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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Zero Hedge

Silver Just Had Its Best Month In 40 Years: Here Are July's Best And Worst Performing Assets

Courtesy of ZeroHedge View original post here.

When looking at the torrid market performance in July, Deutsche Bank's Jim Reid notes that silver (+35%) had its best month since December 1979 while the dollar the worst for a decade. US equities had a good month in spite of rising virus caseloads due to a strong earnings season relative to expectations, especially in tech towards the end of the month. YTD Silver, Gold and the NASDAQ have been the three best performers while at the bottom of the leaderboard Brent, WTI and European Banks are all down at least 30%.

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ValueWalk

Coronavirus stimulus check: Tell IRS if you didn't get the payment yet

By Aman Jain. Originally published at ValueWalk.

We are now in the final week when a decision on the next coronavirus stimulus package is expected. However, many still haven’t received their first stimulus check. The IRS has said that it would continue to send payments through the end of the year. Yet, if you meet the eligibility requirements and haven’t gotten the coronavirus stimulus check, you should let the IRS know.

Q2 2020 hedge fund letters, conferences and more

When to contact IRS for coronavirus stimulus check

The IRS has already send the majority of the payments. Though the agency would be sending ...



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Phil's Favorites

The Fed Has Secreted Away the Transactions of Three of Its Emergency Lending Programs

Courtesy of Pam Martens

(Left to right, top) Fed Chairman Jerome Powell; Randal Quarles, Vice Chair for Supervision; Richard Clarida, Vice Chair; (left to right, bottom) Lael Brainard, Michelle Bowman.

By Pam Martens and Russ Martens

Federal Reserve Chairman Jerome Powell and Randal Quarles, the Vice Chairman for Supervision at the Fed, have stated in testimony before Congress that they would be providing transaction level details of their Section 13(3) Emergency Lending Facilities on a regular, ongoing basis. But the three ol...



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Kimble Charting Solutions

Here's How To Buy The Top Stocks In The Hottest Sectors During The Covid Crisis

Courtesy of Chris Kimble

Tech has been the place to be during the Covid-19 crisis. Investors Business Daily recently highlighted how one can own the strongest of the strong by just owning one ETF (See article here).

This chart looks at the Dorsey Wright Focus Five index ETF (FV), which reflects that it is attempting a bullish breakout while creating higher lows over the past 6-years.

The $2.1 billion fund tracks the Dorsey Wright Focus Five Index, which provides access to five First Trust sector and industry ETFs. Dorsey Wright & Associates selects the funds based on relative price momentum, then weights the compone...



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Biotech/COVID-19

Video: Who controls pandemic data?

 

Video: Who controls pandemic data?

Public data is vital to the functioning of a democracy. Witthaya Prasongsin / Getty Images

Courtesy of Julia Lane, New York University

Editor’s note: When the Trump administration ordered hospitals to report COVID-19 data to the Department of Health and Human Services rather than the Centers for Disease Control and Pre...



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Digital Currencies

Twitter Says "Human Error" And "Spear-Phishing Attack" Responsible For Massive Bitcoin Hack

Courtesy of ZeroHedge

Twitter suffered from a major hack about two weeks ago and has now said that its staff was tricked by "spear-phishing", which is a targeted attack to trick people into simply handing out their passwords. 

Twitter staff were targeted through their phones, according to a new report from the BBC. The attacks then allowed hackers the ability to Tweet from celebrity Twitter accounts. Twitter has said it was "taking a hard look" at how it could improve its permissions and processes.

"The attack on July 15, 2020, targeted a small number of employees through a phone spear phishing attack. This attack relied on ...



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The Technical Traders

ARE THE MARKETS ABOUT TO TURN?

Courtesy of Technical Traders

Deborah Honig from Adelaide Capital asks Chris the question on everyone’s mind – where are the markets heading? Where is the ‘big money’, the early movers in the market, going? Chris and Deborah also look at the technicals for Gold and Silver and discuss whether Gold and Silver are starting a big run-up now, or should we wait before taking positions?

Learn more about our latest research and alerts on Gold, Silver, Oil, and Equities at www.TheTechnicalTraders.com.

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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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Chart School

US Dollar Cycle Review

Courtesy of Read the Ticker

If investors can correctly forecast the US Dollar then their portfolio will be standing on better ground.

Jesse Livermore said investors must familiarise themselves with all matters of the market. The sine wave cycle below shows regular tops and bottoms and if the investor ignores this repeating phenomena it could be at their peril. If you decide to do so, you best have a good technical or fundamental reason.

The sine wave cycle below was found with readtheticker.com 'Cycle Finder Spectrum' use of 'Bartels' logic. Yes it is mathematics, but within the site RTT Plus service we also examine the dollar fundamentals  (like: inflation, money s...

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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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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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