Posts Tagged ‘XOP’

Sharp Rally A Boon To Citrix Systems Call Buyer

Today’s tickers: CTXS, XOP & HL

CTXS - Citrix Systems, Inc. – Shares in Citrix Systems, Inc. rallied to their highest level since the end of July after the company reported third-quarter earnings and fourth-quarter estimates that beat expectations. The stock currently trades 15.2% higher on the session at $73.99, after soaring as much as 21.5% to an intraday high of $78.00. Huge gains in the price of the software maker’s shares appears to have worked out nicely for one options player who may be taking profits off the table today. Citrix call activity spiked in the first 30 minutes of the session after large numbers of deep in-the-money and out-of-the-money calls changed hands in the November contract. It looks like the investor may have snapped up around 4,875 calls at the Nov. $65 strike for a premium of $4.10 each back on October 18, when shares in Citrix closed the day at $64.50. The massive rally in the price of the underlying stock today more than doubled premium required to purchase Nov. $65 call options. The investor appears to have sold the batch of calls purchased on Oct. 18 this morning for an average premium of $11.07 per contract. Average net profits on the sale amount to $6.97 per contract. Finally, the sale of the call options was tied to the opening purchase of roughly 4,800 Nov. $75 strike calls for an average premium of $3.93 apiece. The fresh bullish stance may be profitable if shares in Citrix Systems extend gains through expiration next month. Profits are available on the new position if shares in CTXS increase another 6.6% over the current price of $73.99 to surpass the average breakeven point at $78.93 at expiration day. Options implied volatility on the stock fell 19.3% to a two-month low of 45.35% this afternoon.

XOP - SPDR S&P Oil & Gas Exploration & Production ETF – The buyer of a large batch of put options on the XOP may have cut his losses this morning on the heels of a more than 8.0% rally in the price of the underlying since the bearish position was initiated. Shares in the XOP, an exchange-traded fund that tracks the performance of an index derived from the oil and gas exploration and production segment of a U.S. total market composite index, are up 4.9% today at $55.85 just before 1:00 pm EDT. On Tuesday, options volume at the Nov.…
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Near-Term Bulls Shop Around for Call Options at Newell Rubbermaid

Today’s tickers: NWL, GRS, OIH, HIG, EWZ, MBT & XOP

NWL - Newell Rubbermaid, Inc. – The global marketer of everyday commercial and consumer products popped up on our ‘hot by options volume’ market scanner during the second half of the trading session due to bullish activity in the December contract. Shares in Newell Rubbermaid are up 3.35% to stand at $17.33 with 45 minutes remaining before the final bell. Options traders exchanged more than 3,460 call options at the December $17.5 strike, versus previously existing open interest of just 980 contracts. It looks like more than 3,000 of the calls were purchased for a premium of $0.35 per contract. Plain-vanilla call buyers are prepared to make money should shares increase another 3.00% to exceed the effective breakeven point to the upside at $17.85 ahead of December expiration day. Rubbermaid’s shares last traded above $17.85 as recently as November 5, 2010.

GRS - Gammon Gold, Inc. – Bullish players picked up call options on the gold mining company today with shares of the Halifax, Nova Scotia-based firm climbing 1.2% to $6.77 in the final hour of the session. Investors expecting Gammon’s shares to extend gains purchased more than 3,000 calls at the January 2011 $7.0 strike for a premium of $0.43 apiece. Call buyers at this strike are poised to profit should shares in Gammon Gold surge 9.75% over the current price of $6.77 to surpass the effective breakeven point at $7.43 by January expiration. More than 3,280 calls changed hands at the Jan. 2011 $7.0 strike, which is more than six times the number of contracts represented by the 531 lots of previously existing open interest at that strike. Bullish sentiment spread to the March 2011 $7.5 strike where another 1,000 call options were purchased for premium of $0.48 each.…
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Bullish Bedlam on UnitedHealth in Late-Day Trading

Today’s tickers: UNH, F, EZCH, FBP, XOP, F, BMY, KFT, UNT, TIVO, ADBE & AMED

UNH – UnitedHealth Group, Inc. – Bullish investors stampeded the health and well-being company in late afternoon trading with shares up 3% to a new 52-week high of $32.25. Frenzied call activity on the stock drove option implied volatility up sharply by 19.5% to 45.17% from an intraday low of 37.37%. One investor was ready for the rally today, and banked profits on a previously established call position. The trader likely purchased about 20,000 calls at the now deep in-the-money December 23 strike price for a maximum premium of 3.00 per contract back on October 8, 2009, when UNH shares were at $24.13. Today the trader sold the calls for an average premium of 8.95 each. It looks like the investor took in net profits on the sale of at least 5.95 per contract for a total of $11.9 million. Next, it appears the trader extended bullish sentiment on the stock by establishing a larger call position. A big chunk of 30,000 calls were picked up at the now in-the-money January 31 strike for an average premium of 2.20 each. Thus, the trader breaks even on the new position if shares surpass $33.20 by expiration next month. Other bullish traders initiated call spreads on the stock. One UNH-bull bought 5,000 calls at the in-the-money January 31 strike for about 2.12 apiece, and sold the same number of calls at the higher January 34 strike for 70 cents premium each. The net cost of the spread amounts to 1.42 per contract and yields maximum potential profits of 1.58 apiece if shares rally up to $34.00 by January’s expiration day.

