Tag "trading ideas"

Gold Prices: Two Potential Paths Forward

Precious metals present a difficult trading scenario. While we believe they probably will reach for somewhat higher prices this summer, there is increasing risk that they will not. Traders may wish to wait for the picture to resolve before stepping back into this market. Today we’ll look at Gold prices – and specifically Gold futures. Of the two most likely paths for Gold futures, we still believe the most likely

5 Stocks With Unusual Options Activity (ARMH, ZAYO, SWFT, CY, ACE)

Unusual Options Activity Report Here’s a quick look at 5 stocks showing unusual options activity with some color around the trading setups and recent news about the companies. ACE Limited (ACE)- 2,000 Nov $100 puts were sold for $3.30. ACE is acquiring insurance competitor, Chubb, for $28.3B in a cash and stock deal. Earnings are due out on July 21st. Cypress Semiconductor (CY)- 9,000+ Sep $12 calls were bought for

Crude Oil Inventories Pressuring Nabors Stock (NBR)

The Uptick In Crude Inventories Is Leading To A Breakdown In Nabors Stock (NBR) The $4.5B oil driller earned more than $1 in EPS last year and is now projected to lose $0.22 and $0.12 this year and in 2016, respectively. The collapse in oil and gas prices is expected to cut sales in half from 2014 to 2016 ($3.4B-$3.5B). These projections may actually be too optimistic if this week’s

Trading Ideas: 5 Stocks To Watch (FB, GOOG, TWTR, MDXG, ZIOP)

It is easy to point the finger at Greece as the culprit behind Monday’s mega sell-off, but it is impossible to deny that there has been an ongoing distribution among select US stock sectors for several months. Viewed from this perspective, yesterday’s price action among the major indices could simply mean the underlying weakness finally made it to the market’s surface. Regardless of what happens with Greece, the US market

Consumer Discretionary ETF (XLY): Short Put Options Trade – Again

I believe the SPDR Consumer Discretionary ETF (XLY) may be primed for another short put options strategy. Last week, the ETF went on to rally 0.6 percent. Thus, the premium earned selling weekly June 26th 77 puts was kept. Could this work again on XLY? To refresh, in our hypothetical example on June 1, June 5th weekly 76.50 calls were sold for $0.47. At expiration, the calls were in the

Unusual Options Activity: CBS, MA, MU, RHT, And More

It’s Sunday night so it’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (or who is making them), I believe that it’s important to be aware of notable options activity as another indicator for directional bias. Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have. Unusual Options

5 Stocks With Unusual Options Activity (CHK, AMD, HCA, NCR, PVA)

Unusual Options Activity for June 25 2015 Here’s a quick look at 5 stocks showing unusual options activity with some color around the trading setups and recent news about the companies. Advanced Micro Devices (AMD) – Roughly 14,000 Aug $2.50 calls were purchased for $0.30. AMD is rumored to be looking at separating/ spinning off part of the business, but they have so far denied the Reuters report. AMD Micro

Trading Ideas: 5 Stocks To Watch (AMP, CAM, GLW, POL, WX)

The market started off the week with a bang mostly due to relief over the fact that the world did not end over the weekend in some kind of a Greek-induced Armageddon. Today was a more subdued trading session and most indices spent the day in a sideways range. However, there was ample strength among individual stocks, especially some of the widely followed momentum names – Facebook (FB), Amazon (AMZN),

YHOO Chart Update: Why Yahoo Stock May Head Lower Yet

One of the stocks I’ve been following closely from a “price” perspective is Yahoo! Inc. (YHOO). Yahoo stock has provided some nice price patterns for pure price guys like myself. Back in January, I made the case for YHOO going lower and offered some downside price targets. Today, I wanted to provide a quick update on where I think the YHOO is at. Looking at the chart below, you can see

An Options Strategy For Consumer Discretionary (XLY) Shorts

Last Thursday saw a powerful rally in stocks. Several indices went on to notch new records. The Nasdaq Composite surpassed its March 2000 intra-day high. The Russell 2000 small cap index broke out to a new high. Several others, including ETFs, broke out of recent ranges. The SPDR Consumer Discretionary ETF (XLY) belongs to the latter category. But will the breakout stick? For the past four months, XLY ($77.45) has been