Posts Tagged ‘TLM’

Crocs, Inc. Options Active As Shares Tank

Today’s tickers: CROX, SHLD, TLM & DPZ

CROX - Crocs, Inc. – Lower-than-expected third- and fourth-quarter sales guidance from the maker of plastic clogs trounced shares in Crocs, Inc. today, roughly two weeks before the company’s official third-quarter earnings release on November 3. Shares in CROX plunged 39.15% to as low as $16.21 this morning. Options on Crocs are changing hands at a fairly rapid clip, with trading in calls outpacing that in puts by more than 3-to-1. Trading in CROX calls appears somewhat mixed. It looks like some strategists are buying call options to get ahead of any potential rebound in the price of the underlying should selling pressure ease up ahead of October expiration. The most active option is the Oct. $18 strike call, where more than 3,200 contracts changed hands by 11:25 am EDT against zero open positions. Investors paid or received an average premium of $0.43 per contract depending on whether they were buying- or selling-to-open the position. Buyers of the contracts profit at expiration in the event that shares in CROX rally 11.0% over the current price of $16.60 to surpass the average breakeven point at $18.43. Meanwhile, sellers of the calls walk away with the full $0.43 credit received as long as the shoemaker’s shares fail to rally above $18.00 at expiration.

The sharp drop in the price of the underlying may be just what some bearish strategists were hoping to see. Open interest indicates there are 770 existing positions open in the Nov. $27 strike put. Examining changes in the open interest level at that strike suggests 500 of the puts were likely purchased by one trader at a premium of $2.20 each this past Friday. Shares in Crocs ended the previous week at $26.97. The subsequent nosedive in the price of the underlying now sees the price tag on those puts 380.0% higher at $10.60 as of 11:30 am in New York. Premium on the put options may continue to climb if shares in CROX extend losses through November expiration. Options implied volatility on the stock jumped 28.4% to 87.9% in the first half of the session.

SHLD - Sears Holdings Corp. – A sizable bearish put spread on Sears Holdings Corp. may signal caution by at least one investor ahead of the specialty retailer’s third-quarter earnings report in less than one month. Shares in Sears rallied 3.4% to $75.00 by 12:30 pm in New York,…
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Options On MetroPCS Pop Post Earnings

Today’s tickers: PCS, CTRP, PLL & TLM

PCS - MetroPCS Communications, Inc. – Shares in the wireless communications provider dropped like a rock this morning after the company’s profits for the second quarter came in below analyst estimates. MetroPCS shares surrendered 35.5% at times this morning to secure an intraday low of $10.44. The sharp correction in the price of the underlying spurred frenzied options trading in the front month. Investors engaged diverse strategies on the pay-as-you-go wireless operator, with some traders positioning for the price of the underlying to rebound and others betting bearish momentum has not yet run its course. Strategists expecting shares to recover somewhat ahead of expiration this month picked up more than 2,200 calls at the August $12 strike for an average premium of $0.30 a-pop. Call buyers profit if shares in PCS bounce 17.8% off its lowest point of the day to exceed the average breakeven price of $12.30 by August expiration. Like-minded optimists scooped up some 675 calls out at the September $13 strike for an average premium of $0.31 each. Meanwhile, bearish players purchased 1,400 puts at the August $11 strike at an average premium of $0.51 apiece, and picked up another 300 puts at the lower August $10 strike for an average premium of $0.19 per contract. Investors long the puts profit in the event that shares in PCS edge beneath the average breakeven prices of $10.49 and $9.81 by expiration, respectively. Finally, pre-earnings put buyers have a lot to smile about today. It looks like investors purchased around 4,000 puts at the August $14 strike for an average premium of $0.24 each on Monday. Securing the right to sell MetroPCS shares at $14.00 each today costs $3.20 per put option. In other words, the value of those put positions increased more than 13-fold overnight.…
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Zero Hedge

BofA's "Charts Of Darkness For Apocalypse Dow"

Courtesy of ZeroHedge. View original post here.

With just 42 days trading days left until the S&P500 bull market becomes the longer of all time, Morgan Stanley's chief cross-asset strategist, Andrew Sheets, writes that investors are now more sanguine about how much time they have until the next recession than at any point since 2010. "We’re 8 ½ years into an expansion, and many investors finally are finally confident that there is plenty of time left on the clock." Sheets also notes that in client conversations, China is rarely mentioned as a growth concern (after causing angst for much of this period). All this is taking place against a backdrop in which key market elements are ...



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Chart School

Semiconductors Accelerate Losses

Courtesy of Declan.

There was no real change on the end-of-week position of markets. The Semiconductor Index was the most active with an undercut close of the week's swing low Next support level is the 50-day MA.


Despite the swing low undercut in the Semiconductor Index there were no breakout reversals for the Nasdaq or Nasdaq 100; indeed, the weakness may be viewed as a buying opportunity with a test of support.

...

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Phil's Favorites

Will Disney's Epic Buyout Of Fox Mark The End Of The Everything-Bubble?

Courtesy of John Rubino, DollarCollapse.com

As bubbles expand and hot money starts burning holes in corporate pockets, merger and acquisition deal terms begin to leave reality behind. Often one deal of such breathtaking size, scope and hubris is struck that - in retrospect – it heralds the end of the era.

The junk bond bubble of the 1980s, for instance, hit its apex with the December 1988 leveraged buyout of processed food conglomerate RJR Nabisco, which featured a prolonged bidding war by a Who’s Who of the corporate raider/LBO community. At $25 billion, it was seen as “staggering” at t...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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Digital Currencies

Crypto-Collapse Resumes After Japan's Largest Exchange Halts Account Creation

Courtesy of ZeroHedge. View original post here.

What started off as a hopeful week of broadening user adoption is ending on a sour note as Japan's chief regulator launched a probe of crypto-exchanges, prompting the largest to halt account creation sending the entire crypto space lower...

As CNBC reports, the order...



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Insider Scoop

Booking Holdings Is Playing Catch-Up In Online Travel Growth Areas, Analyst Says In Downgrade

Courtesy of Benzinga.

Related Benzinga's Top Upgrades, Downgrades For June 22, 2018 Booking Holdings CEO Has Some Winning Travel Tips For ...

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Biotech

Opioids don't have to be addictive - the new versions will treat pain without triggering pleasure

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

Opioids don't have to be addictive – the new versions will treat pain without triggering pleasure

shutterstock.

Courtesy of Tao Che, University of North Carolina – Chapel Hill

The problem with opioids is that they kill pain – and people. In the past three years, more than 125,000 persons died from an opioid overdose – an average of 115 people per day – exceeding the number killed in ...



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ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



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Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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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 ...



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Promotions

NewsWare: Watch Today's Webinar!

 

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Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

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All About Trends

Mid-Day Update

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

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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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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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.

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