Posts Tagged ‘XLK’

Amazon.com Calls Draw A Crowd As Shares Rise

 

Today’s tickers: AMZN, XLK, & MS

AMZN - Amazon.com, Inc. – Shares in the online retailer are up the most in the Nasdaq 100, trading 1.5% higher this afternoon at $195.20. Options traders expecting the bullish momentum to continue in the near term appear to be accumulating weekly call options. Weekly volume is heaviest at the Mar. ’30 $200 strike, where more than 4,300 contracts changed hands against open interest of 1,271 positions. Trading patterns reveal a roughly even mix of buying and selling. Fresh interest in the Mar. $205 strike call, however, is mostly driven by buyers. Traders positioning for shares to post big gains next week purchased the majority of some 3,500 calls in play at the $205 strike at an average premium of $0.72 each. Buyers of these contracts profit at expiration as long as Amazon’s shares rally another 5.4% to exceed the average breakeven price of $205.72. Bullish call buying extended up to the $210 weekly calls, as well, with roughly 650 contracts purchased for $0.31 a-pop. Overall options volume of 84,300 lots stands just below the AMZN’s 90-day average options volume of 87,480 lots. More than 2.5 calls are changing hands on the stock for each single put in play on the final trading session of the week.

XLK - Technology Select Sector SPDR – Options on the Tech ETF are among the most active today, with more than 114,000 contracts in play as of 12:15 p.m. in New York trade. Almost all of the options traded on the XLK are puts that appear to be tied up in a strategy that yields maximum gains in the event of a more than 6.0% pullback in the price of the underlying by April expiration. Shares in the XLK are currently off 0.25% to stand…
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Action In Weekly Calls Bodes Well For Bank Of America


Today’s tickers: BAC, XLK & ROST

BAC - Bank of America Corp. – Shares in Bank of America are up 2.9% this morning at $9.09, extending gains sparked by the release of results from the latest round of stress tests. But, will this rally continue? Options trading in the newly issued weekly options on BAC suggest some traders believe the stock may have more room to run. Bullish activity in calls set to expire one week from tomorrow is heaviest at the Mar. ’23 $9.0 strike where more than 5,000 in-the-money calls changed hands. It looks like most of these options were purchased for an average premium of $0.21 apiece. Meanwhile, traders speculating the shares could rally to their highest since August 1, 2011, were willing to plunk down an average of $0.03 per contract for some 1,800 calls at the Mar. ’23 $10 strike in the first half of the session. Investors long the $10 calls make money at expiration next Friday as long as Bank of America’s shares add another 10.3% to top the average breakeven price of $10.03. Finally, mixed trading in the Mar. $9.0 strike put options suggests some participants are positioning for shares to cool in the near term. More than 9,000 $9.0 strike puts traded in the first 90 minutes of the session, with roughly 5,500 of those contracts purchased for an average premium of $0.23 apiece. Overall options volume on the bank is nearing 390,000 contracts as of 11:40 a.m. ET.

XLK - Technology Select Sector SPDR – A large ratio put spread initiated on the XLK this morning may be one trader’s way to hedge any potential pullback that could potentially hit the tech sector during the next five weeks to April expiration. Shares in the XLK, which are already…
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FedEx Corp. Options Point To Near-Term Share Price Pullback

Today’s tickers: FDX, IR, XLK & CSTR

FDX - FedEx Corp. – Bearish activity cropped up in FedEx Corp. call and put options within minutes of the opening bell this morning. Shares in the provider of transportation, e-commerce and business services are down 1.9% to stand at $75.59 as of 11:40 am ET, with less than one week to go before the Memphis, Tennessee-based company is scheduled to report first-quarter earnings. Yesterday, FedEx rival, UPS, reaffirmed its full year earnings guidance, but warned of difficult economic conditions and anemic growth. Traders positioning for shares in FedEx to extend losses, and possibly dip to new 52-week lows ahead of October expiration, initiated a few different bearish strategies in the first half of the session. Plain-vanilla put buying ensued at the Oct. $77.5 strike, where roughly 1,900 in-the-money puts were purchased for an average premium of $4.07 apiece. Investors long the puts profit at expiration next month if shares in FDX slide 2.85% from the current price of $75.59 to breach the effective breakeven point on the downside at $73.43.

