Posts Tagged ‘SYK’

Stryker Call Options Active

Shares in Stryker Corp. (Ticker: SYK) popped 6.0% this week to as high as $85.62 this morning after a report in the Financial Times earlier in the week said the company may be planning to make a bid for orthopaedics company, Smith & Nephew Plc. The company has since said it does not plan to make an offer for Smith & Nephew, but shares remain elevated and at their highest level in roughly a decade. Upside call buying across several expiries on Stryker caught our eye this morning. It looks like some options traders are positioning for shares in the name to continue to push to the upside during the back half of 2014.

Traders appear to have purchased almost 300 of the Jul 90.0 calls at a premium of $0.50 each. These contracts may be profitable at July expiration in the event that SYK shares rally another 6.0% over the current level to exceed the effective breakeven point at $90.50. Meanwhile, the 87.5 strike calls expiring in September and January 2015 were the most traded contracts on Friday morning. It looks like traders shelled out $2.05 in premium to buy more than 800 of the Sep 87.5 strike calls and paid around $3.20 per contract for 1,000 of the Jan ’15 87.5 strike calls.  

Shares in Stryker are off their highest level of the session, trading up 0.75% at $84.55 as of 11:30 a.m. ET. Shares may have received a lift from a note out of Deutsche Bank about a Stryker bid for Smith & Nephew. Deutsche Bank has a ‘Buy’ rating on Stryker and a $90.00 price target.


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Fickle Friday – Google Goes Down as Costs Inflate

Well who’d have thunk it? 

The cost of doing business is rising and GOOG happens to be one of those businesses that lacks pricing power as their rates are generally set through an auction process and their users have to VOLUNTEER to pay more money to advertise.  Most advertisers on Google are on fixed budgets, like MSM advertisers and Google has done a great job of replicating that model.  Why then, should it be surprising if a maturing Google begins to look more like a traditional media outlet than a dot com company with exploding growth?  

Don’t get me wrong, we love Google long-term but we did short them as well as BIDU into Google earnings as we felt Google would disappoint enough to spook BIDU investors as well.  We’re taking the short money and running and looking for some bullish plays now – the drop from $630 last month to $545 today is plenty of froth blown off the top for us to get long-term interested again.  As you can see from the tag cloud of the Conference Call, growth is still there, especially in mobile display ads (Android a bit disappointing) and no major negatives.  I’m not going to write a whole thing about GOOG though, there are thousands of people doing that and our Members know well enough where I stand.  I’m more interested in examining the bigger picture.  

We expected Q1 earnings to be rough and we’ve already seen FDX, NKE, ORCL, RIMM, FAST, FCS and AA struggle so hopefully you don’t have to be hit on the head with another whole week of earnings before you get a little more cautious.  Next week we hear from C, HAL, LLY, TXN, BK, GS, INTC, IBM, SYK, USB, VMW and YHOO on Monday and Tuesday and then we’re off to the races with hundreds of companies reporting each week for the rest of the month.  Our job in the first few weeks of earnings season is to get a feel for the quarter and, so far, that feeling is rough.  

It’s all about inflation, of course and don’t say we didn’t warn you about that one!  We went more  bearish up at those 100% lines we’ve been watching and now the question really is – how bad was it?  Inflation is, after all, our long-term BULLISH premise.  We don’t think corporations
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Pfizer options active in late trading

Today’s tickers: PFE, HPQ, EFA, C, AGN, VIX, LTD, XHB, SYK, IP & TGT

PFE Pfizer Inc. – Shares of the pharmaceutical company have declined slightly by less than 1% to stand at $13.93. Pfizer edged onto our ‘most active by options volume’ market scanner late in the afternoon after some interesting trades went through in the January 2011 contract. At the 15 strike one investor initiated a sold straddle by shedding 10,000 calls for a premium of 2.05 as well as 10,000 puts for 3.60 apiece. The gross premium enjoyed on the trade amounts to 5.65 and is retained in full if shares settle at $15 by expiration. This trader is expecting shares to remain mid-way between the 52-week low for Pfizer of $11.62 and the 52-week high at $20.32. In contrast, a bullish investor purchased 11,500 calls at the January 20 strike price for 80 cents per contract. This investor is hoping to see shares rally by 49% over the next 2 years to arrive at or above a breakeven share price of $20.80.

