Posts Tagged ‘SPLS’

Bullish Activity Detected In Staples Options

SPLS – Staples, Inc. – Office supplies retailer Staples popped up on our market scanners this morning following a burst of activity in November expiry call options. Shares in SPLS have been moving steadily higher throughout the session, with the stock currently up 1.4% on the day at $14.95 as of 12:35 p.m. ET.

The most traded options contracts on Staples today are the Nov $16 strike calls, with roughly 7,000 contracts purchased at a premium of $0.20 each just after 10:00 a.m. ET this morning. The position makes money at expiration if shares in the retailer rally more than 8.0% over the current price of $14.95 to exceed the breakeven point at $16.20. The Nov $16 calls expire one week prior to the company’s third-quarter earnings report on November 20th.

Finally, the Nov $15 strike calls were also active this morning, with around 800 lots purchased at a premium of $0.50 each at almost the exact same time as the $16 calls were purchased. 

CCL – Carnival Corp – Shares in the world’s largest cruise operator are sinking today, down as much as 8.0% during morning trading to $34.43, after the company forecast fourth-quarter earnings below analyst estimates.

Put options purchased during the final 30 minutes of the trading session on Monday appear to have generated sizable overnight profits for at least one options strategist today. Open interest in the Oct $37 puts increased by around 1,250 contracts following the prior trading session;…
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PetSmart Puts In Play As Shares Extend Declines

 

Today’s tickers: PETM, FURX & SPLS

PETM - PetSmart, Inc. – Shares in the specialty retailer of products and services for pets and their owners fell sharplythis morning on a downgrade to ‘reduce’ from ‘neutral’ at Nomura, with the stock currently trading 7.4% lower on the session at $64.81 as of 11:25 a.m. ET. A sizable bearish options strategy initiated on PetSmart in the early going suggests one trader is bracing for shares to extend declines during the next couple of months. It looks like the strategist purchased a 2,000-lot March $60/$65 put spread for a net premium of $1.55 per contract. The bearish position starts making money if shares in PETM decline 2.1% from the current price of $64.81 to breach the effective breakeven point at $63.45. Maximum potential profits of $3.45 per contract are available on the spread in the event that shares drop more than 7.4% to settle below $60.00 at April expiration. Two weeks ago we noted a similar bear put spread initiated on PETM; the similar-sized position was an April $60/$65 put spread purchased at a net premium of $1.80 per contract. Both positions result in maximum possible profits if shares in PetSmart drop to $60.00 by expiration in March and April.

FURX - Furiex Pharmaceuticals, Inc. – Shares in Furiex Pharmaceuticals are soaring today, up 52% to stand at $32.33 just before midday in New York, after the company confirmed that its partner, Japanese firm Takeda Pharmaceutical Co., received approval from the U.S. FDA for three new type 2 diabetes therapies designed to treat the disease in adults in combination with diet and exercise. Furiex options, which typically see daily volume of around 33 contracts on average, are far more active than usual on news of the approval, with volume topping 1,685 contracts during the first half of the session. Put options are more active than calls, with roughly two puts in play for each single call option. The stock this morning rallied 55% to an all-time high of $32.97, but had already started making moves to the upside at…
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Bullish Options Build On Biotech Company Gilead Sciences

 

Today’s tickers: GILD, SPLS & ODP

GILD - Gilead Sciences, Inc. – Bullish activity in the biotechnology company’s options jumped and shares in Gilead Sciences moved up more than 2.0% to $46.18 the same day the drug maker presented at the 2012 RBC Capital Markets’ Healthcare Conference in New York. Positive comments from management along with the impending April 19th first-quarter earnings report from the Company could be catalysts for the sizable bull call spreads accumulating in the April expiry. It looks like one investor purchased a roughly 15,000-lot April $47/$50 call spread for a net premium of $1.13 per contract to position for shares to extend gains during the next couple of months. Profits may be available on the spread in the event that Gilead’s shares rally another 4.2% to surpass the average breakeven price of $48.13, while maximum possible profits of $1.87 per contract pad the investor’s wallet should the stock surge 8.3% to top $50.00 at expiration. Gilead’s shares had realized year-to-date gains of 35.0% earlier this month after the Company’s better-than-expected fourth-quarter earnings report sent the stock up as high as $56.50 on the 6th of February. The stock subsequently came back down with a thud shortly after reaching its highest level since 2008, but the options trader responsible for the call activity this morning is poised to benefit should the stock regain its footing in the near term.

