Name That Trade – $BABA Booey


Earlier today CC dissected the Alibaba (BABA) call butterfly (below) that I detailed on October 31st, that expires today (read here.) After some initial volatility the structure will end up closing … [Read more...]

New Trade – $XRT: Holiday Hangover


On a few occasions of late I have described my aversion to stepping in front of what appeared to be an impending breakout in retail stocks heading into the holiday season (reprinted below).  But with … [Read more...]

MorningWord 11/21/14: One of These Days


Equity markets the world over have gained hundreds of billions of dollars in value over the last few hours for one very simple reason - the Global Economy is in fact WEAKER than you thought before you … [Read more...]

New Trade – You $WYNN Some, You Lose Some


Shares of Wynn Resorts (WYNN) went from a massive outperformer in the first qtr of 2014 (up 30% on the year at one point) to its current "left for dead in a raging bull market" state. It's currently … [Read more...]

MorningWord 11/19/14: Someone Digs $GDX


GDX (the Gold Miner etf) has rallied 23% since November 5th in what has felt like a straight line.  Juxtaposed against the 5% rally in the GLD (the etf on the underlying commodity), the move in the … [Read more...]

Name That Trade – No $LOW Hanging Fruit


Lowe's (LOW) reports their Q3 results prior to the open tomorrow. The options market is implying a roughly 5% one day move in either direction which is rich to the 4 qtr avg of about 3.35% and the 8 … [Read more...]

Name That Trade – $GS: Bank Shots


Investors in U.S. bank stocks have been torn this year with an uncertain and unexpected rate environment, coupled with the headwinds to earnings growth from increased regulation.  As a group, it has … [Read more...]

MorningWord 11/18/14: $GOOGLy Eyes


A few weeks ago I took at look at Google's (GOOGL) inability to keep pace with the broad market.  The bull case is fairly simple, as summarized in my post of November 4th: There are few who would … [Read more...]

Name That Trade $MSFT: Surface to Air


Microsoft (MSFT) has become one of the single biggest drivers for Nasdaq gains over the last two years.  The stock has nearly doubled since the start of 2013, up about 86%, or put another way the … [Read more...]