Posts Tagged ‘WU’

Masco Calls Active After Earnings; IWM Attracts Large Put ‘Fly

 

Today’s tickers: MAS, IWM & WU

MAS - Masco Corp. – It’s up, up and away for shares in Masco this morning, with the stock up 14.5% on the session at a new four-year high of $20.36, following the maker of home improvement and building products strong fourth-quarter earnings report released after the close on Monday. The stock is up more than 80% since this time last year. Options traders positioning for further upside in the stock during the next few months snapped up some 415 calls at the April $22 strike at a premium of $0.25 per contract. Call buyers profit at April expiration should Masco Corp. shares increase another 9.3% to surpass the effective breakeven price of $22.25. Meanwhile, pre-earnings report bullish bets on MAS have resulted in substantial overnight paper profits for some traders today. It looks like traders purchased around 240 calls at the Feb. $18 strike for an average premium of $0.35 apiece yesterday. These contracts are currently changing hands at $2.60 apiece, a seven-fold increase over the price paid on Monday.

IWM - iShares Russell 2000 Index Fund – Shares in the iShares Russell 2000 Index Fund rallied to a fresh multi-year high again this morning, increasing 0.40% in the early going to touch $91.10. The ETF has rallied more than 8.0% since the end of 2012, but a large options combination play initiated yesterday suggests one strategist is prepared for shares in the fund to pullback during the next six weeks. It looks like the trader purchased a 1-by-2-by-1 put butterfly spread, buying 50,000 puts at the both the Mar. 28 ’13 $82 and $88 strikes and selling 100,000 puts at the central Mar. 28 ’13 $85 strike, for a net premium outlay of $0.29 per contract. The large put ‘fly makes money if shares in the IWM slip 3.7% from Tuesday’s high of $91.10 to breach the breakeven point at $87.71, with maximum potential profits of $2.71 per contract available in the event that shares slide 6.7% to settle at…
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Options Tactician Targets Southwestern Energy Co.

Today’s tickers: SWN, XLE, FAST, NFLX, WU, ODP & SEH

SWN – Southwestern Energy Co. – Shares of the independent energy company engaged in natural gas and crude oil exploration, development and production increased as much as 1.6% at the start of the trading session to touch an intraday high of $32.60. Options trading on the stock took on a bullish slant after one strategist populated the January 2011 contract with a couple of interesting transactions. It looks like the investor sold a strangle and purchased in-the-money call options during the second half of the trading session. The options player purchased 10,000 in-the-money calls at the January 2011 $32 strike at an average premium of $2.795. At the same time, the trader initiated a short strangle, selling 15,000 calls at the January 2011 $36 strike for premium of $1.13 each, and shedding 15,000 puts at the lower January 2011 $29 strike at a premium of $1.30 apiece. Gross premium pocketed on the strangle amounts to $2.43 per contract. It seems the trader is looking for substantial albeit limited upside movement in Southwestern shares. The long call stance, in isolation, prepares him to make money if SWN’s shares rally above the breakeven price of $34.43 by January expiration. Meanwhile, the trader keeps the full premium pocketed on the sale of the strangle if shares trade within the boundaries of the $29/$36 strike prices through expiration day next year. The short strangle may be a financing vehicle aimed at reducing the cost of getting long the in-the-money calls. In this scenario, the investor is bullish on Southwestern Energy, but does not see shares exploding to the upside in the next 5 months to expiration.

XLE – Energy Select Sector SPDR ETF – The implementation of a ratio put spread on the energy ETF suggests one options strategist may be bracing for erosion in the price of the underlying shares through January 2011 expiration. Shares of the XLE, an exchange-traded fund designed to yield investment results that correspond to the price and yield performance of the Energy Select Sector of the S&P 500 Index, are lower by 0.75% to stand at $54.44 with approximately 40 minutes remaining before the closing bell. The put player appears to have purchased 11,500 lots at the January 2011 $50 strike for premium of $1.66 each, and sold 23,000 puts at the lower January 2011 $47 strike at…
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Goldman Sachs-Bulls with Butterfly Wings are at it Again