SPLS - Staples, Inc. – Shares in the office supplies retailer rallied 4.7% to $15.95 in sympathy with competitor, Office Depot, Inc., which opened sharply higher on better-than-expected fourth-quarter earnings released ahead of the opening bell this morning. Staples is scheduled to reveal its fourth-quarter performance before U.S. markets open on Wednesday, and it looks like options traders are positioning for the upward move in…
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Options Player Harvests Premium, Sells Ralph Lauren Corp. Calls

Today’s tickers: RL, OSK, SPLS & RAX

RL - Ralph Lauren Corp. – The designer of premium-brand lifestyle products ranging from men’s and women’s fashion to fragrances and home furnishings popped up on our ‘hot by options volume’ market scanner after one investor traded a large chunk of deep out-of-the-money October contract call options. Shares in Ralph Lauren Corp. fell 2.0% earlier in the session to $135.69, but recovered in early-afternoon trade to stand roughly flat on the session at $138.82 as of 12:20 pm ET. The stock currently trades a few dollars below its July 21 all-time high of $141.37. The strategist responsible for nearly all of the options volume on Ralph Lauren today appears to be taking the view that the price of the underlying shares are unlikely to soar above $155.00 within the next five weeks to October expiration. More than 9,900 call options changed hands at the October $155 strike against paltry previously existing open interest of just 372 contracts. One block of 9,075 of those calls were sold by one investor at a premium of $1.70 a-pop within the first hour of the trading session. The trader selling the calls keeps the full amount of premium received on the transaction as long as shares in Ralph Lauren fail to exceed $155.00 come expiration day. The investor may be selling the calls outright, or could be writing the options against an existing long position in the underlying shares. In the naked short scenario, the strategist may accrue losses on the position in the event that RL’s shares jump 12.9% over the current price of $138.82 to surpass the effective breakeven price of $156.70. Options implied volatility on the stock dropped 5.05% this afternoon to 46.3%. Ralph Lauren reports second-quarter earnings on November 9, 2011, well after October options expiration.…
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Investors Peruse Kohl’s Options

Today’s tickers: KSS, AEP, FCX & SPLS

KSS - Kohl’s Corp. – The department store operator’s shares jumped 4.25% this afternoon to an intraday high of $55.90 following the company’s first-quarter earnings release ahead of the open this morning. Kohl’s Corp. raised its full-year profit forecast to a range of $4.25 to $4.40 a share, which tops average analyst estimates of around $4.36 a share. Some strategists browsing through Kohl’s options today are positioning for the stock to extend gains, while others could be taking profits on pre-earnings positions or taking a more bearish stance on the stock in the near term. Traders picked up around 2,200 now in-the-money calls at the May $55 strike for an average premium of $0.47 each. Call buyers at this strike make money if shares in KSS exceed the average breakeven price of $55.47 through expiration next week. Meanwhile, put and call selling took place in the June contract. Traders sold roughly 1,160 calls at the June $52.5 strike for an average premium of $3.10 each, and shed 1,900 calls up at the June $55 strike at a premium of $1.40 apiece. Open interest in the June $52.5 strike calls suggests investors bought some 5,090 calls at that strike for an average premium of $1.68 each back on April 26. Traders selling the now deep in-the-money calls could be cashing in on their well-placed bullish positions. On Tuesday, around 1,000 calls were picked up at the June $55 strike for an average premium of $0.70 each. The subsequent rally in the price of the underlying has these contracts trading with an asking price of $1.70 per contract as of 2:15pm. Volume of 2,200 calls at the June $55 strike exceeds open interest of 1,592 contracts. Nearly all of the calls exchanged at that strike sold for an average premium of $1.40 each. Perhaps call sellers see shares in Kohl’s trading below $55.00 at expiration in June. Put players sold around 2,000 contracts at the June $52.5 strike…
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Three-Legged Bull Prepares for a PNC Rally

