2014-07-11 Smart Money Report (BBG) (GSAT)
Smart Money Report
- BBG- 4,000 Aug. $25 puts were bought for $0.95 each, against open interest of 62 contracts. Earnings are due out on 7/31. Typically trades 218 put per day. Prior to this trade total put open interest in Bill Barrett was 7,008 contracts vs. total call open interest of 3,055 contracts.
- GSAT- 5,000 Oct. $2.50 puts were sold for $0.30 each, against open interest of 216 contracts. Typically trades 83 puts per day. The uptrend on the daily an weekly charts remains intact. Globalstar is expected to narrow EPS losses from -$0.38 this year to -$0.14 in 2015. Revenue is expected to grow 20.1% next year. On 2/3, Chardan Capital reiterated a buy rating with a $6 price target.
- INVN- 2,500 Aug. $27 calls were purchased for $0.80 each, against open interest of 129 contracts. Earnings are due out on 7/29. The call to put ratio was 7:1. Call activity was nearly 2x the average daily volume. There was large buying in the Aug. 1 weekly $23 calls on 7/9. Shares of InvenSense are closing to testing the $24 resistance level from March. The stock trades at a P/E ratio of 24.38x (2015 estimates), PEG ratio of 0.67x (2015 estimates), 21.4% revenue growth, and has an average analyst price target of $24. On 6/23, Pacific Crest maintained an outperform rating, but raised their price target to $26 from $22.
- MSFT- A rollout from 22,407 Jan. 2016 $40 calls (credit) into 38,800 Jan. 2016 $45 calls (debit). Volume was above the open interest in the Jan. 2016 $45 calls. We remain long the Aug. 16 $39/$43 call spreads. My article from 5/8 on Microsoft for TraderPlanet.
- PETM- 2,000 July $70 puts were sold for $1.00 each, against open interest of 491 contracts. From 7/8, Credit Suisse on PetSmart: Strategic sale could fetch $80 per share. Two large investors are pushing for a sale of the company. The stock is no pace to close above the $70 level on a weekly basis for the first time since the last week of December.
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