Posts Tagged ‘SLE’

Options Fly at Fortune Brands, Inc.

Today’s tickers: FO, XLK, KFN & SLE

FO - Fortune Brands, Inc. – The holding company for firms engaged in the manufacture, production and sale of distilled spirits, home and hardware products and golf products popped up on our scanners in the first half of the trading session after one strategist initiated a sizeable stock and option combination play. Fortune Brands’ shares rallied as much as 2.10% to hit an intraday- and new 52-week high of $62.44 on news the firm’s Board of Directors approved in principle a plan that would ultimately result in the firm focusing exclusively on the distilled spirits business. The options trader populating Fortune Brands today appears to have purchased 500,000 shares of the underlying stock at a price of $61.30 as part of a buy-write or covered call strategy. The investor sold 5,000 in-the-money calls at the January 2011 $60 strike to receive premium of $3.10 apiece. Finally, the investor also purchased downside protection in the form of 5,000 puts at the lower January 2011 $55 strike at a premium of $0.65 a-pop. Buying up the put options cuts in to premium received on the sale of the calls, leaving the investor a net credit of $2.45 per contract. The rich premium pocketed by the investor effectively reduces the price paid to get long the stock from $61.30 to $58.85 a share. Thus, the buy-write strategist stands prepared to accumulate maximum potential gains of 1.95% if the shares are called away from him ahead of January expiration. The puts protect the value of the underlying in the event that shares in Fortune Brands slip lower by expiration day next month. But, if FO’s shares slide under $60.00 and the calls expire worthless at expiration, the investor may choose to hold onto the underlying position in order to capitalize on a potential rally that may be in store for FO in 2011.…
continue reading


Tags: , , ,




Long-Term Bullish Strategies Detected in Gamestop Corp. Options

 Today’s tickers: GME, CHE, PENN, JPM, MED, SLE & WYNN

GME - Gamestop Corp. – Bullish options strategies were initiated on the video game retailer today despite the 0.70% dip in the price of the underlying shares to $19.86. One long-term optimistic individual employed the use of a three-legged combination, selling puts to buy a call spread, in order to prepare for a rebound in Gamestop’s shares by April expiration. The investor purchased 3,000 calls at the April 2011 $20 strike for a premium of $2.13 each, sold 3,000 calls at the higher April 2011 $24 strike for premium of $0.72 apiece, and shed 3,000 puts at the April 2011 $16 strike at a premium of $0.81 a-pop. Net premium paid to initiate the spread amounts to $0.60 per contract. Thus, the trader is poised to profit should GME’s shares rally above the effective breakeven price of $20.60 by April expiration day. Maximum available profits of $3.40 per contract are safe in the investor’s wallet if the video game seller’s shares jump 20.85% over the current price of $19.86 to exceed $24.00 by expiration. Finally, a 3,000-lot October $20/$24 strike call spread traded around the same time as the three-legged transaction. Open interest in the near-term calls is sufficient to cover today’s volume. The investor responsible for the October contract activity may be rolling the spread up to the April contract and adding the short puts to provide additional financing on the bullish stance.

CHE - Chemed Corp. – Shares of the provider of hospice care as well as various consumer services such as plumbing and sewer cleaning via its Roto-Rooter segment slipped 2.00% to $55.34 as of 3:40 pm ET. Investors with a near-term bearish view on the stock appear to have sold 2,000 calls outright at the November $60 strike to pocket premium of $0.55 per contract. Call sellers keep the full premium received on the trade as long as Chemed’s shares fail to rally above $60.00 by expiration day next month. Investors could…
continue reading


Tags: , , , , , ,




Werner Enterprises Sees Bearish Activity

Today’s tickers: WERN, MDVN, GT, XRX, SLE, AMGN, ESI, EBAY, FFIV & SLE

WERN – Werner Enterprises, Inc. – The truckload freight services firm edged onto our ‘hot by options volume’ market scanner due to bearish trading in the June contract. Shares of WERN slipped 0.5% lower this afternoon to $20.22. One investor initiated a ratio put spread by purchasing 6,000 put options at the June 20 strike for 2.25 apiece, and by simultaneously selling 12,000 puts at the lower June 17.5 strike for 1.10 each. The net cost of the trade is reduced to just one nickel per contract. The trader is probably aiming to protect the value of a long position in shares of WERN through expiration. Downside protection will kick in if shares decline more than 27 cents from the current price given the effective breakeven point on the trade at $19.95.

MDVN – Medivation, Inc. – Long-term bearish activity in the June 2010 contract suggests one investor may be bulking up on downside protection in case shares of biopharmaceutical company, Medivation, Inc., continue to decline. The stock is currently trading less than 0.5% lower to stand at $26.51. A put spread was established through the purchase of 10,000 puts at the June 22.5 strike for 7.80 apiece, marked against the sale of 10,000 puts at the lower June 12.5 strike for 1.87 each. The net cost of the pessimistic play amounts to 5.93 per contract. The spread was most likely initiated by an investor holding a long position in the underlying shares. Putting on the protective stance shields the investor from losses beneath the breakeven point at $16.57. However, if the trader is in fact long the stock, he will suffer a 38% decline in the value of MDVN before downside protection kicks in at the breakeven price described. An alternate scenario is that the investor does not hold a long position in MDVN. If this is the case, the trader is uber-bearish and expects to garner profits from significant declines in Medivation through expiration in June.

