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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Zero Hedge

Record Coral Cover Of Great Barrier Reef Shames Climate Alarmists, Media

Courtesy of ZeroHedge View original post here.

Authored by Peter Ridd via ClimateChangeDispatch.com,

The annual data on coral cover for the Great Barrier Reef, produced by the Australian Institute of Marine Science, was released on Monday showing the amount of coral on the reef is at record high levels.

...



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Phil's Favorites

Axie Infinity: online games where people earn as they play are transforming gaming

 

Axie Infinity: online games where people earn as they play are transforming gaming

Welcome to the latest craze in gaming. ira Lichi

Courtesy of Drew Cattanach, University of Westminster

The ultimate point of playing video games has always been to have fun. Whether it’s Space Invaders or Sonic or Red Dead Redemption, you hit the start button and do your thing until game over – and then you probably wipe the sweat off your hands and do it again.

But a new class of games is emerging where playing is an investment opport...



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Digital Currencies

Is Amazon About To Start Accepting Crypto?

Courtesy of ZeroHedge

For the first time ever, Amazon has shown itself to be interested in crypto with a new major hire within its payments-focused team.

Posted on Thursday, the new role seeks an experienced product leader with expertise in blockchain, central bank digital currencies and cryptocurrencies to “develop the case for the capabilities which should be developed” and drive overall product vision.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap

The Amazon Payment Acceptance & Experie...



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Biotech/COVID-19

US is split between the vaccinated and unvaccinated - and deaths and hospitalizations reflect this divide

 

US is split between the vaccinated and unvaccinated – and deaths and hospitalizations reflect this divide

As coronavirus cases surge, unvaccinated people are accounting for nearly all hospitalizations and deaths. Fat Camera/E+ via Getty Images

Courtesy of Rodney E. Rohde, Texas State University and Ryan McNamara, University of North Carolina at Chapel Hill ...



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Chart School

Investing with Channels - Review

Courtesy of Read the Ticker

The US has a lot of debt, to sell more units of the debt to non US buyers the FED and Treasury must get the unit price of the debt down.

This video assumes a 'risk on' bullish bias into the Nov 2022 US mid terms. The bias assumes a US dollar trending down from it current high price of $93 on the DXY.






Chart 1 - US Dollar Channels


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Chart 2 - Ethereum/USD


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Politics

New York defines illegal firearms use as a 'public nuisance' in bid to pierce gun industry's powerful liability shield

 

New York defines illegal firearms use as a ‘public nuisance’ in bid to pierce gun industry’s powerful liability shield

Illegal gun use is now a public nuisance in New York. AP Photo/Bebeto Matthews

Courtesy of Timothy D. Lytton, Georgia State University

Could calling the illegal use of firearms a “public nuisance” bring an end to the gun industry’s immunity from civil lawsuits? ...



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Promotions

Free Webinar Wednesday: July 7, 1:00 pm EST

 

Don't miss Phil's Webinar on July 7 at 1:00 pm EST. It's FREE and open to all who wish to join.

Click here: 

https://attendee.gotowebinar.com/register/6552545459443187211

Join us to learn Phil's trading tactics and strategies in real-time!

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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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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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