Posts Tagged ‘WBMD’

Bullish Bets On WebMD Pay Off For Some Traders As Shares Rip Higher

Today’s tickers: WBMD, ZQK & IP

WBMD - WebMD Health Corp. – Shares in health information services provider, WebMD Health Corp., are on a tear today, up as much as 31% at a new 52-week high of $35.28 during morning trading after the company raised its full year profit and revenue forecast. The stock has increased more than 160% since November of 2012 when the shares touched down at an all-time low of $13.13. Options traders who picked up far out of the money call options on WBMD during recent weeks are enjoying big gains in the value of their positions today amid double-digit percentage gains in the price of the underlying. Of note, was the purchase of around 350 of the Jul $35 strike calls at a premium of $0.20 apiece back on June 6th when shares in the name were hovering around $29.50. The $35 strike calls are currently changing hands at four times that amount, with the last-traded price at $0.80 per contract as of 11:45 a.m. in New York. Traders initiating bullish positions on the stock last week appear to have purchased around 220 calls at the Aug $35 strike for a premium of $0.40 per contract on Monday morning. The rally in shares today has lifted premium on the Aug $35 call options to $2.25 as of the time of this writing. Finally, traders positioning for the price of the underlying to continue higher next week appear to have purchased around 850 of the Jul $35 strike calls this morning for an average premium of $0.95 apiece. These contracts make money at expiration next week as long as shares in WebMD rally another 5.0% over the current price of $34.25 to exceed the average breakeven point at $35.95. WebMD Health Corp. is scheduled to report second-quarter earnings after the closing bell on July 31st.

ZQK - Quiksilver, Inc. – Apparel and accessory company, Quiksilver, popped…
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WebMD Options In Play As Shares Nosedive

 

Today’s tickers: WBMD, AMAT & BRCD

WBMD - WebMD Health Corp. – Shares in the health information services provider dropped like a rock, falling 32.0% to as low as $25.01 on Tuesday, on news talks to potentially sell the company have ended, net income is expected to be lower in 2012, and the CEO of the company has resigned. The steep pullback in the price of the underlying saw heavier-than-usual activity in WebMD calls and puts, with intraday volume rising to 14,800 in early-afternoon trade against overall open interest of 29,100 positions. Though some strategists engaged in bearish put buying in the name, it appears much of the action was initiated by investors gearing up for a potential rebound in the stock. Roughly 1.6 call options changed hands on WebMD for each single put option in play thus far in the session. Calls are most active at the Jan. $30 strike where more than 2,200 contracts traded against open interest of just 4 positions. Earlier this morning, with shares hovering around $26.00, investors paid an average of $0.35 per contract for the right to buy the stock at $30.00 by January expiration. The modest intraday recovery since then has lifted premium to buy the calls up to $0.50 as of 1:40 PM in New York. Traders long the calls at an average of $0.35 each may profit at expiration if shares in WBMD surge 13.25% over the current price of $26.80 to exceed the average breakeven point at $30.35. Meanwhile, put buyers in the front month at the $22.5 and $25 strikes may see the value of their options rise if shares take another hit ahead of expiration next week.

AMAT - Applied Materials, Inc. – A large trade in Applied Materials…
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Ratio Put Spreader Tunes in to DISH Network Corp. Options

Today’s tickers: DISH, LBTYA, HGG, VECO, WBMD, VLO & TFSL

DISH – DISH Network Corp. – The implementation of a ratio put spread on the U.S. provider of direct broadcast satellite subscription television service this afternoon was perhaps put on by an investor looking to lock in recent share price gains. DISH shares, which are currently up 2.4% on the day to arrive at $20.77 by 3:40 pm ET, have rebounded nearly 17.5% since touching down to $17.75 on July 1, 2010. It looks like one trader purchased 3,000 puts at the December $20 strike for an average premium of $1.58 each, and sold 6,000 puts at the lower December $18 strike for an average premium of $0.83 a-pop. The investor responsible for the transaction receives a net credit of $0.08 per contract, and keeps the full amount at long as DISH’s shares exceed $20.00 through December expiration. The trader is perhaps utilizing the spread to protect the value of a position in the underlying shares. If this is the case, downside protection kicks in should shares reverse course to trade below $20.00 by expiration day. The decision to employ a ratio spread rather than a 1-by-1 spread or a plain-vanilla long put stance suggests this investor does not expect DISH shares to collapse ahead of expiration at the end of 2010. The firm is scheduled to report second-quarter earnings ahead of the opening bell on August 9, 2010.

