Initial readings from Black Friday and Cyber Monday look very strong for Apple. And that has some traders feeling bullish.» Read More
Last Friday, Dan Nathan did something that would make even the best alchemist green with envy: he turned time into money, and he did so using the calendar spread on Intel.
While market pundits are pouncing on the decline in the VIX today (something we noted on this blog last week), a far more interesting development is taking hold in options land. Could JPMorgan be on the verge of raising its dividend?
The VIX broke through the 19 level today, meaning pricing for puts and calls have reached their lowest levels in 16 months. But that doesn't make them cheap.
Big swings can often lead to strikeouts. But it can also mean home runs, and that's exactly what "Options Action" contributor and Phoenix Partner's Chief Derivatives Strategist Dan Nathan hit last week by purchasing the RIMM December 60/65 strangle ahead of earnings.
Wells Fargo priced its secondary in about 24 hours. Bank of America did it in two days. But it has taken Citigroup nearly a week to complete its capital raise, and over that time, shares have fallen 13%. That has some investors calling for CEO Vikram Pandit's head.
Gold is in the midst of a huge pullback today on the heels of a stronger-than-expected jobs report and rallying dollar.
Wells Fargo jams nearly 426 million shares down investors' throats, and yet the stock ekes out a tiny gain. That optimism was echoed in the options market, too, with both puts and calls seeing heavy activity.
A couple weeks back, I wrote about options traders' obsession with POT. But Potash isn't the only fertilizer catching their fancy.
Do options traders see redemption in Research in Motion? Quietly, the stock has been one of the biggest movers on earnings, jumping either up or down an average of 13% on the last eight reporting dates.
A cruel December for AIG? That appears to be the bet from both equity and options traders. The stock is down 12 percent today on concerns about loan reserves. But that decline is not enough for options players.
Do options traders see a double for GE stock? Well, maybe not a double, but perhaps a gain of 40% by next year.
When it was hovering around $4 bucks, the thought of Bank of America being a $30 stock seemed patently absurd. But that's exactly what one option investor is betting on.
It's been a tough day for stocks and for tech in particular. A firmer dollar, some lousy economic data, and a nasty semiconductor sector downgrade from Merrill are all weighing on the market.
Call it a game of follow the leader today. George Soros buys Potash shares and now everyone is clamoring to buy POT.
Do options traders sense a holiday massacre? There was a massive trade that went up on Vix options at the December expiry. Specifically, one customer sold 28,000 of the December 45-strike calls and then bought 56,000 of the December 60-strike calls.
Yankees shmankees - Is there anything better than a good ol' fashion earnings preview with derivatives? From my standpoint, the answer would be a solid no. But just incase you missed part of last week's show, I do want to update the faithful.
It's more than a motto; it's a way of life on "Options Action." We like to risk less to possibly make more. And last week, Dan Nathan - chief options strategist at Phoenix Partners Group nailed it with Intel.
We've said it hundreds of time on the show before: Never buy out-of-the-money calls in hopes of a takeover. But with so much deal making going on, and so many days punctuated with takeover talk, the urge to merge may drive some options investors to reach out and buy those cheap calls.
Are options traders doubling down on Las Vegas Sands ahead of earnings? That appears to be the case with today's action.
We say it often on the show: we like to risk less to possibly make more. That's why we typically shun buying options outright, and choose to pair our costs by selling one option to buy another. But occasionally, one of our guys (and gal) senses a bargain, and that's exactly what happened with Dan's strangle on Costco.
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Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.
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