Beth Gaston Moon
Chicago, IL - http://
With over a decade of experience as an editor and market analyst, Beth Gaston Moon writes about stocks and pop culture from her home in Chicago, IL.
Madonna Working a Deal with Macy's
Let the cone-bra jokes begin! Women's Wear Daily is reporting that the music icon is negotiating with Macy's (M) about launching a line of women's contemporary apparel. The collection, which would be available exclusively through the department-store chain, would reportedly run the gamut of fashion, including apparel, lingerie, footwear and accessories. Helping with the negotiations is Iconix Brand Group, a brand-management firm with several other impressive brands under its umbrella, including Candie's, London Fog, and Danskin. The firm already has experience dealing with iconic pop superstars; the Britney Spears line of Candie's is available exclusively at Kohl's (KSS) stores. While Iconix has declined to comment so far, sources claim the deal is a foregone conclusion.
Continue reading Madonna Working a Deal with Macy's
Bearish Options Action in Tyco (TYC)
Within the first hour of the trading day, option traders were piling into Tyco International (TYC) calls, selling roughly 4,000 of the April 37 calls for 65 cents. These options are out-of-the-money by slightly more than a dollar and are easily the most-active option trading across Tyco today. Given that open interest at this strike was just 2,283 heading into today's trading, it is plausible that today's volume traded to open. The price action suggests these calls were sold to open, which is a bearish to neutral strategy. The investor in question may already own TYC shares and could be selling these upside calls as a hedge against modest downside during the next two months.
Continue reading Bearish Options Action in Tyco (TYC)
Abercrombie (ANF) Looking Rangebound?
With earnings now out of the way for Abercrombie & Fitch (ANF), option traders are looking for the stock to stay in a short-term range (at least for the next few weeks). Shortly after today's opening bell, a trader simultaneously sold 6,000 each of the March 35 puts and March 35 calls, creating a short straddle. A straddle seller is essentially expecting limited volatility in the underlying stock over the option's lifespan. The closer ANF finishes to the straddle strike (35) at expiration, the better it is for the seller. In fact, for the seller to retain the entire credit collected today, ANF would have to close right at 35 on March expiration in about four weeks.
Continue reading Abercrombie (ANF) Looking Rangebound?
One-Stop Shopping at Target?
On my rather frequent trips to Target (TGT), I know I can get nearly everything on my list, from mascara to wood cleaner to a new sweater. Unless I venture out to a SuperTarget in the 'burbs, however, I won't be able to find, for example, broccoli or ground turkey. My local Target's grocery selection consists of basic dairy, frozen food, and nonperishable items.
Well, for a few hundred Target stores, that's about to change -- dun-dun-DUN!
Continue reading One-Stop Shopping at Target?
Amazon.com Options Traders Get Complacent
Option traders are feeling complacent toward Amazon.com, Inc. (AMZN) shares and expressed this sentiment by selling the far out-of-the-money April 85/95 put spreads this morning. Shortly after the opening bell, an investor sold 5,000 of these bull put spreads, collecting a credit of 65 cents per spread. A bull put spread will earn the maximum potential profit of the credit collected (in this case, 65 cents) if the underlying is trading above the higher strike at expiration. At this point, both puts expire worthless, and the investor can retain the original premium without worrying about exit commissions.
Continue reading Amazon.com Options Traders Get Complacent
Walgreen (WAG) Buying Duane Reade
Walgreen Co. (WAG) announced plans this morning to take over privately-held drugstore chain Duane Reade Holdings for $1.075 billion in cash. Under the deal, WAG will acquire 257 locations, all of which are based in the New York metro area. These stores will continue to operate under the Duane Reade brand after the transaction is finalized. Duane Reade isn't huge, but it's powerful. According to a release from the Walgreens camp, the chain has the highest sales per square feet among U.S. drugstores. In the 12 months ended December 26, Duane Reade's unaudited sales came in at $1.8 billion.
Continue reading Walgreen (WAG) Buying Duane Reade
Bears Buy Puts in UAL Corp. (UAUA)
UAL Corp. (UAUA) shares have had quite a 2010, gaining roughly 23% year-to-date and rocketing 17% higher last Tuesday amid a broad rally in the airline sector. Earlier today, the stock hit a fresh 52-week high but has since retreated about 1.5%. With the stock at historical highs, some option traders are predicting that a pullback is in the offing. The near-term March 15 puts have seen heightened activity today, with nearly 40,000 contracts trading in the first four hours of the session. Heading into today, this out-of-the-money put was home to fewer than 9,000 contracts, suggesting that the bulk of today's volume is being traded to open (and will translate as new open interest tomorrow).
Continue reading Bears Buy Puts in UAL Corp. (UAUA)
McDonald's (MCD) Adds Another Healthy Option
Two all-beef patties, special sauce, and fresh fruit? In an effort to keep up with those consumers looking for quick but healthy options, McDonald's (MCD) is planning to offer "Real Fruit Smoothies," coming to a Golden Arches near you this summer. The drinks will come in three sizes and two flavors - strawberry banana and wild berry. And who better to help McDonald's announce these new products than Olympic athletes (the pinnacle of health and well being)? The smoothies debuted at the chain's three Olympic-village restaurants (where athletes can also carbo-load their favorite items from Micky D's menus).
