SKX Finds Flurry of Bullish Option Activity Ahead of Earnings
If you’ve been following the price action on Skechers USA Inc (NYSE: SKX), the price peaked near $56 following the last earnings report in July. After pulling back, the company then took a hit after Nike Inc (NYSE: NKE) gapped lower following its earnings on September 24. The share price of SKX is significantly off…
Price Patterns 101: Triangles (Ascending)
Be on the lookout for ascending triangles in the coming weeks as the market works out what direction it wants to trend next. That is particularly true for stocks that are forming higher lows. Triangles are just holding patterns on route to a bullish or bearish move. Frequently, they are establishing a pattern to continue…
What Does the Options Market Know About INTC Earnings?
Intel Corporation (NASDAQ: INTC) found itself down over 2% late in the session Today. The movement stood out as the S&P 500 and the Nasdaq 100 were mostly unchanged. While INTC has underperformed on the year, it has been consolidating over the past coupe months. However, today’s move and option activity suggest that something may…
Mixed up Monday as Risk Parity Party Fades
Bond funds and stocks head lower as financials fade it's early strength and the market finishes near lows. These dynamics are making it rough for those using bonds to offset stock losses. Looking at the sector performance, today's finish makes this week's bank earnings interesting. Luckily there's unusual option activity in VZ, VRAY and DBA…
Option Bulls Taking Another Shot at EDU
For EDU, the move was tied to new regulations on after-school tutoring and not allowing classes on weekends, holidays and during some breaks. The reaction from the share price was palpable, but more importantly, it’s created significant uncertainty of CCP policy on publicly traded stocks. How are investors supposed to consider the future revenues and…
Candlestick Patterns 101: Shooting Star
Thursday’s gap and over indecision looked poised to form many abandoned babies. However, the ugly jobs report didn’t provide the degree of movement to yield many of those. As a result, some stocks and industries that did weaken formed another bearish pattern called a Shooting Star. Shooting Star Basics When analyzing candles, the size of…
Candlestick Patterns 101: Abandoned Baby (Bearish)
If there is one thing that the current market is providing, it’s a lot of rarities. With today’s gap and tomorrow’s employment report, the potential that Abandoned Baby candle patterns may appear in abundance is pretty high. With so many stocks that have gapped and are forming tight ranges and small real bodies, a gap…
The Options Market Building Bullish Case for Gold Stocks
If there is one thing that gold and gold stocks like, it’s stagflation. Stagflation is when growth is flagging, and debt and monetization are rising. While the Fed is on the path of tightening in the coming year, the spigot is still open and the raising of the debt ceiling is certainly not deflationary. With…
Candlestick Patterns 101: Stick Sandwich
If you’ve been following what’s been happening in the S&P 500 over the past week, it looks like it’s sandwiched between a rock and a hard place. In candlestick terms, it’s referred to as a Stick Sandwich. The initial sandwich that began on September 30 has added more toppings in the last couple days compared…
IYR Option Activity Shows Renewed Bearish Interest
If you were following iShares US Real Estate ETF (NYSEARCA: IYR) you likely noticed a large option trade that included two expirations and 4 strikes. This type of trade isn’t unusual, but it is significant because of its size and direction. We’ll take a closer look at the trade in just a moment, but to…