Today’s tickers: PNC, CEDC, SPLS & GILD

PNC - PNC Financial Services Group, Inc. – Shares in the financial services firm are down 1.00% at $60.34 in early-afternoon trade, but activity in May contract call and put options suggests one strategist sees shares in PNC rising sharply in the next few months. The three-legged bullish player appears to have sold 5,000 puts at the May $55 strike for a premium of 1.39 each, purchased the same number of calls at the May $62.5 strike for a premium of $2.15 per contract, and shed 5,000 calls up at the May $67.5 strike at a premium of $0.68 a-pop. The options trader paid a net premium of $0.08 per contract for the transaction, and stands ready to profit should PNC’s shares reverse course and rally 3.7% over the current price of $60.34 to exceed the average breakeven price of $62.58 by expiration day in May. The investor responsible for the trade could accumulate maximum potential profits of $4.92 per contract if the firm’s shares jump 11.9% to trade above $67.50 before the options expire. PNC’s shares last traded above $67.50 back in May 2010. The financial services provider reports first-quarter earnings before the opening bell on April 21, 2011.

CEDC - Central European Distribution Corp. – Near-term options activity on the vodka producer this morning suggests some investors expect the pain of Central European Distribution Corp.’s post-earnings hangover to stick around through March expiration. Shares in CEDC lost 11.2% today to trade at $12.38, the lowest recorded price for the stock since April 2009. The alcohol beverage provider’s shares dropped 45.8% during the trading week, from a closing price of $22.85 on Monday, to today’s low of $12.38. Put buyers in the March contract, however, do not seem to think CEDC has hit…
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Bullish Players Pick Up Calls at Staples Ahead of Earnings

Today’s tickers: SPLS, MRVL, FRX & ERIC

SPLS - Staples, Inc. – Call options on the office supplies retailer are flying off the shelves ahead of the firm’s fourth-quarter earnings report, which is slated for release before the opening bell tolls on Wednesday. Shares in the name are up 1.35% to stand at $21.22 as of 12:00pm in New York. Bullish players are out in numbers, buying up call options in the March and April contracts, to position for shares to extend gains in the near term. Meanwhile, there is a bit of put buying in the front month this morning, with some 1,200 March $21 puts picked up by pessimistic traders for an average premium of $0.55 each. The largest bullish bet on Staples was the purchase of 9,000 calls at the March $22 strike at a premium of $0.40 each. The transaction appears to be tied to the sale of 270,000 shares of the underlying at $21.11 each. The strategy is likely a delta neutral play, with a delta of 0.30 indicated by the size of the stock and option combination employed. The trader could make out on the short stock leg of the trade if shares in SPLS drop post-earnings, however, the parameters of the transaction indicate substantially higher potential gains if shares fly higher in the time remaining to March expiration. A total of 11,395 calls changed hands at the March $22 strike in early-afternoon trade versus previously existing open interest of just 1,520 contracts. Like-minded optimists looked to the April $22 strike to buy roughly 2,000 calls for an average premium of $0.55 per contract. Call buyers at the April $22 strike start making money in the event that Staples’ shares surge 6.3% to surpass the average breakeven price of $22.55 by April expiration. Options implied volatility on the office supplies firm is up 4.8% at 30.82% as of 12:15pm.…
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Bearish Player Initiates Ratio Put Spread at Staples

