Posts Tagged ‘WTR’

Weekly Call Options Eye Rally In J.C. Penney Ahead Of New Year

 

Today’s tickers: JCP, RPTP & WTR

JCP - J.C. Penney Co., Inc. – Upside call buying in weekly options on J.C. Penney this morning suggest some traders are positioning for shares in the department store operator to rally during the final week of the year. Shares in JCP are up 2.65% at $20.11 as of 11:05 a.m. in New York, but are down more than 40% since the start of 2012. Fresh interest in weekly calls looks for shares in the retailer to extend this morning’s gains when the market reopens after the Christmas holiday. Volume is heaviest at the Dec. 28 ’12 $20 strike, where upwards of 3,500 calls changed hands against open interest of 1,469 contracts. It looks like most of the volume was purchased for an average premium of $0.68 each in the early going. In-the-money call buyers stand ready to profit at expiration this week should shares in JCP rally another 2.8% to top the average breakeven price of $20.68. Bullish positioning spread to the Dec. 28 ’12 $20.5 and $21 strikes, with more than 650 contracts purchased at each strike for average premiums of $0.45 and $0.28 apiece, respectively. Finally, around 275 of the Dec. 28 ’12 $22 strike calls were picked up at an average premium of $0.20 each, thus positioning buyers to profit in the event of a more than 10% move in the share price to $22.20 by expiration.

RPTP - Raptor Pharmaceutical Corp. – Shares in Raptor Pharmaceutical Corp. fell sharply in after-hours trading on Friday after the company said the U.S. Food and Drug Administration needs more time to complete its review of Raptor’s New Drug Application (NDA) for RP103 (PROCYSBI™), a potential treatment for nephropathic cystinosis, according to a press release issued by Raptor on Friday. Shares continue to slide on Monday morning, down 7% at $5.34 as of 11:25 a.m. ET. One or more traders preparing for Raptor’s shares to continue to slide in the New Year snapped up put options in the February expiry. Traders exchanged more than 750 puts at the Feb.…
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Caterpillar Optimist Buys Bullish Risk Reversal

Today’s tickers: CAT, EEM, CHK, AAPL, AA, UUP, MNKD, LVLT, CHTT, WTR & WAG

CAT – Caterpillar, Inc. – Near-term bullish options trading on the machinery manufacturer today suggests some investors are positioning for a rally in CAT shares by expiration day in January 2010. The stock edged 0.75% higher during the trading session to $57.56. One investor initiated a bullish risk reversal on Caterpillar by selling 6,000 puts at the January 55 strike for a premium of 95 cents each, spread against the purchase of 6,000 calls at the now in-the-money January 57.5 strike for 1.67 apiece. The net cost of the reversal play amounts to 72 cents per contract. The investor accumulates profits on the transaction if CAT’s shares rally above the breakeven price of $58.22 by expiration.

EEM – iShares MSCI Emerging Markets Index ETF – Shares of the emerging markets exchange-traded fund increased 0.10% today to $40.41. Option traders established long-term bullish and long-term bearish positions in the January 2012 contract during the session. A bullish risk reversal took place at the January 2012 40 strike where one trader sold 6,500 puts for 7.80 apiece to buy 6,500 calls for 7.50 each. The optimistic investor pockets a net credit of 30 cents per contract on the transaction. The full 30 cent credit is safe in the trader’s piggy bank if shares of the EEM trade at or above $40.00 through expiration in two years. The investor is positioned to accrue additional profits as shares increase above $40.00. The other transaction observed in the January 2012 contract appears to be bearish. The trade involved the sale of 10,000 calls at the January 2012 45 strike for a premium of 5.30 each, marked against the purchase of 5,000 puts at the January 2012 35 strike for 5.50 each. The investor takes in a net credit of 5.10 per contract due to the 2-to-1 ratio of calls sold to puts purchased. EEM’s shares must trade below $45.00 in order for the investor to keep the 5.10 credit.

CHK – Chesapeake Energy Corp. – Natural gas and oil exploration and production company, Chesapeake Energy Corp., experienced a 1.75% rally in the price of its shares to stand at $26.52 in afternoon trading. Some investors are anticipating a significantly higher share price for CHK by expiration in July 2010. Chesapeake-bulls bought roughly 4,000 calls at the July 30 strike for an…
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Zero Hedge

Escobar: What Sanctions On Russia And China Really Mean

Courtesy of ZeroHedge. View original post here.

Authored by Pepe Escobar via The Asia Times,

The Pentagon may not be advocating total war against both Russia and China – as it has been interpreted in some quarters ...

A crucial Pentagon report...



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Chart School

History Rhymes with the Dow

Courtesy of Read the Ticker.

The next 10 years, or even the next 2 years will not be like any of the years in the past 10. Risk is moving closer and closer to the surface.

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Market risks coming to the surface:

1) Higher interest rates.

2) US Congress control.

3) China vs USA in trade.

4) World wide Leverage.

5) World wide liquidity issues.

6) US Pensions.

7) Corporate bond market....



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Phil's Favorites

Weekend Reading: Tax Cuts Saved The Economy?

Courtesy of Lance Roberts, RealInvestmentAdvice.com,

IBD recently penned an article touting the success of the recent tax cuts from the Trump administration.

“The Treasury Department reported this week that individual income tax collections for FY 2018 totaled $1.7 trillion. That’s up $14 billion from fiscal 2017, and an all-time high. And that’s despite the fact that individual income tax rates got a significant cut this year as part of President Donald Trump’s tax reform plan.”

Hold on a second.

A $14 billion increase on $1.68 Trillion in receipts is a very paltry 0.8% increase. This is the 8th LOWEST rate of increase in the history...



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Kimble Charting Solutions

This commodity is breaking above resistance and moving averages, says Joe Friday

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

At the beginning of the month, the Power of the Pattern shared that Coffee was testing long-term support, as it was at the apex of a bullish falling wedge, with momentum deeply oversold and commercial hedgers were betting big time it would rally. See Post Here

In the past when this setup was in play, Coffee rallied more than 50% in a short time period at each (1). Since that post, Coffee has been one of the best-performing commodities on the plan...



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Digital Currencies

Blockchains won't fix internet voting security - and could make it worse

 

Blockchains won't fix internet voting security – and could make it worse

An e-ballot is less secure than one on paper. SvetaZi/Shutterstock.com

Courtesy of Ari Juels, Cornell University; Ittay Eyal, Technion - Israel Institute of Technology, and Oded Naor, ...



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Insider Scoop

10 Stocks To Watch For October 18, 2018

Courtesy of Benzinga.

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Philip Morris International Inc. (NYSE: PM) to report quarterly earnings at $1.27 per share on revenue of $7.15 billion before the opening bell. Philip Morris shares fell 0.07 percent to $84.50 in after-hours trading.
  • Analysts expect PayPal Holdings, Inc. (NASDAQ: ...


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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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Members' Corner

Why obvious lies still make good propaganda

 

This is very good; it's about "firehosing", a type of propaganda, and how it works.

Why obvious lies still make good propaganda

A 2016 report described Russian propaganda as:
• high in volume
• rapid, continuous and repetitive
• having no commitment to objective reality
• lacking consistency

...

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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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About Ilene:

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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