2014-07-30 Smart Money Report (AAP) (DLTR)
Smart Money Report
- AAP- The Aug 1×2 $125/$130 ratio call spread was put on 2,750 times for a $0.70 debit. Volume was above the open interest in both options. Earnings are due out on 8/14. This is likely done against a long stock position to add leverage without adding any additional shares. The stock has moved lower after earnings on 4 out of the last 7 reports (up on the last 2 reports).
- DLTR- A rollout from 5,000 Aug $57.50 calls (credit) into 5,000 Sep $57.50 calls (debit). Volume was above the open interest in the Sep $57.50 calls. Earnings are due out on 8/21. There was sizable buying in the Aug $57.50 calls yesterday.
- INTC- 18,500 Aug 16 $34 calls were bought for $0.59 each, against open interest of 30,652 contracts.
- SODA- The Sep 20 $30/$35 bull risk reversal was put on 5,000 times for a $0 debit. Volume was above the open interest in both options. They beat Q2 EPS estimates, but gave weaker than expected FY14 outlook.
- SPLS- 7,000 Sep $12 calls were bought for $0.25 each, against open interest of 13,117 contracts. Earnings are due out on 8/20. The stock continues to struggle to close above $11.30.
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