HPQ Hewlett-Packard Co. – Shares of the technology company have dipped slightly by less than 1% to $31.08. We observed a call-to-put ratio of about 3.0 which implies that call options traded three times for each put traded. However, the calls were nearly all sold. The November contract stood out with 8,400 calls sold at the 35 strike price for an average premium of 2.80. Another 11,000 calls were shed for 2.00 at the November 37.5 strike price. No open interest was previously recorded at either of these strikes, and therefore these calls were sold short by investors. Moving into the January 2010 contract, it appears that one individual sold 3,750 in-the-money calls at the 30 strike price for a premium of 5.50, while purchasing the same number of puts at the 32.5 strike for 5.80 apiece. This transaction leaves the trader with a net cost of 30 cents and a breakeven share price at which profits begin to amass on the downside at $32.20. Thus, the overall tapestry woven together by option trades depicted some species of large bear. One trade initiated in January ran counter to rest as one investor purchased 12,500 calls at the 32.5 strike price for a hefty premium of 4.35. Shares would need to rally by about 19% from the current price in order for the investor…
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Zero Hedge

Military Investigators Baffled By Stolen Box Of Armor-Piercing Grenades

Courtesy of ZeroHedge View original post here.

The US military's vast supply chain is susceptible to theft. Thirty armor-piercing grenades went missing last year and were recently found behind a residential house. 

In 2017, rail freight company CSX Corp. hauled ammo shipping containers from Florida to Pennsylvania. Someone broke into the container along the line and stole one box of 40mm armor-piercing grenades used in a Mk 19 grenade launcher. 

The ammo box was eventually found in an Atlanta neighborhood months later, February 2018. Christopher Zachery told ...



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Phil's Favorites

This is bad news how?

 

This is bad news how?

Courtesy of 

The economy is recovering faster than had been expected as recently as this spring. Great reason to panic, apparently.

WSJ:

Federal Reserve officials signaled they expect to raise interest rates by late 2023, sooner than they anticipated in March, as the economy recovers rapidly from the effects of the pandemic and inflation heats up.

Their median projection showed they anticipate lifting their benchmark r...



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Politics

Supreme Court weighs voting rights in a pivotal Arizona case

 

Supreme Court weighs voting rights in a pivotal Arizona case

The Maricopa County Election Department counts ballots in Phoenix on Nov. 5, 2020. Arizona’s election laws are the subject of a pending Supreme Court decision. Olivier Touron/AFP via Getty Images

Courtesy of Cornell William Clayton, Washington State University and Michael Ritter, Washington State...



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Biotech/COVID-19

The FDA's big gamble on the new Alzheimer's drug

 

The FDA's big gamble on the new Alzheimer's drug

Do the benefits of approving a drug before confirming it works outweigh the potential costs? monkeybusinessimages/iStock via Getty Images Plus

Courtesy of C. Michael White, University of Connecticut

The Food and Drug Administration set off a firestorm of debate when it approved a new drug, aducanumab, for Alzheimer’s disease v...



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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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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 31 December 2020, 04:38:42 PM

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Comment: Biingo.. it is what it is, know the playing field



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Comment: @RaoulGMI "No, it can't be... the prices and price structure are identical...



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Digital Currencies

Crypto: Congress Dawdles as $1.7 Trillion Con-Game Goes Unregulated, Threatening Reputation of U.S. Markets

Courtesy of Pam Martens

If you want to get your hair cut outside of your home in the United States, the job has to be done by a licensed worker at a regulated business. The same thing applies to plumbers, electricians, home inspectors, real estate and insurance agents. They all require a license and are subject to regulatory scrutiny.

Likewise, commodities like corn, sugar, wheat, lumber and oil are all traded on regulated exchanges which are overseen by a federal regulator.

But, for reasons that have yet to be explained to the American people, when it comes to the $1.7 trillion cryptocurrency market – which is effectively a con-g...



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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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