Today’s tickers: SPLS, XCO, THC, FTO, YHOO, ERTS, LNC & GE

SPLS - Staples, Inc. – The supplier of office products popped up on our ‘hot by options volume’ market scanner late in the trading session after one investor initiated a bearish spread in the December contract. Staples’ shares are currently down 0.80% at $20.64 as of 3:15 p.m. in New York. The pessimistic player established a ratio put spread, buying 2,500 in-the-money puts at the December $21 strike for an average premium of $1.185 each, and selling 5,000 puts at the lower December $19 strike at an average premium of $0.39 apiece. The average net cost of the transaction amounts to $0.405 per contract. Thus, the investor is prepared to make money if the price of the underlying stock slips beneath the effective breakeven point on the spread at $20.595 by expiration day in December. Maximum potential profits of $1.595 per contract are available to the ratio-spreader if the office products company’s shares fall 7.945% from the current price of $20.64 to settle at $19.00 at expiration. The investor is vulnerable to losses in the event that Staples’ shares plummet far lower than he expects they will in the next several months. Losses start to accumulate for the trader if shares drop 15.7% lower and trade below the lower breakeven point at $17.405 by expiration day. Staples, Inc. is slated to report third-quarter earnings ahead of the opening bell on November 18, 2010.

XCO - EXCO Resources, Inc. – The oil and natural gas company was visited by one long-term bullish options investor in the second half of the trading session. It looks like the trader is expecting EXCO’s shares to rally significantly by expiration day in March of 2011. Shares of the Dallas, TX-based firm are up 2.05% at…
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Phil's Favorites

Goldman Sachs Refuses to Say If It Was Placing Trades for Dallas Fed President Kaplan as Materially False Statement Released by Board on Kaplan's Relationship with Goldman Sachs

Courtesy of Pam Martens

Federal Reserve Building in Washington, D.C.

The biggest trading scandal in the Federal Reserve’s 108-year history took down two Federal Reserve Bank Presidents yesterday. Boston Fed President Eric Rosengren, who traded in and out of REITs last year in amounts of $1,000 to $50,000, will leave this Thursday; Dallas Fed President Robert Kaplan, whose trading made Rosengren look like a Boy Scout, will step down from his post at the e...



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Zero Hedge

Blain: The Threat Board Is Looking Busy

Courtesy of ZeroHedge View original post here.

Authored by Bill Blain via MorningPorridge.com,

“Many people have speculated that if we knew exactly why the bowl of petunias had thought that we would know a lot more about the nature of the Universe than we do now.”

Markets are never as bad as you fear, but never as good as you hope. The Threat Board has seldom looked so complex: we can try to predict outcomes, but its notoriously difficult. The list of potential ignition points seems to be expanding ex...



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Biotech/COVID-19

New Johnson & Johnson data shows second shot boosts antibodies and protection against COVID-19 - but one dose is still strong against delta variant

 

New Johnson & Johnson data shows second shot boosts antibodies and protection against COVID-19 – but one dose is still strong against delta variant

Public health officials have been waiting for good data before making any decisions about booster shots for people who received Johnson & Johnson’s Janssen COVID-19 vaccine. AP Photo/Mary Altaffer

Courtesy of Maureen Ferran, Rochester Institute of Technology ...



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Chart School

Silver during periods of Industrial Inflation

Courtesy of Read the Ticker

When industrial inflation is hotter than consumer inflation silver does well.

Previous Post: Silver, after the FED said taper talk is a long way off

In the chart below we see the relationship between silver and the yield curve and the Producer Price Inflation. 

The yield curve is the US 30 yr interest rate less the Fed Funds interest rate (blue line). When the blue line is high a steep yield curve is present, and when it is low a flat yield curve is present. A steep yield curve is when longer term rates are higher than short term rates vica versa for a flat yi...

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Digital Currencies

China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Courtesy of ZeroHedge

China expanded its escalating crackdown on cryptocurrencies on Friday when its central bank declared that all activities related to digital coins are “illegal” and must be banned.

In a statement dated Sept. 15 but was only posted onto the central bank’s website at 5 p.m. local time on Friday, the People’s Bank of China said the latest notice was to further prevent the risks surrounding crypto trading and to maintain national security and social stability.

Naming bitcoin, ether and tether as examples, the centra...



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Politics

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

 

Image by Gerd Altmann from Pixabay

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

"Whatever our so-called 'leaders' are doing," said Swedish climate activist Greta Thunberg, "they are doing it wrong."

By Jake Johnson, Common Dreams

The United Nations warned Friday t...



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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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