Posts Tagged ‘VVUS’

Vivus Call ‘Fly In Play


Today’s tickers: VVUS, NUS & RHT

VVUS - Vivus, Inc. – A large options trade on Vivus, Inc. appears to be a directional bet on the biotech company’s shares ahead of impending recommendations from an advisory panel, as well as a possible decision from FDA regulators, on whether to approve obesity drug, Qnexa. Shares in VVUS are down 1.5% today at $20.06. The large call butterfly spread purchased on Vivus in the first half of the trading day yields maximum possible gains in the event that shares soar more than 50.0% in the next three weeks. The options player responsible for the single largest trade in the name today appears to have purchased 3,250 calls at the April $27 and $35 strikes, and sold 6,500 calls at the April $31 strike, all for a net premium of $0.55 per contract. Profits on the call ‘fly kick in if shares in VVUS rally at least 37.3% to surpass the breakeven share price of $27.55, while the maximum potential payoff of $3.45 per contract is available to the trader as long as the stock jumps 54.5% to settle at $31.00 at expiration next month. The strategist stands to lose the full amount of premium paid to establish the spread if shares settle below $27.00 or above $35.00. A decision from regulators is expected by April 17th, three days prior to options expiration.

NUS - Nu Skin Enterprises, Inc. – Bearish activity in Nu Skin Enterprises, Inc. options is on the rise this morning with shares in the maker of anti-aging skin products and other personal care items trading down 4.4% at $56.85 as of 11:15 a.m. in New York. Traders picking up $55 strike put options in April and May today appear to be positioning for the price of the…
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Options Player Positions for Recovery in Beleaguered Bank of America Shares

Today’s tickers: BAC, JNJ, EXP, KO, YHOO, VVUS, SKS & STJ

BAC – Bank of America Corp. – A large-volume bullish risk reversal initiated in the September contract on Bank of America in the first half of the current trading day indicates one options strategist is positioning for a rebound in the price of the underlying stock by expiration day in a couple of months. BAC’s shares, which fell 2.85% to $13.38 this afternoon, are currently down more than 32.7% since the stock reached a 52-week high of $19.86 back on April 15, 2010. Analysts at Goldman Sachs removed Bank of America from the conviction buy list on Monday. But, one optimistic individual is rooting for BAC to come roaring back to life by September expiration day. The investor appears to have sold 20,000 puts at the September $12 strike for a premium of $0.26 apiece in order to purchase the same number of calls at the higher September $15 strike for a premium of $0.36 each. The net cost of the transaction amounts to $0.10 per contract. If financial services firm’s shares fail to rally above $15.00 by expiration, the investor will lose the full premium paid to purchase the trade. However, if the price of the underlying increases 12.85% over the current price of $13.38, the risk reversal player will start to make money above the effective breakeven price of $15.10 through September expiration. Finally, the short position in put options at the September $12 strike suggests the investor is willing to have Bank of America shares put to him at an effective price of $12.10 apiece should the puts land in-the-money at expiration.

JNJ – Johnson & Johnson – Shares of the provider of consumer products, pharmaceuticals and medical devices fell more than 2.85% in afternoon trading to arrive at $56.89 just before 3:00 pm (ET). The health care company’s shares slipped lower after the firm said second-quarter revenue was flat and lowered its 2010 profit forecast by $0.15 a share. JNJ still reported a 7.5% increase in net income, earning $1.23 a share in the second-quarter, but revising full year earnings lower took its toll on the price of the underlying stock today. One contrarian options player populating JNJ LEAPS caught our eye this afternoon. The investor appears to have purchased a plain-vanilla debit call spread using sky-high strike prices in the January 2012 contract. The…
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Call Options on Financials ETF (XLF) in High Demand

Today’s tickers: XLF, MOS, RIMM, F, VVUS, WEN & ALTR

XLF – Financial Select Sector SPDR – Near-term bullish bets that shares of the XLF, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, are set to rally ahead of July expiration jumped during afternoon trading. Shares of the ETF increased nearly 1.5% during the session to stand at $14.52 by 3:15 pm (ET). Options investors itching for a rally in the price of the underlying shares purchased at least 115,000 calls outright at the July $15 strike for an average premium of $0.08 per contract. Call buyers are prepared to profit should shares of the XLF gain 3.85% to trade above the average breakeven price of $15.08 by expiration next Friday.

