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 laser 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…
continue reading


Tags: , ,




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
continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,




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
continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,




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


continue reading


Tags: , , , , , , , , ,




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…
continue reading


Tags: , , , , , , , , , , , , , , , , , , , ,




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…
continue reading


Tags: , , , , , , , , , ,




 
 
 

Phil's Favorites

How tech firms make us feel like we own their apps - and how that benefits them

 

How tech firms make us feel like we own their apps – and how that benefits them

ESB Professional/Shutterstock

Courtesy of Melody Zou, Warwick Business School, University of Warwick

Possessions are going out of fashion. An endless stream of media reports claim millennials – that amorphous mass of people...



more from Ilene

Insider Scoop

Earnings Scheduled For July 16, 2019

Courtesy of Benzinga.

Companies Reporting Before The Bell
  • Goldman Sachs Group Inc (NYSE: GS) is projected to report quarterly earnings at $5.00 per share on revenue of $9.13 billion.
  • Domino's Pizza, Inc. (NYSE: DPZ) is expected to report quarterly earnings at $2.02 per share on revenue of $836.92 million.
  • JPMorgan Chase & Co. ...


http://www.insidercow.com/ more from Insider

Zero Hedge

US Beekeepers Lost 40% Of Honeybee Colonies Last Year, UMD-Led Survey Finds

Courtesy of ZeroHedge. View original post here.

Recent budget cuts by the Trump Administration slashed funding for the US Department of Agriculture's annual Honey Bee Colonies report that has recently detailed a collapse in the bee population across the nation. Now researchers will be observing a new study, one that hasn't been affected by spending cuts, shows beekeepers lost 40.7% of their bee colonies from April 2018 to April 2019.

The nationwide survey administered by the University of ...



more from Tyler

Kimble Charting Solutions

Silver/Gold Ratio Making A Bullish Reversal?

Courtesy of Chris Kimble.

Silver (NYSEARCA: SLV) is an important cog in the precious metals world. Not only is it a core precious metal but it is often a leading indicator for metals bulls.

Silver is a good risk-on / risk-off indicator. When it is out-performing Gold, it is risk-on. When it is under-performing, it is risk-off. It’s been the latter for the better part of the past 8 years.

And when the trend remains down, which historically means that metals rallies will be sold.

The Silve...



more from Kimble C.S.

Digital Currencies

Bitcoin Breaks Back Below $10k, Crypto-Crash Accelerates As Asia Opens

Courtesy of ZeroHedge. View original post here.

Update 2010ET: Having briefly stabilized after this morning's weakness, cryptos are tumbling once again as Asian markets open.

Bitcoin has broken below $10,000 again...

*  *  *

While all eyes are on Bitcoin as it slides back towards $10,000, the real mover in the last 12 hours has been Ethereum after...



more from Bitcoin

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, ...



more from Biotech

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.

...

more from ValueWalk

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...



more from Chart School

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...



more from Our Members

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...



more from M.T.M.

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 ...



more from OpTrader

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




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.

Market Shadows >>