Bloomberg reported on September 13 that Microsoft (MSFT) was planning to issue debt this year to finance dividends and share repurchases rather than repatriate cash held overseas. Bloomberg’s suggestion that MSFT wanted to raise as much money as possible without jeopardizing its AAA credit rating and the pressure Microsoft has been under to return capital to shareholders suggests that a MSFT dividend increase should be coming.
For the past two years Microsoft has held its quarterly dividend constant at $.13 a share. The next dividend, forecasted to go ex-dividend in November before November expiration would be their first for the 2011 fiscal year. When MSFT has raised its quarterly dividend it has been typically, but not always, in the first quarter of their fiscal year.
Historically when MSFT raised its dividend it recalibrated it to a dividend payout ratio approximating 28%. Over the past five years MSFT has grown earnings roughly 13% a year and forecasts for FY2011 of $2.40 a share keep them on that pace. If MSFT holds to form, when they announce their Q1 dividend towards the end of September we should expect to see it increase by $0.04 to $0.17 a share.
If MSFT goes back to raising its dividend annually as it did from 2005 to 2010 and we hold its earnings growth rate constant we would expect to see another increase in the quarterly dividend to $0.19 a share in FY2012 and $0.22 a share in FY2013.
That the markets are not forecasting the dividend growth as evidenced by the difference between the reversal/ conversion markets and the cost of carry (interest expense – present value of dividends) suggests there is an opportunity in owning longer dated conversions. Should MSFT raise its regular quarterly dividend, the conversion value will increase by the amount equal to the present value of the increased future cash flows.
Option Series Screen Market Cost of Carry*
MSFT APR11 30 R/C -$0.32 - -$0.20 -$0.25
MSFT JAN12 30 R/C -$0.62 - -$0.48 -$0.67
MSFT JAN13 30 R/C -$1.13 - -$0.70 -$1.30
*[Assuming the interest rate on the strike and discount rate on the forecasted dividend stream are both 50bps]
If MSFT decides to pay a special dividend instead of a regular quarterly increase, the reversal/conversion value would remain unchanged, unless the special dividend was less than the $.125 OCC threshold value. A special dividend of such small magnitude from MSFT is unlikely.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Friday, September 17, 2010
Monday, September 13, 2010
Who insures PG&E?
Following the catastrophic natural gas pipe explosion and subsequent fire in San Bruno, PG&E stated it has about $992 million in liability insurance with a $10 million deductible for damages caused by fire. Although we here at the Press have tried to determine who the insurers might be, we have had no luck through normal channels vetting that information.
However, the options market may be giving us a hint. Today, in two large property and casualty insurance companies, a potentially astute investor put on bear call spreads. We saw the action in Allstate (ALL) and Chubb Corporation (CB).
The largest spread printed in ALL and involved over 35,000 Jan2011 33 calls which were sold while the Jan2011 36 was purchased. The trader received $.53 to make the bet that ALL remains trading under the spread’s breakeven point of $33.56. A total premium of just under $2 million was collected on the sale of the spread. ALL is currently trading at $30.15.
In CB, the bear call spread involved the Jan2011 60 and 65 strikes with CB stock trading $56.40. Here the option strategist sold 10,310 calls on the 60 strike at $1.31 to buy 14,700 65 calls for $.37 – a net credit of $806,710.
These trades are more indicative of an opinion that the stock of both companies are unlikely to rally much higher. A large payout of an insurance claim may be just the resistance this trader is counting on.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
However, the options market may be giving us a hint. Today, in two large property and casualty insurance companies, a potentially astute investor put on bear call spreads. We saw the action in Allstate (ALL) and Chubb Corporation (CB).
The largest spread printed in ALL and involved over 35,000 Jan2011 33 calls which were sold while the Jan2011 36 was purchased. The trader received $.53 to make the bet that ALL remains trading under the spread’s breakeven point of $33.56. A total premium of just under $2 million was collected on the sale of the spread. ALL is currently trading at $30.15.
In CB, the bear call spread involved the Jan2011 60 and 65 strikes with CB stock trading $56.40. Here the option strategist sold 10,310 calls on the 60 strike at $1.31 to buy 14,700 65 calls for $.37 – a net credit of $806,710.
These trades are more indicative of an opinion that the stock of both companies are unlikely to rally much higher. A large payout of an insurance claim may be just the resistance this trader is counting on.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Friday, September 10, 2010
Look Out Below!