MOS – The Mosaic Co. – Shares of the producer and marketer of concentrated phosphate and potash crop nutrients are up 3.3% to $46.20 with less than 45 minutes remaining ahead of the closing bell. Mosaic’s shares earlier rallied as much as 3.95% to touch an intraday high of $46.49. One bullish strategist purchased a debit call spread on the stock in order to position for Mosaic’s shares to increase substantially by expiration day in September. The trader picked up 2,800 calls at the September $50 strike for an average premium of $1.99 apiece, and sold the same number of calls at the higher September $65 strike for an average premium of $0.07 each. Net premium paid for the spread amounts to $1.92 per contract. The investor responsible for the transaction makes money as long as the potash producer’s shares surge 12.4% in the next several months to exceed the average breakeven point on the spread at $51.92 by expiration. Maximum available profits of $13.08 per contract pad the investor’s wallet if MOS shares jump 39.8% to trade above $65.00 by expiration day in September. Mosaic’s shares last traded above $65.00 back on January 11, 2010, when the stock reached an intraday and new 52-week high of $68.28.

RIMM – Research in Motion Ltd. – News the Blackberry maker plans to start an applications store as well as consumer Internet services in China sent RIMM’s shares up 8.47% in afternoon trading to an intraday high of $53.65 by 3:25 pm (ET). Optimism on the firm’s expansion in the Chinese market was…
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Phil's Favorites

The Second Great Depression... But Not Really

 

The Second Great Depression… But Not Really

By John Mauldin, Thoughts from the Frontline 

"It's a recession when your neighbor loses his job;
it's a depression when you lose yours."

—Harry S. Truman, 33rd US President

In recent weeks, numerous commentators started to suggest the US and the world are entering a depression.

For some areas of the economy, that is clearly true. But not every area.

Today we will explore what some smart minds are saying about the current economic environment. I'll also aim to help you navigate through its complexity.

Here's one t...



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Zero Hedge

American Airlines Slated To Drop Dozens Of Flights To Smaller Cities As Government Aid Dries Up

Courtesy of ZeroHedge View original post here.

With the government set to stop subsidizing the industry, airlines are gasp> actually going to have to make operational changes to effectively deal with the lack of demand. Oh, the horror of free market forces actually forcing companies to make business changes!

This starts with American Airlines, who is reportedly preparing to drop two dozen small and medium city flights as federal coronavirus aid is set to end. The aid had previously mandated that airlines were not allowed to cut service ...



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ValueWalk

Coronavirus stimulus checks talks fall apart as Congress goes on vacation

By Michelle Jones. Originally published at ValueWalk.

Our predictions regarding the coronavirus stimulus checks and related relief appears to be correct. Congress has abdicated its duty and gone on vacation while Americans await unemployment and other related stimulus programs. While the action is hard to fathom, there is a good chance the market will crash or other pressure will bring the sides together sooner than the current schedule of September 8th.

Prior coverage

The two sides continue to drift apart on the bill over Coronavirus stimulus checks and relief legislation. From a game theory perspective, I believe the Democrats are in the driver’s seat. If the bill is not passed, the economy will crash further and lead to certain electoral losses for Trump and the GOP. Therefore, the Democrats have little incentive to push for a speedy passage of the bill.

...



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Biotech/COVID-19

Rapid screening tests that prioritize speed over accuracy could be key to ending the coronavirus pandemic

 

Rapid screening tests that prioritize speed over accuracy could be key to ending the coronavirus pandemic

Broad and frequent screening could catch coronavirus cases before they can spread to others. Vaidas Bucys/EyeEm via Getty Images

Courtesy of Zoë McLaren, University of Maryland, Baltimore County

Broad access to testing is one of the most powerful tools to keep the COVID-19 pande...



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Kimble Charting Solutions

Silver Could Be Creating Large Reversal Pattern, Says Joe Friday

Courtesy of Chris Kimble

Could Silver prices from 30-years ago be influencing price action this month? Joe Friday suggests it is possible.

This chart looks at Silver Futures on a monthly basis over the past 40-years. Fibonacci levels were applied to the 1980 highs ($50) and 1991 lows ($.350) in Silver.

The 50% retracement levels of the 1980 high/1991 low came into play as support for a few months at each (1). Once this support broke, Silver fell another 50%.

The impressive rally over the past 8-weeks has Silver testing the 50% retracement level as potential...



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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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Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


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XAU
- Ready to pause, or simply explode.



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SILVER
- Ready to pause, or simply explode.


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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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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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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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