Posts Tagged ‘WSM’

Options Light Up At First Solar As Shares Zip Higher

FSLR – First Solar, Inc. – Shares in the largest builder of solar power plants in the U.S. are up sharply on Friday, rallying for a third-consecutive session to the highest level since August. The stock is currently at session highs, up 8.4% at $49.82 as of 11:45 a.m. ET.

Traders positioning for shares in First Solar to extend gains ahead of the company’s third-quarter earnings report appear to be buying the Nov 22 ‘13 $50 strike calls today, with 3,100 contracts traded thus far in the session against open interest of 60 contracts. Time and sales data indicates most of the volume was purchased at a premium of $3.30 each, with the single-largest print being a block of 2,000 calls that traded just after 10:00 a.m. this morning. Call buyers stand ready to profit at expiration next month in the event that FSLR shares rally another 7.0% over today’s high of $49.82 to exceed the average breakeven price of $53.30. Shares in First Solar last traded above $53.30 back on June 11th.  

GOOG – Google, Inc. – Better than expected top and bottom line third-quarter results reported by Google after the close on Thursday launched the price of GOOG shares up above the $1,000 level for the first time on Friday, with shares trading up 13.3% to $1,007.09 by a.m. 10:10 ET.

The sharp move in the price of the underlying sparked heavy action in Google options straight out of the gate this morning, driving overall volume to more than twice the stock’s average daily options volume of around 61,000 contracts during the first hour of the session. Trading in…
continue reading


Tags: , ,




Vodafone Weeklys Generate Big Profits For Some Traders As Shares Soar

Today’s tickers: VOD, TFM & WSM

VOD – Vodafone Group Plc – Short term bullish positions initiated on Vodafone last week are generating substantial gains for some options traders today, with shares in the name up as much as 9.2% today to $32.12 after the U.K. carrier confirmed it is in talks to sell its 45% stake in Verizon Wireless to Verizon Communications Inc. Buyers of VOD weekly call options last Thursday saw a big jump in the value of their contracts overnight. Open interest in contracts that expire at the end of this week is greatest in the Aug 30 ’13 $29.5 and $30 calls, with 344 and 353 open contracts, respectively. A review of time and sales data in the $29.5 strike calls indicates one strategist purchased more than 300 contracts on August 22nd for a premium of $0.50 each. The jump in Vodafone’s shares today has roughly quadrupled the value of the $29.5 strike calls versus this time last week to $2.40 per contract as of 11:45 a.m. ET. Similarly, time and sales data suggests most of the Aug 30 ’13 $30 calls were purchased last Friday at a premium of $0.35 per contract. Premium required to purchase the $30 calls today has more than tripled in value to $1.90 each as of the time of this writing. Overall options volume on Vodafone is running well above the average daily level this morning, with 32,400 contracts traded thus far in the session versus an average of 8,900 options. Trading in VOD calls is outpacing that of puts, with the call/put ratio hovering around 3.2 as of 11:45 a.m. in New York.

TFM – Fresh Market, Inc. – Shares in Fresh Market fell as much as 10% today to…
continue reading


Tags: , ,




Traders Beef Up On Herbalife Options As Shares Extend Losses

 

Today’s tickers: HLF, ILMN & WSM

HLF - Herbalife, Ltd. – Options on Herbalife continue to change hands at a clip on Thursday, one day after Pershing Square Capital Management founder, Bill Ackman, announced a short position in the stock that sent shares in the marketer of weight management products down as much as 15% during trading on Wednesday. The stock extended losses today, sliding 8% in the early going to $34.33, the lowest level since February 2011. Upwards of 71,000 put and call options have changed hands on Herbalife as of 12:55 p.m. ET, with around 1.5 puts changing hands on the stock for each single call option in play. Some traders appear to be positioning for shares in the name to hit lower lows by the end of this week, while others establish contrarian bets on the name that benefit from a pop in the price of the underlying during the next 24 hours. Bears anticipating a sharp drop in shares of Herbalife in the very near term appear to be buying out-of-the-money puts across several strike prices in the December expiry. Meanwhile, call buying at the Dec. $35, $37.5 and $40 strikes looks for the stock to rebound substantially by expiration.

