Posts Tagged ‘STP’

Call Volume Pops At Palomar Medical Technologies As Shares Extend Gains

 

Today’s tickers: PMTI, LNKD & STP

PMTI - Palomar Medical Technologies, Inc. – Options on Palomar Medical Technologies are trading more actively than usual on Monday, with volume topping 1,200 lots in the early going versus average daily volume of around 30 contracts and compared to total open interest of 372 contracts. Traders appear to be positioning for shares in the maker of proprietary laser systems for hair removal to rally in the near term, with shares in the name up better than 3.2% this morning at a fresh 52-week high of $11.30. Palomar shares have increased 60% since mid-November 2012. The April $12.5 strike calls attracted the most volume during the first half of the trading session, with upwards of 960 lots in play versus open interest of two contracts. Time and sales data suggests most of the $12.5 strike calls were purchased for an average premium of $0.85 each. Call buyers stand ready to profit at expiration next month should shares in Palomar tack on another 18% to top the average breakeven price of $13.35.

LNKD - LinkedIn Corp. – Shares in LinkedIn are bucking the trend today, increasing as much as 2.2% to hit a fresh record high of $174.25 on Monday morning amid a tepid start to the trading week for U.S. stocks. Traders positioning for shares in the online professional network operator to continue to hit new highs during the next four sessions snapped up weekly calls on the stock today. Buyers stepped in the purchase the Mar. 08 ’13 $175 and $180 strike calls in the early going this morning, paying average premiums of $2.20 and $0.96 apiece for the contracts. Traders long the upside calls may profit at expiration this week in the event that LNKD shares rally another 1.7% and 3.9% to surpass average breakeven prices of $177.20 and $180.96, respectively. Meanwhile, sellers of the Mar. 08 ’13 $175 strike put options are also positioned to benefit from a short-term bullish view on LNKD should shares extend gains this week.…
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Advanced Pattern Recognition: Omega III Weekly Wrap-Up

What a fine and predictable week it was!

How can you not have fun when the market does exactly what you expect it to do every day?  Why it’s almost as if we stole Goldman Sach’s evil playbook (and the Russell once again is at 666) so we too can make profits EVERY SINGLE TRADING DAY – just like they do!  This is a real testament to my famous saying:

We don’t care IF the game is rigged, as long as we know HOW it is rigged so we can place our bets accordingly.

Remember it was last summer that Goldman’s secret trading program was stolen.  At the time, Goldman Sachs asserted that: "There is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways."  I believe this was a misquote and what GS meant to say was that there was a danger someone ELSE could use it to manipulate the markets in unfair ways.  Was it just a coincidence that the indictment of computer thief Sergey Aleynikov on Feb 11th coincided with the beginning of this year’s massive rally or was that the day GS regained sole control of their pet program?

Does this sound conspiratorial?  Well perhaps then you haven’t read Tim Lavin’s "Monsters in the Markets," where he points out: "Algorithms now trigger 70 percent of all trades in U.S. equities. The speed and volume of everyday trading have propelled the market into a new and esoteric dimension, and rendered traders in the pits largely obsolete…  At least a few high-frequency traders have learned to make a killing by detecting the more simplistic algo strategies deployed by basic pension funds and mutual funds, buying the next stock the funds plan to buy, and then selling it to them at a higher price. This may not be illegal, but it’s almost certainly unfair to the funds’ investors. “It is increasingly clear that there are quite a number of high-frequency bandits in the high- frequency-trading community who pump up volume statistics, front-run investor orders, increase transaction costs, and hurt real liquidity,” according to former NASDAQ vice-chairman David Weild."

We certainly know better than to trust our money to fund managers!  Last Friday ("Pattern Recognition 101"), we determined that the TradeBots were following the rally pattern we now call Omega III and that meant we expected the day to finish
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Fast and Furious Four-Day Wrap-Up

Wheeeee, what a ride!

Like any good car race, the lead changes often in the markets.  Yesterday the bears took the lead as the combination of Hungarian debt issues and a disappointing jobs number were like a tire blow-out for the bulls, who were forced to pull in for a pit stop.  Fortunately, we had our seat belts on and had assumed the crash position as I had warned Members on THURSDAY Morning at 10:04:

Watch that 666 line on the RUT – we don’t want to lose that or even show weakness there…  ISM a bit disappointing, now we’ll see what holds but I’m out of short-term, unhedged, upside plays here

I felt strongly enough about it that we also posted it on Seeking Alpha, to warn as many people as possible, under the heading: "Phil Calls Short-Term Top."  I don’t post live trade ideas on Seeking Alpha but in Premium Member Chat (and you can subscribe here) I followed right up at 10:17 Thursday morning with the following trade idea:

BGZ (large-cap bear) is at $15.27 and I like them as a hedge here with the (June) $14/16 bull call spread at .75, selling the July $14 puts for .95 and that’s a net .20 credit on the $2 spread with about $2.70 in margin so you can do a 10 contract spread for a $200 credit and $2,700 in margin (according to TOS standard) with a $2K upside if the market even twitches lower.  Worst case is you own BGZ as a hedge to a dip below Dow 10,600 (your put-to area) at net $13.80 (9% lower than current price).

