Posts Tagged ‘TWC’

Traders Look To Tumi Puts As Shares Edge Higher

 

Today’s tickers: TUMI, TWC & NRF

TUMI - Tumi Holdings, Inc. – Shares in luggage and travel accessories maker, Tumi Holdings Inc., are moving higher for a third consecutive session, up 1.6% today at $20.77 as of 12:10 p.m. ET. The stock continues to rebound following a sharp pullback last week during the first trading session of 2013. Options activity on Tumi this morning suggests some traders are wary the stock could reverse gains in the near term. The most active options on the stock today are the Jan. $20 strike puts, with upwards of 1,200 lots changing hands versus open interest of just nine contracts. It looks like most of the puts were purchased for an average premium of $0.70 apiece, thus positioning buyers to profit in the event that Tumi’s shares slide 7% from the current level to breach the average breakeven price of $19.30 by January expiration. Shares in the luxury luggage company last traded below $19.30 back in August 2012. Tumi Holdings, Inc. is scheduled to present at the 15th Annual ICR XChange Conference in Miami next Wednesday.

TWC - Time Warner Cable, Inc. – The provider of video, high-speed data and phone services popped up on our market scanners this morning due to heavy volume in the February expiry put options. Shares in Time Warner Cable kicked off the week in positive territory, but have since reversed gains to trade down 0.60% on the day at $97.17 as of 12:25 p.m. in New York. One options trader appears to be placing a floor on the cable operator’s shares, selling 6,250 puts at the Feb. $90 strike for a premium of $0.60 apiece. The strategy makes maximum profits of $0.60 per contract as long as shares in TWC settle above $90.00 and the puts land out-of-the-money at February expiration. The put seller could wind up having 625,000 shares of the underlying put to him at expiration if shares in the name decline 7.4% to $90.00 during the next five weeks. Time Warner reports fourth-quarter earnings ahead of the opening bell on the…
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Bulls Take To Research In Motion calls

Today’s tickers: RIMM, PIR, BKS & TWC

RIMM - Research in Motion, Ltd. – Renewed takeover speculation lifted shares in beaten-down Blackberry-maker Research in Motion this morning, spurring fresh bullish activity in weekly call options and driving options implied volatility on the stock higher. RIMM’s shares earlier rallied as much as 5.1% to $18.77, but have cooled somewhat as of 11:50 AM ET to stand a lesser 2.5% higher on the day at $18.30. Investors placing immediate-term bullish trades targeted the Dec. ’02 $18 and $19 strike calls, which have one full day of trading left to expiration. Traders paid an average premium of $0.45 apiece to pick up more than 1,100 in-the-money calls at the Dec. ’02 $18 strike, and shelled out an average of $0.16 in premium per contract for some 3,500 calls at the higher $19 strike. Meanwhile, the newly available weekly options that expire next Friday attracted the attention of speculators as well. Options traders purchased calls at the Dec. ’11 $19, $20, $21 and $22 strikes to position for RIMM’s shares to extend gains. Investors purchased roughly 850 calls at the Dec. ’11 $19 strike for an average premium of $0.53 each, and snapped up nearly 700 of the Dec. ’11 $20 strike calls at an average premium of $0.39 apiece. Call buyers at these strikes may profit at expiration next week in the event that shares in Research in Motion surge 6.7% and 11.4% over the current price of $18.30 to surpass the average breakeven prices of $19.53 and $20.39, respectively. Roughly 88,000 option contracts have changed hands on RIMM as of midday on the East Coast, with calls trading more than 2.3 times for each single put option in play.

