Posts Tagged ‘XEC’

Bearish Player Foresees Fall From W.R. Grace & Co.

Today’s tickers: GRA, BAC, XEC & UNT

GRA - W.R. Grace & Co. – Bearish activity in options covering the producer of specialty chemicals and materials today suggests shares in W.R. Grace & Co. may extend losses through the end of 2011, and into the New Year. GRA’s shares today trade 3.5% lower on the session at $34.26. The stock has fallen 34.7% since July 26, when shares were trading up at a more than 10-year high of $52.50. One options player expecting shares to continue to head south for the winter purchased a 530-lot Jan. 2012 $22.5/$32.5 put spread for a net premium of $2.95 per contract. The investor may be taking an outright bearish stance on the stock, or could be building up downside protection to hedge a long position in the underlying shares. The spread positions the trader to profit should GRA’s shares drop 13.75% from the current price of $34.26 to breach the effective breakeven point to the downside at $29.55 by January expiration. Maximum potential profits of $7.05 per contract pad the investor’s wallet if shares in W.R. Grace & Co. plunge 34.3% to trade below $22.50 at expiration in 2012. Options implied volatility on the stock is up 9.9% at 66.67% just before 12:20 pm ET. The company’s Senior VP and CFO, Hudson La Force, is scheduled to present at the 2011 KeyBanc Capital Markets Basic Materials & Packaging Conference in Boston tomorrow, as well as at the Credit Suisse Chemicals and Ag Science Conference in New York City on Thursday.

BAC - Bank of America Corp. – Shares in Bank of America Corp. rallied earlier in the session, perhaps signaling markets are eager to learn more about CEO Brian Moynihan’s Project New BAC. The stock turned negative in early-afternoon trade, but continues to outperform…
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Option Player Cops a Strangle on ConocoPhillips

Today’s tickers: COP, POT, BAC, HPQ, AMZN, SLV, SPWRA, XEC, WFMI & C

COP – ConocoPhillips – A short strangle employed in the May contract on ConocoPhillips this afternoon suggests one investor expects shares of the underlying stock to remain range-bound through expiration. COP’s shares are down 1.25% to $49.29 with approximately thirty minutes remaining in the trading session. The trader ‘copped’ a strangle play by selling 3,000 puts at the May $46 strike for a premium of $1.77 apiece in combination with the sale of 3,000 calls at the May $52.5 strike for an average premium of $1.13 each. The investor responsible for the transaction pockets a gross premium of $2.90 per contract, and keeps the full amount of premium if ConocoPhillips’ shares trade within the confines of the strike prices described through expiration in May. The short position undertaken in both calls and puts leaves the trader vulnerable to potentially devastating losses should COP-shares swing dramatically in the next few months. Losses accumulate for the investor if shares rally above the upper breakeven price of $55.40, or if the price of the stock plummets through the lower breakeven point at $43.10, ahead of expiration day.

POT – Potash Corp. of Saskatchewan, Inc. – Fertilizer and feed products manufacturer, Potash Corp., attracted bullish options traders this afternoon. POT-shares are up 0.75% today to $114.01 just ahead of the closing bell, which contributes to the more than 14.50% rally in the price of the underlying stock since February 5, 2010, when shares stood at $99.36. Optimistic trading patterns appeared in the March contract where one investor established a ratio call spread. The transaction involved the purchase of roughly 4,500 calls at the March $125 strike for a premium of $1.77 apiece, marked against the sale of about 9,000 calls at the higher March $135 strike for an average premium of $0.52 each. The net cost of the ratio spread amounts to $0.73 per contract. Maximum potential profits of $9.27 per contract pad the investor’s wallet if Potash’s shares rally sharply by 18.50% over the current day’s price to reach $135.00 by March expiration. Shares must increase at least 10.25% before the investor breaks even on the spread at a share price of $125.73.

BAC – Bank of America Corp. – B of A investors have enjoyed an 8.75% rebound in the financial firm’s share price to $15.66 today, up from…
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Zero Hedge

China Growth Slows To 29 Year Low In 2019 Despite Q4 Rebound

Courtesy of ZeroHedge View original post here.