GT – The Goodyear Tire & Rubber Co. – Option traders populated the November contract on GT with bullish plays this afternoon. Shares added more than 2.5% during the session to arrive at the current price of $17.83. Some investors targeted the now in-the-money November 17.5 strike to purchase 3,800 calls for an average premium of one dollar apiece.…
continue reading


Tags: , , , , , , , ,




Sara Lee Tempts Call Buyers

Today’s tickers: SLE, TPX, ODP, AUY & BAC

SLE - Cake baker, Sara Lee, attracted bullish investors to the January contract this morning amid a 3% rally in the price of shares to $10.40. Traders thirsting for a rally in SLE by the start of 2010 purchased more than 8,000 calls at the January 12.5 strike for an average premium of 21 cents apiece. Investors holding the calls are now positioned to accumulate profits if shares of Sara Lee surge 22% higher to breach the breakeven price of $12.71 by expiration. We note that SLE has not traded higher than $12.71 since October 6, 2008. – Sara Lee Corp. –

TPX - The manufacturer of luxurious mattresses experienced a 1% decline in shares to $18.04 today despite having received an upgrade to ‘outperform’ from ‘neutral’ and a 12-month price target of $23.00 at Wedbush Morgan Securities. Investors employed two different strategies using options in the October contract. One tactic observed was a bullish risk reversal. The trader shed 1,000 puts at the October 17.5 strike for an average premium of 97 cents in order to partially finance the purchase of 1,000 in-the-money calls at the same strike for 1.85 apiece. The net cost of the reversal amounts to 88 cents per contract. The bullish trader stands ready to breakeven on the transaction if shares can breach the breakeven point at $18.38 by expiration next month. Another investor targeted the same strike to implement a short straddle. This individual sold 2,000 puts for 75 cents each and 2,000 calls for 1.80 per contract at the October 17.5 strike to pocket a gross premium of 2.55. The short straddle indicates that the trader expects shares of TPX to settle at $17.50 by October expiration. If the stock moves 54 cents lower to $17.50, the investor will keep the entire 2.55 premium received on the sale. Otherwise, greater volatility in the price of TPX could result in losses if shares shift outside of the breakeven point to the upside at $20.05, or beneath the breakeven to the downside at $14.95. – Tempur-Pedic International, Inc. –

ODP - Shares of the global supplier of office products slumped 8% lower at the start of the session to $5.86. The stock recovered somewhat by 11:30 am (EDT) with shares down 4% to $6.12. Some investors braced for continued declines in ODP by initiating put spreads in the October…
continue reading


Tags: , , , ,




 
 
 

Phil's Favorites

Theresa May resigns as British prime minister - here's where it all went wrong

 

Embed from Getty Images

 

Theresa May resigns as British prime minister – here's where it all went wrong

Courtesy of Nicholas Allen, Royal Holloway

Europe has claimed the career of yet another Conservative prime minister. After less than three years in office, Theresa May has suffered a catastrophic loss of confidence in her leadership among MPs and cabinet ministers. She has finally faced up to the demands from within her party and announced her resignation.

Indicating her intention to step down, May said she ha...



more from Ilene

Zero Hedge

Trash Wars: Duterte Orders Tons Of Garbage Shipped Back To Canada Or Dumped In Territorial Waters

Courtesy of ZeroHedge

Outspoken Philippines President Rodrigo Duterte has ordered that containers carrying trash from Canada should be shipped back to the country. It is the latest chapter in a disagreement over more than 100 containers of trash that were shipped to the Philippines between 2013 and 2014, illegally, by a Canadian company. 

Canada had previously agreed to take the trash back, but has been slow in making arrangements for its return. Duterte threatened to leave the trash in Canadian waters if Ottawa refuses to take it back, according to Salvador Panelo, spokesman for the President. Quoted by RT, Panelo said Duterte was “upset” by Ot...



more from Tyler

Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...



more from Kimble C.S.

Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!


Alistair Williams Comedian youtube

This is a classic! ha!







Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of Gann Angles, ...

more from Chart School

Insider Scoop

55 Biggest Movers From Yesterday

Courtesy of Benzinga.

Gainers
  • Obalon Therapeutics, Inc. (NASDAQ: OBLN) shares jumped 233.3 percent to close at $1.30 on Wednesday after the company reported expanded data from a large scale commercial use study that was presented at the Digestive Disease Week.
  • Ascent Capital Group, Inc. (NASDAQ: ASCMA) shares jumped 51.4 percent to close at $1.37 after the company announced a restructuring support agreement with Monitronics International.
  • Valeritas Holdings, Inc. (NASDAQ: VLRX) shares dippe...


http://www.insidercow.com/ more from Insider

Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



more from Bitcoin

Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



more from Biotech

ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



more from ValueWalk

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



more from M.T.M.

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>