Crocs, Inc. (CROX) is taking it on the chin again this morning after dropping 16% yesterday. The company reaffirmed its Q3 guidance ahead of an analyst conference this morning and the stock seemed to be stabilizing only to be greeted with a new wave of selling.
A look at yesterday’s option volume puts CROX number one on a list of stocks with greatest number of puts traded relative to its daily average. Is something afoot in CROX?
The stock chart in CROX is definitely sustaining some damage, and a quick reversal to the upside look unlikely. As of this writing, CROX is trading $11.30. We here at the Press smell a rat – time to put on a different pair of shoes.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
A look at yesterday’s option volume puts CROX number one on a list of stocks with greatest number of puts traded relative to its daily average. Is something afoot in CROX?
The stock chart in CROX is definitely sustaining some damage, and a quick reversal to the upside look unlikely. As of this writing, CROX is trading $11.30. We here at the Press smell a rat – time to put on a different pair of shoes.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Tuesday, September 7, 2010
OVTI Remains Committed to Trends
After releasing earnings on August 27th, OmniVision Technologies (OVTI) gapped lower. However, the stock has since recovered to it pre-earnings level, once again finding resistance at its 50-day moving average. The options market is prognosticating that it will break through that resistance.
Implied volatility is creeping back up, mostly on the purchase of put options. On Friday before the long weekend, a time when most option traders would rather sell options to get an extra day of time premium decay, over 11,000 puts traded. Keep in mind that on average, only 1,500 puts normally trade per day in OVTI.
On the surface, it would seem some the nervousness over OVTI’s earnings disappointment is fueling more protective hedges or even a speculative bet to the downside. However, the stock’s technical chart looks solid. It remains in an uptrend and earnings did not damage its trajectory. What is of particular interest is that a chart of OVTI’s 30-day implied volatility is also in a technical trend to the upside. Check out the charts below.
charts provided by livevolpro at www.livevol.com
These charts tell us here at the Press that to go against the trend would be to bet against further upside in both the stock and the implied volatility. We like trading with the trend. So, to buy puts and hedge with long stock strikes us as the right play.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Implied volatility is creeping back up, mostly on the purchase of put options. On Friday before the long weekend, a time when most option traders would rather sell options to get an extra day of time premium decay, over 11,000 puts traded. Keep in mind that on average, only 1,500 puts normally trade per day in OVTI.
On the surface, it would seem some the nervousness over OVTI’s earnings disappointment is fueling more protective hedges or even a speculative bet to the downside. However, the stock’s technical chart looks solid. It remains in an uptrend and earnings did not damage its trajectory. What is of particular interest is that a chart of OVTI’s 30-day implied volatility is also in a technical trend to the upside. Check out the charts below.
These charts tell us here at the Press that to go against the trend would be to bet against further upside in both the stock and the implied volatility. We like trading with the trend. So, to buy puts and hedge with long stock strikes us as the right play.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Thursday, August 26, 2010
IBKR Trade Signals Trouble Ahead
Sometimes the option action in a particular stock is somewhat opaque and its implications difficult to discern. And then there are times when the option action is so incredibly clear and extraordinary. Yesterday was such a day in Interactive Brokers Group (IBKR).
Against the backdrop of an average daily volume of only 1,411 contracts, a total of 181,972 contracts traded yesterday, of which 181,215 were puts. By far, the largest trade of the day had an investor selling 50,000 Jan2011 15 puts at $.60 to buy 100,000 Jan2011 14 puts for .30 while selling 350,000 shares at $15.90. The charts below show the profit/loss of this position as it looks today and as it will look at Jan2011 expiration.
graph by Thales LLC
Clearly, this trader has made a massive bearish bet on the stock. However, later in the day and after the implied volatility of the January puts had increased, sellers emerged. Over 20,000 Jan14 puts were sold at $.45 and $.40.
With IBKR’s book value at around $14, it would take a serious misstep for a drop of that magnitude. On the other hand, IBKR has done nothing but disappoint investors since its $31 IPO in May 2007. One thing is for sure – we will be watching.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Against the backdrop of an average daily volume of only 1,411 contracts, a total of 181,972 contracts traded yesterday, of which 181,215 were puts. By far, the largest trade of the day had an investor selling 50,000 Jan2011 15 puts at $.60 to buy 100,000 Jan2011 14 puts for .30 while selling 350,000 shares at $15.90. The charts below show the profit/loss of this position as it looks today and as it will look at Jan2011 expiration.
graph by Thales LLC
Clearly, this trader has made a massive bearish bet on the stock. However, later in the day and after the implied volatility of the January puts had increased, sellers emerged. Over 20,000 Jan14 puts were sold at $.45 and $.40.