That’s what hedged trade ideas look like in our Member Chat.  At PSW, you need to put some time in LEARNING how to trade and, more importantly, how to hedge.  This is a fairly complicated options play but we take it BECAUSE IT WORKS!  There are many, many simpler ways to play that don’t work (or carry far more risk) but we prefer to teach our Members how to do the things that do work.  As it stands, just 48 hours later, BGZ is up 10% on Friday to $16.89 (so the spread is now 100% in the money) and June $14/16 bull call spread is now $1.50 while the July $14 puts are Down to .60 so net .90 already on the spread that already paid
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No-Thrills Thursday – Where’s the Kaboom?

Where’s the kaboom?  There’s supposed to be an Earth-shattering kaboom.

Well, it’s Thursday and the World hasn’t ended yet, contrary to the dire predictions we were getting last week and I guess that means you’d better buy some stocks!  We’ve been buying up a storm since falling below the bottom of our range with 50 long-term entries on our Buy List and another dozen longs in the first two days of this week including speculative longs (haven’t taken those for a while) on BP and RIG.  We even took two very bullish earnings plays on STP and JOYG – both of which were just way too low to ignore

JOYG was a complex spread from our 12:50 Alert to Members with a max profit at $55 but STP was a very simple, VERY bullish play where we bought the $9 calls for $1 and sold the $9 puts for .47, for a net .53 entry and no limit to our upside over $9.  Even if your margin requirement is 50% on the puts, you can pick up a single contract spread like this for $497 in buying power and your risk is being assigned the stock at net $9.53 but a move over $10 nets you a 10% gain in one day.  As long as you don’t mind owning the stock on a move down, these are fun earnings plays to make…

We didn’t expect to be getting bullish (and we are still well-hedged for the next fat-fingered fall) but at 12:27 on Tuesday, I posted the following chart for Members where I drew a line in the sand for the downturn:

Yesterday I noted in the Morning Post that we were completing that move down into the open so all we really did was follow-through with our plan to flip bullish for at least a bounce.  As we drifted along into the afternoon on a low volume move up, I re-examined the chart and decided it was a fine afternoon for a stick save and I drew this updated chart with the attached comment:

 

10,080 is the 0% line for the Dow and if I were Mr. Stick, I’d use that as my go point and jam the Dow up 100 from there, back to about 1,100 (on the S&P) so that’s the game(d) plan for the afternoon if we are getting back to the usual bullish shenanigans.  Which would


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2010 Outlook – A Tale of Two Economies

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way--in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." – Charles Dickens, 1859

Dickens famous novel (which was originally written as a weekly series in 31 installments) depicts life in the time of the French revolution but was also a parable, meant to warn the British aristocracy that they should not ingore the parallels to the social inequities that existed at the time in England.  Dickens warned the nobles that the seeds of revolution were planted through unjust acts and surely there would be a time of reaping yet to come

It is said that the French Revolution was sparked by outrage over a statement by the Queen Mary Antoinette who, when told that the peasants had no bread to eat, supposedly replied (she never actually said this) "Qu’ils mangent de la brioche" or "Then let them eat cake."  It's hard for us to imagine the impact of this statement in modern times but "peasants" were 90% of the population at the time and bread was 90% of what they ate, consuming 50% of the average family's income (people weren't silly enough to pay for housing back then – they just found a bit of land, bought some wood and nails and built their own homes).  Brioche was a luxury combination of bread enriched with flour and butter so the statement "Qu’ils mangent de la brioche" implies both lack of caring and cluelessness on the part of the Queen. 

