Posts Tagged ‘SWK’

Stanley Black & Decker Puts In Play As Shares Plunge

SWK – Stanley Black & Decker Inc. – Shares in the maker of power tools are getting hammered this morning, down nearly 16% to a three-month low of $75.44, after the company reported third-quarter revenue that missed analyst estimates and lowered its full-year 2013 earnings forecast.

Options traders snapping up put options on the stock straight out of the gate today appear to be bracing for shares in Stanley Black & Decker to extend losses during the next few months. More than 2,100 of the Jan 2014 $72.5 strike puts changed hands in the early going against open interest of just 258 contracts. It looks like most of the puts were purchased at an average premium of $2.50 each. Traders long the puts stand ready to profit at expiration next year in the event that SWK shares slide 7.0% from the morning low of $75.44 to breach the average breakeven point on the downside at $70.00. 


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Options On VeriFone Eye Further Weakness As Stock Tumbles To Multi-Year Low

Today’s tickers: PAY, SWK & VMW

PAY - VeriFone Systems, Inc. – Shares in electronic payment systems and services provider, VeriFone, are getting slammed on Thursday after the company yesterday forecast third-quarter revenue and earnings well below average analyst estimates. The stock dropped nearly 20% today to $17.70, the lowest level since May of 2010. Shares are currently down 18% on the day at $18.00 as of 11:45 a.m. ET. Traders positioning for shares in VeriFone Systems to extend losses in the near term picked up June and July expiry put options this morning. Put buying at the Jun $16 and $17 strikes position traders to profit from further selling pressure in the shares ahead of expiration in two weeks. It looks like bears purchased around 200 of the Jun $16 strike puts for an average premium of $0.16 each and around 350 of the Jun $17 strike puts at an average premium of $0.37 apiece. Meanwhile, sizable volume in the July expiry puts appears to be the work of one or more traders taking profits and initiating fresh bearish positions on the stock. More than 2,000 puts changed hands at the Jul $23 strike against open interest of 4,106 contracts in the early going this morning. Open interest in the $23 puts increased during the first half of this week, with around 2,500 lots purchased on Monday and Tuesday for an average premium of $1.63 each, according to time and sales data. The sharp drop in the price of the underlying overnight now finds the deep in the money put options changing hands at $4.90 apiece as of midday in New York. Prints in the $23 puts within 10 minutes of the opening bell today indicates traders sold more than 1,400 of the puts for an average premium of $4.55 apiece. Finally, bears anticipating continued weakness in the price of the underlying going forward snapped up 2,000 puts at the Jul $18 strike for an average premium of $1.20 each. Buyers of these contracts stand ready to profit at expiration next month should shares in VeriFone decline another 6.7% from the current level of $18.00…
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Call Buyers Drive Traffic In Meritor Options

 

Today’s tickers: MTOR, SWK & WMT

MTOR - Meritor, Inc. – Of the 18,255 open options positions on the supplier of parts for manufacturers of trucks, trailers and specialty vehicles, most are open call positions, with the stock’s call-to-put open interest ratio currently at 2.042. Call options on Meritor are active today, as well, with more than 50 calls changing hands on the stock for each single put option in play. The action in MTOR options this morning suggests one or more investors is preparing for shares in the Troy, Michigan-based Company to rally ahead of expiration next month. One catalyst for the bullish look may be Meritor’s upcoming second-quarter earnings report set for release ahead of the opening bell on May 2nd. The stock today trades 1.3% lower on the session at $6.88 as of 12:30 p.m. ET. Call open interest patterns indicate an influx of buyers starting in mid-March, with the trend continuing this morning. The biggest play in MTOR options today is the purchase of 1,000 calls at the May $8.0 strike at a premium of $0.20 apiece. Profits may be available on the contracts should shares in Meritor jump 19.2% to top $8.20 by May expiration. Much of the call open interest at surrounding strike prices in the May expiry appear to have been generated by buyers taking positions back on March 21st, when MTOR’s shares jumped 13.0% intraday to $8.46 after the Company reaffirmed its outlook for 2012 revenue and earnings forecasts. In the three weeks since, the stock has reversed gains, and then some. Needless to say, buyers of the contracts at the end of March paid far more than traders today, as evidenced by the 75.0% decline in May $8.0 strike call option premium from $0.81 apiece on March 21st to today’s asking price of $0.20 each.…
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Thrilling Thursday – Comedy or Tragedy?

Russell 8-0-0, Russell 8-0-0! Wherefore art thou Russell8-0-0?  Deny thy dollar and refuse to fall, or, if thou spike not, be but consolidating at resistance and I’ll happily Capitulate….

If it's good enough for fair Juliet, it's going to have to be good enough for us as the Russell finally makes it over our 800 target – the last barrier that was keeping us on the bearish side.  Above these lines – it's time to stop worrying and love the rally as we romanticize the deadly combination of QE2 the Obama tax cuts as: "A pair of star-crossed lovers take their life, whose misadventured piteous overthrows doth with their death bury their parents’ strife."

