January 5, 2017 by riskreversal • Trade Ideas

Retail stocks are down big today. Macy’s (M) and Kohl’s (KSS) are driving the sell-off, down 14 and 19% respectively. On Wednesday, both reported lower-than-expected holiday sales and cut their full-year profit forecasts. Macy’s announced …

Continue reading
January 5, 2017 by riskreversal • Trade Ideas

Yesterday we detailed a couple trades in the market that appeared to be long stock alternatives where traders better defined risk by selling out of the money puts, and using the proceeds to help finance …

Continue reading
January 4, 2017 by riskreversal • Trade Ideas

Shares of Apple (AAPL) closed up 10% in 2016, gaining a little more than $60 billion in market capitalization in a year that saw their first year over year decline in earnings and sales since …

Continue reading
January 4, 2017 by riskreversal • Trade Ideas

Earlier we detailed a large call spread risk reversal trade in shares of CMCSA. That appears to be a popular trade structure today. When shares of Michael Kors (KORS) were trading $43.80 a trader apparently …

Continue reading
January 4, 2017 by riskreversal • Trade Ideas

With the broad market near all time highs, and the market enthusiasm stretching into the New Year, it appears that traders are looking for ways to better define risk on bullish bets in stocks that …

Continue reading
January 3, 2017 by riskreversal • Trade Ideas

This morning Citibank upgraded shares of Verizon (VZ) to a Buy from a Hold, via CNBC.com: “Since the election, we have become more optimistic on the prospects for tax reform and have been able to better …

Continue reading
December 30, 2016 by riskreversal • Trade Updates

On December 6th we looked at the constructive set-up for IBM stock and detailed an alternative to stock that looked to take advantage of an end of the year vol crush by selling a Dec30th …

Continue reading
December 23, 2016 by riskreversal • Trade Ideas

A couple weeks ago we highlighted the poor relative year to date performance of shares of General Electric (GE) to many of its peers in the industrial space and the broad market, up only 2%: vs …

Continue reading