Unusual Options Activity: Pretium Resources (PVG)

Long-dated, out-of-money calls suggest massive move. Amid options trading on unusual activity on Monday, the $20 January 2021 call options on Pretium Resources (PVG) stood out. With shares around $13.30, the company’s shares would need to rally 50 percent before the option moved in-the-money. With 550 trading days before expiration, and with shares already up 50 percent in the past year, the trade could certainly play out handsomely for traders. Over 4,300 contracts of this option traded Monday, against a prior open interest of 275, making for a 16-fold surge in volume. Pretium acquires, explores, and develops precious metal resource properties in the United ...
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Copper Hits Two-Year Low on Trade War Fears

Metal now priced below profitability for miners. Copper prices have been declining lately, as slowing global economic growth have weighed on the metal’s price. The recent surge in trade war fears have driven prices to a two-year low of $2.53 per pound, well below $3 per pound, a price where most long-term mining operations for the metal are economically viable. Should prices continue to slide, or stay below this price, a shortage may develop in the near future as reduced supply comes to market. Due to copper’s use in construction, technology, and other economic sectors, the commodity has earned the nickname “Dr. Copper.” ...
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PPI Data Shows First Decline Since 2017

Inflation outlook steady under 2 percent. Producer Price Index data for July showed the first downturn for the index since early 2017. With a drop of 0.1 percent month-over-month for the Index less food and energy, against an expected rise of 0.1 percent, the data shows that inflation rates and expectations remain low. The full index indicates a potential year-over-year rise in PPI at 1.7 percent, well below the 2 percent inflation rate that policymakers have targeted in recent years. Low inflation has been cited by Federal Reserve officials to justify their decision to make a quarter-point cut in interest rates recently, and ...
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Insider Activity: JPMorgan Chase (JPM)

Director makes $2 million buy. On Thursday, August 8th, Mellody Hobson, a director at JPMorgan Chase (JPM), bought 18,200 shares, increasing her stake to just over 101,300 shares. The total cost of this latest buy came in at just over $2 million. Hobson has been a repeat buyer of shares this year, buying 19,700 shares back in April. Many insiders at the big bank have been sellers of shares this year, although at higher prices than where shares currently trade. JPMorgan Chase is a global financial powerhouse, with traditional banking, commercial and investment banking, wealth management, and other services for customers large and ...
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Unusual Options Activity: General Electric (GE)

Surge of in-the-money call buying. The highest-volume option trade on Friday occurred in an unusual trade based on shares of General Electric (GE). The January 2020 $6 call options saw a surge in volume. With shares over $9, these options are about 50 percent in-the-money. If GE shares rally, the option should move higher penny-for-penny. If shares drop, they could still have some value at expiration. With the number of unusual options usually focusing on short-term or near-the-money trades, this one stands out as a potential way to play a multi-month rally in shares between now and January while only paying about one-third ...
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This Sector’s So Hated that It’s Worth Buying Now

SPONSORED CONTENT Most Profitable $3 Stock in the World? Dear Reader, Let me show you a chart. It shows the revenue of four tech stocks. One is IBM. One is Facebook. One is Google. And that big red one to the right? That's a virtually unknown stock that trades under a secret name. It brings in more cash than any of the other three tech giants. And yet... While IBM trades for $143, Facebook for $176 and Google for more than $1,100... This other company trades for just $3. Find out why in this leaked footage from a former Wall Street money manager. It's mind-blowing. Sincerely, Matthew Benjamin Editorial Director, The Oxford ...
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Insider Activity: Encana (ECA)

CEO, Directors, continue to pick up shares. On Wednesday, August 7th, Encana (ECA) CEO Douglas Suttles picked up another 6,000 shares of the oil and gas exploration company. The $24,000 he spent raised his total stake to over 200,000 shares. This isn’t his first buy this month. He also bought 10,000 shares on August 6th, paying nearly $42,000 as well. And he isn’t alone, as multiple directors have been buyers since the start of the month. Director Fred Fowler picked up 25,000 shares—paying about $100,000—on August 7th. And Director Howard Mayson picked up 5,000 shares on August fist, paying about $22,500. Action to take: ...
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Trump Slams Strong Dollar

President blames Fed on policy errors. President Trump took to Twitter on Thursday to—once again—criticize policymakers at the Federal Reserve, to say: “As your President, one would think that I would be thrilled with our very strong dollar. I am not!” Trump went on to criticize how high interest rates are keeping the dollar high against other currencies, and thus impacting their appeal in international markets. Citing the lack of inflation, the President then went on to suggest that substantial cuts in interest rates could be achieved, which would improve the competitiveness of American industries operating abroad relative to other economies. The U.S. dollar dropped ...
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