ILMN - Illumina, Inc. – Shares in biotechnology company, Illumina, Inc., jumped 9.25% this morning to a new 52-week high of $57.00 on unconfirmed reports that Swiss drug maker, Roche Holding AG, may be in talks to purchase Illumina at a substantially sweetened price of $66.00 a share or $8.1 billion. San Diego, California-based Illumina’s shares have rallied more than 80% since the start of the year on speculation the provider of DNA sequencing technology may be acquired. Options volume on Illumina is up sharply on the session, with some 14,000 contracts in play on the stock as of midday in New York, versus average daily options volume of around 2,200 lots. A number of strategists appear to be buying upside calls on the takeover chatter, snapping up in- and out-of-the-money calls in the December and January expiries. The Dec. $55 and…
continue reading


Tags: , ,




Macy’s Call Options On Trend As Shares Extend Rally

Today’s tickers: M, HLF, CSC & WSM

M - Macy’s, Inc. – The department store operator’s shares are on a tear following better-than-expected retail sales data out earlier in the week. Macy’s, Inc. shares tacked on another 2.6% today to secure a four-year high of $34.80. Trading in call options on the retailer is outpacing that of puts roughly 2.5 contracts to one, with overall volume up at 18,000 lots as of 12:45 PM in New York. Investors snapped up out-of-the-money calls in the front month, suggesting the stock may have more room to run in the near term. Call buyers looked to the Jan. $35 strike, picking up around 1,400 contracts for an average premium of $0.58 a-pop. Volume was heaviest up at the Jan. $36 strike where more than 4,200 calls traded against open interest of 1,463 contracts. Trading traffic in the calls was mixed, with buyers and sellers facing an average premium of $0.26 apiece. Finally, far out-of-the-money call options with a low probability of landing in-the-money at expiration attracted traders willing to pay an average premium of $0.09 apiece for roughly 2,000 contracts at the Jan. $38 strike. Investors long the $38 strike calls profit at expiration if shares in Macy’s jump 9.5% to top $38.09.

HLF - Herbalife, Ltd. – Shares in the provider of weight management products rallied 1.6% to $52.04 this morning, but the stock has underperformed some competitors since the start of the New Year. Weight Watchers shares are currently up 17.8% year-to-date, while Herbalife’s shares have lost 1.2% of their value in the same period. Though the stock is presently in the red for the new calendar year, activity in HLF call options suggests some traders are positioning for substantial gains in the name ahead of February expiration. Investors traded more than 2,000 calls at the…
continue reading


Tags: , , ,




Bears Once Again Bombard Financial Select Sector SPDR (XLF)

Today’s tickers: XLF, CECO, SLB, CTB, WFC, CACI, WSM, CTXS & FITB

XLF – Financial Select Sector SPDR – A massive put spread comprised of approximately 200,000 put options on the XLF, an exchange-traded fund that corresponds to the price and yield performance of the Financial Select Sector of the S&P 500 Index, indicates investor pessimism is alive and well despite positive first-quarter earnings announcements from a number of large financial firms this week. Bearish plays also dominated activity on the XLF earlier in the week. Shares of the underlying fund are currently down 1.2% to $16.54 as of 3:10 pm (ET). The pessimistic options player appears to have purchased roughly 100,000 put options at the June $16 strike for an average premium of $0.39 each, marked against the sale of about the same number of puts at the lower June $15 strike for $0.16 apiece. Net premium paid for the spread amounts to $0.23 per contract. The massive size of the transaction suggests the trade was initiated by an investor seeking downside protection on sizeable underlying stock positions in either the XLF itself, related holdings of the fund, or perhaps both, through June expiration. Suppose the investor is building up insurance on a large position in the underlying shares of the XLF. In this scenario, downside protection kicks in should shares of the XLF breach the effective breakeven point on the spread at $15.77 ahead of June expiration. Options players exchanged more than 415,000 option contracts on the XLF as of 3:10 pm (ET), with put options trading more than 3.5 times to each single call option in play today.

CECO – Career Education Corp. – Shares of the provider of private, for-profit, postsecondary education in the United States jumped 4.8% during the session to a new 52-week high of $35.41 after the firm received an upgrade to ‘overweight’ from ‘equal weight’ at Barclays Capital today. Options movement on the stock suggests one investor was prepared for the breakout in CECO’s shares. It looks like the investor first banked profits today by selling a previously established long call position in the July contract, and next extended and augmented bullish sentiment on the stock by purchasing fresh calls at a higher strike price. The trader likely purchased 1,900 calls at the July $35 strike f or an average premium of $1.70 each back on March 17, 2010, when shares of…
continue reading


Tags: , , , , , , , ,




Bears Once Again Bombard Financial Select Sector SPDR (XLF)

