Posts Tagged ‘TMO’

Travelers Put Options Active

TRV – Travelers Companies, Inc. – Shares in insurance company Travelers are slightly lower on Thursday morning, down 0.70% at $85.48 as of 11:05 a.m. ET, after the stock was downgraded to ‘Sell’ from ‘Neutral’ with a 12-month target price of $72.00 at Guggenheim Securities.

Options changing hands on TRV in the early going suggest one or more traders are bracing for the price of the underlying to extend losses ahead of the weekend. It looks like options traders picked up more than 1,400 of the Oct $85 strike puts at an average premium of $0.42 apiece. The puts may be profitable at expiration this week if shares in TRV decline another 1.05% from the current price of $85.48 to breach the average breakeven point on the downside at $84.58.

Overall options volume on Travelers Cos. Is hovering just below 2,500 contracts as of the time of this writing, which is roughly three times the stock’s average daily options volume of around 740 contracts. Travelers is scheduled to report third-quarter earnings ahead of the opening bell on Tuesday. 

TMO – Thermo Fisher Scientific Inc. – Options on the provider of technology and products for pharmaceutical, biotech and science research companies are more active than usual today, with volume topping 5,500 contracts in the first hour of trading versus the stock’s average daily options volume of around 1,200 contracts. Shares in the name are up 1.25% on the session at $94.67 as of 10:50 a.m. in New York trading.

The most traded contracts on…
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Near-Term Bullish Bets On The Rise At Thermo Fisher Scientific

 

Today’s tickers: TMO, ODP & LYB

TMO - Thermo Fisher Scientific, Inc. – Front month call buying on the provider of analytical technologies and laboratory products suggests at least one options player is positioning for the price of the underlying to extend gains in the near term. Shares in Thermo Fisher Scientific moved up sharply in the first three months of the 2012, climbing nearly 30.0% to $58.37 by the end of March. April showers washed away some of those gains, however, with the stock surrendering around 9.0% during the first two weeks of this month. Today’s 2.6% pop in the price of the underlying to $54.72 saw a pickup in near-term bullish action on the stock. One or more traders snapped up calls on TMO, with around 1,090 contracts changing hands at the April $55 strike against open interest of 254 positions. Most of the calls appear to have been purchased for an average premium of $0.50 apiece, thus positioning buyers to profit should Thermo Fisher’s shares increase another 1.4% to surpass the breakeven price of $55.50 by expiration next week. The Waltham, Massachusetts-based company is scheduled to report first-quarter earnings ahead of the opening bell on April 25th, the week following options expiration.

ODP - Office Depot, Inc. – The single-largest trade in Office Depot options this morning appears to be a vote of confidence in the office supplies retailer, initiated by an investor positioning for shares in the name to trade north of $2.50 through October expiration. Shares today rose 3.5% to stand at $3.23 as of 12:45 p.m. in New York. It looks like the strategist responsible for the bullish bet on ODP sold 2,500 puts at the Oct. $2.5 strike to pocket premium of $0.25 per contract. The trader keeps the full amount…
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Rumor Mill Drives Heavy Action In Valero Options

Today’s tickers: VLO, EBAY, TMO & TRGT

VLO - Valero Energy Corp. – Reports of takeover chatter fueled frenzied trading in Valero Energy Corp. options, with volume in VLO topping 83,000 contracts by 12:05 pm in New York. Shares in the producer of gasoline, jet fuel and other refined products surged 11.1% to $24.28 in early-afternoon trade. Call options are changing hands at a rate of more than three contracts to each single put option in play on the stock. November and December contracts are the most heavily trafficked thus far in the session, although options plays are present in each available expiry. While trading in Nov. and Dec. calls is mixed, there does appear to be a bullish bias to the transactions. Investors snapped up calls at the Nov. $24, $25, $26 and $27 strikes to position for continued bullish movement in the price of the underlying through expiration next month. The Nov. $25 strike call has generated the most volume, with more than 3,500 contracts having changed hands so far today. It appears buyers of the Nov. $25 strike call picked up more than 1,800 lots for an average premium of $0.99 each. Traders long the contracts may profit at expiration day if shares in VLO rally another 4.7% to surpass the average breakeven price of $25.99. Investors hoping to see sharp gains in the stock over the next few weeks purchased around 515 calls up at the Nov. $31 strike for an average premium of $0.09 each. Premium paid to get long the calls may be lost and gone forever in the event that shares are trading below those levels come expiration day in a few weeks time. Valero Energy Corp. is scheduled to report third-quarter earnings before the opening bell on November 1.

