Posts Tagged ‘WM’

Busy Day For Bristol-Myers Options As Shares Sprint Higher

Options brief will resume May 20th, 2013.

Today’s tickers: BMY, TIBX & WM

BMY - Bristol-Myers Squibb Co. – Shares in drug maker, Bristol-Myers Squibb Co., are ripping higher today, up 6.5% at $44.94, the highest level in more than a decade, ahead of the release of the American Society of Clinical Oncology (ASCO) 2013 Annual Meeting abstracts tonight. The ASCO Annual Meeting begins on May 31st in Chicago. Options on BMY are far more active than usual today, with overall volume topping 64,000 contracts by 12:25 p.m. ET, versus average daily volume of around 11,400 contracts. Traders appear to be snapping up call options on the name, establishing near-term bullish positions on the stock to position for further gains in the price of the underlying. Front month calls are seeing most of the action, with intraday call volume well in excess of open interest across several striking prices. More than 7,000 calls have traded at the May $45 strike against open interest of 316 contracts, with roughly 3,600 calls purchased during the first half of the session for an average premium of $0.54 each. Call buyers make money if shares in BMY rally another 1.3% over the current level of $44.94 to settle above the average breakeven price of $45.54 by expiration this week. In and out of the money call options expiring June 21st are also seeing heavy volume in today’s session.

TIBX - TIBCO Software, Inc. – Upside call buying on software maker, TIBCO, suggests some traders are positioning for the price of the underlying to continue to gain ground in the near term. The stock is up 0.40% this morning at $20.91 as of 11:40 a.m. ET. Shares in TIBX, down roughly 30% since this time last year, have managed to rise 15% off a two-year low of $18.18 reached back on April 19th. Bullish options are changing hands at the Jun $20 strike today, with around 5,000 calls in play versus open interest of 2,742 contracts. Time and sales data indicates the bulk of…
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Options Look For Further Gains In Fortune Brands Home & Security

 

Today’s tickers: FBHS, ORCL & WM

FBHS - Fortune Brands Home & Security, Inc. – Shares in the home and security products company that was spun off from Fortune Brands in 2011 are up 4.5% this morning at $23.27. Call options on the company, which sells products under well-known brands including, Master Lock and Moen, among others, are more active than usual today. Trading traffic in the August expiry calls suggests one or more investors may be positioning for the price of the underlying to rally to the highest level since the spin off. Upwards of 1,000 calls changed hands at the Aug. $25 strike versus previously existing open interest of 105 contracts. It looks like most of the calls were purchased for a premium of $0.40 apiece. Call buyers may profit at expiration next month should shares in FBHS rally another 9.2% to surpass the breakeven price of $25.40. Fortune Brands Home & Security is scheduled to report second-quarter earnings after the close of trading on July 25th.

ORCL - Oracle Corp. – A large bearish spread initiated in Oracle Corp. options this morning sees shares in the name potentially pulling back more than 20.0% from the current level during the second half of the year. Shares in Oracle are down 0.75% as of midday to stand at $29.47, returning some Friday’s more than 5.0% rally in the stock. It looks like one strategist initiated a 9,000-lot Dec. $23/$28 put spread, the largest blocks printing 7,622 contracts in the first 30 minutes of the trading week, for a net premium outlay of $1.08 apiece. Profits kick in on the position should shares in Oracle Corp. decline 8.7% to breach the breakeven price of $26.92, while maximum possible profits of $3.92 per contract are available should the stock drop 22.0% to $23.00 by December expiration. The put spread is the largest trade in Oracle options so far today. The transaction could be a hedge to…
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Bears Augment Put Positions On Consumer Discretionary ETF

Today’s tickers: XLY, REGN, WM & CMC

XLY - Consumer Discretionary Select Sector SPDR Fund – Bears are hoarding put options on the Consumer Discretionary SPDR Fund following the release of dismal employment figures ahead of the open this morning. We noted growing interest in XLY puts on Tuesday and Wednesday of this week, which suggested traders were hungry for varying degrees of protective or bearish positions on the sector. Shares in the XLY, an exchange-traded fund that tracks the performance of the Consumer Discretionary Select Sector of the S&P 500 Index, are down 1.9% in early-afternoon trade to stand at $36.42. The fund’s shares have fallen roughly 13.0% since hitting a 52-week high of $41.78 in the first full trading week of July. The sizable positions initiated in XLY puts earlier in the week, pale in comparison to the large bearish prints in the options today. It looks like one or more investors purchased some 34,750 puts at the October $30 strike for an average premium of $0.41 apiece. Put buyers profit if shares in the XLY plunge 18.75% from the current price of $36.42 to breach the average breakeven point on the downside at $29.59 by expiration day next month. Much of the 17,564 puts represented in open interest at the October $30 strike were purchased Tuesday for an average premium of $0.36 each. Traders long the put options may see the value of their positions appreciate if the price of the underlying fund continues to push lower in the next seven weeks to October expiration day.

