Smart Money Report


2015-06-18 Unusual Options Activity (BBRY) (BEAV)

Posted on June 18th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-18 Unusual Options Activity (BBRY) (BEAV)

Unusual Options Activity

BlackBerry (BBRY)- A rollout from 9,400 June 19 $11 puts ($1.70 credit) into 15,000 July 17 $10 puts ($1.01 debit). There were similar bearish rolls last week. BlackBerry earnings are due out on June 23rd.
B/E Aerospace (BEAV)- 2,000 Jan 2016 $70 calls were purchased for $0.60. Shares were last at $70 back in May of 2014. Last year, management talked about the sale of the company.
Anheuser-Busch InBev (BUD)- The Jan 2016 $110/$130 bull risk reversal was put on 2,500 times for a $1.80 debit. 3G Capital is reportedly interested in acquiring Diageo (they already own a sizable stake in AB InBev).
Cerus (CERS)- 3,000 Nov $5 puts were sold for $0.51-$0.54. They announced a new Chief Medical Officer on June 8th. The stock broke out above $5 early this month.

C&J Energy Services (CJES)- The July $12/$14 bear … Read More »


Unusual Options Activity: BBRY, HLT, RHT, And More

Posted on June 17th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on Unusual Options Activity: BBRY, HLT, RHT, And More

Unusual Options Activity: BBRY, HLT, RHT, And More

(This post was originally published on See It Market on June 15th)

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

Monday

Red Hat (RHT) – 2,000 July $80 calls were bought for $2.85-$3.10. Earnings are due out on June 18th (shares have moved higher on 3 out of the last 4 reports).

Tuesday

Whole Foods Market (WFM) – 3,500+ June 19 $40 calls were purchased for $0.44-$0.69. Implied … Read More »


2015-06-10 Unusual Options Activity (DBD) (HRTX)

Posted on June 10th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-10 Unusual Options Activity (DBD) (HRTX)

Unusual Options Activity

Diebold (DBD)- 1,000 Aug $40 calls were purchased for $0.95, against open interest of 1,260 contracts. Later in the morning, the July $35/$40 bull risk reversal was put on 2,400 times for a $0 debit. Options activity was 24x the average daily volume. Yesterday, Reuters reported they are in talks to buy Wincor Nixdorf (German competitor).
Heron Therapeutics (HRTX)- A rollout from 4,000 June $15 calls ($12.10-$12.20 credit) into 4,000 Sep $22.50 calls ($7.40 debit). 9,500+ is in open interest in the Sep $25 calls. The company priced their 4.8M secondary offering at $24.75 per share this morning.
Kythera Biopharmaceuticals (KYTH)- Over 1,500 July $65 calls were bought for $0.65-$1.70. Call activity was 11x the average daily volume (IV +28.6% to 62.80). Yesterday, Guggenheim initiated the stock with a buy rating and a $64 price target.
LendingClub (LC)- 3,200 Jan 2016 … Read More »


2015-06-09 Unusual Options Activity (A) (DSW)

Posted on June 9th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-09 Unusual Options Activity (A) (DSW)

Unusual Options Activity

Agilent Technologies (A)- The July $37.50/$42.50 bull risk reversal was put on 3,000 times for a $0.01 debit. On May 28th, the board of directors authorized a $1.14B share repurchase program that will run through 2018 (currently using $365M that is left from an existing plan).
DSW Inc (DSW)- 5,000 July $35 calls were sold for $1.00-$1.14, against open interest of 8,327 contracts. There was big buying in these calls on May 28th. However, the stock failed to make a move above resistance at the 50-day EMA.
Fairway Group (FWM)- 2,000 Dec $4 puts were bought for $0.95. Put activity was 5x the average daily volume. Major support is around the $2.50 level. On May 26th, they reported their 6th straight quarterly sales decline; gross margins shrunk 20 basis points to 32.2%.
Kroger (KR)- Large June and July call/put selling ahead … Read More »


2015-06-04 Unusual Options Activity (ADI) (CSCO)

Posted on June 4th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-04 Unusual Options Activity (ADI) (CSCO)