LBTYA – Liberty Global, Inc. – It looks like one options strategist expects shares of the international producer of video, voice and broadband internet services to remain range-bound through October expiration. Liberty Global’s shares are currently down 0.20% to stand at $29.65 as of 3:05 pm ET. LBTYA reported an adjusted net loss of $2.42 a share for the second quarter of 2010 after the market closed on Tuesday. But, shares moved very little following earnings. Perhaps the lack of fluctuation in the price of the underlying shares during earnings season bolstered the strangle seller’s premonition that LBTYA’s shares are likely to trade within a specified range for the next couple of months. The investor appears to have sold roughly 10,000 puts at the October $27.5 strike for a premium of $0.70 each in combination with the sale of about the same number of calls at the October $32.5 strike for an average premium of $0.35 apiece. The trader pockets…
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Timing the Market

 

Timing the Market

Courtesy of 

In August 2017 I wrote “This will be my last post on the CAPE ratio.” I made it 16 months, which means I pretty much kept my word.

I was listening to Invest Like the Best when Cliff Asness said, “You do not want to make a career trying to beat the stock market based on whether it is cheap or expensive.” This sent me back to the drawing board.

There are no universal agreements...



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Zero Hedge

Financial Crises Have Always Been "Made In Washington"

Courtesy of ZeroHedge. View original post here.

Submitted By Joseph Carson, Former Director of Global Economic Research, Alliance Bernstein

The Federal Reserve is facing the growing possibility of the third asset price bust in the last two decades. And each one has a "Made in Washington" label attached to it as policymakers have failed to use official rates to maintain financial stability while also inadvertently fueling excessive asset price gains by pursing expansionary policies to achieve their inflation-target.

At this time, polic...



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Kimble Charting Solutions

Junk Bonds sending 2000 & 2007 Bearish messages again!

Courtesy of Chris Kimble.

This chart looks at Junk Bond Fund (PHDAX) and the S&P 500 over the past 25-years. Junk bonds sent bearish messages “before stocks peaked in 2000 & 2007.” Bearish divergences took place for 24-months in 2000 and 7-months in 2007, prior to stocks peaking and turning much lower.

This year Junk bonds have been sending a bearish message to stocks for the past 16-months, as another bearish divergence has been taking place.

Junk bonds and the S&P 500 are currently testing 9-year rising support currently. If both break below 9-year support, they would be suggesting that a long-term low in stock...



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Insider Scoop

The Street Reacts To BlackBerry's Cylance Acquisition

Courtesy of Benzinga.

Related BB Benzinga's Top Upgrades, Downgrades For November 19, 2018 BlackBerry Scoops Up Cybersecurity Company Cylance For $1.4B ...

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Chart School

The Power of the Dow Jones Cycle

Courtesy of Read the Ticker.

Once again the data confirms cycles exists in the market. Value and other fundamental investors must concede cycles are in the stock market. [You can learn more about our Hurst Cycle tools here].

Previous Post Kitchin Cycle warned of market volatility

In the past this blog has posted the chart below, the Kitchin cycle or 900 periods, and you can see its success.

The cycle source:

.."Joseph Kitchin (1861–1932) was a British busine...



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Members' Corner

NY Times: OPERATION INFEKTION

 

This is a three-part Opinion Video Series from NY Times about Russia’s meddling in the United States’ elections as part of its "decades-long campaign to tear the West apart." This is not fake news. Read more about the series here.

OPERATION INFEKTION

RUSSIAN DISINFORMATION: FROM COLD WAR TO KANYE

By Adam B. Ellick and Adam Westbrook

EPISODE 1

MEE...



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Digital Currencies

Bitcoin's high energy consumption is a concern - but it may be a price worth paying

 

Bitcoin's high energy consumption is a concern – but it may be a price worth paying

Shutterstock

Courtesy of Steven Huckle, University of Sussex

Bitcoin recently turned ten years old. In that time, it has proved revolutionary because it ignores the need for modern money’s institutions to verify payments. Instead, Bitcoin relies on cryptographic techniques to prove identity and authenticity.

However, the price to pay for all of this innovation is a high carbon footprint, created by Bitc...



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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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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

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

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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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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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"

 

 

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

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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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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.

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