Posts Tagged ‘TER’

Options Strategist Harvests Gains on EQIX Call Butterfly Spread

Today’s tickers: EQIX, OMX, TER & JBLU

EQIX - Equinix, Inc. – In the final trading week of 2010 we reported seeing one options strategist purchase a sizable bullish call butterfly spread on Equinix. It has been nearly four months to the day since the investor paid a net premium of $3.10 per contract for the June $85/$100/$115 call ‘fly, and it looks like the trader is reeling in substantial profits today by unraveling the position. Shares in the provider of global data center services are currently up 3.8% to stand at $100.30 as of 11:20am in New York. The company reported first-quarter earnings of $0.53 a share on Wednesday, which beat average analyst expectations of $0.30 a share in net income for the quarter. The trader responsible for the bullish spread nearly hit the nail on the head. On December 29, 2010, shares in Equinox closed the session at $81.20. Since then, the stock has climbed roughly 23.5% to today’s price. While the upward move in the price of the underlying happened a bit more quickly than estimated, the trader’s predictions for the magnitude of the move were pretty much spot on. It appears the investor closed out the spread this morning, selling 15,000 calls at the now deep in-the-money June $85 strike for a hefty premium of $16.20 each, bought back the 30,000 short calls at the June $100 strike for a premium of $4.70 each, and sold 15,000 of the June $115 strike call options at a premium of $0.30 a-pop. The trader takes in net premium of $7.10 per contract by closing out the spread, and therefore realizes net profits of $4.00 per contract, or around $6 million in total, after accounting for the initial cost of buying the spread at $3.10 apiece. Had Equinix’s shares risen more slowly, hitting $100.00 at expiration in June, the investor could have realized maximum potential profits of $11.90 per contract. But, in the end the investor’s predictions for EQIX’s performance and the…
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Calls Hot on OSI Systems After Failed Terror plot

Today’s tickers: OSIS, SEED, AMZN, KONG & TER

OSIS – OSI Systems Inc. – Investors were keen to put a name on the company that might benefit from a boost to security spending, which is behind the 12.5% rally in shares of OSI Systems today to $28.22. The previous 52-week high stood at $25.64 in the California-based company that makes critical electronic gadgetry to include complex security and inspection systems. The fallout from the Christmas Day arrest of a young Nigerian who apparently attempted to set off an explosive device on a Detroit-bound airplane is fast trickling through to who might win orders from the office of homeland security. Option volume in OSI Systems is a rare thing as indicated by the scant vale of open interest at 4,341 lots. Call option buyers at the January expiration saw to it that the company remains on investors’ radar after they likely doubled the prevailing number of option positions on Wednesday. Some 4,700 calls at the $30 strike were bought starting at 25 cents per contract and rising to as much as $1.00 each as the shares rose in value. The delta reading of 33% implies a one-in-three chance that the share price will rise by a further 6.3% within the next 18 days.

SEED – Origin Agritech – There was a wave of call option activity at Origin Agritech following the technology-focused seed development company’s announcement that it had bought back the remainder of its outstanding notes. The move will probably strengthen its balance sheet and helped spur its share price 25% higher to $12.15. Last month the stock rose to about $15 after the Chinese government said it would work with the company to grow modified corn and rice. Heaviest call volume was seen at the January $12.5 strike where 4,400 lots have traded from Tuesday’s close of 10 cents to 90 cents. The $15 strike calls have traded 1,600 times at an unchanged 30 cents. Option implied volatility spiked from 80% to 103% as uncertainty grew as investors demanded higher premiums to sell options. At the January 10 strike investors appeared swift to sell more than 4,000 put options as low as 40 cents, down from Tuesday’s closing price of $1.10 in the expectation that Origin will remain firm.

