Even though the daily chart in Amazon (AMZN, $359.05, off $0.75) does not look awesome….the WEEKLY chart gives us reason to believe that we may start to see some higher prices in this one. The weekly chart pattern is still a rather bullish one, with a pattern of higher highs and lows and price above [...]
For the second time this week, we see heavy call buying in a pharmaceutical name. Avanir Pharmaceuticals (Nasdaq: AVNR, $3.97, up $0.13) specializes in developing medication for the treatment of neurological disorders including Alzheimer’s and Parkinson’s, and has several products in Phases II and III of FDA testing.
Every so often, typically a few weeks after AAPL earnings, traders go a little overboard in selling AAPL option premium. Well, it’s been a few weeks since AAPL earnings, and traders have sold AAPL IV (Implied Volatility) down to stupid cheap levels…again. Take a look at a chart of VXAPL (the VIX of AAPL).
I guess earnings season never comes to an end as there are twenty-eight stock that have short dated options available reporting earnings next week. As a review – the table below is based on twelve quarters (when available) of earnings price reactions for stocks with options expiring this coming Friday. If the history is less [...]
Barron’s – Steven Sears column leads off with a topic that covers two big area of interest for me, retailers and earnings. I love studying how stocks react to earnings relative to what the option market is expecting and in my buy side days I covered the retailing industry. Specifically he discusses earnings for Target [...]
I spy a buy setup in ConocoPhillips (COP, $65.37). There was a Fibonacci price cluster of support at the $61.84 – $62.82 area. This zone included at least 6 Fibonacci price relationships that overlap each other nicely. There were also a couple of timing projections that came in as we tested this key support. I’m [...]
Barron’s – The Striking Price column was mostly about opportunities that emerge from spikes in volatility. Steven Sears mentions that these spikes may be the result of economic reports and the uncertainty of the overall economy that may result from new pieces of information. All I can think about when I hear of short term [...]
In the last 3 days, the market has rallied about 30.00 dollars in the SPX. Knowing that, traders would expect the VIX to have gotten completely pasted as traders dumped volatility. Take a look at how S&P has moved and how VIX has moved. Livevol (R) www.livevol.com When the S&P moves up, one of the [...]
Today we saw unusual bullish options activity in Mechel OAO (MTL), a Russian mining company specializing in the production of coal, iron ore, steel, heat, and electric power. Trading up $0.01 to $2.13 in the Thursday morning session, we saw a trader come in and sell 25,000 MTL April 2 Strike Price Puts for $0.20. [...]