With phase-one talks completed in October (and signed this week), tonight's Q4 GDP and December smorgasbord of data is being keenly watched by the market for any signs that China's massive credit stimulus has actually done any good at all.

Ahead of tonight's key China data dump, State Grid, China's largest utility company, has warned the rate of economic growth in the country could plunge to 4% within the next four years, according to internal forecasts.

"We were upbeat about China...



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Phil's Favorites

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

 

Russian government resignation: what's just happened and what's in store for Putin beyond 2024?

Courtesy of Graeme Gill, University of Sydney

News came from Moscow overnight that the Russian government had resigned, followed by the announcement that Putin would be recommending the current prime minister Dmitry Medvedev be replaced by the head of the tax office, Mikhail Mishustin.

Why has the government resigned, and what does it mean for the future?

Prior to the government’s resignation, President Vladimir Putin announced a series of proposed changes to the constitution to be placed before the people in a future referendum. I...



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Insider Scoop

10 Biggest Price Target Changes For Friday

Courtesy of Benzinga

  • Citigroup lifted Caterpillar Inc. (NYSE: CAT) price target from $145 to $170. Caterpillar closed at $147.87 on Thursday.
  • UBS cut Twitter Inc (NYSE: TWTR) price target from $37 to $35. Twitter shares closed at $34.19 on Thursday.
  • Morgan Stanley boosted the price target for Yum! Brands, Inc. (NYSE: YUM) from $113 to $118. Yum! Brands closed at $102.16 on Thursday.
  • Jefferies lifted the price target on Ventas, Inc. (NYSE: ...


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Kimble Charting Solutions

Tesla About To Run Out Of Energy Here? Short-Term Peak Possible?

Courtesy of Chris Kimble

Tesla (TSLA) has been screaming higher of late, as very impressive gains have taken place.

Is Tesla about to run out of energy/take a break/experience some selling pressure? A unique price setup is in play, that bulls might want want to be aware of.

This chart applies Fibonacci to the 2016 lows and 2017 highs at each (1). The impressive rally of late has it testing its 161% extension level, based upon those price points.

At the same time, it is hitting its 161% extension level, it finds itself at the top of a 7-year rising channel, with momentum hitting the highest ...



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Chart School

Gold Gann Angle Update

Courtesy of Read the Ticker

The new year of 2020 has gold is poised to break out higher. Why is gold going higher? Maybe the FED's economists can explain .... or not.

Maybe these could be on the list:

- FED repo hundreds of billions a day.
- ECB made up tools to keep the European banks solvent.
- A sugar high stock market with Apple Inc and Microsoft looking like Bitcoin 2017.
- The US bond market is NOT confirming a strong stock market.
- Corporate profits have flat lined for 3 years while stocks soared each year.
- Knowing an US election year needs stimulus, and a lower US dollar is a first choice.
- China deal, will have a currency element to make it easier to do business. Lower US dollar.



Gold Gann Angle ...

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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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The Technical Traders

Is The Energy Sector Setting Up Another Great Entry?

Courtesy of Technical Traders

Another wild week for oil traders with missiles flying and huge overnight price swings in crude. As we recently pointed out within our current Oil research article, Oil and the Energy sector may be setting up for another great trade.  We recently commented on how the supply/demand situation for oil has changed over the past 20+ years. 

With US oil production near highs and a sh...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Members' Corner

Tobin Smith: Foxocracy, the 2020 Election, and the Stock Market

 

For decades, Fox News has been spreading false information and hooking its audience into an angry, xenophobic and paranoid worldview. It's no mystery that Fox was instrumental in the 2016 election -- but how did it do it? How did it gain so much influence? Tobin Smith, CEO of Transformity Research, Inc. and former Fox News contributor and talk show host, explores this phenomenon and discusses Fox News’ emotionally predatory and partisan propaganda media strategies and tactics in his new book, ...



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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"

 

 

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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