Today’s tickers: XLF, CECO, SLB, CTB, WFC, CACI, WSM, CTXS & FITB

XLF – Financial Select Sector SPDR – A massive put spread comprised of approximately 200,000 put options on the XLF, an exchange-traded fund that corresponds to the price and yield performance of the Financial Select Sector of the S&P 500 Index, indicates investor pessimism is alive and well despite positive first-quarter earnings announcements from a number of large financial firms this week. Bearish plays also dominated activity on the XLF earlier in the week. Shares of the underlying fund are currently down 1.2% to $16.54 as of 3:10 pm (ET). The pessimistic options player appears to have purchased roughly 100,000 put options at the June $16 strike for an average premium of $0.39 each, marked against the sale of about the same number of puts at the lower June $15 strike for $0.16 apiece. Net premium paid for the spread amounts to $0.23 per contract. The massive size of the transaction suggests the trade was initiated by an investor seeking downside protection on sizeable underlying stock positions in either the XLF itself, related holdings of the fund, or perhaps both, through June expiration. Suppose the investor is building up insurance on a large position in the underlying shares of the XLF. In this scenario, downside protection kicks in should shares of the XLF breach the effective breakeven point on the spread at $15.77 ahead of June expiration. Options players exchanged more than 415,000 option contracts on the XLF as of 3:10 pm (ET), with put options trading more than 3.5 times to each single call option in play today.

CECO – Career Education Corp. – Shares of the provider of private, for-profit, postsecondary education in the United States jumped 4.8% during the session to a new 52-week high of $35.41 after the firm received an upgrade to ‘overweight’ from ‘equal weight’ at Barclays Capital today. Options movement on the stock suggests one investor was prepared for the breakout in CECO’s shares. It looks like the investor first banked profits today by selling a previously established long call position in the July contract, and next extended and augmented bullish sentiment on the stock by purchasing fresh calls at a higher strike price. The trader likely purchased 1,900 calls at the July $35 strike f or an average premium of $1.70 each back on March 17, 2010, when shares of…
continue reading


Tags: , , , , , , , ,




Option Trader Prescribes Bullish Risk Reversal on CVS

Today’s tickers: CVS, LIZ, ITMN, MA, V, RF, KG, HW, WSM, AEP & NTAP

CVS – CVS Caremark Corp. – Shares of the pharmacy retail chain are up 1.5% to $31.11 perhaps due, in part, to the ‘buy’ rating it received at UBS today. Optimistic options activity took place in the December contract as one investor initiated a bullish risk reversal. It appears the trader sold 4,400 puts at the December 31 strike for an average premium of 94 cents apiece in order to finance the purchase of the same number of calls at the higher December 32 strike for 63 cents each. The investor pockets a 31 cent credit on the trade, which he retains in full as long as shares remain above $31.00 through expiration. Additional profits accumulate if CVS’s shares rally above $32.00.

LIZ – Liz Claiborne, Inc. – A 15,000-lot covered call in the January 2011 contract on Liz Claiborne today suggests shares are likely to recover, albeit at a glacial pace. Shares of the apparel and accessories retailer suffered a 5% decline to $4.55 during the trading session. One investor effectively purchased shares of the underlying stock for $3.30 apiece by selling 15,000 calls at the January 2011 5.0 strike for a premium of 1.25 each. Thus, the trader stands ready to accrue gains of 51% if shares of LIZ appreciate to $5.00 by expiration. The long-term positioning of the covered call play provides several advantages to the investor. One advantage is that the call options do not expire for another 13 months, which leaves ample time for LIZ’s shares to appreciate up to the strike price of $5.00. The 15,000-lot call transaction represents nearly 50% of the total existing open interest on LIZ of 31,502 contracts. Note that shares last traded above $5.00 yesterday at approximately 10:35 am (EDT).

ITMN – InterMune, Inc. – A bull call spread on the biotechnology company today suggests shares could rally significantly by expiration in April 2010. Bullish options activity on the stock belies the more than 3% decline in ITMN’s shares during the session to $10.94. The call spread involved the purchase of 3,750 calls at the April 15 strike for an average premium of 2.25 each, marked against the sale of the same number of calls at the higher April 25 strike for 75 cents apiece. The net cost of the transaction amounts to 1.50 per…
continue reading


Tags: , , , , , , , , , ,




Just Another Manic Monday – Retail Edition

[Growth and Deflation chart]Good morning! 

Japan had a huge GDP beat (+1.2% for the Q, 4.8% annualized)) and they leaked it early (to oil executives!) but, strangely, deflation is accelerating at the same time.  That’s great news for stimulus watchers as the government can continue to pump money into the economy, even while it’s growing and, of course, the carry trade can continue.

Despite the robust third-quarter report, Japanese officials said they were still concerned about the economy’s strength going forward, and didn’t intend to pull back plans for further spending to ensure continued growth.

"There is no change in the severe condition of the country’s economy," Naoto Kan, the deputy prime minister, told reporters after the report’s release. "We are concerned about whether the economy falls into a deflationary situation," he added.

The domestic demand deflator — a measure of changes in prices of goods and services, excluding exports and imports — plunged 2.6%, the fastest pace since 1958. It was the third straight quarter of falling prices.