Most of the volume in FedEx options was generated by one strategist, who initiated a three-legged bearish spread straight out of the gate this morning. It looks like the investor sold 2,500 calls at the Oct. $85 strike in order to purchase the 2,500-lot Oct. $67.5/$75 put spread. The transaction cost the trader a net premium of $0.90 per contract. The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares. Profits are available to the trader should shares in FDX drop 2.0% to breach the effective breakeven price of $74.10 by expiration day. The investor may walk away…
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Options Strategy Suggests Yahoo! May be Next Comeback Kid

Today’s tickers: YHOO, USU, XLK & HGSI

YHOO - Yahoo!, Inc. – The more than 21% correction in the value of Yahoo’s shares since the start of May has one options strategist positioning for a rebound in the price of the underlying by August expiration. Shares in the online media company are down 0.50% today to stand at $14.82 in early-afternoon trade. The bullish options player picked up 7,500 in-the-money calls at the August $14 strike for a premium of $1.41 each, and sold the same number of calls up at the August $18 strike at a premium of $0.18 a-pop. Net premium paid to initiate the spread amounts to $1.23 per contract. Thus, the strategist profits if shares in YHOO rally 2.8% to exceed the effective breakeven price of $15.23 at expiration. Maximum potential profits of $2.77 per contract are available to the call spreader should shares surge 21.5% over the current price of $14.82 to exceed $18.00 at expiration day in August. Yahoo! reports second-quarter earnings after the final bell on July 19. Shares in YHOO last traded above $18.00 back on May 11.

USU - USEC Inc. – Call options on the supplier of low enriched uranium (LEU) for commercial power plants are active this morning, but it looks like the largest transaction in USU options was initiated by an investor taking a bearish stance on the stock. Shares in the Bethesda, MD-based company are down 0.30% to stand at $3.07 just before 12:00pm on the East Coast. The strategist responsible for the bulk of USU options volume today initiated a call credit spread, selling 6,300 calls at the October $4.0 strike for a premium of $0.41 each, and buying the same number of calls up at the October $5.0 strike at a premium of $0.30 apiece. The…
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Contrarian Strategist Eyes Owens-Illinois Call Options

Today’s tickers: OI, CAKE, XLK & HRB

OI - Owens-Illinois, Inc. – The world’s largest maker of glass bottles reduced its second-quarter profit margin forecast citing higher costs and weaker demand in Australia. The market’s reaction to the Ohio-based company’s revised estimates was swift, with shares in Owens-Illinois sliding ahead of the opening bell this morning. Shares are currently down 10.3% at $26.50 just after 11:30am on the East Coast. Despite the sharp pullback in OI’s shares today it seems the glass is still half-full for one optimistic player taking a medium-term bullish stance on the stock. The contrarian trader picked up 2,000 calls at the August $29 strike at a premium of $0.85 per contract. OI’s calls are available at a steep discount today with the August $29 strike calls trading at $0.85 today down from $1.75 apiece on Tuesday. The call buyer makes money if shares in Owens-Illinois surge 12.6% over the current price of $26.50 to surpass the effective breakeven point at $29.85 at expiration. Options implied volatility on the stock shot up 23.7% to arrive at 33.23% by 11:45am.