EBAY - eBay, Inc. – Bearish activity in eBay, Inc. options this morning suggests one strategist may profit if shares in the provider of online marketplaces and secure payment services decline substantially within the next four weeks. Meanwhile, trading traffic in November contract call options may be the work of an investor throwing in the towel on hopes for a sharp near-term rally in the price of the underlying. Shares in EBAY slipped 2.75% to $30.80 by 11:30 am in New York. Volume in eBay’s options is heaviest at the Nov. $29 strike, where it appears one trader purchased around 6,000 puts for an average premium of…
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Wells Fargo Weekly Puts In Play As Financials Retreat

Today’s tickers: WFC, EQIX & TMO

WFC - Wells Fargo & Co. – Highly anticipated third-quarter earnings released from JPMorgan this morning knocked financials off what had started to look like a possible road to recovery. Shares in Wells Fargo, set to reveal its own performance for the third quarter ahead of the opening bell on Monday, fell 4.3% to $25.80 by 12:20 pm EDT. Put buyers burst onto the scene straight out of the gate on Thursday. Investors chomping at the bit for downside protection are snapping up puts that could have been purchased yesterday for a fraction of the present cost. Bearish action in the weeklys is heaviest at the Oct. ’14 $26 strike, where more than 12,000 now in-the-money puts changed hands against open interest of 3,465 contracts. It looks like more than 8,000 of the puts were purchased for an average premium of $0.39 a-pop by midday on Wall St. The premium required to buy the puts at the tail-end of Wednesday’s session ranged between $0.12 and $0.15 per contract. Investors are trading more than two put options on Wells Fargo this afternoon for each single call option in action on the stock today. Options implied volatility on WFC, which had come off earlier in the week, currently stands 9.7% higher on the day at 49.3%.

EQIX - Equinix, Inc. – Fresh prints in Equinix call options suggest one strategist is positioned for the price of the underlying to realize substantial, albeit limited, gains through expiration day in November. The ratio call spread initiated on the provider of network neutral data center services may be a bullish bet on the stock ahead of the company’s third-quarter earnings report on October 26. Shares in Equinix currently trade 0.75% lower on the day at $94.16. It looks like the…
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Big Payday for Pre-Earnings Put Buyer on RIMM

Today’s tickers: RIMM, TMO, CNO & PIP

RIMM - Research In Motion Ltd. – Ouch. Shares in the BlackBerry maker plunged 23.35% today to an intraday- and four-year low of $27.08 following the release of worse-than-anticipated first-quarter earnings on Thursday after the close. Ongoing concerns regarding RIMM’s ability to stay competitive in the smartphone market coupled with the company’s second revision lower to earnings estimates for the full year were reason enough for investors to punish the stock. Options volume on Research In Motion is greater than 565,000 contracts as of 1:05pm in New York. Puts are trading roughly 1.75 times to each single call option in play this afternoon. Trading traffic is heaviest in June contract options expiring today, while weekly options expiring next Friday generated interest, as well. Nearer-term contracts are certainly the most popular today, but traders are also generating substantial volume in longer-dated options. The largest single print in options on the stock thus far in the session appears to be the work of one strategist profiting from RIMM’s pain. It looks like the investor purchased roughly 30,000 puts at the January 2012 $35 strike for a premium of $4.80 on Wednesday. The nose-dive in the price of the underlying stock sent premium on those puts flying, and it appears the trader sold the position for $7.80 a-pop within the first 25 minutes of the opening bell this morning. In roughly 48 hours, the put buyer has banked net profits of $3.00 per contract on the position, or total gains of approximately $9 million. Next, it looks like the investor extended bearish sentiment on the stock by purchasing another chunk of around 30,000 puts at the lower January 2012 $30 strike for a premium of $4.76 each. The fresh lot of puts position the trader to profit should shares in RIMM trade beneath the effective breakeven price of $25.24 at expiration next year. Of course, the put buyer need not wait until expiration to take profits on position if…
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2010 Outlook – A Tale of Two Economies

