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Showing Posts 1 - 15 out of 29 found.

Long-Term Breakout In Heron Therapeutics

Long-Term Breakout In Heron Therapeutics

Two large and unusual trades hit the tape on the ARCA exchange in Heron Therapeutics on February 24th and 25th. The Apr $12.50/$17.50 bull call spread was put on a 7,000 times for a $1.28-$1.50 debit. The breakeven point on these massive trades is between $13.78 and $14.00. Call to put ratio was 10:1 and call activity was 75 times the daily volume on February 25th. There was also a seller of...

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An Options Play On Coca-Cola

An Options Play On Coca-Cola

The Coca-Cola Company [NYSE: KO, $42.11] produces and markets over 500 beverage products internationally.  The company is headquartered in Atlanta, Georgia, and is currently led by CEO & Chairman Muhtar Kent. Although nearly flat in 2015 (down less than a quarter percent), KO stock has long been a favorite of investors looking for steady returns and a healthy dividend stream.  The stock...

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Large Option Activity In CLH Ahead Of Q4 Earnings

Large Option Activity In CLH Ahead Of Q4 Earnings

Clean Harbors is a $3B leading environmental, energy, and industrial service provider in North America. The Norwell, MA, based company has seen its share price decline more than 19% from the June 2014 high due to their exposure to the energy sector. Late last month, management decided to spin off their oil & gas field services business (could take more than a year to complete). Also, on...

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Corn Outlook Revisited

Corn Outlook Revisited

The Weekly Export Sales report came out Thursday showing 1.003 million metric tons of corn was exported last week.  This was up 19% from the week prior.  The surprise in the report was the number was considerably larger and did not have China buying any corn.  Mexico, Japan, and South Korea were a few of the active customers.  I wrote an article about a month ago talking about the demand for...

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An Options Play on SunEdison (SUNE)

An Options Play on SunEdison (SUNE)

SunEdison, Inc. (NYSE: SUNE, $21.80) is scheduled to report earnings following Wednesday’s session close.  Consensus analyst estimates call for negative EPS of $0.33 on revenues of $683.56 million, compared with positive EPS of $0.22 on $960.7 million in revenue.  SUNE stock is up 12% so far in 2015, having traded in a 52-week range of $13.09-$24.35, having touched the low back in July and...

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Holiday Time Means Premium Selling – Again

Holiday Time Means Premium Selling – Again

One of the best strategies to take advantage of an upcoming holiday is to sell premium.  It works well in a low or trending lower volatility environment, and it works especially well when volatility (VIX) is high.  The goal here is to take maximize time decay, in this case next Monday, the markets will be closed for the President’s Day holiday.  Hence, including today, there are only five...

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Why It’s Time To Buy Calls In Ford Motor

Why It’s Time To Buy Calls In Ford Motor

On February 3rd, Ford Motor reported U.S. January consumer sales jumped 15.3% on a year-over-year basis to 178,351 units (truck sales +23%). The new aluminum F-150 trucks are making up 18% of the category (it was 5% in December) with turnover at just 12 days. They expect full availability of the next generation of trucks in late Q2 for U.S. consumers. Other improvements included Mustang...

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Sell The LO Feb Put Spread

Sell The LO Feb Put Spread

Lorillard Inc. (NYSE: LO, $66.31) is a Greensboro, NC-based tobacco company marketing cigarettes under brand names including Newport.  So far in 2015, shares haven’t had any adverse health effects on investors - the stock is up nearly 5.5% year to date.  The long term impact has been positive as well – shares were up over 26% on the year in 2014, after posting solid gains the year prior.  In...

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Sell An Iron Condor Or An Iron Butterfly

Sell An Iron Condor Or An Iron Butterfly

Selling an option premium is an enticing proposition.  You sell it, then you wait for implied volatility to come in or play the decay in your favor and take your profits.  Can’t lose right?  Sadly, it’s not that easy.  Selling premium has very significant, sometimes catastrophic risk.  Theoretically, you have unlimited loss potential.  So how can a retail trader participate much the same...

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A Hedge On Oil Is A Good Idea

A Hedge On Oil Is A Good Idea

The moves in crude oil have grabbed everyone’s attention over the last few months. Since November, we have seen the price of crude move from near $80.00 a barrel to below $40.00. The debate whether lower priced crude is good for the economy continues. Recent bounces from the low also have many investors wondering if the “the bottom” is in, and if we will return to the higher levels we have...

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Check Out Chipotle, Mexican Grill That Is

Check Out Chipotle, Mexican Grill That Is

Chipotle Mexican Grill (NYSE: CMG) has had investors’ mouths watering for some time, and shares are already up 4.5% in 2015.  The company has truly been one of Wall Street’s darlings, with shares seemingly moving parabolic higher since the 2006 IPO.  The upscale fast food chain is scheduled to report earnings after the close today, and expectations are high – consensus analyst estimates are...

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Day Trading Is Hard Enough

Day Trading Is Hard Enough

Day trading is tough enough as it is. Don't make things harder on yourself when you are using options. There are a number of things you must concern yourself with if you are going to employ this methodology, but three are key – liquidity, delta, and theta. I hear many "options professionals" tell their clients to just trade in-the-money options, as they offer a lot more leverage than going...

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A Fan of Volatility? Think March E-Mini S&P 500

A Fan of Volatility? Think March E-Mini S&P 500

If you are a fan of volatility and wild rides in the markets, you are probably enjoying the first month of trading for 2015. Central Banks around the globe have made things interesting, as some of their decisions have sent secondary markets into frenzy. Crude oil continues to grab attention, and it has consumers and investors both asking, “How low can it go? “ In the Eurozone, we started off...

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Don’t Be Fooled By This Strength In GOOG

Don’t Be Fooled By This Strength In GOOG

With Google's (GOOGL's) earnings release date just around the corner (January 29th), I thought I'd take a close look at the daily and weekly charts in hopes of offering a useful technical interpretation of the price action on both the intermediate and short-term time frames.  The daily chart below sports a bullish BAT harmonic pattern that confirmed on two separate occasions by dropping...

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Time To Buy The Dip In Morgan Stanley?

Time To Buy The Dip In Morgan Stanley?

On January 20th, Morgan Stanley (MS) reported lighter than expected Q4 EPS and revenue, initially sending shares down 3% that morning. The company has actively been buying back shares (repurchased 8M shares in Q4 for $271M) and following an 11% dip in just three weeks, this could be another opportunity for management to put their plan to good use. MS currently trades at a P/E ratio of 10.56x...

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