Shares of NetApp (NTAP) opened up about 4% this morning (they have since given back half the initial gains) possibly on speculation that the company could find itself in the sights of Hewlett Packard Enterprises …
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Anatomy of a Trade – $AAPL Oct Risk Reversal
On May 12th, when Apple (AAPL) was threatening the $90 level we detailed a long delta trade for those looking to wade into the stock. We liked the idea of risk reversals that gave some …
Continue readingMorningWord 5/25/16: Spooz Key Action at a Distance – $SPX, $EEM
Yesterday, Zerohedge made an interesting observation (via Bank Of America Merrill Lynch) of the decoupling taking place between emerging market stocks and the S&P 500 (SPX). That was also the case prior to the two sharp …
Continue readingBig Printin’ – $MON Santa
Earlier today, Monsanto (MON) turned down Bayer of Germany’s $62 billion takeover bid, citing the following: With MON sporting a nearly $48 billion market cap, and $55 billion enterprise value, some investors may see today’s …
Continue reading$HPE – Long Alternative
Yesterday I previewed Hewlett Packard Enterprise’s (HPE) fiscal Q2 results due after the close (read here), and concluded: [private] My View into the Print: HPE is a cheap stock trading about 8.5x expected 2016 eps …
Continue reading$DIS – It’s A Vol World After All
In my preview of Disney’s (DIS) fiscal Q2 earnings on May 10th, when the stock was $106, I saw very few scenarios where the stock would rally after the print: The 11% bounce in the …
Continue readingMorningWord 5/24/16: Fool Me Twice? – $SPX
When I check up daily on charts of major risk assets, the S&P 500 (SPX) sticks out like a sore thumb, but not for the apparent relative strength to most equity indices the world over. …
Continue reading$HPE Fiscal Q2 Preview
Event: Hewlett Packard Enterprises (HPE) reports their third quarter as a standalone company tomorrow after the close. The options market is implying about a 7% one day move following results. Back in early March the …
Continue reading$XHB Update – Home Slice
In early April we targeted the home-builder etf XHB with a June put spread. At the time we took a dim view of home sales for a handful of reasons, and we thought the technical …
Continue readingBig Printin’ – $SBUX Latte to the Game
On Friday as I was perusing some stock charts and it struck me how many similarities there are between Nike (NKE) and Starbucks (SBUX). And not just the look and performance: $NKE & $SBUX are …
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