AMZN – Amazon Inc. – One investor appeared to take out some protection against a possible decline in shares of…
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Joy Global Calls Active

Today’s tickers: JOYG, VRSN, GE, DAL, TER, SCHW & KR

JOYG - The mining equipment manufacturer has enjoyed a more than 2.5% increase in shares during today’s session to stand at $44.40. Investors hoping for continued bullish momentum for the stock busied themselves with buying up call options in the September contract. It looks like nearly 8,000 call options were coveted for an average premium of 85 cents apiece at the now in-the-money September 44 strike. Investors holding the calls have the right to take delivery of the stock at $44.00, but they will not realize profits unless shares of JOYG climb through the breakeven point at $44.85 by expiration on Friday. – Joy Global, Inc. –

VRSN - Internet infrastructure services provider, VeriSign, jumped onto our ‘most active by options volume’ market scanner today after 25,000 call options were traded by one investor targeting the December contract. Shares of VRSN are currently trading flat on the day at $22.46. The chunk of 25,000 calls were traded at the out-of-the-money December 25 strike for an average premium of 87 cents per contract. It appears that the calls were tied to shares of the underlying stock. It could be the case that the investor is taking a bullish stance on VRSN by initiating a covered call. If this is the case, the trader purchased shares of the underlying and simultaneously shed call options. This strategy would partially offset the cost of getting long the stock by the amount of premium received and establish an effective exit strategy. The covered call reduces the price paid per share to about $21.59 and positions the trader to attain maximum potential gains of 3.41 – or 16% – in the event that the stock rallies higher than $25.00 by expiration. Shares would be called from him by expiration day if the calls were to land in-the-money. Another possible motivation for the call transaction is that the investor is decidedly bearish on VeriSign. If this is the case, the trader sold the stock short because he believes the stock will fall, and then bought calls as an effective stop-loss strategy. If the stock should rally by expiration rather than decline, the trader can purchase the shares for $25.00 each to cover his short position and cap potential losses. – VeriSign, Inc. –

GE - As its shares rally, option traders are increasingly attracted to bullish call options on…
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Zero Hedge

"This Time I'm Petrified": Virologist Who Helped Discover SARS Offers Chilling Take On Coronavirus Outbreak

Courtesy of ZeroHedge View original post here.

If you've been reading the news about the deadly coronavirus that is sweeping China (and nearly 10 additional countries), you've likely heard it being compared to the 2002-2003 outbreak of SARS that killed over 800 people.

No problem, right? We survived SARS, so we'll survive this new outbreak, right?

Not quite. One of the virologists who discovered SARS - which also originated from a coronavirus in China - paints a far more grim tale of the latest outbreak compared to what to...



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Phil's Favorites

Wuhan coronavirus: we still haven't learned the lessons from SARS

 

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Wuhan coronavirus: we still haven't learned the lessons from SARS

Courtesy of Diana Bell, University of East Anglia

The SARS outbreak in 2002-2003 was the first global pandemic of the 21st century. There were 8,422 reported cases and 11% of those infected with the virus died. Its cause was a newly identified coronavirus (a type of virus that causes respiratory infections): SARS Co-V. Early cases were linked to wildlife markets and...



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Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



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Insider Scoop

5 Software-Application Stocks Moving In Thursday's After-Market Session

Courtesy of Benzinga

Gainers

Atlassian Corporation, Inc. (NASDAQ:TEAM) stock surged 9.7% to $145.50 during Thursday's after-market session. According to the most recent rating by Morgan Stanley, on January 13, the current rating is at Overweight.

Diebold Nixdorf, Inc. (NYSE:DBD) shares increased by 8.1% to $11.48. The most recent rating by DA Davidson, on December 13, is at Buy, with a price target of $17.00.

Telaria, Inc. (NYSE:TLRA) stock rose 4...



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The Technical Traders

January 2018 Stock Market Repeat - Yikes!

Courtesy of Technical Traders

Our research team caught a very interesting price pattern that correlates with the Put/Call ratio.  We are alerting our friends and followers with this research post of this exciting, yet unconfirmed, set up today.

In late 2017, the US stock market rallied from July through December with moderately low volatility throughout this span of time.  Near the end of 2017, the US stock market price activity stalled, then began a renewed price rally in early 2018 (see the first BLUE & YELLOW BOX on the chart below). Then, in January 2018, a very broad market reversion event took place which ultimately resulted in a very broad market correction in October through December 2018 of just over 20%.

...

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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

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

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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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: Monday, 16 September 2019, 05:22:48 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This chart says SP500 should go back to 2016 levels (overshoot will occur of course)



Date Found: Tuesday, 17 September 2019, 01:53:30 AM

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Comment: This would be HUGE...got gold!


...

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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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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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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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

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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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