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way--in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." – Charles Dickens, 1859

Dickens famous novel (which was originally written as a weekly series in 31 installments) depicts life in the time of the French revolution but was also a parable, meant to warn the British aristocracy that they should not ingore the parallels to the social inequities that existed at the time in England.  Dickens warned the nobles that the seeds of revolution were planted through unjust acts and surely there would be a time of reaping yet to come

It is said that the French Revolution was sparked by outrage over a statement by the Queen Mary Antoinette who, when told that the peasants had no bread to eat, supposedly replied (she never actually said this) "Qu’ils mangent de la brioche" or "Then let them eat cake."  It's hard for us to imagine the impact of this statement in modern times but "peasants" were 90% of the population at the time and bread was 90% of what they ate, consuming 50% of the average family's income (people weren't silly enough to pay for housing back then – they just found a bit of land, bought some wood and nails and built their own homes).  Brioche was a luxury combination of bread enriched with flour and butter so the statement "Qu’ils mangent de la brioche" implies both lack of caring and cluelessness on the part of the Queen. 

The United States had what passes for a revolution between 2006 and 2008 as we threw out the Republicans and went with a Democrat-controlled government.  While the Bush administration, the Republican Congress and Fox News may have been as clueless as a French Queen to the plight of the people…
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Hi-Ho Long-Term Silver Bulls!

Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV – iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT – iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL – Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options…
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Phil's Favorites

Two predictions for the wild week ahead

 

Two predictions for the wild week ahead

Courtesy of 

?

Two predictions for the coming week, which I think will be a particularly wild one –

First, the United States Ambassador to the European Union, Gordon Sondland, will walk into the House hearing room on Wednesday and tell the truth. Sondland is not part of the Trumpworld Mafia or a self-styled tough guy like Rudy, Michael Cohen or Roger Stone. He’s not a trickster or a fixer or a lifel...



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Kimble Charting Solutions

New York Stock Exchange Double Topping or Sending A Strong Bullish Message?

Courtesy of Chris Kimble

A very broad index is testing last year’s highs, as monthly momentum is creating lower highs? Which indicator is more important, price or momentum?

This chart looks at the New York Stock Exchange Index (NYSE) on a monthly basis over the past 15-years.

The index peaked in January of 2018, as momentum was the highest since the peak in 2007.

The rally off the lows around Christmas last year, has the index testing the highs of January 2018. While the rally has taken place over the past 12-months, lofty momentum has created a series of lower highs.

Can you believe th...



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Zero Hedge

Dow Dives Into Red, Home Depot Hammered

Courtesy of ZeroHedge View original post here.

Another overnight ramp evaporates...

As Home Depot weighs heavy on The Dow...

But the consumer is strong, right?

Treasury yields are tumbling too...

Source: Bloomberg

...

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Insider Scoop

10 Biggest Price Target Changes For Tuesday

Courtesy of Benzinga

  • UBS raised AbbVie Inc (NYSE: ABBV) price target from $79 to $96. AbbVie shares closed at $88.73 on Monday.
  • JP Morgan lowered the price target for Intelsat SA (NYSE: I) from $22 to $9. Intelsat shares closed at $8.03 on Monday.
  • DA Davidson boosted the price target on Okta Inc (NASDAQ: OKTA) from $131 to $135. Okta closed at $121.15 on Monday.
  • Stifel lifted the price target for Leggett & Platt, Inc. (NYSE: ...


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Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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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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