REGN - Regeneron Pharmaceuticals, Inc. – Demand for Regeneron calls jumped after the New York Times reported five more patients using Roche’s cancer drug Avastin to treat eye diseases were blinded. Shares in the biotechnology company Regeneron, which is seeking FDA approval…
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Imax Surges on Sony Buyout Talk

 Today’s tickers: IMAX, HIG, VRGY, TOL & WM

IMAX - Imax Corp. – Earlier today you’d have needed more than just 3D-glasses to see the trail left behind by a near 20% surge in shares of the movie-theater corporation. Rumors have emerged that Japan’s Sony Corporation is set to make a $40-plus bid for the company enamored by its growing popularity amongst movie theater-goers. With more films built using 3D-technology shares in the company had already tripled this year in anticipation of growing revenues. Earlier in the week we witnessed what appeared to be a delta-neutral strategy that would have benefitted perfectly from the surging share price, which has subsequently halved its intraday gain. An investor sold stock at around $25.00 and bought call options at the $30 strike expiring in March. As the shares jump in value, the delta on the option swells to give the investor a far-greater long exposure to the stock hugely eclipsing losses from the short position. But is looks like this trader is sitting pretty today as developments unfold and there is no action at that strike price. Rather investors appear to be more concerned with an imminent Sony bid and have targeted the January expiration $35 strike, which has traded in a range spanning 40-cents to $1.10 per contract as the share price digests today’s news. Trading currently at 60-cents the contract would make money by expiration only if shares in Imax surged by more than 18.6% based upon a share price at $30.00.

HIG - Hartford Financial Services Group. – Earlier in the month it appears that an options trader took to a bullish call strategy on the multi-line insurer. December 8 was a high volume day for the stock but also saw around 7,500 calls expiring in January 2011 trade at a 55-cent premium. The strike price of $27.50 was above the closing share price that day by exactly 10%. Just nine days ago the share price hit home lifting the premium to 90-cents. Since then and…
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Bears Binge on Put Options as Diamond Offshore Drilling, Inc. Shares Nosedive

Today’s tickers: DO, GAP, RIG, WMS, IMA, BAX, IGT, CAT, CCJ, CVS & WM

DO – Diamond Offshore Drilling, Inc. – Shares of the world’s largest U.S. deep-water oil driller fell as much as 7.6% to an intraday low and new 52-week low of $54.70 after businessinsider.com reported the firm’s Ocean Saratoga rig is leaking crude into the Gulf of Mexico. Goldman Sachs’ ratings cut of Diamond Offshore shares to ‘sell’ from ‘neutral’, as well as a downgrade to ‘underperform’ from ‘market perform’ with a 12-month target share price of $54.00 at FBR Capital Markets, also helped drive the stock lower today. Bearish options investors populated the stock with pessimistic plays, buying near-term put options and selling calls in the June contract. Traders expecting Diamond’s shares to continue to decline purchased 1,200 now in-the-money puts at the June $58.63 strike for an average premium of $4.07 apiece. Investors holding these contracts profit if shares trade beneath the average breakeven price of $54.56 by June expiration. Buying interest spread to the lower June $54.88 strike where 1,100 puts were picked up for an average premium of $2.26 each. Another 1,100 puts were purchased at the June $53.63 strike for a premium of $1.82 per contract. Finally, uber-bearish players coveted 1,600 put options at the lower June $49.88 strike by paying an average premium of $0.92 apiece. Shares of the underlying stock must plunge 10.5% from the current intraday low of $54.70 before June $49.88 strike put buyers start to garner profits beneath the average breakeven price of $48.96. Investors not expecting Diamond’s shares to rally ahead of June expiration sold short 1,300 calls at the June $61.75 strike to pocket an average premium of $0.61 per contract. The premium is safe in call-sellers’ wallets as long as shares of the underlying stock trade below $61.75 through expiration day. Options implied volatility on Diamond Offshore Drilling is up 15.1% to 59.94% as of 3:10 pm (ET). Earlier implied volatility surged roughly 18% to 61.42%, DO’s highest reading of volatility in at least one year.

GAP – Great Atlantic & Pacific Tea Co., Inc. – Investors bought put options on the operator of conventional supermarkets, combination food and drug stores and discount food stores today with shares of the underlying stock trading lower by 4.45% to stand at $4.08 as of 2:38 pm (ET). Pessimistic traders expecting GAP’s shares to continue to decline…
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Stock Market Crash – Year One in Review – The Gathering Storm

Happy anniversary market crash! 

One year ago, in September, the market started falling in earnest.  A lot of people were caught by surprise by that drop as many thought we had just had a major correction and the worst was over.  We had bounced off 10,800 on July 14th and had made it all the way back to touch 12,000 on August 14th but that day I warned my members in the morning post:

We’re really through the looking glass when you see investors stampede right back into oil and other commodity stocks at the first sign of a bounce off a 20% drop.  I guess they’ve never seen a pullback off 20% before so it makes sense that Cramer would hit the BUYBUYBUY button on anything that smells like crude.  I wish I had access to the tapes of all these same idiots telling you to BUYBUYBUY housing stocks and mortgage companies when they made their first bounce on the way to 80% losses.

