Event: ORCL reports its fiscal Q4 earnings tomorrow after the close. The options market is implying about a 4.5% move post-earnings, which is in line with the 4 qtr avg move of about 4.5%, but … [Read more...]
New Trade: Messin’ with $TXN
10:56 am EDT - June 19, 2013 By Dan
Last Monday TXN held their Q2 mid quarter update (release here) where the company tightened their previous guidance range to: Revenue: $2.99 — 3.11 billion compared with the prior range … [Read more...]
Macro Wrap – Chinese Internet Stocks are the Oasis in the Desert, $QIHU, $SOHU, $BIDU
7:14 am EDT - June 19, 2013 By Enis
China, the great 21st century growth story, has shown serious signs of strain this year. Both the Shanghai and Hang Seng indices are in the red in 2013, despite a generally strong equity environment … [Read more...]
MorningWord 6/19/13: $TSLA Shorts Have Been Screaming In Silence, Will They Ever Be Heard?
7:11 am EDT - June 19, 2013 By Dan
MorningWord 6/19/13: And there it is, can you hear it?? It starts out pretty faint, but by the end of the day it could be a full blown scream. TSLA released a statement calling or a partial recall … [Read more...]
Too Many Options: $VIX, $MU, $BBRY, $NOK, $GE
7:13 pm EDT - June 18, 2013 By Enis
Tech dominated single stock options volumes today. VIX - Heavy June option volume ahead of VIX expiry tomorrow morning, with the June 17 call trading almost 100k. VIX spot held up better than … [Read more...]
Chart of the Day – $XLU vs. $IYR, Battle of the Yields
2:58 pm EDT - June 18, 2013 By Enis
Utilities and REITs have been 2 of the more popular sectors for yield hungry investors over the last year. Over the last 3 years, they have moved largely in lockstep, and especially so in the past … [Read more...]
$FDX Earnings Preview
10:18 am EDT - June 18, 2013 By Enis
Event: FDX reports its fiscal Q4 earnings tomorrow before the open. The options market is implying about a 4% move post-earnings, which is higher than the 4 qtr avg move of about 3.5%, but lower … [Read more...]
MorningWord 6/18/13: $AAPL Picking
9:29 am EDT - June 18, 2013 By Dan
MorningWord 6/18/13: Yesterday shortly after 1pm our Twitter-feed lit up like a Christmas tree after I reported the following trade in AAPL: @cnbcfastmoney @CNBCOptions Monster Bullish Trade in … [Read more...]
Macro Wrap – May and June Have Likely Marked the Turning Point in Volatility, $VIX
7:29 am EDT - June 18, 2013 By Enis
Yesterday, we received a great question in our "Submit Your Question" section of the site: Today market up more than a percent but VIX is also trading days High..shaking off initial loss? Something … [Read more...]
Webinar: Summer Trading Strategies – A Return to Volatility?
5:00 pm EDT - June 17, 2013 By CC
Summer Swoons For whatever reason, most notably seasonality in economic data (something we've written about alot here at Risk Reversal) coming out of the financial crisis, the summer months … [Read more...]
Too Many Options: $AAPL, $WMB, $MU, $SE, $GILD
4:45 pm EDT - June 17, 2013 By Enis
Quiet day for stock and options volumes, with a few large trades. AAPL - Buyer of 10,200 of the Jul 470 calls for 2.26 to open, a large trade in notional terms. Call to put ratio around … [Read more...]
$NFLX Fundamental Thoughts – House of Cards or the Future of TV?
2:06 pm EDT - June 17, 2013 By Enis
Netflix is up 7% today after an announcement of another content deal, this time with Dreamworks (DWA). NFLX is clearly a hard-to-value stock. Its volatility over the last few years is a simple … [Read more...]
Chart of the Day – Aussie Dollar Due For a Bounce? $FXA
1:15 pm EDT - June 17, 2013 By Enis
The Aussie Dollar has acted more like an emerging market currency in the past 2 months. It declined greater than 10% against the USD from mid-April to early June. That's an enormous move for any … [Read more...]
Name That Trade $JCP – Massive Short Covering, But Where’s the Rally
10:43 am EDT - June 17, 2013 By Enis
JCP has been one of the most hated stocks over the past few years. Easy to hate too, since its stock has languished near 20 year lows: The stock has stabilized, though. Mike Ullman, the CEO … [Read more...]
New Trade $BA: If History Is A Guide, The Trade Is to Fade The Paris Air Show
10:21 am EDT - June 17, 2013 By Dan
When I wrote this hypothetical trade up on Friday, my apprehension at the time was too press the short on a down day in the market, and as the stock had reversed 1.5% from the morning's and the all … [Read more...]
$VIX Futures Snapshot – $VIX Selling Off Ahead of FOMC
Interesting move in VIX spot and VIX futures over the last few hours. The VIX had remained elevated this week despite the SPX index advance because of the Fed event today, but we saw VIX selling … [Read more...]