Posts Tagged ‘ZNGA’

Zynga Weekly Calls Active

ZNGA – Zynga Inc. – A narrower than expected third-quarter loss on higher than expected revenue reported by the social game developer on Thursday lifted shares in Zynga on Friday, with shares in the name rallying as much as 14% to a new 52-week high of $4.04.

Trading traffic in weekly calls on the maker of Farmville and other games suggests some options players are positioning for the price of the underling to extend gains next week. More than 9,000 calls have changed hands at the Nov 01 ’13 $4.0 strike as of 11:30 a.m. ET against open interest of 1,926 contracts, with much of the volume purchased in the early going at a premium of $0.19 each. Buyers of the $4.0 weekly call options on ZNGA stand ready to profit at expiration should shares in the San Francisco, California-based company rally another 3.7% to exceed the breakeven price of $4.19.

Overall options volume on the stock is well above average today, with roughly 72,500 contracts in play versus Zynga’s average daily options volume of around 29,000 contracts. 

ELY – Callaway Golf Co. – Shares in the maker of golf equipment and apparel are soaring on Friday, up better than 14% to hit a new 52-week high of $8.32 after the company reported third-quarter results after the close on Thursday and raised its full-year revenue guidance. Callaway was raised to ‘Buy’ from ‘Neutral’ with a 12-month target share price of $11.00 at DA Davidson following the quarterly earnings report.

Options traders who purchased upside calls on the stock prior to the company’s earnings release are enjoying sizable gains in the value of bullish positions. Yesterday, one or more traders snapped up more than 800 of the Nov $8.0 strike calls at premiums of $0.10 and $0.15 each. The sharp move in the price of the underlying today now finds the $8.0 strike calls trading at $0.40 each as of the time of this writing.

Today, it looks like traders are purchasing in-the-money call options on Callaway, buying roughly 760 of the Nov $7.0 strike calls at an average premium of $1.23 apiece during morning trading. Options players long the $7.0 strike calls stand ready to profit at expiration next month should shares in ELY settle above the average breakeven price of $8.23. 


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Bulls Snap Up Wal-Mart Weeklies As Shares Extend Gains

Options brief will resume June 4, 2012.

Today’s tickers: WMT, GNOM & ZNGA

WMT - Wal-Mart Stores, Inc. – Wal-Mart weeklies worked out well for some bullish traders this week. For example, buyers of the May 25 ‘12 $62.5 strike call on Monday paid an average premium of $0.64 apiece for options that are now worth more than four times that amount on their final day of trading ahead of expiration. Trading traffic in call options that expire next Friday suggests some traders anticipate this same strategy could pay off next week as well. The sharp rally in Wal-Mart’s shares since the New York Times published a report regarding a cover up of alleged bribery in the company’s Mexico operations indicates investors have largely shrugged off the news for now, with shares in the world’s largest retailer currently trading at their highest level in more than a decade. The stock has posted double-digit gains since mid May, and added another 0.65% today to touch an intraday high of $65.50. Bullish players positioning for further gains in WMT shares stepped in this morning and purchased more than 1,500 calls at the June 01 ’12 strike for an average premium of $0.69 apiece. Call buyers profit at expiration next week if shares in the retailer exceed the average breakeven price of $65.69. Wal-Mart’s annual shareholders’ meeting is scheduled to take place next Friday.

GNOM - Complete Genomics, Inc. – Options on biomedical company, Complete Genomics, Inc., have been humming with activity this week as shares in the name move sharply higher. The stock soared 42.5% to an intraday high of $3.32 this morning, taking gains in GNOM up to 101% since Monday. Call open interest levels in Complete Genomics have been on the rise this week, and some traders appear to have landed overnight paper profits on bullish positions established in the front month options. The number of open positions in the June $2.5 strike call increased more…
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Friday Finale – This is the End – But for Who?

SPY DAILYA day late and a point short on the S&P.  

Our senior index finished the day at 1,358.04, just 0.96 under our 10% line at 1,359.  Oddly enough, it never actually crossed the line that we had predicted would be the top of this run in April of 2009.  It's a simple 2% overshoot of the 100% run from the S&P bottom at 666.  

If the S&P can get over the line and hold it – we will be THRILLED to finally redraw our Big Chart but, if not, then this is just the blow-off top of the range, reeling in the suckers ahead of the big reversal that no one could have possibly seen coming (except this guy but he's like 100 and just got divorced, so he's bound to be in a bad mood).  

Is there anyone who was born SINCE radio who is willing to still be bearish?  As you can see from David Fry's chart, since December 19th, other than a few red days out of over 40 – it's been tough to be a bear.  This is what it was like in 1999, when the experienced market players would be well-hedged and missing the rally while some kid who works for him quits because he bet his student loan money on Yahoo and now drives a Porsche.   

Sure 9 months later the Porsche was repossessed and the kid was flipping burgers but WE WANT TO BE THAT KID – IT'S FUN TO BE THAT KID – until it isn't again.  The funny thing is, we only gave those dot com companies Millions when they IPO'd – now we give out Billions because, of course, this time is different, it's a new paradigm, this changes everything, you have to understand the new metrics, sock puppets rule….  

