Paper sold 3173 RIG Jan 50 Calls for $1.74 (3.2 times usual volume)
when stock was trading $51.14
Paper bought 3017 P Jan 10 Puts for $.55 (2.1 times usual volume) when
stock was trading $9.84
Paper bought 2360 UNH Jan 52.5 Calls for $.95 when stock was trading $52.30
Paper bought 902 NTRI Feb 9 Calls for $.20 (7.3 times usual volume)
when stock was trading $8.63
Paper bought 10760 HMA Jan 9 Puts for $.15 (14.2 times usual volume)
when stock was trading $9.61
The trend channel is also a nice tool to use as a reference point. Price action in July of 2011 was the start of this huge bull-run. Depending on how your trend lines are drawn, Visa has respected the upper and lower bounds many of times. Days of note have a white oval. These days have the same or a similar pattern to what was presented yesterday. For the most part, each of these situations resulted in lower prices in the short term.
It is also interesting to note that yesterday’s volume was 30% above the 50-day average volume. Additionally, on balance volume failed to confirm a new ATH too. A target could be the middle of the bull channel displayed below, perhaps about $150 in the short term. Next week’s weekly options in combination with the regular January monthly options are pricing the $150 put calendar at $0.34, if one was inclined to get bearish next week. Other ‘options’ include buying put verticals or anything with negative deltas.
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At the December meeting, the FOMC announced Treasury purchases of $45 billion a month in addition to $40 billion a month of mortgage-debt purchases, which began last September. Cash silver fell nearly 2.5 percent to $29.42 an ounce, the lowest price since August 22, and was at $29.78. The drop in prices for the two metals has created an attractive buying opportunity. Despite the fact that both metals are cheaper, silver may offer a greater reward than gold in 2013. The price ratio of silver to gold is one piece of evidence suggesting that silver prices are undervalued. The current price ratio is 55:1, which at one time was as low as 16:1. The availability ratio of physical silver to gold is approximately 3:1, however, investors are typically buying more silver due to the its cheaper price. This is why silver prices may be dramatically undervalued. The table below shows the price ratio of silver to gold over the past four years. According to reports from Gold Bullion and Wealth Management Company, bullion dealers throughout the world have reported strong demand for silver and a shift in Asian and Middle Eastern markets from gold to silver. The increased demand for silver is the result of it being undervalued and relatively cheap compared to gold. The CPI-adjusted silver price suggests that silver should be trading at $122 per ounce.
Table provided by: U.S. Mint
Author: Tyler Sciortino
Current Student at Roosevelt University, Majoring in Finance.
Contact for questions or inquiries at tsciortino@mail.roosevelt.edu
Paper bought 3000 IRM Jan 2014 32.5 calls for $2.75 (13.7 times usual
volume) when stock was trading $32.16
Paper bought 2626 SE June 28 Calls for $1.20 (3.2 times usual volume)
when stock was trading $28.20
Paper sold 5000 MAT Feb 37 Puts for $1.375 (13 times usual volume)
when stock was trading $36.66
Paper sold 9525 MPEL Jan 17 Calls and bought the April 18 Calls for
$.60 debit (5.3 times usual volume) when stock was trading $17.69
Paper sold 1998 SSI Jan 25 Calls for $.075 (18.4 times usual volume)
when stock was trading $22.37
In the same report TGBus also stated that AAPL is working with Intel on a Bluetooth watch that would be compatible with the iPhone. Supposedly the iWatch device will be able to link to the user’s iPhone via Bluetooth connection, which allows for AAPLs voice assistant software Siri, to send voice commands from the iWatch to the iPhone. Voice assistance from Siri could make checking emails, sending a text message or setting a reminder, even simpler while wearing the iWatch device. AAPL has not made an announcement confirming the recent reports, however, some analyst claim that it’s only a matter of time before wearable computer devices take over the market. Piper Jaffray analyst, Gene Munster, said “We believe that longer term, over the next 10 years, wearable computers could eventually replace the iPhone and smartphones in general.” The rising popularity of the AAPL approved iWatchz may encourage AAPL to enter the market with its own smart watch device. The iWatchz are designed to turn the iPod Nano into a wrist watch. If AAPL successfully entered the smart watch market other tech companies would be inclined to compete for market share by developing their own versions of the smart watch devices. AAPL has done an exceptional job creating demand for their products, which normally out sell their competition. AAPL already has its own cloud platform, voice recognition software, and of course the iOS operating system that can be incorporated into a new device. By already possessing excellent technology AAPL is in a good position to develop an iWatch device and take control of a large portion of the smart watch market.
Author: Tyler Sciortino
Current Student at Roosevelt University, Majoring in Finance.
Contact for questions or inquiries at tsciortino@mail.roosevelt.edu