PIR - Pier 1 Imports, Inc. – The home furnishings retailer popped up on our ‘hot by options volume’ market scanner this morning after one strategist initiated a bullish stance in March 2012 contract calls. The specialty retailer raised its third-quarter earnings estimate from $0.18 a share to a range of $0.20 to $0.21 a share, and said comparable store sales increased 7.0%. Shares in Pier 1 Imports are down 2.05% in early-afternoon trade to stand at $13.31, but one investor is preparing for the price of the underlying to realize significant gains over the next four months. It looks like the trader purchased 1,060 calls at the Mar. 2012 $17 strike for a premium of $0.40…
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Time Warner Cable Call Buyer Tunes in for a Rally

Today’s tickers: TWC, RVBD, EXPE & CL

TWC - Time Warner Cable Inc. – An investor expecting shares in Time Warner Cable to pop ahead of March expiration initiated a large stock and option combination play just before 12:30pm in New York. Shares in the TWC are currently down 0.80% this afternoon to stand at $70.53. It looks like the trader enacted a delta neutral position, selling 150,000 shares of the underlying at $70.60 each, and buying 10,000 calls at the March $75 strike at a premium of $0.25 a-pop, on a 0.15 delta. The risk profile of the transaction is such that the trader may benefit somewhat on the short stock leg of the transaction should shares in the name slip in the near term. But, the profit and loss parameters of the position dictate substantially greater gains if Time Warner’s shares surge ahead of expiration day next month. If shares rally, gains on the long calls, which represent a far larger stake in the underlying than the 150,000 shares of which the investor is short, will trump losses realized on the short stock. The investor is well positioned to benefit nicely should the price of the underlying react as he predicts it will. Time Warner Cable’s reading of options implied volatility is up 5.1% on the session at 21.26% as of 1:30pm.

RVBD - Riverbed Technology, Inc. – Shares in Riverbed Technology increased as much as 4.0% this morning to secure an intraday- and new all-time high of $43.54. One big options player appears to be using call options in the name to position for the bullish momentum to continue through June expiration. It looks like the trader picked up 15,000 deep in-the-money calls at the June $39 strike for a hefty premium of $7.30 each, and sold the…
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Bears Out in Full Force as Market Takes a Nose-Dive

Today’s tickers: XRT, MBI, CAT, XHB, FLS, PCS & TWC

XRT – SPDR S&P Retail ETF – It’s not surprising that we are seeing bearish trading patterns emerge on the XRT, an exchange-traded fund designed to mirror the performance of the S&P Retail Select Industry Index, with shares of the fund trading 5.30% lower as of 3:20 pm (ET) to stand at $40.25. One long-term pessimistic individual initiated a three-legged bearish options combination play on the XRT using both call and put options. It looks like the investor partially financed the purchase of a debit put spread by selling twice as many out-of-the-money call options by volume. The trader purchased 5,000 puts at the September $40 strike for an average premium of $2.42 apiece, and sold the same number of puts at the lower September $34 strike for a premium of $0.84 each. Finally, the investor reduced the premium outlay required to establish the transaction by selling 10,000 calls at the September $48 strike for a premium of $0.73 per contract. The net cost of the options combination play is reduced to just $0.12 per contract. The investor responsible for the pessimistic play makes money if shares of the underlying fund slip beneath the effective breakeven point at $39.08. Maximum potential profits of $5.88 per contract are available to the trader should shares of the retail fund plummet 15.5% from the current price to breach $34.00 by September expiration. Options implied volatility on the XRT is up 15% to 34.80% with roughly 40 minutes remaining in the trading day.

MBI – MBIA Inc. – Investors who earlier in the session scooped up large numbers of put options on the insurance company are likely pleased as punch given the subsequent 10.4% decline in MBIA’s share price to $8.81 as of 3:25 pm (ET). Bearish investors purchased approximately 50,000 puts at the June $7.0 strike for an average premium of $0.75 apiece at around 11:40 am (ET) this morning when shares of the underlying stock were trading at $9.30 each. The decline in share price since this morning coupled with the 25.2% increase in the overall reading of options implied volatility on the stock to 136.22% inflated premium on the June $7.0 strike puts, which are currently up 200% on the day to reflect an asking price of $0.90 per contract. Put buyers in this case are poised to amass profits should…
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Phil's Favorites

Walmart Testing Flippy The Job-Stealing Robot Cook

Courtesy of Zero Hedge

Walmart is testing out a new kitchen robot assistant named "Flippy" at its Bentonville, Arkansas headquarters in order to see if it might make for a valuable team member in its in-store delis, according to Yahoo! Finance

While Flippy had somewhat of a rocky start at a Pa...



