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Chase Bank Limits Cash Withdrawals, Bans International... Before you read this report, remember to sign up to http://pennystockpaycheck.com for 100% free stock alerts Chase Bank has moved to limit cash withdrawals while banning business customers from sending...

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Richemont chairman Johann Rupert to take 'grey gap... Billionaire 62-year-old to take 12 months off from Cartier and Montblanc luxury goods groupRichemont's chairman and founder Johann Rupert is to take a year off from September, leaving management of the...

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Cambodia: aftermath of fatal shoe factory collapse... Workers clear rubble following the collapse of a shoe factory in Kampong Speu, Cambodia, on Thursday

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Spate of recent shock departures by 50-something CEOs While the rising financial rewards of running a modern multinational have been well publicised, executive recruiters say the pressures of the job have also been ratcheted upOn approaching his 60th birthday...

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UK Uncut loses legal challenge over Goldman Sachs tax... While judge agreed the deal was 'not a glorious episode in the history of the Revenue', he ruled it was not unlawfulCampaign group UK Uncut Legal Action has lost its high court challenge over the legality...

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Bulls Like Dish for the Long-Term

Category : Business

By David Russell, reporter at OptionMonster

NEW YORK — Dish Network hasn’t traded at $45 since late 2007, but long-term option activity targeted that level Thursday.

OptionMonster’s tracking programs detected the purchase of 10,000 January 2014 45 calls for $1.30 Thursday against previous open interest of just 19 contracts. They’re way out in time and out of the money, but the trade’s sheer size definitely drew attention. …

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Webinar: Top 10 Myths of Options Trading

Category : Business, Stocks

TheStreet’s FREE monthly webinars with the CBOE are brought to you exclusively by Options Profits. Don’t risk missing over 40 options trade ideas every week, educational content, exclusive commentary and webinars from over 15 experts. Click here for more information and a 14-Day Free Trial. **The Bonnie and Clyde of options education are back for the OP/CBOE monthly webinar! Jill Malandrino and Russell Rhoads reveal the top 10 myths of trading options and what the real deal is. When: Wednesday, June 13Time: 6pm ET (5pm CT)CLICK HERE for the LINK to the webinar: You will be able to pre-register but the presentation WILL NOT be live until 15 minutes before the webinar. You will be required to provide your name, email address and phone number to gain access to the presentation. Course material and replay link will be made available Monday, June 18. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits CBOE can be followed on Twitter at twitter.com/CBOE Russell can be followed on Twitter at twitter.com/Russell Rhoads

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Bulls Take Another Shot on Idenix

Category : Stocks

By Pete Najarian, co-founder of OptionMonster.

NEW YORK — Idenix Pharmaceuticals didn’t perform after a bullish trade last month, but investors are trying again.

Traders bought the June 12.50 calls on April 30, and Thursday 11,000 July 12.50 calls were purchased in large blocks for $1.20, according to OptionMonster’s real-time tracking systems. They also sold the July 17.50 calls for 30 cents and the July 7.50 puts for 60 cents to help finance the trade. …

Click to view a price quote on IDIX.

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See the rest here: Bulls Take Another Shot on Idenix

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Options Trade Alert on Salesforce.com

Category : Business, Stocks

NEW YORK (TheStreet) — Strategic Mindset: At Top Gun Options, we are market neutral with possibilities of surges in volatility.

Target: Salesforce.com trading at $147.83

Commit Criteria: CRM Implied Volatility is overpriced relative to its forecast volatility of 9.81% over the trade period. We are looking for possible price movement but for it to stay within its $130 to $165 price range until the exit of this trade. …

Click to view a price quote on CRM.

Click to research the Computer Software & Services industry.

Excerpt from: Options Trade Alert on Salesforce.com

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Sirius Shareholders Get Everything but Share Price Increase

Category : Business

NEW YORK (TheStreet ) —
With today’s earnings, 22 million Sirius perma-bull shareholders finally received what they anxiously awaited for. First quarter was a dream quarter for investors that should have shareholders dancing in the street singing praises for CEO Mel Karmazin.

The top line revenue increased more than 11% year-over-year resulting in more than $804 million in the first three months of the year. $804 million may not be a relatively big beat compared to the mean estimate of $803, but Mel Karmazin has done a remarkable job navigating through the challenges to bring home another winner quarter.

Monthly churn has dropped to 1.9% and even auto sales are now cooperating to bring the total subscribers up to a record 22.3 million. Net income is up almost 40% meeting Wall Street’s expectations of $0.02 per share….

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Read more: Sirius Shareholders Get Everything but Share Price Increase

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Why Options Get a Bad Rap

Category : Business, Stocks

This complimentary article from Options Profits was originally published on April 30. Don’t risk missing over 40 options trade ideas every week, exclusive commentary and webinars from over 15 experts. Click here for more information and a 14-Day Free Trial.

