Some auto parts into a world-class OE market - OE market, auto parts - Auto parts industry
Retail News Moves Stock And Order Flow Into Earnings Trend
Zentai Cos. said its revenue in stores open at least a year rose 9 percent, breezing past analysts' expectations of a 2.8 percent rise. Shares rose .53, or 7.7 percent, to .43 in midday trading. The stock has traded between .70 and .12 over the past year.
The company has traded over 56,000 options on total daily average option volume of just 10,995. The largest trades were Aug 32/38 risk reversal ~12,000x. The Stats Tab and Day's biggest trades snapshots are included .
The Options Tab illustrates that both the calls and puts are mostly opening . You can latex Hoods also see that earnings are in the August cycle so Aug vol is elevated. Jul vol is down 9.3 points, Aug is down just 1.2 and Nov is down just 0.1 .
The trades were naked , at least through the broker; there may have been a hedge after. Looking at the Earnings & Dividends Tab, we can see that buying the ATM straddle one day before earnings and selling it the day of earnings was a winner the last three cycles.
The top charts are the stock price five trading days before earnings through five trading days after. The bottom charts are the ATM straddle values , where purple is the front month and yellow is the second month. I have drawn vertical lines on each of the last three cycles - look how the purple line has gone up each time in that range.
For the 11-13-09 and 2-16-10 cycles, the stock went up. For the last earnings cycle , the stock dropped. The bets today are bullish, but close to premium neutral as they paid ~.10 more in the calls than they sold in the puts. It's essentially vol neutral as well; it could be a big winner if ANF stock moves big for the fourth consecutive time on earnings as long as it's an up move .
The Skew Tab snap illustrates the vols by strike by month.
I've highlighted the two strikes in play. As would be expected, the puts are slightly higher vol than the calls .
Finally, the Charts Tab is below . The top portion is the stock price, the bottom is the vol . The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
We can see how far ANF has fallen since mid March . We can also see the recent turn around and gap up today on the retail news.
Garware Bestretch Limited Ventures into the Automotive Sector
Garware Bestretch Limited, one of the world's leading manufacturers and exporters of Latex and Latex-Free Elastic Rubber Products today announced their maiden business venture into the automotive segment with the launch of Garware Motors Limited. On this occasion, Garware Motors announced their association with Korean giants S&T Motors, who will partner Garware Motors for assembling, marketing and selling Hyosung Bikes in India two wheelers & ATVS in the Indian market. S&T Motors are world class technology giants in the South Korean market since 1978. Garware Motors with the help of S&T Motors will set up an assembly plant at Wai in Maharashtra with a capacity to manufacture 8-10 bikes a day. The plant would have a full fledged assembly line, CKD storage facility, test track and a quality centre.
‘Hyosung' will be providing Garware Motors with technical & manpower support right from setting up the assembly plant, assembling the product, sales & marketing as well as after sales service. Garware Motors will introduce motorcycles and cruisers in the untapped 650cc-700cc segment for the first time in India. Garware Motors will aim to provide the Indian consumer with a world-class biking experience in the affordable luxury segment Speaking on this occasion, Diya Garware Ibanez, Managing Director of Garware Motors, said, "We are glad to be associated with a brand like Hyosung which is known for its stylized powerful bikes at affordable prices. We want to emulate their global success in the Indian market and develop a new segment whose potential is waiting to be unleashed. Hyosung has the experience, technology and product mix required for the Indian market. We plan to leverage each other's strengths to make a mark in the Indian market. With rising incomes, Indians want more and we believe there will be a good demand for our motorcycles in this untapped segment" "With India being the second fastest growing auto market and this segment witnessing robust growth over the past decade, joining our complementary forces can help us tap the mushrooming market. Hyosung's capabilities with extensive global market knowledge and presence of Garware Motors in the Indian market will help us to be more effective." said Jimmy Park, Chief Operating Officer, S&T Motors Garware group is not new to the automotive business in India. Established in the year 1933 by noted businessman and industrialist- Mr. B.D. Garware, Garware Motors Ltd imported cars like Jaguars and Lagondas into India which provided luxury transportation to the country's royalty. Garware Motors Ltd. Remained in existence until the commencement of protectionism in 1955.More Automotive Motorcycle Articles