CAKE - The Cheesecake Factory, Inc. – Shares in the operator of casual full-service restaurants may be headed lower over the next four months according to investors initiating bearish options trades on the stock today. Cheesecake Factory’s shares are currently down 0.80% to stand at $30.54 as of 11:05am in New York. Traders employed debit put spreads in the October contract, buying 1,500 puts at the October $30 strike for an average premium of $2.20 each, and selling the same number of puts at the lower October $25 strike at an average premium of $0.62 a-pop. Bears hungry for a CAKE pullback paid an average net premium of $1.58 for the spread. Investors are poised to profit should…
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Straddle-Seller Targets Technology SPDR ETF

 Today’s tickers: XLK, FCS, HGG & ADTN

XLK - Technology Select Sector SPDR ETF – A sizable short straddle on the Technology SPDR ETF comprises nearly all of the day’s options volume generated on the fund as of 1:00pm in New York. It looks like the investor responsible for the transaction is hoping to see the price of the underlying settle as close to $26.00 as possible by expiration day next month. Shares in the XLK, an exchange-traded fund that corresponds to the price and yield performance of the Technology Select Sector of the S&P 500 Index, increased as much as 1.0% during the session to secure an intraday high of $25.94. The straddle-strategist appears to have sold 15,000 calls and 15,000 in-the-money puts at the May $26 strike to pocket gross premium of around $1.08 per contract. The investor keeps the full amount of premium received on the trade if shares in the XLK settle at $26.00 at expiration. The trader may walk away with some portion of the total premium as long as the ETF’s shares trade within the range of $27.08 to the upside, and $24.92 on the downside, through expiration in May. The short-straddle player will also benefit from declines in options implied volatility and the passage of time, as both factors erode premium on the options and cheapen the cost of buying back the straddle, should he choose to do so, at some future date.

FCS - Fairchild Semiconductor International – May contract call activity on the semiconductor maker appears to be the work of an options player taking a bullish stance on Fairchild ahead the company’s Thursday morning first-quarter earnings report. Shares in the San Jose, CA-based company are currently down 1.2% to stand at $19.00 in early-afternoon trade. The options strategist initiated a debit call spread, buying roughly 2,200 calls at the May $21 strike for an average premium of $0.60 each, and selling the same number of calls up at the May $23 strike at an average premium…
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Bearish Player Targets Verigy Ltd. Put Options

Today’s tickers: VRGY, AEO, FAST & XLK

VRGY - Verigy Ltd. – A sizable put spread on the maker of chip-testing equipment suggests one option strategist is prepared for shares in Verigy Ltd. to drop ahead of April expiration. Shares in Singapore-based Verigy are currently up 0.85% to stand at $13.03 perhaps after analysts at JPMorgan upgraded the semiconductor sector to ‘constructive’ from ‘cautious.’ Verigy looked to acquire LTX-Credence Corp. back in November in an all-stock deal that valued its takeover target at $500 million including net debt, but those plans may fall through as Japanese chip-testing equipment giant, Advantest Corp., extended its own offer to acquire Verigy at a substantial premium of $15.00 a share, up from an original bid of $12.50 a share, at the end of last year. The merger of Verigy and Advantest would form the largest manufacturer of semiconductor testing equipment in the world. Perhaps the put player populating Verigy today is prepared to see shares in the name drop if the deal with Advantest ultimately falls through in the next six weeks to April expiration. The investor purchased 5,200 puts at the April $13 strike for a premium of $1.00 each, and sold the same number of puts at the lower April $11 strike at a premium of $0.25 apiece. Net premium paid to initiate the spread amounts to $0.75 per contract. Thus, the trader starts making money should Verigy’s shares decline 6.00% to breach the effective breakeven price of $12.25 ahead of April expiration day. Maximum potential profits of $1.25 per contract pad the investor’s wallet in the event that shares in VRGY plummet 15.6% from the current price of $13.03 to trade below $11.00 by expiration next month.

AEO - American Eagle Outfitters, Inc. – Call options on the casual clothing retailer are…
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Options Fly at Fortune Brands, Inc.

