mahkoh 1,065 posts msg #139998 - Ignore mahkoh |
12/11/2017 4:57:48 PM
Payout ratio means the percentage of earnings a company spends on dividend. If it's too high it could indicate that the dividend is cannibalizing on operations.
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karennma 8,057 posts msg #140001 - Ignore karennma |
12/11/2017 5:56:55 PM
Re: "If it's too high it could indicate that the dividend is cannibalizing on operations."
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Ohhhh... Got it!
Thanks!
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15minoffame 131 posts msg #140005 - Ignore 15minoffame |
12/11/2017 11:43:22 PM
Spotlight Big Option Volume Trade of the Day!
Surprisingly not too many at the Ask that wasn't part of a spread today. One that did cause a buzz was $1.3 million in premium on Verizon at the 3/16/18 52.50 Call for $1.30 per contract. Break even is $53.80 which would put it over resistance along with a new 52 week high. This would be the fourth such attempt at new highs and this time bulls think it should breakthrough. Monthly is showing bullish MACD X-Over and if all goes well for bulls, they'll certainly ask bears, "Can you hear me now?"
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roca1018 163 posts msg #140008 - Ignore roca1018 |
12/12/2017 6:25:25 AM
Thanks Karenma and Mahkoh
Rich
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mahkoh 1,065 posts msg #140039 - Ignore mahkoh |
12/12/2017 4:33:34 PM
UNP and IBM are noteworthy today on the bullish side.
LKQ from a few days back hasn't done bad so far.
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15minoffame 131 posts msg #140042 - Ignore 15minoffame |
12/12/2017 6:24:48 PM
I bought IBM 2/16/18 160 Calls then it promptly faded, but I still have plenty of time.
Today's Big Option Volume Trade of the Day!
QQQ has been choppy over the past three weeks, but an investor thinks it will eventually revert back to its uptrend. Big boys & girls yawn at $1 million QQQ trades since they're so common. When it's $5 million though you need to hop on board and be a tick. An investor laid out $5.7 million when he bought 13,800 contracts of the 2/16/18 155 Calls for $4.13.
What's unusual about this trade is that the break even, $159.13, is 2.2% above today's closing price of $155.69. Sure it's doable, but that's still asking a lot for everything to go right in tech over the next two months. Seasonality show QQQ is up only 50% in January over the past 5 years with an average gain of 0.9%. On the other hand, February winning pct of 83% with an avg gain of 3.7% is its second best month of the year.
A $5 million bet has a very high probability of succeeding so I'll be jumping on this trade too. Remember, you don't have to be a fat cat, just a fat tick!
Yesterday's spotlight on VZ was an instant success. The 3/16/18 52.5 Calls bought at $1.30 closed today at $2.21 giving the investor a one day gain of 70%. I forgot to note yesterday that on the previous day before that another big block of Calls were bought too. That was 9000 of the 6/15/18 55 Calls at $1.14. They're now at $1.73 for a 51% gain in two days.
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SAFeTRADE 644 posts msg #140050 - Ignore SAFeTRADE |
12/13/2017 6:56:31 AM
Its overall options Calls vs Puts volume was 64%-36%. I would like to see a minimum of 70%,
Is this the Trade Edge column?
Thanks
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15minoffame 131 posts msg #140054 - Ignore 15minoffame |
12/13/2017 10:07:19 AM
Hi Safetrade,
It's under "Options" on the menu line, then "Options Volume". The site gives you Put Pct of TOTAL options volume. I dig deeper on all high options volume stocks that has a Puts volume below 20.
HTH
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lavapit315 47 posts msg #140072 - Ignore lavapit315 |
12/13/2017 4:08:01 PM
Could someone please look at TWX? Lots of buy/writes and spreads. Does that mean anything? Appears call volume was higher than put. Trying to learn so any help appreciated. Thanks
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15minoffame 131 posts msg #140074 - Ignore 15minoffame |
12/13/2017 5:12:52 PM
This is a case where he sold both the 82.50 Puts & 105 Calls (12:44 PM Transaction) for income which in this case was $9.5 million. He did this to offset the purchase of the 95 Calls for $9.9 million. Instead of an outlay of $9.9 million, his final cost was only $400K.
At the time of this Buy Write TWX was $90.35. This means that the stock needs to be above $99.95 (95 strike + $4.95 premium) in order for him to break even. He also thinks the stock will not fall BELOW 82.50 or go ABOVE 105 by 7/20/18. The 52 week high is $103.89 on 10/11 while the 82.50 would be below the 52 week low of 85.88 on 11/15. Basically he thinks TWX will be between this range over the next 7 months.
Algos showed him high probability of success so he did the same Buy Write again nearly 2 hours later.
HTH
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