Posts Tagged ‘Sprint’

Call Butterfly Spread Looks For Run In Sprint Shares To Continue

Options volume on Sprint jumped a little less than one hour into the trading session on Thursday after a large three-legged strategy was initiated in the May expiry calls. The call butterfly spread purchased on the wireless carrier this morning looks for shares in Sprint to rise substantially from the current level by expiration in seven weeks. Shares in the name are up 4.5% at $9.37 as of 11:00 a.m. ET.

It looks like one strategist purchased 20,000 calls at both the May $10 and $12 strikes for a combined premium of $0.60 per contract and sold 40,000 of the May $11 strike calls at a premium of $0.24 apiece, effectively reducing the net cost of the spread to $0.12 per contract. The sizable bullish trade reaps maximum potential gains of $0.88 per contract in the event that shares in Sprint rally 17% over the current price of $9.37 to settle at $11.00 at May expiration. The breakeven points of $10.12 and $11.88 indicate the position is profitable within those bounds, while outside of those levels losses on the position are capped at $0.12 per contract, or the premium paid to initiate the butterfly spread. Shares in Sprint last traded around $11.00 at the end of December when the stock hit $11.48, the highest since SoftBank Corp.’s takeover of the wireless carrier last summer.


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Palm Pre’s big day

Update on our PALM easy options trade

Update 11 am June 10:  PALM is trading at $11.90.  Phil is suggesting entering an order to buy back the June $11 calls at .75 cents – this price anticipates further weakness.  We have a profit in the trade now (calls between $1.20 and $1.30), and there’s no harm in buying back now. 

Recall:  proceeds from call and put sales were $2.55.  We bought back the June 12 puts yesterday for $0.55.  We can buy back the June $11 calls now for $1.30, closing the trade for $1.85, a 25% gain.  Or we can risk holding for further gains.

Update 10 am June 9th:  PALM is trading at $12.40.  The $11 calls are trading between $1.70 and $1.75 and the $12 puts are trading between $.55 and $.65.  Assuming the worst prices, we could buy back the calls and puts for $2.40, which is only about 6% so far.  Offer to buy the June $12 puts for .55 cents.  Hold on to the naked (sold) June $11 calls for now.  

Recall the plan:  "PALM – As this is not earnings related we are really playing for a non-event on the Pre.  My concern is that the actual roll-out is still 2 weeks away and we can’t rule out the possibility that Sprint will conduct a well-coordinated marketing effort between now and then.  PALM gained 10% today and was 10% higher than this last Tuesday.  With good support at $10 we can take advantage of PALM’s huge premiums to SELL the $11 calls at $1.05 and the $12 puts at $1.50.  We are collecting $2.55 and our window of profit is anything under $13.55 on June 19th as long as it’s not lower than $9.45.  Max profit on this trade would come at anywhere between $11 and $12 where we would owe a total of $1 back to the caller and putter so we root for a flatline."

According to Yahoo, PALM gapped up and opened on Friday at 14.11 and then proceeded to fall all the way $13.00 during trading – more than a 4% decline.  Last week, PALM bounced around between the $12 and $13 dollar range. 

How is the Pre launch going for Palm?  Here’s a report by Marguerite Reardon, CNET News.

Palm Pre’s big day

June 6, 2009, NEW YORK--The much-anticipated Palm Pre may have gotten almost as…
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Zero Hedge

$100 Oil Is A Distinct Possibility

Courtesy of ZeroHedge. View original post here.

Authored by Nick Cunningham via Oilprice.com,

An oil price spike is starting to look increasingly possible, with a rerun of 2008 not entirely out of the question, according to a new report.

The outages from...



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ValueWalk

Kase Learning Shorting Conference: Limited-Time Offer

By Jacob Wolinsky. Originally published at ValueWalk.

Shorting Conference: Limited-time offer for my newsletter subscribers!

We had an incredibly positive response to our inaugural Kase Learning Shorting Conference back in May. Many attendees capitalized on some of the fantastic actionable short ideas presented that day.

On Monday, December 3, we’ll be hosting our second Shorting Conference at the NY Athletic Club. We’re also going to be livestreaming the entire day if you cannot attend in person.

...



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Phil's Favorites

10 Years and 10 Lessons from the Financial Crisis

 

10 Years and 10 Lessons from the Financial Crisis

Courtesy of Cullen Roche, Pragmatic Capitalism 

10 years. It feels like yesterday. Then again, sometimes when I look at the economic data it feels like it never even happened. Whether you feel like the crisis is a distant memory or still lingering I think we can all agree that these kinds of big events serve as important lessons for understanding how we will navigate the future. So, 10 years later, here are 10 big lessons I take away from the financial crisis:

  1. Fear wins in the short-term and loses in the long-term. This is probably the number one lesson from the crisis. Human beings have been making tremendous progress for thousands of years. The fina...


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Kimble Charting Solutions

Canadian Dollar Attempting Bullish Breakout

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

Since 2011, the Canadian Dollar has been hit hard, losing nearly a third of its value, while creating a series of lower highs and lower lows.

After declining nearly 30% into the lows of 2016, the Canadian Dollar has been attempting to change its long-term trend as it has created a series of higher lows inside of rising channel (2).

Over the past few months, rising support has been tested several times. Currently, it is attempting to break above falling resistance at (3), inside of the rising cha...



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Insider Scoop

10 Biggest Price Target Changes For Tuesday

Courtesy of Benzinga.

  • Morgan Stanley raised NuVasive, Inc. (NASDAQ: NUVA) price target from $55 to $77. NuVasive shares closed at $68.40 on Monday.
  • Citigroup cut the price target for Lam Research Corporation (NASDAQ: LRCX) from $216 to $177. Lam Research shares closed at $154.74 on Monday.
  • Stifel Nicolaus boosted the price target on Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) from $130 to $136. Alexion Pharmaceuticals shares closed at $128.51 on Monday Monday.
  • ...


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Chart School

Weekly Market Recap Sep 23, 2018

Courtesy of Blain.

More saber rattling between China and the U.S. did little to distract the market.

On Tuesday, President Donald Trump reiterated his hard-line stance on China during a news conference with Polish President Andrzej Duda and said the U.S. had “no choice” but to levy another $267 billion in duties on China. That would come on top of announced tariffs on about $200 billion in Chinese goods announced late Monday.  China responded with tariffs of 5% to 10% on $60 billion worth of U.S. products that will take effect Sept. 24, and said it may introduce more measures if the U.S. goes ahead with higher tariffs.

This seems to be the prevailing thought process, ...



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Members' Corner

Why obvious lies still make good propaganda

 

This is very good; it's about "firehosing", a type of propaganda, and how it works.

Why obvious lies still make good propaganda

A 2016 report described Russian propaganda as:
• high in volume
• rapid, continuous and repetitive
• having no commitment to objective reality
• lacking consistency

...

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Digital Currencies

Mania to Mania

 

Mania to Mania

Courtesy of 

“Russell rarely played the stock market and had little investing experience when he put around $120,000 into bitcoin in November 2017.”

This comes from a CNN money article, Bitcoin crash: This man lost his savings when cryptocurrencies plunged. From January 2017 through the peak in early 2018, Ethereum gained 16,915%.

Any time you have something go vertical, you just know that some peopl...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

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

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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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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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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