Posts Tagged ‘SPG’

Bullish Player Initiates Three-Legged Spread on Cisco Systems

Today’s tickers: CSCO, CECO, SPG & GE

CSCO - Cisco Systems, Inc. – Shares in the world’s largest maker of networking equipment increased as much as 2.5% during the session to secure an intraday high of $17.42 after the company announced it will pay its first ever cash dividend on April 20, to shareholders of record on March 31, 2011. Cash-rich Cisco Systems said the dividend will amount to $0.06 a share. Shares in the San Jose, CA-based manufacturer of switches and routers are still hovering around their lowest level since April 2009, and fell to a new 52-week low of $16.97 earlier this week. But, it looks like one big option strategist is looking for the price of the underlying to rebound ahead of January 2012 expiration. The investor initiated a three-legged bullish play, selling puts to partially finance the purchase of a call spread, in order to position for brighter days in CSCO’s future. The trader sold 40,000 puts at the January 2012 $15 strike at a premium of $0.95 each, purchased the same number of calls up at the January 2012 $17.5 strike for a premium of $1.72 per contract, and sold 40,000 calls at the higher January 2012 $22.5 strike at a premium of $0.42 apiece. Net premium paid to initiate the spread amounts to $0.35 per contract, thus positioning the investor to make money in the event that Cisco’s shares rally another 2.5% over today’s high of $17.42 to surpass the effective breakeven price of $17.85 by expiration. Maximum potential profits of $4.65 per contract are available to the trader should shares in CSCO jump 29.2% to exceed $22.50 ahead of expiration day next January. Shares in the name last traded above $22.50 back in November 2010.

CECO - Career Education Corp. – Put options on…
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2010 Tin Tiger Tuesday

The year of the Tiger begins!

Chinese New Year is a serious business with tens of millions of migrant workers in China, as well as many from overseas, traveling home to have reunion dinners with their families.  In addition to fireworks, celebrants like to wear new clothes from head to toe (preferably red as it drives away evil spirits) and they exchange  red envelopes and red packets called “Ang Pow”. These Ang Pows are usually are passed out during the Chinese New Year’s celebrations, almost always containing money (from a couple of dollars to several hundred). Per custom, the amount of money in the red packets should be of even numbers. The number 8 is considered lucky (for its homophone for “wealth”).  In addition to red envelopes, which are usually given from elders to the younger, small gifts (usually of food or sweets) are also exchanged between friends or relatives. Gifts are usually brought when visiting friends or relatives at their homes. Common gifts include fruits (typically oranges, and never pears), cakes, biscuits, chocolates, candies, or some other small gift

The Year of the Tiger is considered lucky and this year is the year of the Metal Tiger, which explains all the commodity hoarding and the tigier is also considered auspicious for risk-taking and bravery.  Traditionally, all debts are paid by New Year’s and there is much emphasis on looking forward and letting go of the past.  The Chinese markets will be closed all week but we can expect a lot of forward-looking behavior when they come back so I’m liking FXI March $40 calls for $1 as long as our markets hold positive as we could get a nice pop next week as China plays catch-up. 

BCS will be popping the financials this morning with some great LOOKING earnings but much of it came on the sale of their Global Investors unit to Black Rock for a $9.9Bn gain so nothing at all to get excited about.  Impairments were up 49% but slowed in the second half and guidance indicates the worst is over.  Also goosing the market this morning is SPG offering $10Bn for GGWPQ, the bankrupt version of what was GGP.  This works out to about $9 for shareholders who hung on – we had taken a flier on them in the spring under $1 but got the heck out at $5 as THAT seemed high but I guess not and I”m now…
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Hi-Ho Long-Term Silver Bulls!

Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV – iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT – iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL – Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options…
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Simon Properties upgrade leaves option traders with butterflies

