Jefferies shares touched a 52-week low today, and if put activity is any indication, options traders see them going even lower.
Could we make it four for four? So far, so good. Last week, we scored a rather profitable exacta, suggesting bullish options trades to profit from Cisco and Priceline earnings. And this week, we appear to be setting up pretty nicely for another batch of winners.
It's a common refrain on CNBC: There's too much regulation and Dodd Frank is killing the banks. But if MF Global's demise shows anything, it's that rules are sometimes necessary.
Two bearish trades, two winners, one strategy. That more or less sums up last Friday's Options Action.
On no news, the high-growth soda maker is off some 8 percent today, and as of 2pm, there were four puts purchased for every call.
We all know about MF Global's troubles. We all know about CEO Jon Corzine's struggles since taking the helm. Less well known is that back in August, the commodities giant sold $325 million of five-year unsecured bonds that included a provision that would offer higher interest rates if Mr. Corzine left the firm for a government job.
Forget Netflix and Reed Hastings for a second. There's another stock down 40% today with an equally celebrated CEO: MF Global.
They're the momentum stocks the market is in love with, you've thought about buying, fantasized about shorting, and have probably lost money doing it — especially lately.
Two titans in their respective industries. Two earnings stories. But that's where the similarities end.
On Options Action last Friday, we held a funeral for high-growth momentum stocks. The trade that had been working so well for so long appears to have come to a halt as investor appetite for risk has retrenched.
Last week’s moves in technology names told two strikingly different stories.
It is the second most frequently asked question from Options Action fans: Where can I get a recap of the strategies on the show? (For the record, "Does Melissa Lee really read all the emails?" is the most popular question, and I am happy to say the answer is yes). Well, you asked, and now we'll deliver. Here's your recap of Friday's trades.
A Nomura upgrade this morning is helping the aerospace giant lead the Dow, but it also has some market participants wondering if the stock is downright cheap.
Battered Sprint shares got a much needed boost this morning courtesy of the Justice Department. But the action in the options pits was even more furious.
Last Friday, Dan Nathan of Riskreversal.com suggested a bearish bet on best of breed bank JP Morgan, and today a similar trade printed in size.
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