Today’s tickers: FO, XLK, KFN & SLE

FO - Fortune Brands, Inc. – The holding company for firms engaged in the manufacture, production and sale of distilled spirits, home and hardware products and golf products popped up on our scanners in the first half of the trading session after one strategist initiated a sizeable stock and option combination play. Fortune Brands’ shares rallied as much as 2.10% to hit an intraday- and new 52-week high of $62.44 on news the firm’s Board of Directors approved in principle a plan that would ultimately result in the firm focusing exclusively on the distilled spirits business. The options trader populating Fortune Brands today appears to have purchased 500,000 shares of the underlying stock at a price of $61.30 as part of a buy-write or covered call strategy. The investor sold 5,000 in-the-money calls at the January 2011 $60 strike to receive premium of $3.10 apiece. Finally, the investor also purchased downside protection in the form of 5,000 puts at the lower January 2011 $55 strike at a premium of $0.65 a-pop. Buying up the put options cuts in to premium received on the sale of the calls, leaving the investor a net credit of $2.45 per contract. The rich premium pocketed by the investor effectively reduces the price paid to get long the stock from $61.30 to $58.85 a share. Thus, the buy-write strategist stands prepared to accumulate maximum potential gains of 1.95% if the shares are called away from him ahead of January expiration. The puts protect the value of the underlying in the event that shares in Fortune Brands slip lower by expiration day next month. But, if FO’s shares slide under $60.00 and the calls expire worthless at expiration, the investor may choose to hold onto the underlying position in order to capitalize on a potential rally that may be in store for FO in 2011.…
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Bears Take a Bite Out of Las Vegas Sands Corp. Options

Today’s tickers: LVS, JPM, WNR, PFE, SLW, PCLN & XLK

LVS - Las Vegas Sands Corp. – Options strategists are initiating trades on the operator of casino resorts that suggest LVS shares could pull back further off recent highs. One big player wary of bearish movement in the price of the underlying shares purchased a large-volume ratio put spread in the January 2011 contract. Las Vegas Sands’ shares started the session in the red, but recovered this afternoon, and are currently up 1.65% at $52.84 as of 3:20 pm in New York. The put player purchased 20,000 contracts at the January 2011 $52.5 strike for a premium of $5.50 each, and sold 40,000 puts at the lower January 2011 $45 strike at a premium of $2.21 a-pop. Net premium paid to initiate the bearish spread amounts to $1.08 per contract. The investor responsible for the transaction is prepared to make money, or realize downside protection on a long position in the underlying shares, if LVS shares decline 2.7% from the current price of $52.84 to breach the effective breakeven point at $51.42 by January expiration. Maximum potential profits of $6.42 per contract are available to the trader if shares of the casino operator plunge 14.8% lower to settle at $45.00 at expiration. More than 216,000 option contracts have changed hands on LVS with 35 minutes remaining before the final bell. Options implied volatility on the stock is up 4.1% at 57.43%, the highest reading of IV since the end of July.

JPM - JPMorgan Chase & Co. – Shares of the financial services firm fell 0.85% to $40.59 late in the trading session, but earlier today one cautiously optimistic investor initiated a delta neutral hedge using longer-dated put options in the June 2011 contract. It looks like the investor picked up…
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Enormous Prints in Put Options on Tech. Select Sector SPDR Fund

Today’s tickers: XLK, ENR, IYR, ALTR, AVP, JCP & TQNT

XLK - Technology Select Sector SPDR Fund – One big options market participant traded a total of 524,600 put options on the technology SPDR ETF this afternoon. It looks like the party responsible for the massive transactions rolled a previously established debit put spread in the December contract forward to the longer-dated March 2011 contract. Shares of the XLK, an exchange-traded fund that mirrors the performance of the Technology Select Sector of the S&P 500 Index, are down slightly by 0.20% to stand at $24.19 as of 2:15 pm in New York. The XLK jumped to the top of our ‘most active by options volume’ scanner after the 112,300-lot December $23/$20 put spread was sold for a net $0.31 per contract. This spread appears to have been initially purchased for a net premium of $0.68 each back on October 7, 2010, when the price of the underlying fund was trading around $23.14. Today, the XLK-options player sold the massive spread in order to purchase an even larger one at the same strike prices in the March 2011 contract. The new put position involved the purchase of 150,000 lots at the March 2011 $23 strike for a premium of $0.96 each, and the sale of the same number of puts at the lower March $2011 $20 strike at a premium of $0.31 apiece. In isolation, the net cost of buying the longer-dated put spread amounts to $0.65 per contract and yields downside protection for the investor should shares of the XLK trade below the breakeven price of $22.35 by March expiration. Enormous trades such as these tend to be tied to stock. Perhaps this trader is augmenting the size of the put spread because he has increased his exposure to the technology sector. Around the same time the puts were bring traded, some 733,000 shares of the underlying were purchased for $24.12 each. We note, however, that at this time there is no way…
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Zero Hedge

"Goodbye, Mr. Bond" - Sir Sean Connery Dies At 90

Courtesy of ZeroHedge View original post here.