F – Ford Motor Co. – A late afternoon, large-volume put spread on the U.S. automaker is likely the work of an investor locking in gains enjoyed during Ford’s recent share price rally. Shares reached a new 52-week high of $9.64 during the trading session. The option trader looked to the March 2010 contract to purchase 18,000 puts at the March 9.0 strike for 62 cents apiece, spread against the sale of the same number of puts at the lower March 7.0 strike for 16 cents premium each. The net cost of the protective play amounts to 46 cents per contract. If the investor is indeed holding a long position in the underlying, the value of that…
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Option Traders Latch Onto Rambus Chatter

Today’s tickers: RMBS, BIIB, IYF, OSK, GNW, XOP & S

RMBS - The latest from the rumor mill suggests that the memory chip maker may be the target of a buyout by Samsung Electronics for approximately $25.00 to $27.50 per share. Some analysts reported that such rumors are likely unfounded, and we should note also this is currently idle market chatter. Nevertheless, frenzied options activity was observed on the stock amid a more than 8% rally to $17.22. Option traders concentrated their efforts on out-of-the-money calls in the near-term September contract. Nearly 6,000 calls were picked up at the September 18 strike for about 68 cents each. The higher September 19 strike had 5,000 calls purchased for an average of 47 cents apiece. Finally, the most bullish investors looked as high as the September 20 strike to gather up more than 8,000 calls for 37 cents per contract. Rumors remain unconfirmed, but traders holding the call options are positioned to bank some serious profits if the buyout speculation proves accurate by expiration this month. – Rambus Inc. –

BIIB - The largest maker of medicines for multiple sclerosis announced that it has extended an unsolicited takeover bid, worth $356 million in cash, for its drug partner Facet Biotech Corporation. Shares of BIIB rose more than 2% during the session to the current price of $51.03. Perhaps the takeover bid inspired the bullish reversal strategy we observed in the April contract today. One investor appears to have shed 10,000 puts at the April 35 strike price for a premium of 90 cents apiece in order to partially offset the cost of purchasing 5,000 calls at the higher April 55 strike for 3.80 each. The net cost of the transaction amounts to 2.00 per contract. The investor responsible for the trade will begin to accrue profits if shares of BIIB rally approximately 12% from the current price to breach the breakeven point at $57.00 by expiration day. – Biogen IDEC, Inc. –

IYF - Shares of the IYF have moved slightly higher during the session, gaining less than 0.5% to arrive at the current price of $50.09. The ETF jumped onto our ‘most active by options volume’ market scanner this afternoon after a large bullish reversal play was initiated in the November contract. We note that the transaction was tied to stock. The investor responsible for the trade shed 20,000 puts at the November 40…
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Phil's Favorites

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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Members' Corner

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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Zero Hedge

Easily Overlooked Issues Regarding COVID-19

Courtesy of ZeroHedge View original post here.

Authored by Gail Tverberg via Our Finite World,

We read a lot in the news about the new Wuhan coronavirus and the illness it causes (COVID-19), but some important points often get left out.

[1] COVID-19 is incredibly contagious.

COVID-19 transmits extremely easily from person to person. Interpersonal contact doesn’t need to be...



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The Technical Traders

Gold Rallies As Fear Take Center Stage

Courtesy of Technical Traders

Gold has rallied extensively from the lows near $1560 over the past 2 weeks.  At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018.  Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer-term fear that is build...



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Kimble Charting Solutions

Precious Metals Eyeing Breakout Despite US Dollar Strength

Courtesy of Chris Kimble

Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.

The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).

What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.

In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.

The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further ...



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Insider Scoop

68 Stocks Moving In Friday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
  • TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
  • ...


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Biotech & Health

Deep learning AI discovers surprising new antibiotics

 

Deep learning AI discovers surprising new antibiotics

A colored electron microscope image of MRSA. NIH - NIAID/flickr, CC BY

Courtesy of Sriram Chandrasekaran, University of Michigan

Imagine you’re a fossil hunter. You spend months in the heat of Arizona digging up bones only to find that what you’ve uncovered is from a previously discovered dinosaur.

That’s how the search for antibiotics has panned out recently. The relatively few antibiotic hunters out there ...



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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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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: Tuesday, 01 October 2019, 02:18:22 AM

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Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

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Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



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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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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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