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

How palm oil became the world's most hated, most used fat source

 

How palm oil became the world’s most hated, most used fat source

Oil palm fruit in North Aceh, Indonesia. Fachrul Reza / Barcroft Media via Getty Images

Courtesy of Jonathan E. Robins, Michigan Technological University

Palm oil is everywhere today: in food, soap, lipstick, even newspaper ink. It’s been called the world’s most hated crop because of its association with de...



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Biotech/COVID-19

The FDA's weak drug manufacturing oversight is a potentially deadly problem

 

The FDA’s weak drug manufacturing oversight is a potentially deadly problem

Though drug recalls are relatively uncommon in the U.S., reduced inspections increase the likelihood of manufacturing errors that slip through the cracks. AP Photo/Rafiq Maqbool

Courtesy of Adrian V. Hernandez, University of Connecticut and C. Michael White, University of Connecticut

The ...



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Zero Hedge

Buzzfeed Is Finally Going Public In SPAC Merger Valued At $1.5 Billion

Courtesy of ZeroHedge View original post here.

Update (1100ET): At long last, Buzzfeed is finally going public, a crowning career accomplishment for founder and CEO Jonah Peretti.

As we reported earlier, Peretti confirmed on Thursday morning that Buzzfeed had agreed to merge with the obscure 890 5th Avenue Partners (yes, it's named after the fictional headquarters of the Avengers), which raised $250 million in an IPO earlier this year.

The SPAC is led by CEO Emiliano Calemzuk and executive chairman Adam Rothstein, and counts NBCUniversal ad sale chief Linda YAccarino, former Buzzfeed President Greg Coleman, Time W...



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Digital Currencies

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

...



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Chart School

RTT Plus Bulletin

Courtesy of Read the Ticker

RTT Plus private blog answer these questions over the last two weeks.

Ending: 2021-06-19

- Metal stocks very bullish after gold smash
- FED taper talk vs Basel 3
- Dollar devaluatioin before end of 2021
- COVID, Vaccine insight (off topic)
- The next play for the deep sate (off topic)
- The debt loaded USA can not break these economic stats


RTT Plus membership required to review.

RTT Plus members can include chart building services if you wish. If you you do not want chart building services select 'RTT Plus' only during the membership sign up process.

Sign up now!






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Politics

The Ukraine Fallacies (with Victor Rud)

 

The Ukraine Fallacies (with Victor Rud)

Americans are confused about the history of Ukraine. That's just how Russia wants it.

Courtesy of Greg Olear, at PREVAIL

Greg is the author of Dirty Rubles: An Introduction to Trump/Russia 

...

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Promotions

Live Webinar with Phil on Option Strategies

 

June is TD Bank's Option Education Month, and today (Thursday, June 10) at 1 pm EST, Phil will speak with host Bryan Rogers about selling options and various option strategies that we use here at Phil's Stock World. Don't miss this event!

Click here to register for TD's live webinar with Phil.

 

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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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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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