Posts Tagged ‘YGE’

Contrarian Options Strategies Crop Up In Some Financials Ahead Of Holiday

Today’s tickers: JPM, BCS, ARCC & YGE

Commentary to resume Monday, November 28th 

JPM - JPMorgan Chase & Co. – JPMorgan blends in with the sea of red today, its shares trading lower by 3.2% to stand at $28.48, as of 11:55 AM in New York. But, fresh prints in weekly options covering the banking institution reveal some strategists are initiating low-probability bullish positions on the stock should shares rebound after the holiday. Call options expiring on Friday saw an influx of buyers paying as little as a penny per contract to prepare for a near-term rebound. Trading traffic in the front-week calls is heaviest at the Nov. ’25 $29 strike where more than 7,600 contracts changed hands against previously existing open interest of 340 positions. It looks like most of these calls were purchased for an average premium of $0.30 apiece. Investors long the calls may profit at expiration this week in the event that JPM’s shares rally 2.9% to exceed the average breakeven point at $29.30. Traders also purchased another 1,000 calls at each of the Nov. $30 and $31 strikes for average premiums of $0.06 and $0.01 each, respectively. Meanwhile, like-minded optimism appears to have spread out to contracts that expire one week from this Friday. Investors itching for a rebound picked up around 1,500 in-the-money calls at the Dec. ’02 $28 strike for an average premium of $1.28 a-pop. Call buyers make money if shares in JPMorgan Chase & Co. top the average breakeven price of $29.28 at expiration on December 2. Options implied volatility on the stock rose 13.8% to 53.5% in early-afternoon trade.

BCS - Barclays PLC – A burst of call activity on Barclays pushed the stock onto our ‘most active by options volume’ market scanner just before midday in New York. The seemingly bullish call buying on Barclays contrasts with the 3.0% move lower in the price of its shares to $9.32 this afternoon. More than 30,000 call options changed hands at the Dec. $12 strike against open interest of 3,863 contracts. It appears one investor purchased most of the calls, outright, at a premium of $0.15 apiece. The trader stands ready to profit at expiration in the event that the stock jumps 30.4% to surpass the effective breakeven price of $12.15. Shares in Barclays had topped $12.15 as recently as November 4.

ARCC - Ares Capital Corp. – Put activity on Ares Capital Corp. this morning suggests…
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Vale Options Combination Play

Today’s tickers: VALE, BID, EBAY & YGE

VALE - Vale S.A. – Earlier we reported that a large-volume three-legged bearish transaction had taken place on iron ore producer, Vale. Market sources have since informed us that the direction of the trade is the reverse of what had been indicated by raw time and sales data. The new information regarding the transaction alters our interpretation of the spread to bullish from the previously reported bearish view. Shares in the Brazilian firm increased as much as 0.82% during the session to secure an intraday high of $35.60, but are currently trading 0.20% high on the session at $35.38 as of 2:50pm. The options investor responsible for most of the volume in options exchanged on Vale today reportedly sold a large number of puts on the stock in order to buy in- and out-of-the-money call options in the May contract. The investor paid a net $2.24 per contract, selling 23,000 May $30 strike puts in order to buy 11,500 May $35 strike calls and another 11,500 calls up at the May $40 strike. The transaction positions the trader to benefit from bullish movement in the price of the underlying shares heading into Vale’s fourth-quarter earnings report on February 24, 2011, through to expiration day in May.

BID - Sotheby’s Holdings Inc. – One options player pocketed big profits on a well-timed bullish bet in Sotheby’s calls this morning. The auctioneers’ shares are currently up 0.2% at $48.34 as of 11:30am in New York, but hit a 6-month high of $49.03 yesterday, driving the stock’s run up to 86.4% since August 31, 2010. The gavel-bearer populating Sotheby’s today initiated a bullish bet back on January 25, 2011, when shares in the name encountered a bump in rally-road and slipped to a three-month low of $38.23.…
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Yingli Green Energy, Trina Solar and First Solar

Trader Mark comments on a few solar power companies, noting that they’re inadequately differentiated by American investors. Here are his thoughts.

Analyst: Yingli Green Energy (YGE) and Trina Solar (TSL) Expected to Take Market Share from US/Euro Solar Makers

solar - from the breakthroughCourtesy of Trader Mark at Fund My Mutual Fund

I’ve been a long time investor in the solar space (circa late 06) and one thing that has really irked me over the years is the complete lack of differentiation. Much like the market as a whole nowadays, its "all or nothing" in this space. The one exception has been First Solar (FSLR) – an American "thin film" (different technology than most solar companies) producer. The Chinese names have especially all been thrown together in one pot and when its time to run up solar, they all go up together (in varying degrees) and when solar is out of favor they all get pole axed. Hence doing any due diligence is really a waste of time.

Yingli Green Energy (YGE) and a company that has cost me many real (and virtual) dollars over the years, Trina Solar (TSL) are 2 of the Chinese solar markets with good size, and the most integrated production models. This should have differentiated them over the years – but as I said above, not in American investors eyes. We like "big easy to understand, sweeping themes" – i.e. oil up, solar good. And that’s as comprehensive as it seems to get.

