Unusual Options Activity: Tesla Motors (TSLA)

Multiple options trades imply shares will decline again. Multiple bets are being made that shares of Tesla Motors (TSLA) will drop again in the coming weeks. On Monday, over 10,000 contracts traded on an August $60.00 put—a 75 percent discount from where shares trade around $240. Another large trade occurred on the October $215 put, which implies a 10 percent discount between now and October. The August put, trading at $0.04, or $4 per contract, is a very cheap bet likely to expire worthless. But if Tesla shares drop quickly at some point in the next 31 days, the option could get a ...
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Chinese Economic Growth Slumps to 30-Year Lows

Trade war uncertainty impacts growth rates in China. On Monday, Chinese economic data indicated that the second quarter of 2019 was the slowest the country has grown in more than 27 years. At current rates, China will “only” grow at an annualized 6.2 percent, as measured by Gross Domestic Product. The number was slightly lower than the first quarter, and consequently indicates an increased likelihood of a sustained slowdown. China is expected to ramp up stimulus measures to combat the slowing growth, but most signs are that the main culprit is trade. The ongoing U.S.-China trade war has led to a shift in ...
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Tropical Storm Barry Could Lead to Higher Food Prices as Midwest Floods

Midwest adds Barry to a year full of high rainfall and flooding. Although Tropical Storm Barry fortunately failed to strengthen to a hurricane before making landfall over the weekend, the powerful storm system is now moving northward up the Mississippi River area, adding to a region already dealing with high levels of rainfall and flooding this year. Consequently, the already impacted spring planting season may be ruined, and a surprising number of food shortages could develop as a result. Already, tens of millions of acres of farmland already laid fallow this year, as heavy winter snowfall and spring rains led to a missed ...
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Insider Activity: G-III Apparel Group (GIII)

CEO makes million-dollar buy. On Thursday, G-III Apparel Group CEO Morris Goldfarb bought 40,000 shares of his own company. Besides increasing his total stake to over 3.9 million shares, the $26.47 price per share means he spent over $1.05 million picking up shares of the firm. This follows on a previous purchase by Goldfarb back on June 13th. Then, he picked up 40,479 shares, paying $1.02 million. G-III Apparel designs, sources, and markets apparel for men and women. It operates in wholesale and retail operations. The company manufactures under proprietary brand names and licensed names such as Calvin Klein, Tommy Hilfiger, Guess?, Levi’s, ...
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Johnson & Johnson Faces Criminal Probe on Baby Powder

Shares drop as DOJ pursues criminal investigation. On Friday, Johnson & Johnson (JNJ ) shares dropped by nearly 5 percent in trading. The drop occurred as news developed that the Department of Justice was pursuing the company criminally over claims that it misled the public about possible cancer risks stemming from asbestos in its talcum powder products. While the company has repeatedly denied any wrongdoing, it currently faces thousands of lawsuits from consumers attributing their cancer to use of J&J products. With thousands of products, baby powder only accounts for a small fraction of J&J’s revenue. However, cancer-related lawsuits are highly sympathetic with ...
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U.S. Refiners Struggle Ahead of Tropical Storm Barry

Potential hurricane threatens refinery-rich Gulf of Mexico. Although a tropical storm as of Friday, forecasters warned that Barry may strengthen to a category 1 hurricane before making landfall in Western Louisiana or Eastern Texas over the weekend. Over 25 inches of rain are expected in the New Orleans area alone, and flooding was already occurring in low spots as early as Wednesday. The Gulf of Mexico is a major area for oil exploration and drilling, but it is one of the most critical regions for refining crude oil into gasoline and other products. So even if the storm stays below hurricane strength, considerable cutbacks ...
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Insider Activity: Francesca’s Holdings Corporation (FRAN)

Large fund owner more than doubles stake. On Thursday, Cross River Capital Management more than doubled their stake in Francesca’s Holdings Corporation (FRAN). They did so by buying 341,973 shares of the retailer, shelling out over $625,000. As the trade occurred below market rates, the additional number of shares was achieved off-market, and likely the result of the fund’s prior debt investments in the company converting to shares at a lower rate. Francesca’s is a boutique apparel retail company with 727 boutiques in 47 states. The company is focused on gifts for women between the ages of 35. The company is currently running ...
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Unusual Options Activity: Tenneco Inc (TEN)

Big bet auto parts supplier will decline. A sizeable bet is being made on a double-digit drop in shares of Tenneco (TEN) between now and January. On Friday, nearly 3,000 contracts traded on the $9.00 put option on the company. With shares at $9.50, the option is a bet that shares will decline. Based on the price of the option around $1.45, shares will need to trade around $7.50 by January for the option to be worth at least as much as it is today. Tenneco designs, manufactures and sells automotive parts for light vehicles and commercial trucks to customers worldwide. It makes ...
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