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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Phil's Favorites

Smart cities: The promises and failures of utopian technological planning

 

Smart cities: The promises and failures of utopian technological planning

For utopian cities to succeed, they should offer technological solutions to urban challenges. Shutterstock

Courtesy of Sylvie Albert, University of Winnipeg

Technology and innovation transform the ways that we interact with governments, purchase products and manage our health and lives. This turmoil affects cities, where the accelerating digitalization of our economy has opened the door for more technologies. It has also created the space to design utopian projects that profile the ways technology can be used to improve the quality of urban life.

Urban planners, technology companies and develo...



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Zero Hedge

WTFX!?

Courtesy of ZeroHedge. View original post here.

Authored by Michael Every via Rabobank,

The ripple effects of the sharp rise in oil prices continued on Tuesday.

Brent crude spiked to a six month high after the White House announced that the US will no longer offer exceptions to buy Iranian oil when current waivers expire on May 2. The US dollar appreciated broadly against its G10 peers and US stocks proved relatively resilient to higher oil prices. The S&P 500 Index rose 0.9% to 2,933.7 on the back of another set of encouraging earnings with almost 80% of US companies re...



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Insider Scoop

Earnings Scheduled For April 24, 2019

Courtesy of Benzinga.

Companies Reporting Before The Bell
  • Caterpillar Inc. (NYSE: CAT) is projected to report quarterly earnings at $2.86 per share on revenue of $13.38 billion.
  • AT&T Inc. (NYSE: T) is estimated to report quarterly earnings at $0.86 per share on revenue of $45.11 billion.
  • Anthem, Inc. (NYSE: ...


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Chart School

Trump China trade deal currency component

Courtesy of Read the Ticker.

The coming Trump trade deal could have an interesting component effecting the US dollar.

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

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Digital Currencies

5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

...



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Kimble Charting Solutions

Silver Bear Market Faces Big Price Support Test!

Courtesy of Chris Kimble.

When silver, gold, and the precious metals industry were red-hot bullish in the 2000’s, investors could do no wrong.

You could buy SILVER at just about any price and it would go higher.

In today’s chart, you can see three large green bullish ascending triangles from the 2000’s that lead to big gains. But that was the bull market before the current bear market.

The tables have turned since the 2011 price top. Silver quickly formed a bearish descending triangle and fell another 50 percent when that broke down. This sent a vicious bear mark...



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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 ...



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Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

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

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



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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:

 

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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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