We are seeing some nice action in both these names today, on the back of an analyst report which is alluding to the advantages the two companies have. Now that silicon (which is the main cost component on the material side) has swooned after bottlenecks plagued the industry for 3+ years, the other main cost is labor. And you are not going to compete with the Chinese on labor costs…

  • Both Trina Solar (TSL) and Yingli Green Energy (YGE) shares are trading higher today following upgrades by Morgan Stanley analyst Sunil Gupta. He thinks both companies are going to take market share in the solar sector from U.S.-based and European rivals. Here are the details
  • Trina:


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Pre-tense

Today’s tickers: PALM, AA, UNG, FXI, IYR, YGE, VRTX & XLF

PALM– Shares are up more than 9% to $13.67 just two days prior to the much anticipated release of Palm’s touch-screen handset, The Pre. While some reviews of the new product suggest The Pre is attractive and innovative, others have indicated that it cannot hold a candle to Apple’s iPhone. The real test will begin in two days when the phone goes on sale to the public, exclusively through U.S. carrier, Sprint Nextel Corp. (S). A number of option traders are hoping The Pre will wow consumers and subsequently boost Palm’s shares as they were seen getting long of bullish calls in the near-term June contract. More than 4,300 calls were snapped up at the June 16 strike price for a premium of 29 cents apiece. Other Pre-optimists paid just a dime per contract to pick up 2,000 calls at the higher June 20 strike price. If Palm’s new product pleases the masses, investors long of June 20 calls may realize profits if shares can climb 47% to the breakeven point at $20.10 by expiration. – Palm, Inc.

AA– The world leader in the production of primary aluminum has experienced a significant share price rally of more than 7.5% to $10.83 after the firm announced that it sees “great opportunity” for growth in Russia. Alcoa has invested some $750 million over the past five years. A large-volume call spread initiated in the October contract suggests at least one investor is hoping for continued bullish movement in the stock over the next several months. The transaction involved the purchase of 12,600 calls at the October 12.5 strike price for a premium of 1.02 apiece spread against the sale of 12,600 calls at the higher October 17.5 strike for about 23 cents. The net cost of the optimistic play amounts to 79 cents and yields maximum potential profits of 4.21 if shares rally up to $17.50 by expiration. The stock must climb approximately 23% before the investor begins to amass profits at the breakeven point of $13.29. – Alcoa, Inc.

UNG– Recovering from losses experienced earlier in the trading day, the natural gas ETF has rallied slightly by about 0.5% to $14.37. We observed an interesting play initiated by one trader once we skipped over all of the nearer-term activity on the fund to arrive at the January 2010 contract. The
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Phil's Favorites

Corporate boards are supposed to oversee companies but often turn a blind eye

 

Corporate boards are supposed to oversee companies but often turn a blind eye

Courtesy of Siri Terjesen, American University Kogod School of Business

A lot of giant companies are getting into big trouble these days.

When Boeing 737 Max aircraft crashed in Indonesia and Ethiopia, killing a total of 346 people in October 2018 and March 2019, the disasters raised serious questions about the safety of the aviation leader’s anti-stall system.

When some 5,000 Wells Fargo employees fra...



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Zero Hedge

iPhone X Sales Collapse Triggers Serious Breach Of Contract With Samsung 

Courtesy of ZeroHedge. View original post here.

In an exclusive, ChannelNews reveals Apple is facing hundreds of millions of dollars in penalty payments to Samsung because iPhone demand has fallen.

Apple "demanded" that Samsung construct one of the world's biggest OLED manufacturing facilities exclusively for iPhone screens.

...



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Kimble Charting Solutions

Wilshire 5000 Creating A Triple Top? An Important Breakout Test Is In Play!

Courtesy of Chris Kimble.

The stock market has been on fire of late, rallying up to the edge of price resistance on several indexes. Today, we look at one of those stock market indexes: the Wilshire 5000.

The Wilshire 5000 tracks all of the stocks in the US market, so it is a broad-based index that carries significant importance when gauging the health of the overall US stock market.

Looking at the long-term “weekly” chart above, it is pretty clear that the index is at an important price juncture.

The Wilshire 5000 spent the last 25 years trading within a rising price channel (1)...



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Insider Scoop

Jefferies Upgrades Deere, Cites 'Significantly Improved Farmer Income Outlook'

Courtesy of Benzinga.

Farmer buying power will remain pressured for 2019, but this will change for the better next year and will help support Deere & Company (NYSE: DE), according to Jefferies.

The Analyst

Jefferies' Stephen Volkmann upgraded Deere from Hold to Buy with a price target lifted from $150 to $190....



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Chart School

Formula for when the Great Stock Market Rally ends

Courtesy of Read the Ticker.

When valuations for the boring water company or the boring electric company is trading like your Facebook, Apple, Amazon or Netflix or Google (ie FANG) you know something is wrong.

This is when a seriously over valued market is screaming at you.

Of course the reader must understand in a world where money printing goes super nuts (Zimbabwe style) the stock market may go hyper inflationary and picking a time frame for a top is never a good idea, but we are not there yet. There is no Ben Bernanke helicopter money to the masses yet (ie MMT). 

To see when water company's (and such like) are nearing the crazy FANG like valuations a review of the Dow Jones Utility Index channel shows us how history can repeat. The c...

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ValueWalk

The "Tesla Killer" Car Is Nowhere In Sight

 

The “Tesla Killer” Car Is Nowhere In Sight

By Jacob Wolinsky, ValueWalk

Here’s some catnip for the Tesla bulls on this email list: my analyst, Kevin DeCamp, a longtime TSLA shareholder and car owner, took a test drive of the Jaguar I-PACE and, while it “looks great and is fun to drive… it is lacking in a few areas where Tesla really shines.” He concludes that “Tesla may end up killing itself, but the “Tesla killer” car is nowhere in sight.”

The Tesla Killer Hasn’t Arrived Yet: My Test Drive of the Jaguar I-PACE

By Kevin DeCamp

As a long-time, devoted Tesla...



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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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