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Weston, Nov 19 (TradersHuddle. com) – FlowTrades. FlowTrades highlighted the recent weakness of Goldman Sachs (NYSE: GS) as it has struggled to break the 50 day moving average, with the 20 day moving average on a negative slope.
Fertilizer maker Bunge (NYSE: BG) is seeing some late options activity as nearly 1,700 November 65 calls have changed hands. Some press reports are speculating that Bunge might be involved in a takeover announcement as soon as tomorrow. That's when these options expire.
Remember that CF Industries (NYSE: CF), Agrium (NYSE: AGU) and Terra Industries (NYSE: TRA) are involved in a takeover soap opera of sorts and their shareholders are voting on the respective takeover proposals today and tomorrow.
Bunge could be in play if no deal is finalized among those companies.
I’m going to skip a recap of what sucked and worked today, but let it be known that I kicked ass on MON and BG yet index trades sucked.
I want to talk about me planting my flag in the ground and calling a bottom in Natural Gas. Maybe tomorrow will go lower, maybe it won’t. [...]
The market was yet again flat today, closing a bit on the downside. Gold, however, jumped in the morning a attained a new record high! This weekend, in my Market Forecast & Sector Watch, I said,
"GLD is now in uncharted territory, with little resistance. If the momentum is strong, GLD could run up fast and [...]
The morning started out with a huge pop to my DE calls. Trimmed them back and took 65%.
Next BG was getting rolling and I checked my charts and I jumped in. I trimmed some of the position for 40% and held the rest.
GRO which was highlighted two days ago, very nice pop today
MBI – stuck [...]
SLV - iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.
EWT - iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.
CL - Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options in the midst of takeover chatter boosted…
Companies featured in this segment: General Motors Corporation (NYSE:GM), Ford Motor Company (NYSE:F),Chrysler LLC, Ameren Corporation (NYSE:AEE), The Boeing Company (NYSE:BA), American Axle & Manufacturing Holdings Incorporated (NYSE:AXL), Teck Cominco Limited (NYSE:TCK), Petro-Canada Incorporated (NYSE:PCZ), UTS Energy Corporation (TSX:UTS), ICM Incorporated, Bunge North America (NYSE:BG), ENI SpA (NYSE:E), Jacobs Engineering Group Incorporated (NYSE:JEC), Chevron Phillips Chemical Company LLC, Chevron Corporation (NYSE:CVX), ConocoPhillips (NYSE:COP), and Jacobs Engineering Group Incorporated (NYSE:JEC).
Companies featured in this segment: ArcelorMittal (NYSE:MT), AK Steel Holding Corporation (NYSE:AKS), Severstal (MCX:CHMF), Weyerhaeuser Company (NYSE:WY), International Paper (NYSE:IP), Anadarko Petroleum Corporation (NYSE:APC), Barrick Gold Corporation (NYSE:ABX), Kinross Gold Corporation (NYSE:KGC), BG Group (LSE:BG), ENI S.p.A (NYSE:E), Egyptian National Gas Company (CAI:NATG), Total (NYSE:TOT), Shell (NYSE:RDS.A), Allegheny Energy (NYSE:AYE), and Alliance Resource Partners (NASQDAQ:ARLP)
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