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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Phil's Favorites

US-China trade deal: 3 fundamental issues remain unresolved

 

US-China trade deal: 3 fundamental issues remain unresolved

The game is far from over. rawf8/Shutterstock.com

Courtesy of Penelope B. Prime, Georgia State University

The U.S. and China have reportedly reached a so-called phase one deal in their ongoing trade war.

While few details have been disclosed, the agreement principally seems to involve the U.S. calling off a new round of tariffs that were slated to take effect on Dec. 15 and removing others already in place in exchange for more Chinese purchases of U.S. farm products.

Good n...



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Kimble Charting Solutions

Euro Breakout In Play? Gold Bulls Sure Hope So!

Courtesy of Chris Kimble

The Euro has spent much of the past 2 years trading in a down-trend.

Though precious metals like Gold have fared well, this has been a bit of a headwind because it means that the US Dollar has remained firm.

Big Test In Play for the Euro

The Euro is testing a confluence of important support just as the downtrend is narrowing and ready for a “break”. That support includes lower falling wedge support and the Euro’s long term up-trend support line (see points 1 and 2).

If the Euro can succeed in breaking out at (3), it would be bullis...



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Zero Hedge

China Refuses To Confirm Trade Deal As Local Media Stays Dead Silent

Courtesy of ZeroHedge View original post here.

Markets are closed in Beijing, the workday is over, and there no official reports in local media of an actual trade deal, that is because, as we explained on Thursday night, the language of the deal will never be made public and there would be no signing event between President Trump and President Xi. One may ask if there is even a "deal"?

As the ...



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Insider Scoop

8 Healthcare Stocks Moving In Friday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Sarepta Therapeutics, Inc. (NASDAQ: SRPT) stock surged 36.4% to $137.00 during Friday's pre-market session. The market value of their outstanding shares is at $6.1 billion. The most recent rating by Janney Capital, on December 13, is at Buy, with a price target of $175.00.
  • GlaxoSmithKline, Inc. (NYSE: GSK) shares surged 1.1% to $46.44. The market value of their outstanding shares is at $112.9 billion. According to the most recent rating by UBS, on November 21, the current rating is at Buy.
  • AstraZeneca, Inc. (NYSE: ...


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Digital Currencies

Three Men Arrested In NJ For Running Alleged $722 Million Crypto Ponzi Scheme

Courtesy of ZeroHedge View original post here.

Authored by Kollen Post via CoinTelegraph.com,

United States authorities in New Jersey have announced the arrest of three men who are accused of defrauding investors of over $722 million as part of alleged crypto ponzie scheme BitClub Network, per a Dec. 10 announcement from the Dep...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 
Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices. The cycle below shows prices are ready to move in the months ahead (older chart re posted).




 

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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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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.

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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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