like this.

Silver looks to have double topped back in 2011 at $50, which was the 1980 highs. After double topping, Silver ...



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The Technical Traders

Walk Through the Gold and Silver Charts to See What to Expect

Courtesy of Technical Traders

Check out the analysis of this morning’s Gold and Silver charts by our own Chris Vermeulen, Chief Market Strategist and Founder of TheTechnicalTraders.com, to see what is in store for precious metals. Make sure you check out our Gold and Silver article from August 4th, 2020 for additional context behind our predictions and rationale for continued price appreciation.

Learn more about our ...



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Biotech/COVID-19

What the huge COVID-19 testing undercount in the US means

 

What the huge COVID-19 testing undercount in the US means

Health care workers use a nasal swab to test a person for COVID-19 in Pembroke Park, Florida. Joe Raedle / Getty Images News

Courtesy of Melissa Hawkins, American University

Researchers from the Centers for Disease Control and Prevention and other institutions recently published a study which estimated that the true number of people infected by COVID-19 could be six to 24 times high...



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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: Sunday, 29 March 2020, 07:00:37 PM

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Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



Date Found: Monday, 30 March 2020, 05:21:45 PM

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Comment: 5 Questions From You for Luke Gromen youtu.be/nVZD_fuxbQE


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Digital Currencies

Twitter Says "Human Error" And "Spear-Phishing Attack" Responsible For Massive Bitcoin Hack

Courtesy of ZeroHedge

Twitter suffered from a major hack about two weeks ago and has now said that its staff was tricked by "spear-phishing", which is a targeted attack to trick people into simply handing out their passwords. 

Twitter staff were targeted through their phones, according to a new report from the BBC. The attacks then allowed hackers the ability to Tweet from celebrity Twitter accounts. Twitter has said it was "taking a hard look" at how it could improve its permissions and processes.

"The attack on July 15, 2020, targeted a small number of employees through a phone spear phishing attack. This attack relied on ...



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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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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.