Unusual Options Activity

Analog Devices (ADI)- Roughly 5,000 Sep $72.50 calls were bought for $1.55-$1.60. There has been large buying in the Sep $70 calls since May 20th (open interest north of 13,000). On May 19th, the company reported better than expected Q1 results (trades at a reasonable PEG ratio of 1.09x).
Cisco Systems (CSCO)- 100,000 Aug $30 calls were sold for $0.50-$0.54. The stock has struggled this year to close above $30 on a weekly basis. He/she is likely selling these calls against an existing stock position, creating a covered call.
Mattel (MAT)- The Jan 2016 $18/$25 bear put spread was put on 3,153 times for a $2.00 debit. Shares trade at a rich 18.87x 2015 earnings for a company that is projected to see both the top and bottom shrink compared to 2014. The long-term downtrend remains intact (next major support … Read More »


2015-06-03 Unusual Options Activity (ACRX) (FDX)

Posted on June 3rd, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-03 Unusual Options Activity (ACRX) (FDX)

Unusual Options Activity

AcelRx Pharmaceuticals (ACRX)- 2,000 July $2.50 calls were purchased for $1.40-$1.50. Call activity was 9x the average daily volume. They have Phase 3 data due out in Q4.
FedEx (FDX)- More than 4,000 June 5 weekly $180 calls have traded with the majority being bought for $0.75-$1.25.

iShares China Large-Cap ETF (FXI)- The Nov $41.50/$52.50/$57 bull call spread risk reversal was put on 10,000 times for a $0.35 debit. He/she is betting that the pullback in Chinese stocks has run its course and will make new highs by November (possibly up to $57). If the ETF falls below $41.50 he/she faces significantly more losses than the $0.35 debit the trade was put on for (requires margin).
Heron Therapeutics (HRTX)- A rollout from 1,250 Sep $17.50 calls ($9.60 credit) into 2,500 Sep $27.50/$35 bull call spreads ($2.60 debit). Bulls continue … Read More »


2015-06-02 Unusual Options Activity (BIG) (HRTX)

Posted on June 2nd, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-06-02 Unusual Options Activity (BIG) (HRTX)

Unusual Options Activity

Big Lots (BIG)- Roughly 1,200 July $47.50 calls were bought for $1.00-$1.20, against open interest of 1,690 contracts. Call activity was 6x the average daily volume. On May 4th, 1,600+ of these calls were bought on $2.05. Barclays upgraded them overweight from equal weight today with a $53 price target. Comps were +1.6% for Q1 last week.
Citigroup (C)- 12,000+ June 19 $55 calls were bought for $0.72-$0.77, against open interest of 40,017 contracts. They got an upgrade from Goldman Sachs yesterday to buy with a $61 price target.
Heron Therapeutics (HRTX)- A rollout from 2,500 Sep $17.50 calls ($6.80 credit) into 5,000 Sep $25 calls ($3.40 debit). Later in the day, there was another rollout from 1,250 Sep $17.50 calls ($6.35 credit) into 2,500 Sep $25 calls ($3.05 debit). Traders have been rolling call positions and buying calls prior to … Read More »


2015-05-28 Unusual Options Activity (MRVL) (XOMA)

Posted on May 28th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-28 Unusual Options Activity (MRVL) (XOMA)

Unusual Options Activity

ConocoPhillips (COP)- The June 26 weekly $62.50/$60.50 1×2 ratio bear put spread was put on 2,888 times for a $0.03 debit. Shares put in a lower high in April and are now poised to retest the low $60’s.
eBay (EBAY)- Nearly 8,000 July 17 $62.50 calls were purchased for $0.70-$0.76 early this morning (13,000+ traded now), against open interest of 12,157 contracts. Axiom upgraded them to buy with a $70 price target on May 26th. They see the PayPal spinoff and other spinoffs as a positive later this year.
Marvell Technology Group (MRVL)- 3,500 Aug $16 calls were purchased for $0.33, against open interest of 15,205 contracts. There was large buying in the July 17 $14 calls yesterday. The AVGO/BRCM deal is providing a lift for some of the semiconductor stocks.
OvaScience (OVAS)- A rollout from 2,000 June $35 calls ($1.10 … Read More »


2015-05-20 Unusual Options Activity (ACHN) (BRCD)

Posted on May 20th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-20 Unusual Options Activity (ACHN) (BRCD)