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Zero Hedge

Walmart Testing Flippy The Job-Stealing Robot Cook

Courtesy of Zero Hedge

Walmart is testing out a new kitchen robot assistant named "Flippy" at its Bentonville, Arkansas headquarters in order to see if it might make for a valuable team member in its in-store delis, according to Yahoo! Finance

While Flippy had somewhat of a rocky start at a Pa...



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Kimble Charting Solutions

Silver miners testing key breakout level!

Courtesy of Chris Kimble.

Silver miners (SIL) have had a rough 7-years, as the ETF finds itself nearly 75% below its 2011 highs. No doubt the long-term trend remains down.

SIL is has declined 27% since the first of this year (See chart below), where it is testing a falling support line at (1), with momentum currently at the lowest levels in 5-years.

While declining this year, SIL could be creating a bullish falling wedge, where it currently is in a tight jam between support and resistance.

This chart looks at the Year-to-Date performance of miners ETF’s-

...



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Biotech

Those designer babies everyone is freaking out about - it's not likely to happen

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

 

Those designer babies everyone is freaking out about – it's not likely to happen

Babies to order. Andrew crotty/Shutterstock.com

Courtesy A Cecile JW Janssens, Emory University

When Adam Nash was still an embryo, living in a dish in the lab, scientists tested his DNA to make sure it was free of ...



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Insider Scoop

Nvidia Bounces Back After News Of Potential SoftBank Sale

Courtesy of Benzinga.

Related NVDA 10 Biggest Price Target Changes For Wednesday Boeing, Lennar, Nvidia, Gold ETF: 'Fast Money' Picks For December 3...

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Members' Corner

Blue Wave with Cheri Jacobus (Q&A II, Updated)

By Ilene at Phil's Stock World

Cheri Jacobus is a widely known political consultant, pundit, writer and outspoken former Republican and frequent guest on CNN, MSNBC, FOX News, CBS.com, CNBC and C-Span. Cheri shares her thoughts on the political landscape with us in a follow up to our August interview.

Updated 12-10-18

Ilene: What do you think about Michael Cohen's claim that the Trump Organization's discussions with high-level Russian officials about a deal for Trump Tower Moscow continued into June 2016?

...

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Digital Currencies

How low will Bitcoin now go? The history of price bubbles provides some clues

 

How low will Bitcoin now go? The history of price bubbles provides some clues

The Bitcoin bubble is perhaps the most extreme speculative bubble since the late 19th century. Shutterstock

Courtesy of Lee Smales, University of Western Australia

Nearly 170 years before the invention of Bitcoin, the journalist Charles Mackay noted the way whole communities could “fix their minds upon one object and go mad in its pursuit”. Millions of people, he wrote, “become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first”.

His book ...



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Chart School

Weekly Market Recap Dec 09, 2018

Courtesy of Blain.

Bears are certainly showing the type of strength we haven’t seen in a long time.   A week ago at this time futures were surging on news of a “truce” for 90 days between China and the U.S. in their trade spat.  But the charts were still not saying lovely things despite a major rally the week prior.   And by Tuesday, darkness had descended back on the indexes, with another gut punch Friday.    A lot of emphasis was put on a long term Treasury yield dropping below a shorter term Treasury.

On Monday, the yield on five year government debt slid below the yield on three year debt, a phenomenon which has p...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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ValueWalk

Vilas Fund Up 55% In Q3; 3Q18 Letter: A Bull Market In Bearish Forecasts

By Jacob Wolinsky. Originally published at ValueWalk.

The Vilas Fund, LP letter for the third quarter ended September 30, 2018; titled, “A Bull Market in Bearish Forecasts.”

Ever since the financial crisis, there has been a huge fascination with predictions of the next “big crash” right around the next corner. Whether it is Greece, Italy, Chinese debt, the “overvalued” stock market, the Shiller Ratio, Puerto Rico, underfunded pensions in Illinois and New Jersey, the Fed (both for QE a few years ago and now for removing QE), rising interest rates, Federal budget deficits, peaking profit margins, etc...



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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

Free eBook - "My Top Strategies for 2017"

 

 

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In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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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