The United States had what passes for a revolution between 2006 and 2008 as we threw out the Republicans and went with a Democrat-controlled government.  While the Bush administration, the Republican Congress and Fox News may have been as clueless as a French Queen to the plight of the people…
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Retail investors paint mixed picture through options

Today’s tickers: XRT, EXPD, RIMM, EWJ, GM, STP, MU, WFC, XLF, JPM & ASH

XRT Retail ETF SPDR – Shares of the retail ETF were on the rise today, gaining more than 3.5% to arrive at $23.58. Some traders established bearish bets using options, while one bullish trade stood out like a sore thumb in the June contract. At the June 22 strike price one investor purchased 17,200 in-the-money calls for a sizeable premium of 3.12 apiece. The rest of the notable trades were decidedly looking for downside movement in shares. At the near-term April contract a credit spread was initiated by purchasing 3,000 calls at the 24 strike price for 85 cents and selling 3,000 calls at the 22 strike for 2.00 apiece. The net credit enjoyed on the trade amounts to 1.15 and will be retained in full if shares fall below $22.00 by expiration. Another pessimistic investor crafted a put spread in the June contract by purchasing 5,000 puts at the 24 strike price for 2.40 each and selling 5,000 puts at the 20 strike for 90 cents. The net cost of the trade amounts to 1.50 and yields a maximum potential profit of 2.50 if shares can fall to $20.00 by expiration. Profits will begin to amass on the downside if shares fall below the breakeven on the trade at $22.50. Finally, some 5,000 puts were traded at the May 22 strike where there had previously been no open interest. The bulk of the smoke-signals from traders today suggest that the rally XRT experienced today will be short-lived.

EXPD Expeditors International of Washington, Inc. – The global logistics services company has experienced a share price rally of 6% to $29.64. EXPD appeared on our ‘high option volume put/call ratio’ market scanner with a put-to-call ratio of 190. One investor looks to be taking profit today from the short sale of 20,000 puts at the May 20 strike price, which may have originally been sold for a premium of between 0.88 cents and 1.18 per contract. The purchase of those 20,000 puts for 30 cents closes out the short position and leaves the investor with a profit of between 0.58 cents and 0.88 cents. Further along in the August contract it looks like this same investor is reestablishing a short put position. With no existing open interest at the May 22.5 strike price, 15,000 puts were…
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Zero Hedge

Maduro Wins Vote Boycotted By Opposition As US Threatens Sanctions

Courtesy of ZeroHedge. View original post here.

Socialist President Nicolas Maduro won another six-year term in power over the weekend in a vote that western countries have widely denounced as illegitimate.

The victory hands Maduro sole ownership of the country's worsening economic crisis, as Bloomberg put it. The socialist regime ignored calls to suspend the vote, and even tolerated a challenge from former governor Henri Falcon, who won about 21% of votes in an election that saw 48% t...



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Phil's Favorites

Why China can't meet Trump's $200 billion trade demand

 

Via Pixabay

 

Why China can't meet Trump's $200 billion trade demand

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

President Donald Trump has demanded China cut its trade deficit with the U.S. by US$200 billion by 2020 or face a host of punishing tariffs. After recent talks with the U.S., China ...



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Chart School

Weekly Market Recap May 20, 2018

Courtesy of Blain.

This was a generally quiet week in the senior indexes, consolidating some of the prior week’s move up.   That said the Russell 2000 had some very nice action with a “breakout!”.  Otherwise pretty quiet on the news front except for TRADE WARS!(tm):

On Thursday, several news outlets reported that China had made an offer to cut its trade surplus with the U.S. by $200 billion, but a China official on Friday denied that an offer had been made.

For the week the S&P 500 closed down 0.5% while the NASDAQ fell 0.7%.  The Russell 2000 diverged, gaining 1.3%.

The only major economic report this week was retail sales which gained 0.3% in April...



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Biotech

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

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

 

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

Courtesy of John Bergeron, McGill University

In 2013, Kyoto University’s Shinya Yamanaka was awarded one of the first Breakthrough Prizes in Life Sciences for his discovery of “induced” stem cells that enabled researchers to convert adult cells back into stem cells.

The Breakthrough Prize is not to be sneezed at. Founded in 2013, the prize “honours transformative advances toward understanding living systems and extending human life.” It’s also the most financially attractive aw...



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Insider Scoop

36 Biggest Movers From Friday

Courtesy of Benzinga.

Gainers
  • Quotient Limited (NASDAQ: QTNT) rose 29 percent to close at $6.05 following commencement of EU blood grouping field trial.
  • Mannatech, Incorporated (NASDAQ: MTEX) climbed 22.64 percent to close at $19.50 on Friday after the company reported commencement of modified Dutch auction cash tender for up to $16 million of common stock.
  • Shineco, Inc. (NASDAQ: TYHT) gained 19.41 percent to close at $2.03 following Q3 results. Shineco posted Q3 earnings of $0.21 per share on sales of $13.3 million.
  • ...


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Digital Currencies

5 Factors That Drive Bitcoin's Ups & Downs

Courtesy of ZeroHedge. View original post here.

By Kayla Matthews via Hackernoon.com

The price of Bitcoin has been wildly volatile. From November to December 2017, it increased by 223 percent. It fell by 59 percent between January and February 2018, increased by 64 percent from February to March and then dropped again during March by 40 percent.

While this isn&r...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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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

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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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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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.

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