Continue reading McDonald's (MCD) Adds Another Healthy Option
Option Bulls Take a Look at Oracle
Option investors are taking a moderately bullish, longer-term stance on Oracle Corp. (ORCL), buying bull call spreads in the January 2011 series. Around 10:00 AM Eastern Time, blocks of 5,000 contracts traded on both the January 25-strike and 30-strike calls. The closer-to-the-money 25-strike calls traded for $1.68 per contract, which was the ask price at the time (suggesting they were purchased). The farther-from-the-money 30 strike traded for 46 cents, the bid price at the time of the transaction, suggesting a sale. In sum, the 25-strike call was purchased and the 30-strike call was sold, resulting in a net debit of $1.22 for each spread.
Continue reading Option Bulls Take a Look at Oracle
Taking the 'Music' out of MTV
Ever since "seven strangers" Eric, Kevin, Norman, Andre, Heather, Becky, and Julie (yikes - remembered that list by heart) shacked up for Season 1 of The Real World in 1992, Viacom's (VIA) MTV Network has seen a slow descent away from music videos and into an increasingly questionable pool of "reality" television. Yes, long past are the days of the "moon man" segueing into the latest clip from Pat Benetar, Duran Duran, or Aerosmith. David Bowie has been replaced with Spencer Pratt, Cyndi Lauper with Snooki. And so, possibly 10 or so years too late, MTV is visually acknowledging that their channel, in fact, has very little to do with music at all.
Continue reading Taking the 'Music' out of MTV
Intel (INTC) Options Action Heats Up
Intel Corporation (INTC) is little changed in Wednesday's trading; news is also light on the semiconductor giant. But this relative calmness hasn't stopped option traders from taking a moderately bullish stand on the stock. Right out of the gate, an investor appears to have sold 10,200 of the out-of-the-money February 21 calls while simultaneously purchasing 10,200 of the near-the-money April 20 calls. The entire transaction traded for 91 cents per spread, making the block worth about $928,000.
Continue reading Intel (INTC) Options Action Heats Up
Post Earnings, Biogen Idec (BIIB) Sees Unusual Options Activity
As my colleague Karla Yeh pointed out over at ONN.tv earlier today, Biogen Idec (BIIB) saw some unusual options trading in the wake of its positive earnings surprise before the bell. BIIB gapped higher at the open, jumping almost 2% out of the gate. Less than a half hour into the trading day, large blocks of roughly 4,000 contracts each traded at four March strikes: the 45-strike put, the 50-strike put, the 55-strike call, and the 60-strike call. It appears as though this investor sold the March 50/55 strangle (the 50 put and the 55 call) and simultaneously purchased the March 45/60 strangle (the 45 put and the 60 call).
A short strangle is typically employed when the investor expects the underlying instrument to stay range-bound; a long strangle is used by traders who expect a sharp move in either direction. In this case, with one of each crossing the tape as part of one strategy, it can be referred to as an iron condor.
Continue reading Post Earnings, Biogen Idec (BIIB) Sees Unusual Options Activity
Is the Free Ride Over at Hulu?
Ahhh, Hulu. That wonderful destination where I can re-acquaint myself with my favorite Justin-Timberlake-on-SNL moments, catch up on episodes of Greek, and search for those old Silver Spoons clips I remember so fondly. The two-year-old website is a joint venture between Walt Disney's (DIS) ABC Network, General Electric's (GE) NBC Universal division, and News Corp.'s (NWS) FOX Entertainment Group, and is partially funded by Providence Equity Partners.
But just as online news readers may soon be charged to access The New York Times online, we may have to open our wallets for certain corners of the Hulu universe (they will likely still let me watch Silver Spoons for free).
Continue reading Is the Free Ride Over at Hulu?
It's Official: Your Online New York Times Will Come at a Price
On Monday, Tom Johansmeyer indicated that a for-pay model for the online version of The New York Times was imminent. Indeed, a press release from The New York Times Company (NYT) hit the wires Wednesday morning, revealing that a paid version of NYTimes.com would launch at the beginning of 2011 -- that's next year. So "All the News That's Fit to Print" will be available to Web browsers at a cost.
But the only folks that will have to open their wallets are those who leaf through lots of Times articles. The casual news browser will have free access to a specified number of articles each month before being charged. Subscribers who pay for home delivery of the traditional paper will have free and unlimited access to the site.
Continue reading It's Official: Your Online New York Times Will Come at a Price
Alcoa Options: Potential Covered Calls
A few days after Alcoa (AA) surprised to the downside with its fourth-quarter earnings report, option traders looked a bit longer term, selling upside calls in the July series, possibly as part of a covered-call strategy. The July 20-strike call, which is out-of-the-money by more than $4, or about 28%, saw more than 20,000 contracts trade on Friday, versus open interest of just 2,512. This morning, open interest expanded to more than 22,000, meaning that nearly all of Friday's volume traded to open.
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