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…
continue reading


Tags: , , ,




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…
continue reading


Tags: , , ,




 
 
 

Phil's Favorites

Wall Street is ignoring the omens of recession - here's why

 

Wall Street is ignoring the omens of recession – here's why

Why is this man smiling? AP Photo/Richard Drew

Courtesy of Jay L. Zagorsky, Boston University

The world is on the brink of a recession, if all the breathless headlines are to be...



more from Ilene

Zero Hedge

Only 38% Of Americans Believe Humans Mainly Responsible For Climate Change

Courtesy of ZeroHedge View original post here.

By now, most people have accepted that climate change is real, and that it is happening. What we can't all agree on though, is what the main cause is. As Statista's Martin Armstrong notes, close to an absolute majority of the world's sci...



more from Tyler

Kimble Charting Solutions

Crude Oil Create A Panic Peak This Week?

Courtesy of Chris Kimble

Yesterday Crude Oil rallied nearly 15%. How often does Crude rally this much in a day? Not often!

How many times has Crude rallied nearly 15% in the past 20-years? Only one other time, which suggests that yesterdays move was a rare event.

This chart looks at Crude Oil on a weekly basis over the past 2-years. Last year Crude Oil created a bearish reversal pattern at the 2018 highs and a bullish reversal pattern at the 2018 lows.

Earlier this year, Crude created a bearish reversal pattern (bearish wick pattern), while testing its 61% retracement level of last years hig...



more from Kimble C.S.

The Technical Traders

VIX To Begin A New Uptrend and What it Means

Courtesy of Technical Traders

The news of the drone attack on Saudi Arabia over the weekend prompted a big upside move in Oil (over 10%) and a moderate downside rotation in the US major indexes/stock market.  Although prices had recovered slightly by the opening bell on Monday, September 16, the shock wave resulting from this disruption in oil supply is just now starting to play out.

The long term uncertainty in the markets, as well as the rotation in the US Dollar and other foreign currencies, could play a bigger role in the type of volatility and extend of the immediate price rotation that may result from this external news event.  Our VIX predictions and ADL predictive modeling system are suggesting volatility wi...



more from Tech. Traders

Insider Scoop

3 Takeaways From SeaWorld CEO's Surprise Resignation

Courtesy of Benzinga

SeaWorld Entertainment Inc (NYSE: SEAS) announced Monday evening that Gustavo Antorcha resigned as CEO and board member due to a "difference of approach."

What Happened

Antorcha's resignation will be effective immediately and he will be replaced with CFO Marc ...



http://www.insidercow.com/ more from Insider

Lee's Free Thinking

Is The Drone Strike a Black Swan?

Courtesy of Lee Adler

Pundits are calling yesterday’s drone strke a “black swan.” Can a drone strike on a Saudi oil facility, be a “black swan.”

According to Investopedia:

A black swan is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences. Black swan events are characterized by their extreme rarity, their severe impact, and the practice of explaining widespread failure to predict them as simple folly in hindsight.

I seriously doubt that no one expected or could have predicted a drone strike on a Saudi oil facility.

Call Me A B...

more from Lee

Chart School

Crude Oil Cycle Bottom aligns with Saudi Oil Attack

Courtesy of Read the Ticker

Do the cycles know? Funny how cycle lows attract the need for higher prices, no matter what the news is!

These are the questions before markets on on Monday 16th Aug 2019:

1) A much higher oil price in quick time can not be tolerated by the consumer, as it gives birth to much higher inflation and a tax on the average Joe disposable income. This is recessionary pressure.

2) With (1) above the real issue will be the higher interest rate and US dollar effect on the SP500 near all time highs.

3) A moderately higher oil price is likely to be absorbed and be bullish as it creates income for struggling energy companies and the inflation shock may be muted. 

We shall see. 

...

more from Chart School

Digital Currencies

China Crypto Miners Wiped Out By Flood; Bitcoin Hash Rate Hits ATHs

Courtesy of ZeroHedge View original post here.

Last week, a devastating rainstorm in China's Sichuan province triggered mudslides, forcing local hydropower plants and cryptocurrency miners to halt operations, reported CoinDesk.

Torrential rains flooded some parts of Sichuan's mountainous Aba prefecture last Monday, with mudslides seen across 17 counties in the area, according to local government posts on Weibo. 

One of the worst-hit areas was Wenchuan county, ...



more from Bitcoin

Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



more from Biotech

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.

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...



more from Our Members

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

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

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.

Market Shadows >>