Another sign of concern in the report: The contribution of private consumer spending to growth slipped in the third quarter, suggesting measures to convert Japan from export-led growth to domestic-demand-led growth were facing limits. In the third quarter, private consumer spending, rose 0.7%, compared with a revised 1% climb in the second quarter.

It’s all stimulus but there’s no sign stimulus is stopping so party on markets.  Japan also got a huge benefit from the Chinese auto sales – more stimulus!  The Nikkei itself isn’t thrilled and is up just 0.25%, barely hitting Friday’s high on a stick-save into the close but that didn't stopping the futures from jumping up more than half a point and gold from hitting $1,130.  I sent out an Alert to Members at 2:24 this morning saying:

"Once the Nikkei closes (2am EST) the Hang Seng will have an hour to themselves and that should top out our futures (the Hang Seng is up at 22,900 (+1.5%).  The shorting move on gold futures is to short them as they cross below $1,130 with zero tolerance for holding gold above that line.  The same can be done with the S&P futures at 1,100, the Dow at 10,316 and the Nas at 1,800 and you can even use the 2 out of 4 rule to
continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , ,




 
 
 

Phil's Favorites

How to make fragile global supply chains stronger and more sustainable

 

How to make fragile global supply chains stronger and more sustainable

Shipping containers are moved from the Fairview Cove Container Terminal In Halifax in May 2021. THE CANADIAN PRESS/Andrew Vaughan

Courtesy off Adel Guitouni, University of Victoria; Cynthia Waltho, University of Victoria, and Mohammadreza Nematollahi, University of Victoria

...

more from Ilene

Digital Currencies

Ethereum: the transformation that could see it overtake bitcoin

 

Ethereum: the transformation that could see it overtake bitcoin

The crypto wars are hotting up. Wit Olszewski

Courtesy of Daniel Broby, University of Strathclyde

The world’s second most valuable cryptocurrency, ether, has been touching all-time highs in price ahead of a major upgrade of its underlying platform, ethereum. Ether is currently worth in aggregate just shy of US$500 billion (£363 billion). That’s still slightly less than half that of the biggest cryptocurrency, bitcoin.

...

more from Bitcoin

Zero Hedge

Wait Until All These New Homebuyers See Their Property Taxes Go Up Next Year

Courtesy of ZeroHedge View original post here.

To add another chapter to the "our economy is a ponzi scheme bubble that is bound to eventually burst" argument, those who went out and overpaid for property this year may wind up with a hangover in the form up skyrocketing property taxes.

We all know that higher real estate prices (hereinafter referred to as "a real estate bubble") are often praised by government and Fed officials as signs of progress for the economy. They're great news for those who already own property and terrible news for those looking to enter the m...



more from Tyler

Politics

Trump wants the National Archives to keep his papers away from investigators - post-Watergate laws and executive orders may not let him

 

Trump wants the National Archives to keep his papers away from investigators – post-Watergate laws and executive orders may not let him

Nixon resigned after tapes he had fought making public incriminated him in the Watergate coverup. Bettmann/Getty

Courtesy of Shannon Bow O'Brien, The University of Texas at Austin College of Liberal Arts

The National Archives is the United States’ memory, a repository of artifacts that includes everything from half-fo...



more from Politics

Biotech/COVID-19

An infectious disease expert explains new federal rules on 'mix-and-match' vaccine booster shots

 

An infectious disease expert explains new federal rules on ‘mix-and-match’ vaccine booster shots

Discuss with your doctor whether or not you need a booster – and if so, which vaccine will work best for you. Justin Sullivan/Getty Images News via Getty Images

Courtesy of Glenn J. Rapsinski, University of Pittsburgh Health Sciences

Many Americans now have the green light to get a COVID-19 vaccine booster – and the flexibility to receive a different brand than the ori...



more from Biotech/COVID-19

Chart School

Price and Volume Swing Analysis on Bitcoin and Silver

Courtesy of Read the Ticker

Many take guidance from news, pundits or advisors. Well sometimes the swings of price and volume are a better measure of what happens next.

The big boys do not accumulate or distribute in single 1 second trade, they build positions over weeks, months and years. They use price swings in the market to build or reduce positions, and you can see their intent by studying swings of price and volume and applying Tim Ord logic as written in his book called 'The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks'.

Tim Ord is a follower of Richard Wyckoff logic, his book has added to the studies of Richard Wyckoff, Richard Ney and Bob Evans.

Richard Wyckoff after years of...

more from Chart School

Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



more from Promotions

Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



more from Kimble C.S.

ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



more from ValueWalk

Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



more from M.T.M.

The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



more from Tech. Traders

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...



more from Lee

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.
...

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





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. Contact Ilene to learn about our affiliate and content sharing programs.