Posts Tagged ‘WAC’

Contrarian Traders Eye Call Options on Walter Investment Management Corp.

 Today’s tickers: WAC, XLE, HIG & LLNW

WAC - Walter Investment Management Corp. – Shares in the mortgage servicer and investor dropped 12.9% today to touch down at an intraday low of $16.80 on news the company is buying Green Tree for $1.065 billion including debt. Walter Investment Management Corp. will no longer qualify as a real estate investment trust after the deal closes. The sharp decline in Walter’s shares attracted long term bullish traders to the options playing field this morning. Investors expecting WAC’s shares to make a full recovery, and potentially secure new 52-week highs ahead of September expiration, purchased out-of-the-money calls on the stock. Bulls picked up around 137 calls at the September $18 strike for an average premium of $0.98 each, and bought another 209 calls up at the September $19 strike at an average premium of $0.63 apiece. Trading traffic is heaviest at the September $20 strike where more than 3,300 calls changed hands on paltry previously existing open interest of 204 contracts. Most of the calls at the September $20 strike were purchased for an average premium of $0.43 a-pop. Call buyers profit in the event that Walter’s shares surge 21.6% to trade above the average breakeven price of $20.43 in the six months remaining to expiration. WAC’s shares were trading up at a 52-week high of $20.22 as recently as March 9, 2011. Options implied volatility on the stock spiked 32.3% higher in early-afternoon trade to arrive at 26.76% just before 12:15pm.

XLE - Energy Select Sector SPDR ETF – Investors are trading approximately 11 put options on the Energy SPDR this afternoon for each single call option in play on the fund with shares in the XLE rising 0.90% during the session to secure yet another new multi-year high of $79.40. The largest transaction on the XLE, an exchange-traded fund that tracks the performance of the Energy Select Sector of the S&P 500 Index, was initiated in the September contract. An investor positioning for an eventual pullback in…
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Contrarians Scoop up Carnival Corp. Call Options

Today’s tickers: CCL, XLF, IRM & WAC

CCL - Carnival Corp. – Shares in the cruise company sank 8.3% this afternoon to touch an intraday low of $41.90, but it looks like some options traders expect Carnival Corp. to encounter fairer seas ahead of July expiration. More than 3,400 calls changed hands at the July $47 strike in the first half of the trading session, which is more than twice the number of contracts of open interest at that strike. It looks like the majority of the contracts, or some 2,600 of the calls, were purchased for an average premium of $1.89 apiece. Contrarians positioning for a rebound are prepared to make money should shares in CCL surge 15.0% off today’s low of $42.50 to surpass the average breakeven price of $48.89 ahead of July expiration. Carnival last traded up at a 52-week high of $48.14 back on January 6, 2011. The firm is one month away from reporting earnings for the first quarter before the market opens for trading on March 22, 2011. The sharp decline in shares today and the rise in demand for calls on the stock helped lift the overall reading of options implied volatility on Carnival 23.1% to 31.32% by 1:30pm in New York trading.

XLF - Financial Select Sector SPDR ETF – Three large blocks of XLF put options changed hands within the first 20 minutes of the trading session, and appear to be the foundation for a sizable bearish put butterfly spread. Shares in the XLF, an exchange-traded fund designed to track the performance of the Financial Select Sector of the S&P 500 Index, declined as much as 2.9% during the session thus far to touch an intraday low of $16.68. The put ‘fly yields maximum benefit for one investor if shares in the…
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Phil's Favorites

Bloody uprising in Nicaragua could trigger the next Central American refugee crisis

 

Bloody uprising in Nicaragua could trigger the next Central American refugee crisis

Militias guard a barricade after police and pro-government militias stormed a rebel-held neighborhood in Masaya, Nicaragua, on July 17, 2018. AP Photo/Cristibal Venegas

Courtesy of Jose Miguel Cruz, Florida International University

Central American migrants have long been at the center of what consecutive U.S. administrations have called the immigration “crisis.”

...

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Zero Hedge

Watch: Drone Flies Dangerously "Feet Away" From An Airbus A380

Courtesy of ZeroHedge. View original post here.

Fresh off the internet, an incredible video shows the moment an unmanned aerial vehicle (UAV) flies into the path of the world’s largest passenger airliner.

Video of the incident was first reported by HelicoMicro, which has since circulated many drone and photography forums. The video shows just how stupid someone can be while operating a recreational drone near an airport.

According to Oliver Kmia, a photo analyst for ...



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Insider Scoop

BofA Points To Yum China's Earnings Downside Risk In Downgrade

Courtesy of Benzinga.

Related 31 Stocks Moving In Friday's Mid-Day Session Benzinga's Top Upgrades, Downgrades For July 20, 2018 ...

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Chart School

Small Caps Enjoy Best of Action

Courtesy of Declan.

There wasn't a whole lot going on today except Small Caps were able to attract some buyers despite finishing below resistance; bulls have been taking advantage of the 20-day MA test. Today's action coincided with 'buy' signals in the MACD and +DI/-DI.


The S&P held its breakout and today's losses - despite higher volume selling - didn't do a whole lot of damage.

...

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Digital Currencies

Citadel CEO Says Bitcoin Still A "Head Scratcher" But Billionaire Lasry Sees $40,000 Soon

Courtesy of ZeroHedge. View original post here.

Ken Griffin, the CEO and founder of the Citadel hedge fund, has reiterated his negative stance on Bitcoin (BTC) in an interview with CNBC this morning.

Speaking at the Delivering Alpha Conference in New York, ...



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Biotech

How summer and diet damage your DNA, and what you can do

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

 

How summer and diet damage your DNA, and what you can do

Bright sun and fatty foods are a bad recipe for your DNA. By Tish1/shutterstock.com

Courtesy of Adam Barsouk, University of Pittsburgh

Today, your body will accumulate quadrillions of new injuries in your DNA. The constant onslaught of many forms of damage, some of which permanently...



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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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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!

 

We have a great guest at today's webinar!

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.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



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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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