With IBKR’s book value at around $14, it would take a serious misstep for a drop of that magnitude. On the other hand, IBKR has done nothing but disappoint investors since its $31 IPO in May 2007. One thing is for sure – we will be watching.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Wednesday, August 25, 2010
Vote of confidence for AMLN
Put activity in Amylin Pharmaceuticals (AMLN) is trending above normal today, with one very large order selling 3,989 January 2011 16 puts at $1.85. This trader may be expressing confidence that AMLN’s upcoming PDUFA in October will be successful. If those puts expire worthless, this trader will pocket $737,965. If the stock falls below the breakeven price of $14.15, the trader will own 398,900 AMLN shares 28% lower than where it is trading today.
We here at the Press like this trade simply based on the spread between the 120-day implied volatility (IV120) and the 120-day historical volatility (HV120). The graph below illustrates how the IV120 is rising relative to the HV120.
graph provided by livevolpro at http://www.livevol.com/
Selling those puts is a bet on the implied volatility collapsing back to the stock’s volatility, as well as a directional bet that AMLN trades above the $16 level. We like the odds of both of these holding true.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
We here at the Press like this trade simply based on the spread between the 120-day implied volatility (IV120) and the 120-day historical volatility (HV120). The graph below illustrates how the IV120 is rising relative to the HV120.
Selling those puts is a bet on the implied volatility collapsing back to the stock’s volatility, as well as a directional bet that AMLN trades above the $16 level. We like the odds of both of these holding true.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Monday, August 23, 2010
Never Just One Cockroach?
Put buying this morning in Thor Industries (THO) has bumped 30-day implied volatility up 4.5 points (9.8%). The largest trade involved buying 2,000 of the October 25 puts for $2.35 while selling 510 September 30 put at $5.20. The initial net negative delta from the trade is approximately 50,000, meaning that for every point drop in the stock this position will make $50,000. The trade has positive gamma as well so will become even shorter as the stock goes lower.
Combined with other smaller put purchases on several other strikes, the net deltas sold so far today is a negative 136,000 with $506,000 in premium purchased. See below.
Could it be that investors are once again feeling nervous about THO’s accounting issues? You might recall that on June 10, 2010, THO announced it was filing its 10-Q late as their auditing firm, Deloitte, had not completed the review of how the company had previously accounted for transactions with Stephen Adams and FreedomRoads in January 2009.
Also under scrutiny was how revenue was recognized with respect to transactions with its independent dealers. If THO was required to make changes for its accounting in these two areas, the company stated there could be a material adverse change to the company’s past releases in 2009 and the first three fiscal quarters of 2010. Fortunately for THO shareholders, on July 2nd THO reported that the evaluation did not result in any adjustment to their earnings calculation methodology.
But the jitters are palpable in the options market today. It just may be investors worried that baby boomers will no longer be buying recreational vehicles in droves anymore. Or it may be something else entirely. It may be that someone emphatically believes that there, in fact, is never just one cockroach.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Combined with other smaller put purchases on several other strikes, the net deltas sold so far today is a negative 136,000 with $506,000 in premium purchased. See below.
 |
trade data provided by livevolpro at http://www.livevol.com/ |
Also under scrutiny was how revenue was recognized with respect to transactions with its independent dealers. If THO was required to make changes for its accounting in these two areas, the company stated there could be a material adverse change to the company’s past releases in 2009 and the first three fiscal quarters of 2010. Fortunately for THO shareholders, on July 2nd THO reported that the evaluation did not result in any adjustment to their earnings calculation methodology.
But the jitters are palpable in the options market today. It just may be investors worried that baby boomers will no longer be buying recreational vehicles in droves anymore. Or it may be something else entirely. It may be that someone emphatically believes that there, in fact, is never just one cockroach.
Legal Disclaimer
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Thales is not engaged in rendering any legal or professional services by placing these general informational materials on this website.
Thales specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if Thales has been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
Thales makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that Thales endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorses any information contained on those sites, unless expressly stated.
Subscribe to:
Posts (Atom)