Of course Willie Shakespeare has nothing on Jimmy Cramer, who's pearls of wisdom are also sure to be repeated centuries from now.  Last night the Bard of Wall Street sang a veritable sonnet in praise of the stock market and foretold a tale of woe for anyone dumb enough to take profits into this rally:

 

We got the correction this morning, Dow fell 35 points…  Today's action was proof positive that you need to stop worrying and learn to love corrections…  What scares me, and what should scare you, is that if you sell your stocks here, you won't be able to get back in.  You should be worried about stocks getting away from you, because I think we can be on the verge of something big – something very positive.   FORGET the fact that stocks have run up a lot in the last 6 months.  For more than 10 years, this market has done nothing, THAT is the most important frame of reference…

What's changed?  We are finally starting to see big breakouts from a slew of breakouts from several large cap companies including: CAT, UTX, FCX, SWK, CBE, ETN, CSX, UNP and so many other big industrials.  Ladies and gentlemen, we have waited over a decade for this move and what do people want to do now that it has arrived?  They want to sell!  That's right, they want to sell.  That's right.  They want to dump the stocks (sell button sound effect) because they are up


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Risk Reversal Pops Up on Biotech-Company, Life Technologies

Today’s tickers: LIFE, FL, VTR, WFC, RRI, WFR, CAR, FRX, SWK, BNI & WFR

LIFE – Life Technologies Corp. – Biotechnology company, Life Technologies, popped up on our ‘hot by options volume’ market scanner this morning after one investor initiated a risk reversal in the December contract. Shares are relatively flat on the day at $47.58. The reversal is most likely the work of a bullish individual positioning for a rally in shares of LIFE by expiration next month. It appears the trader sold 5,200 puts short at the December 45 strike for an average premium of 1.30 apiece to finance the purchase of the same number of call options at the higher December 50 strike for 1.20 each. The investor receives a credit of 10 cents per contract on the transaction. The 10 cent credit is money in the bank as long as shares remain above $45.00 through expiration. Additional profits on the trade require the stock to surge to a new 52-week high of $50.00. Shares must rally 5% from the current price before the investor begins to accumulate profits. The 10,400 contracts exchanged in the spread represent about 23% of the total existing open interest on LIFE of 45,963 lots.

FL – Foot Locker, Inc. – A long-term bullish play in the January 2011 contract pushed the global retailer of athletic footwear and apparel onto our ‘hot by options volume’ market scanner this afternoon. Shares are currently up nearly 1% to $10.25. It looks like the trader initiated a bullish risk reversal by selling 3,500 puts at the December 7.5 strike for 1.10 each, and by buying the same number of calls at the higher December 12.5 strike for 1.10 apiece. The investor put on the trade for free and hopes to see shares rise above $12.50 by expiration in 14 months. Profits begin to accumulate if the stock rallies 22% over the current price to surpass the breakeven point at $12.50. We note that shares of FL have traded beneath $12.50 since November 11, 2008.

VTR – Ventas, Inc. – Shares of the real estate investment trust edged slightly higher by less than 0.25% to $40.56 during the trading day. An investor expecting shares to appreciate by expiration in December put on a bullish risk reversal strategy. The trader sold 3,000 puts at the December 35 strike for 60 cents premium and simultaneously purchased the same…
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Phil's Favorites

Mr. Morgan

 

Mr. Morgan

Courtesy of 

The Federal Reserve had a precursor before it became the lender of last resort. It wasn’t an institution or a government department. It was a single, solitary man named J. Pierpont Morgan. Mr. Morgan, he was called in the newspapers, and you didn’t need to go any further – everyone knew to whom you were referring.

Stock market panics were common in the early 1900’s because of the agrarian nature of the economy. Each summer, the local banks that catered to farmers throughout the country began calling their money back from the banks in New York City and Chicago so they could raise enough capital to bring in the h...



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Zero Hedge

Anatomy Of The $2 Trillion COVID-19 Stimulus Bill

Courtesy of Visual Capitalist

The unprecedented response to the COVID-19 pandemic has prioritized keeping people apart to slow the spread of the virus. While measures such as business closures and travel restrictions are effective at fighting a pandemic, they also have a dramatic impact on the economy.

To help right the ship, the Coronavirus Aid, Relief, and Economic Security Act — also known as the CARES Act — was passed by U.S. lawmakers last week with little fanfare. The act became the largest economic stimulus bill in modern history, more than doubling the stimulus act passed in 2009 during the Financial Crisis. ...



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Biotech/COVID-19

The new coronavirus emerged from the global wildlife trade - and may be devastating enough to end it

 

The new coronavirus emerged from the global wildlife trade – and may be devastating enough to end it

Government officers seize civets in a wildlife market in Guangzhou, China to prevent the spread of the SARS disease, Jan. 5, 2004. Dustin Shum/South China Morning Post via Getty Images

Courtesy of George Wittemyer, Colorado State University

COVID-19 is one of countless emerging infectious diseases that are zoonotic, meaning they originate in animals. ...



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Members' Corner

Tinker, Tailor, Mobster, Trump

 

Tinker, Tailor, Mobster, Trump

What happens when a Confidential Informant becomes President?

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



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Kimble Charting Solutions

Fear Indicators Creating Huge Bearish Reversal Patterns This Month?

Courtesy of Chris Kimble

Its been a rough month for Stocks and Crude Oil. Could these two indicators be suggesting that a panic in fear has run out of steam?

This 2-pack looks at the fear indicators in the Nasdaq (VXN) and Crude Oil (OVX).

Both were at the highest levels in years back in 2008. Both peaked in 2008, as they created monthly bearish reversal patterns.

Turing the page to March of 2020, the Nasdaq fear index could be double topping at t...



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Insider Scoop

Strategist Channels His Inner Elsa, Says Apple Investors Need To Let It Go

Courtesy of Benzinga

The "Frozen" character Elsa famously declared it's time to "let it go" when her dark secret has been discovered. Boris Schlossberg of BK Asset Management has a similar message to Apple Inc. (NASDAQ: AAPL) investors.

'Absolutely' No Discretionary Spending

The market is guilty of "utterly underestimating" the ultimate economic impact the ...



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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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