2014-10-10 Smart Money Report (CSCO) (RICE)
Smart Money Report
- AAL- 3,000 Oct 31 weekly $32.50 puts were purchased for $2.25 each, against open interest of 127 contracts. Earnings are due out on 10/23. The stock is on pace to close below the $32 support level from April. Given how the puts are in-the-money already it is unlikely to be a hedge on American Airlines.
- CSCO- 7,500 Jan 2015 $25 calls were purchased for $0.48 each, against open interest of 85,742 contracts.
- CSCO- 10,000 Dec $25 calls were purchased for $0.44-$0.47 each, against open interest of 6,291 contracts. Following the lower guidance from Microchip Technology (MCHP) this morning, maybe tech stocks including Cisco Systems had a sizable pullback.
- CZR- 5,000 Dec $10 puts were bought for $1.65-$1.75 each, against open interest of 5,044 contracts. The casino stock bear market (Caesars Entertainment included) has been in place since late Q1.
- RICE- A rollout from 8,000 Nov $25 calls (credit) into 8,000 Jan 2015 $25 calls (debit). Volume was above the open interest in the Jan 2015 $25 calls. Rice Energy option traders have done a few of these rollouts (in this case adding more money to a losing trade) since early in the summer.
1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.
Free Trial: If you would like to know more about premium content or you would like a free trial of our service, email me at Mitchell@OptionsRiskManagement.com .
Premium Membership: Join now to gain access to the all of the stock watchlist updates, unusual options activity reports, earnings trade ideas, weekend market updates, Premium Twitter feed, and more!