WEBINAR: Basic options Strategies to Trade Our 2012 Pick Wedsnesday, May 9 at 6pm ETCLICK HERE FOR INVITE AND TO REGISTER.
Barron’s options reporter Steven Sears made a bold trade recommendation to the masses. In the latest issue, Sears’ Striking Price column suggested that bullish investors sell put spreads on the SPDR 500 Trust (SPY). The idea is to collect a bit of premium by writing puts on the “Spiders”, but also hedge the bet by buying a lower-strike put. It’s a position that has a high probability of success, but could also wipe an investor out if market conditions suddenly change. Stephen Solaka of Belmont Capital was the source of Sears’ latest trading suggestion. According to the piece, “With the SPDR S&P 500 ETF Trust (ticker: SPY) at $138.83, Solaka likes selling the June $128 put, and collecting 95 cents, and buying the July $110 put for 41 cents. The vertical put spread–which is the name of the strategy–generates a 54-cent credit.” Sometimes called Spiders, SPY is one of the most active exchange-traded funds today and, like the S&P 500 itself, holds five hundred of the largest publicly traded companies ranked by market value. It can be used as a barometer for the performance of the stock market and also as a trading vehicle via its shares and options. SPY is down $0.52 to $139.87 Monday morning. The aforementioned June 128 put is now 8.5% out-of-the-money. The Barron’s idea is to write the $128 puts on the view that SPY will hold above that level through the June expiration over the next 46 days. Writing out-of-the-money puts on index products is not a new idea. Indeed, over the years, many hedge funds and other pros have been active sellers of downside puts on the Spiders, S&P 500 Index (.SPX), S&P 100 Index (.OEX) and other indexes and exchange-traded funds. Over time, the strategies generate income and capitalize from the fact that most downside puts expire worthless. The probability of success is relatively high. For example, the delta of the June 128 put on the Spiders today is only -0.13. Therefore, the probability the contract will expire worthless is roughly 87% (1 – 0.13). You don’t often hear about risks and rewards of index put writing until there is a serious market downturn or crash. At that time, you don’t need to look far to find reports of some high flying hedge fund or trader getting wiped out because they were selling naked puts on the stock indexes. Losses from one bad trade can wipe out gains from many months of winning put writes. The risks are high and, for that reason, only customers with deep pockets and much experience in options are allowed to sell puts on the index products with most brokerage firms today. To hedge the risk of writing June 128 puts, Sears recommended that investors also buy a July 110 put. “If SPY dips below $128 before June expiration, investors are assigned the SPY exchange-traded fund, which includes the 500 largest U.S. stocks. That risk is contained by the July $110 put.” Indeed, buying the deep out-of-the-money $110 put for $0.41 will limit the risk (and margin required) for writing the $128 put at $0.95. However, the downside protection really doesn’t come into play until SPY falls towards $110, or a market plunge of 21.4%. What the article fails to inform us is that the risk to the spread is equal the difference between the two strike prices minus the credit collected, or $18 – $0.54. Therefore, the investor is risking $17.46 to make $0.54. Or, on one contract, $54 in premium is collected and the potential risk is $1746. Most firms are probably very willing to take the other side of a short put spread on the SPY because buying out-of-the-money put spreads is a popular way to hedge “tail risk” or to protect portfolios from a significant market decline. In addition, an out-of-the-money put spread, if bought, takes advantage of skew and the fact that deep out-of-the-money puts have higher levels of implied volatility relative to at-the-moneys or near-the-moneys. For example, implied volatility in the June 128 puts on SPY today is 21.7%, compared to 31.7% for the June 110s. Experienced spread traders prefer to sell the high IV and buy the low IV, not vice versa. In sum, a July 110 – June 128 put spread on the Spiders for a $0.54 credit is a high probability trade because it is unlikely that the US equity market will decline by 9% through mid-June. There is a good chance that the June 128 put will expire worthless and the strategist can keep the credit. They can then hold the July 110 puts or sell it to salvage any remaining value at the June expiration. Even if the market declines by 5% to 8%, the trade is a winner. However, the typical Barron’s reader might not fully understand the risks associated with the strategy. It would probably be a very unpleasant experience, for example, to write ten of these spreads and collect $540, then 46 days later find themselves saddled for a loss of $17,460 if the market tanks. It’s these types of trades that get people in trouble during downturns or crashes, and that give options a bad rap within the investment community. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits.

Click to view a price quote on SPY.

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Excerpt from: Why Options Get a Bad Rap

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3 Short-Squeeze Stocks for Earnings Season

Category : Business, Stocks

Editor’s note: As part of our partnership with Nightly Business Report, TheStreet’s Bob Walberg will appear on NBR Monday (check local listings) to look at stocks with short-squeeze potential this earnings season.

NEW YORK (TheStreet) — Europe’s a mess, Chinese growth is slowing down faster than expected, the domestic recovery is in its infancy and we are about to enter a traditionally slow seasonal period for the market. It’s no wonder investors are selling stocks. But there’s a big difference between selling to lock in gains or to shed a loser and selling short.

Selling short means that an investor borrows stock to sell at today’s price, with the intention of buying it back in the future at a lower price. The short investor is betting that the price of the stock in question will decline. However, if the price of the stock should go up instead of down, at some point that investor will be forced to buy back his stock to limit his loss.