Today’s tickers: SPG, AMR, EEM, MDR, EFA, EWZ, IP & M

SPG Simon Property Group, Inc. – The real estate investment trust (REIT) has experienced a significant rally of more than 9% to $42.16 today and was added to the ‘conviction buy’ list at Goldman Sachs. SPG appeared on our ‘most active by options volume’ market scanner after one investor established a long butterfly spread in the July contract. The purchase of 5,000 puts at the July 20 strike for 90 cents apiece (wing 1) and the purchase of 5,000 puts at the July 40 strike for 6.70 each (wing 2) were spread against the sale of 10,000 puts at the July 30 strike price for a premium of 2.80 per contract (body). The net cost of the transaction amounts to 2.00 (0.90 [wing 1] + 6.70 [wing 2] – (2.80*2 [body]) = 2.00). This investor will gain the maximum potential profit of 8.00 if shares settle at $30.00 by expiration. This strategy implies that he is hoping shares will fall from the current level through the breakeven point located at $38.00, at which point profits begin to amass to the downside. Should shares continue to rally rather than plummet, the most this trader can lose is the 2.00 he paid for the strategy. In order to reel in the full 8.00 of potential profits, shares would need to decline by 29% from the current price.

AMR AMR Corporation – American Airlines parent corporation, AMR, has experienced a huge share price rally as the stock jumped by more than 16% today to $4.90 after the company revealed narrower than expected first-quarter losses. AMR continues to struggle in this recessionary climate, but looks for travel demand to rise by the middle of the year. Option investors welcomed the better-than-expected results and were seen taking bullish stances on the company. At the May 5.0 strike price, 10,800 calls were purchased for an average premium of 70 cents per contract. One investor sold 6,850 puts at the May 4.0 strike price for 30 cents apiece in order to fund the purchase of 6,850 of the calls picked up at the May 5.0 strike. Finally, bullish investors looking to fly higher selected the May 6.0 strike where more than 3,400 calls were coveted for an average premium of 28 cents. Shares would need to continue on the up-and-up and gain another 22% in order…
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Phil's Favorites

The PhilStockWorld com LIVE Weekly Webinar - 07-17-19

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here.

Major Topics:

00:02:11 Indexes Charts
00:02:59 Energy Charts
00:04:28 S&P500
00:18:48 Money Talk Portfolio
00:31:25 7 Steps to Consistently Making 30-40% Annual Returns
00:35:41 Top Trades
00:45:33 Long Term Portfolio
00:49:34 WPM
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01:06:31 Petroleum Status Report
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Zero Hedge

This Is Where The Next Recession Will Start: An Epidemiological Study

By Nicholas Colas of DataTrek

(Published at ZeroHedge)

US recessions are like epidemics: they all begin somewhere, and the “tell” is state-level unemployment data. For example, the end of the 2000 dot com bubble hit Connecticut and Massachusetts first – two hubs for the financials services industry with lots of affluent investors to boot. The end of the 2000s housing boom predictably impacted Florida and Nevada before the rest of the country. This time around, the data shows the manufacturing-heavy states of Michigan, Ohio and Indiana are most at risk. No wonder “Dr. Fed” wants to inoculate the region with lower interest rates.

When medical professionals study epidemics, they look for the source of the ou...



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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Kimble Charting Solutions

Silver ETF (SLV) Testing Dual Breakout Resistance

Courtesy of Chris Kimble.

Silver (NYSEARCA: SLV) has been in a bit of a slumber when compared to the price action for Gold (NYSEARCA: GLD).

Precious metals bulls hope that this about to change, as bullish action from Silver is necessary to confirm any bull market / move in metals.

Today’s chart takes a closer look at the Silver ETF (SLV) on a weekly basis. As you can see, Silver is up 5 percent this week alone.

This is good news for metals bulls. But this rally isn’t confirming a breakout just yet.

As you can see in the chart below, SLV has been trading between support (1) ...



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Insider Scoop

Analysts Weigh In On Netflix's Rocky Quarter

Courtesy of Benzinga.

Netflix, Inc. (NASDAQ: NFLX) reported second-quarter results highlighted by an uncharacteristic decline in U.S. subscribers while international subscriber adds missed expectations. Here is a summary of how some of the Street's top analysts reacted to the print.

The Analysts

Mor...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker.

Charts show us the golden brick road to high prices.

GLD Gann Angle has been working since 2016. Higher prices are expected. Who would say anything different, and why and how?

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



The GLD very wide channel shows us the way.
- Conservative: Tag the 10 year rally starting in 2001 to 2019 and it forecasts $750 GLD (or $7500 USD Gold Futures) in 10 years.
- Aggressive: Tag the 5 year rally starting in 1976 to 2019  and it forecasts $750 GLD (or $7500 USD Gold Futures) in 5 years.

Click for popup. Clear your browser cache if ima...



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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...



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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...



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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 ...



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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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