McDonald's was founded in 1940 by two brothers actually named McDonald.  Ray Krok bought the chain from them and created the World's greatest franchise which now has over 26,000 franchise operations and over 6,000 company stores employing about 1.7M people worldwide selling $24Bn worth of food a year with a $5Bn net profit.  Facebook has 3,200 people but they generate $1.2M in revenues per employee ($3.8Bn) and drops $1Bn to the bottom line.  Facebook's assets are mainly IP and those are about as valuable as MySpace's assets now
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Heavy Action In BP Call Options With Earnings On The Horizon

 

Today’s tickers: ZNGA, UPS & SXC

ZNGA - Zynga Inc. – Options on the social game developer behind wildly popular games such as Words with Friends and FarmVille continue to trade at a Facebook-IPO-induced fever pitch today. Investors exchanged roughly 45,000 option contracts on Zynga by 12:30 p.m. in New York, while the price of the shares reached new heights one day after the highly-anticipated Facebook filing became a reality. Shares in ZNGA rallied as much as 21.8% in the first half of the trading session to an all-time high of $12.91. Out-of-the-money call buying in the front month suggests some traders are positioning for the price of the underlying to extend gains in the near term. February $13 strike call options that cost around $0.15 apiece at the beginning of the week, are now more than five times as expensive given the current asking price of $0.80 per contract. Traders looked to the Feb. $14 and $15 strikes, buying calls this morning at average premiums of $0.35 and $0.22 each, respectively. Call buyers may profit at expiration if Zynga’s shares continue to post strong gains in the next few weeks, but only risk losing the premium paid for the options should the stock’s run-up reverse course. Meanwhile, buyers of some 5,000 puts at the Feb. $12 strike stand to profit in the event that Zynga’s shares pull back off their highs ahead of expiration. Investors that bought into Zynga call options weeks ago when shares in the game developer were down sharply off their December-IPO price of $10.00 saw, in some cases, the value of their positions sky-rocket this week. Traders that paid an average premium of $0.85 apiece for Feb. $8.0 strike calls back on January 9 now find those call options cost $4.30 each as of 1:00 p.m. in afternoon trade.…
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Phil's Favorites

A 2019 Earnings Recession?

 

A 2019 Earnings Recession?

Courtesy of 

Shout to Leigh!

On the new Talk Your Book – Josh Brown is joined by Leigh Drogen of Estimize, one of the leading providers of crowdsourced financial and economic data to talk about the trend in corporate profits that could potentially lead to an earnings recession later this year.

What is the thing that Leigh is seeing in the data that Wall Street isn’t yet picking up on? What segment of the stock market is most at risk? Why is the crowd smarter than the narrow consensus of Wall Street analysts?

Check out Estimize ...



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Zero Hedge

How Will The Pound React To Tuesday's Brexit Deal Vote? FX Traders Weigh In

Courtesy of ZeroHedge. View original post here.

Months of extreme volatility have taken their toll on the pound, with traders declaring the G10 currency "untradeable" during the worst of the withdrawal-deal related chaos last year, as daily swings of multiple percentage points became increasingly common, prompting some traders to muse once again about how the pound - one of the world's most liquid, heavily traded currencies, was behaving more like the Turkish lira than a designated global reserve currency (as its membership in the IMF's SDR basket would suggest). 

Now, after months o...



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ValueWalk

D.E. Shaw Investment Calls For Leadership Change At EQT

By ActivistInsight. Originally published at ValueWalk.

Elliott Management has offered to acquire QEP Resources for approximately $2.1 billion, contending the oil and gas explorer’s turnaround efforts have done little to lift the company’s share price. The company responded and said that a thorough review of the proposition is imperative in order to properly act in the best interests of shareholders, “taking into account the company’s other alternatives and current market conditions.” The news came only a month after Travelport Worldwide agreed to sell itself to Siris Capital Group and Elliott’s private equity arm Evergreen Coast Capital for $4.4 billion in cash and two months after Athenahealth was bought by Veritas and Evergreen for $5.7 bi...



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Kimble Charting Solutions

Gold & Silver Testing Important Breakout Levels!

Courtesy of Chris Kimble.

Gold and Silver from a long-term perspective have created a series of lower highs over the past 8-years. Will 2019 bring a change to this trend? A big test is in play!

Gold since the lows in 2016 has created a series of higher lows, while Silver may have created a double bottom.

Gold & Silver are currently facing break attempts a (1) and (2). These falling resistance lines have disappointed metals bulls for the past few years.

The direction of Gold and Silver weeks and months from now should be highly influenced by what each does as they are attempting to break above important resistance levels.

To become a member of Kimbl...



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Insider Scoop

UBS Says Disney's Streaming Ambition Gives It A 'New Hope'

Courtesy of Benzinga.

Related DIS Despite Some Risks, Analysts Still Expecting Double Digit Growth From Communications Services In Q4 ...

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Digital Currencies

Russia Prepares To Buy Up To $10 Billion In Bitcoin To Evade US Sanctions

Courtesy of Zero Hedge

While the market has been increasingly focused on the rising headwinds in the global economy in general, and China's economic slowdown in particular, while the media is obsessing over daily revelations that Trump may or may not have colluded with Russia to get elected, a far more critical, if underreported, shift has been taking place over the past year.

As we reported in June, whether due to concerns over draconian western sanctions and asset confiscations following the poisoning of former Russian military officer Sergei Skripal, or simply because it wanted to diversify away from the dollar, Russia liquidated virtually all of its Treasury holdings in the late spri...



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Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...



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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's failure based on his personality, which was evident years ago. This article, written in 2017, references a prescient article Bill wrote before Trump became president, in July, 2016, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Biotech

Opening Pandora's Box: Gene editing and its consequences

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

 

Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from www.shutterstock.com

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.

...

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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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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"

 

 

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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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