Naturally, the more people are forced to cover their positions on the way up, the more the buying pressure will propel the stock higher. This action is what is commonly referred to as a “short squeeze.”

Click to view a price quote on SKUL.

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See the rest here: 3 Short-Squeeze Stocks for Earnings Season

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Equity Correlation

Category : Business

This complimentary article from Options Profits was originally published on April 18. Don’t risk missing over 40 options trade ideas every week, exclusive commentary and webinars from over 15 experts. Click here for more information and a 14-Day Free Trial.

Wednesday: Options Industry Council FREE Three-Part Webinar Series: Part Three, April 18 at 7pm ET. CLICK HERE FOR INVITE AND TO REGISTER. Thursday: Volatility Is Not All The Same, April 19 at 5pm ET w/Russell Rhoads of the CBOE. CLICK HERE FOR INVITE AND TO REGISTER. As Jill and I discussed in the video below, it’s been fascinating to watch the swings in equity correlation over the last several months. Both realized correlation among the returns of S&P 500 components and changes in the forward-looking correlation implied by options markets give us some interesting things to watch. CLICK HERE TO VIEW VIDEO The average one-month correlation among S&P 500 components was actually higher in the fall of 2011 that at any point in the past five years, including during the 2008-2009 financial crisis. Then rally into the end of the year and in the first quarter of 2012 pushed stock correlation toward 40%, which is much lower than average. The flat-to-down trading in recent weeks has pushed overall realized market correlation back toward ordinary levels closer to 60%.Source: Thomson Reuters S&P 500 Average 1M Stock Correlation View Chart

As we’ve noted before, paying attention to these swings in correlation is important because it tells us what kind of market we’re dealing with. When average stock correlation is high, it means the market is being driven by exogenous, usually macroeconomic factors. In that kind of environment, paying attention to the fundamentals of individual companies is less important than getting the bigger picture in focus. When average stock correlation is low, it means that the price returns of any given stock are more likely to depend on fundamentals and earnings — in other words, a low correlation market is a stock picker’s market. Right now, we’re not at an extreme level of realized correlation in either direction, which means there is a mix of factors in play. One way we’ve been trading this type of market is by putting on both macro-focused trades and positions in stocks showing resilient momentum. For instance, we have positions open in CurrencyShares Euro Trust (FXE), CurrencyShares Japanese Yen Trust (FXY), and iShares Russell 2000 Index ETF (IWM), but also trades in specific stocks like Lowe’s (LOW) and Yum! Brands (YUM).Source: CBOE S&P 500 Implied Correlation Index View Chart …

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Link: Equity Correlation

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Advanced Level: Part 3 of FREE OIC Webinar Series

Category : Stocks

This webinar is brought to you by the Options Profits team. Don’t risk missing over 40 options trade ideas every week, exclusive commentary and educational content from over 15 experts. Click here for more information and a 14-Day Free Trial.

The Options Industry Council (OIC) was created to educate investors and their financial advisors about the benefits and risks of exchange-traded equity options. Options are a versatile but complex product and that is why OIC conducts hundreds of seminars and webcasts throughout the year, distributes thousands of interactive DVDs and brochures, and maintains a Web site and Investor Services focused on options education. Joe Burgoyne, Director, Institutional and Retail Marketing, for The Options Industry Council, created a three-part webinar series exclusively for TheStreet’s premium subscribers. In addition to basic, intermediate and volatility presentations, we will include content on fundamentals and volatility history. During the intermediate course, you will see how flexible options are, and how limited risk spreads might fit into even the most conservative portfolios. Find out about straddles and strangles, and the nature of volatility. Learn about ways to repair an existing stock position that’s moved against you. An understanding of the basics, as well as limited experience trading options, will help you make the most of this webinar. When: Wednesday, April 18 at 7pm EDT CLICK HERE for the LINK to REGISTER for the webinar You will be able to pre-register for the class on April 18, but the presentation WILL NOT be live until 15 minutes before the webinar. You will be required to provide your name, email address and phone number to gain access to the presentation. Course material and replay link will be made available after the close on Friday, April 20.

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FREE Webinar: Volatilty Skew and its Impact to Options Trading

Category : Business, Stocks

This complimentary article and future presentation from Options Profits was originally announced on April 5. Don’t risk missing over 40 options trade ideas every week and exclusive commentary from over 15 experts. Click here for more information and a 14-Day Free Trial.

During this presentation Jared will explain why you should care deeply about levels of volatility skew is that it can make or break your portfolio.When: Wednesday, April 11Time: 5pm ET CLICK HERE for the LINK to the webinar: You will be able to pre-register but the presentation WILL NOT be live until 15 minutes before the webinar. You will be required to provide your name, email address and phone number to gain access to the presentation. Course material and replay link will be made available Thursday, April 12. We strongly suggest you CLICK HERE for a primer prior to the presentation, “Why You Should Care Deeply About Volatility Skew”. OptionsProfits can be followed on Twitter at twitter.com/OptionsProfits Jared can be followed on Twitter at twitter.com/CondorOptions

See the article here: FREE Webinar: Volatilty Skew and its Impact to Options Trading

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