Sir Sean Connery, the celebrated Scottish actor who will forever be associated with James Bond, the MI6 agent also known as "007" whom he portrayed in 7 films, has died. He was 90

With roguish charm and sophistication, Connery inaugurated the long-running James Bond franchise with 1962’s Dr. No and remained the prototypical "Bond" for decades, even - for many - until this very day.

Thomas Sean Connery was born in the Fountainbridge area of Edinburgh on Aug. ...



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ValueWalk

Coronavirus stimulus checks: Lawmakers hopeful on deal once election pressure eases

By Aman Jain. Originally published at ValueWalk.

It is now almost confirmed that there won’t be any stimulus before the election. However, lawmakers are optimistic that there will be an agreement on a coronavirus stimulus package and checks once the election pressure eases.

Q3 2020 hedge fund letters, conferences and more

Lawmakers expect coronavirus stimulus checks in lame-duck session

Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi have been ...



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Phil's Favorites

A history lesson for 2020's new traders

 

A history lesson for 2020’s new traders

Courtesy of 

On this episode Josh explains why we’re facing three worst case scenarios all at once, how markets are reacting and why the vaccine is the only thing that matters.

Plus, many of today’s new traders seem to not understand what has happened to prior generations of new traders. A brief history of daytrading – from the Turtle Traders to the SOES Bandits – seems to be in order.

...

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Kimble Charting Solutions

Are the S&P 500 Index and Crude Oil Peaking Together Again?

Courtesy of Chris Kimble

The price of crude oil has been an important indicator of the economy for quite some time. When oil is in demand and performing well, the economy likely is. And when oil is not performing well, the economy likely isn’t either.

Taking this one step further, it’s easy to see how crude oil can be a solid indicator of the stock market as well.

Often times, investors receive a bearish or bullish message from this relationship. In today’s chart 2-pack, we illustrate how the relationship between the S&P 500 Index and the ...



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Biotech/COVID-19

Achieving COVID-19 herd immunity through infection is dangerous, deadly and might not even work

 

Achieving COVID-19 herd immunity through infection is dangerous, deadly and might not even work

Under relaxed public health restrictions, deaths will spike far before herd immunity is achieved. AP Photo/Mark Lennihan

Courtesy of Steven Albert, University of Pittsburgh

White House advisers have made the case recently for a “natural” approach to herd immunity as a way to reduce the need for ...



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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: Monday, 18 May 2020, 03:35:21 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Ooh so pretty, so pretty, ooh so!



Date Found: Thursday, 21 May 2020, 01:03:17 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Charlie Lee: All Things Litecoin (#MimbleWimble, ...



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Politics

How to track your mail-in ballot

 

How to track your mail-in ballot

Make sure you know when your ballot is arriving, and whether it’s been accepted for counting back at your election office. erhui1979/DigitalVision Vectors via Getty Images

Courtesy of Steven Mulroy, University of Memphis

Many voters who want to participate in the election by mail are concerned about when they’ll receive their ballot – and whether it will get back in time to be counted.

The pandemic has caused interest in ...



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Digital Currencies

Bitcoin: the UK and US are clamping down on crypto trading - here's why it's not yet a big deal

 

Bitcoin: the UK and US are clamping down on crypto trading – here's why it's not yet a big deal

Where there’s a bit there’s a writ. Novikov Aleksey

Courtesy of Gavin Brown, University of Liverpool

The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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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...



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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...



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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.
...

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Promotions

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TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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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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