Today’s tickers: GS, WU, DSW, MGM, WMT, BAC, EEM, WLP, HD & MMM

GS – Goldman Sachs Group, Inc. – Goldman-optimists are once again employing bullish butterfly spreads on the stock in order to efficiently position themselves to profit from an eventual rebound in the investment banking firm’s share price. Goldman Sachs, one of the top tickers on our ‘most active by options volume’ market scanner, glowed green amid a sea of red today as its shares inched up 1.75% to $154.69 as of 3:20 pm (ET). The bullish butterfly spread initiated on GS this afternoon yields maximum benefits to the investor responsible for the transaction if shares of the underlying stock jump back up to $175.00 by October expiration. The parameters of this spread are a bit different than the larger-volume butterfly spread we reported on Monday afternoon, which prepared an investor to reap maximum profits should Goldman’s shares rally up to $160.00 by expiration day. Today’s transaction involved the purchase of 2,000 calls at the October $160 strike for an average premium of $12.80 apiece [wing 1], and the purchase of another 2,000 calls at the higher October $190 strike for $3.90 each [wing 2]. The body of the butterfly was established at the central October $175 strike where 4,000 calls were sold for $7.20 a-pop. Net premium paid for the spread amounts to $2.30 per contract. The net cost of the trade pales in comparison to maximum available profits of $12.70 per contract, which the trader pockets if Goldman’s shares surge 13% over the current price to settle at $175.00 at expiration. The butterfly-spreader starts to make money as long as shares of the underlying stock increase 4.9% to surpass the breakeven point to the upside at $162.30 ahead of October expiration.

WU – Western Union Co. – Shares of the world’s largest money-transfer business surged 9.25% to an intraday high of $19.57 after the firm posted first-quarter earnings of $0.30 per share, which satisfied average analyst forecasts. A couple of analysts raised target share price estimates for Western Union following the positive earnings report. WU’s target price was bumped up to $23 from $19 at Susquehanna, in addition to the move up to $21 from $18 at D.A. Davidson today. Western Union’s current CEO, Christina Gold, is also reportedly handing over the reins to the current COO, Hikmet Ersek, on September 1, 2010. One Western Union…
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Phil's Favorites

Honda closure: Brexit is tipping the UK's car industry over the edge

 

Honda closure: Brexit is tipping the UK's car industry over the edge

Pajor Pawel / Shutterstock.com

Courtesy of Jim Saker, Loughborough University

Britain’s car industry has faced a barrage of bad news in 2019. Honda is the latest casualty, announcing it will close its Swindon car plant, which employs 3,500 people, in 2021. It follows ...



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Zero Hedge

Not So Fast: China Will Not Allow Use Of Yuan As Bargaining Chip To Resolve Trade War

Courtesy of ZeroHedge. View original post here.

With market optimism brimming that it's just a matter of days, if not hours, before the US and China reach a truce in the ongoing trade war - even though there have been countless accurate analyses in recent weeks explaining why an actual trade deal is impossible since the object of contention is not trade at all but China's creeping technological dominance, something which Beijing will never voluntarily concede - Beijing has poured cold water over expectations of an imminent deal when China's Ministry of Foreign Affairs said on Wednesday that Chi...



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ValueWalk

It's Your Lucky Day - Whitney Tilson Has A Job Offer And A New Stock Idea

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors discussing him hiring an analyst; his Stock Idea of the Day: Thor Industries; Tesla; KIPP Casino Night.

1) A final reminder that I’m looking to hire an analyst, based in Baltimore, for my new investment newsletter business, Empire Financial Research. The ideal candidate will have a passion for investing, a nose for cheap stocks and great writing skills. One of the analyst’s jobs will be helping me put together daily emails like this one, whic...



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Kimble Charting Solutions

Are Bank Stocks Ready to Right-Side the Bull Market?

Courtesy of Chris Kimble.

The bank sector is a good indicator of the health of the broader stock market.

Bulls like to see the banks in a leadership role because it indicates that the economy is doing well. But when they begin to lose momentum and underperform, it often leads to pullbacks and corrections.

As you can see in today’s chart, the Bank Index (BKX) began to stumble well before the recent correction. And that bearish divergence was a warning to market bulls – similar to the 2015-2016 setup.

On the other hand, the recent rally has given bulls an opportunity to right-side th...



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Insider Scoop

3 Texas Roadhouse Analysts Agree: Wait For A Better Entry Point In Stock

Courtesy of Benzinga.

Related TXRH Texas Roadhouse's Q4 Earnings Preview Earnings Scheduled For February 19, 2019 ...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 02 August 2018, 07:48:20 PM

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Comment: $600 BN interest payments for US gov, print baby print



Date Found: Sunday, 05 August 2018, 09:22:26 PM

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Comment: Hire FED interest rates always brings double trouble



Date Found: Monday, 06 August ...

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Digital Currencies

Cryptos Are Surging: Bitcoin, Ethereum Hit One-Month Highs As Institutions Dip Toes

Courtesy of Zero Hedge

Cryptocurrencies are surging while the US equity markets take the day off. Ethereum is up over 18% from Friday's 'close' and the rest of the crypto space is a sea of green. While no immediate catalyst (headline or technical level) is clear, increasing chatter over institutional investors dipping their toes in the space have prompted an extension of the positive trend.

A sea of green...

Source: Coin360

Ethereum is leading the charge follow...



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Biotech

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

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

 

Cancer: new DNA sequencing technique analyses tumours cell by cell to fight disease

Illustration of acute lymphoblastic leukaemia, showing lymphoblasts in blood. Kateryna Kon/Shutterstock

Courtesy of Alba Rodriguez-Meira, University of Oxford and Adam Mead, University of Oxford

...

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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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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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