TradeOday
Trade of the Day — Diagonal Call Spread
Posted 6/18: The bull market in gold remains alive and well. The yellow metal rose to new record highs around $1260 an ounce Friday and, as a result, the SPDR Gold Trust (GLD) hit a new 52-week high. The exchange-traded fund, which owns gold stored in bank vaults, finished the day up 93 to $122.83 [...]
Trade of the Day — Backspread on Bonds
The flight-to-safety trade continues to support bonds. The benchmark ten-year Treasury saw another day of gains Tuesday and its yields is now falling below 3 percent. As a result, the iShares Long-term Bond Fund (TLT), which holds Treasurys that mature in 20+ years, is breaking above resistance at $100. See first chart below. Looking forward, [...]
Trade of the Day — EBAY Play
For Friday’s Trade of the Day, I’m going to cheat and rip-off an idea from latest episode of Options Action. Mike Khouw discussed the trade and, after making a good call on Nike (NKE) the week before, let’s consider his most recent bearish strategy idea. Basically, the longer-term EBAY chart is in a downtrend and [...]
Trade of the Day — Double Dip Recession Play
Maxim analysts had a note out this morning about potential plays among the regional banks if there’s a double dip recession. According to the firm, FHN, ZION, CMA, KEY and SNV are emerging from credit problems and are projected to show losses even with a recovering economy. Therefore, these banks are particularly vulnerable to downside [...]
Trade of the Day — BWB Put Fly
Both Royal Caribbean (RCL) and Carnival Cruise (CCL) have been the subject of bearish trading heading into CCL’s earnings, tomorrow morning. In RCL, the action was in the Sep 27 puts, which traded 26000X last Thursday (see 6/17 color). See today’s color on CCL for the bearish trading leading up to its earnings report. The [...]
Trade of the Day — Biotech Play
Talecris Biotherapeutics Holdings (TLCR) isn’t a name that rolls easily off the tongue, but the options activity in this biotech has been interesting and let’s take a look at a possible trade in this name. A little background first: Spain’s Grifols SA has made a bid to acquire TLCR for $19 per share in cash [...]