It’s not just oil that is expensive, now it has to compete for consumer dollars with food and airline fares and tobacco prices and consumer goods etc.  Oil was able to bubble up because people were enjoying a robust economy and it was the ONLY thing that was rising out of control.  Metals began to follow it as that didn’t affect the average person but then companies had to start passing on the increased costs and the banks stopped lending money and the consumers were forced to stop using their home’s equity (if there was any left) like a piggy bank and *poof,* suddenly there isn’t enough money for oil.  This isn’t going to change because there’ s a hurricane or a shut down pipeline or anything else.

Oil was trading at a still ridiculous $115 a barrel that day, down from $147 on July 1st but still choking the life out of the economy.  We were very bearish on oil and natural gas ($14 at the time) as the fundamentals simply didn't support the price of oil at $115 as much as they didn't support $147 a month earlier.  I had gone negative on oil too early though, as we thought $120 was surely the top back in May.  Sometimes fundamentals can get you too ahead of the market.  Our man Ben was between
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Zero Hedge

Has E.T. Gone Home?

Courtesy of ZeroHedge. View original post here.

UFO sightings have been making headlines again lately, notably with The New York Times running an interesting article about several U.S. Navy fighter pilots encountering mysterious objects near the southeastern coast of the United States.

That high-profile story remains unexplained and so do plenty of other UFO sightings reported by members of the public every year like strange lights crossing the night sky or orange disks hovering in the distance.

However, as Sta...



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Phil's Favorites

Food waste: using sustainable innovation to cut down what we throw away

 

Food waste: using sustainable innovation to cut down what we throw away

shutterstock.

Courtesy of Mehrnaz Tajmir, University of Bath and Baris Yalabik, University of Bath

Our appetite for food is a serious problem. The huge amount of energy, land and water used to fill our supermarket shelves mean that modern overproduction and excessive consumerism are rapidly depleting resources and damaging the planet.

Yet still, more than one-third of the world’s food...



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Kimble Charting Solutions

Doc Copper Is Pushing Higher Off 18-Year Rising Support, Says Joe Friday

Courtesy of Chris Kimble.

Gold & Silver have been hot of late! Is Doc Copper about to do the same? Possible says Joe Friday.

This chart looks at Copper Futures over the past 27-years. Copper has spent the majority of that time inside of rising channel (1).

The decline over the past year has Doc Copper testing 18-year rising support and lows of the past 8-months at (2).

Joe Friday Just The Facts Ma’am- Copper is attempting to rally off of long-term support at (3). As Copper is testing the bottom of this support channel, smart money hedgers are making a bi...



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Insider Scoop

Benzinga's Top Upgrades, Downgrades For July 19, 2019

Courtesy of Benzinga.

Upgrades
  • For American International Group Inc (NYSE: AIG), William Blair upgraded the previous rating of Market Perform to the current rating Outperform. American International Gr earned $1.58 in the first quarter, compared to $1.04 in the year-ago quarter. American International Gr's market-cap stands at $48,358,299,270. At the moment, the stock has a 52-week-high of $56.49 and a 52-week-low of $36.16. American International Gr c...


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Chart School

RTT Plus Chart Book (Sneak Peak)

Courtesy of Read the Ticker.

The magic of support and resistance channel lines and how they direct price. Here are some chart disclosed to members via the RTT Plus service. All charts are a few weeks old. 


XAU bound by parallel channel lines.


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Newmont Mining support from Gann Angles.



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US Dollar index (DXY) dominate cycle ...

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Digital Currencies

Cryptos Suddenly Panic-Bid, Bitcoin Back Above $10k

Courtesy of ZeroHedge. View original post here.

Following further selling pressure overnight, someone (or more than one) has decided to buy-the-dip in cryptos this morning, sending Bitcoin (and most of the altcoins) soaring...

A sea of green...

Source: Coin360

Bitcoin surged back above $10,000...

Ethereum bounced off suppo...



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Biotech

DNA testing companies offer telomere testing - but what does it tell you about aging and disease risk?

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

 

DNA testing companies offer telomere testing – but what does it tell you about aging and disease risk?

A telomere age test kit from Telomere Diagnostics Inc. and saliva. collection kit from 23andMe. Anna Hoychuk/Shutterstock.com

Courtesy of Patricia Opresko, University of Pittsburgh and Elise Fouquerel, ...



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ValueWalk

Professor Shubha Ghosh On The Current State Of Gene Editing

 

Professor Shubha Ghosh On The Current State Of Gene Editing

Courtesy of Jacob Wolinsky, ValueWalk

ValueWalk’s Q&A session with Professor Shubha Ghosh, a professor of law and the director of the Syracuse Intellectual Property Law Institute. In this interview, Professor Ghosh discusses his background, the Human Genome Project, the current state of gene editing, 3D printing for organ operations, and gene editing regulation.

...

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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...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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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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