Unusual Options Activity

Achillion Pharmaceuticals (ACHN)- 17,500+ Jan 2016 $15 calls were sold for $0.60-$0.70, against open interest of 25,897 contracts. Analysts see the licensing partnership with JNJ/ACHN as a sign that Achillion isn’t a takeover target. UBS downgraded them to neutral this morning.
BGC Partners (BGCP)- Another 7,000 Aug $10 calls were sold for $0.20, against open interest of 20,125 contracts. They’re beginning to sell these quickly (open interest was 36,690 contracts on May 6th).
Brocade Communications Systems (BRCD)- 4,500 June $13 calls were bought for $0.19-$0.24. Earnings are due out tomorrow night (up on 4 of the last 7 reports).
Southwest Airlines (LUV)- Large buying in the July $37 puts (10,000+ traded) and July $38 puts (4,000+ traded). Put activity was 6x the average daily volume. Management said last night that they see revenue per available seat down 3% this year. The … Read More »


2015-05-19 Unusual Options Activity (BGCP) (BK)

Posted on May 19th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-19 Unusual Options Activity (BGCP) (BK)

Unusual Options Activity

BGC Partners (BGCP)- Another 2,500+ Aug $10 calls were sold for $0.25, against open interest of 23,553 contracts. There was selling in these yesterday. On May 6th, roughly 10,000 of these calls were sold as well. The large trader who built up this position in late 2014/early 2015 appears to be in the process of closing it out.
Bank of New York Mellon (BK)- A rollout from 2,500 June 19 $42 calls ($1.72 credit) into 1,700 July $44 calls ($1.00 debit) and 1,700 July $45 calls ($0.65 debit). The $49B global investments firm hit a new high early this morning.
DSW Inc (DSW)- 1,500 July $35 calls were purchased for $2.20-$2.45. Call activity was 4x the average daily volume. Q1 results are due out on May 27th (shares have moved higher after earnings on 3 consecutive reports). This morning, Sterne … Read More »


2015-05-18 Unusual Options Activity (XLE) (XOP)

Posted on May 18th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-18 Unusual Options Activity (XLE) (XOP)

Unusual Options Activity

Cisco Systems (CSCO)- Over 10,000 July $30 calls were bought for $0.60-$0.65, against open interest of 26,641 contracts. The stock is nearing a retest of the $30 resistance level. On Friday, according to a 13F filing, Bridgewater Associates (Ray Dalios) started a 500,000+ share position in CSCO.
GrubHub (GRUB)- Roughly 2,300 July $45 calls were bought for $0.80. On April 29th, they reported a 50.5% spike in Q1 revenue and active diners rose 46% to 5.60M. On May 6th, JMP Securities reiterated their outperform rating and a $55 price target.
Perrigo (PRGO)- The June $180/$200/$230 bull call spread risk reversal was put on 2,500 times for a $2.00 debit. This was done on Friday as well. Mylan is trying to takeover the smaller competitor. In the mean time, PRGO acquired Patheon’s Mexican business for $34M on May 12th.
Energy Select Sector … Read More »


2015-05-13 Unusual Options Activity (APD) (GDXJ)

Posted on May 13th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-13 Unusual Options Activity (APD) (GDXJ)

Unusual Options Activity

Air Products & Chemicals (APD)- 1,500+ May $145 calls have traded with the majority being bought for $0.75-$1.00. Large open interest remains in the June and Sep calls (from a call rollout and bull call spread risk reversal). Bill Ackman’s Pershing Square owns more than 20M shares, making it their 2nd largest holding.
Market Vectors Junior Gold Miners ETF (GDXJ)- 2,000 Aug $30 calls were purchased for $1.10-$1.15. Precious metals are moving up on weak U.S. data and a continued decline in the dollar. Call buying has been across several gold and silver miners in recent days.
Immunomedics (IMMU)- 2,500 Aug $5 calls were purchased for $0.66-$0.75, against open interest of 9,438 contracts. They have Phase 3 data due this quarter and Phase 3 data for another drug in 2016.
Kinder Morgan (KMI)- 10,000 June $42.50 puts were purchased for $0.89-$0.95. … Read More »


2015-05-12 Unusual Options Activity (ASNA) (HIMX)

Posted on May 12th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-12 Unusual Options Activity (ASNA) (HIMX)

Unusual Options Activity

Ascena Retail Group (ASNA)- 10,000 June $14 puts were purchased for $0.35-$0.40. Typically trades 123 puts per day. Earnings are due out in early June. Given the weak April comps out of $GPS last night, the Lane Bryant, Maurices, and dressbarn stores may disappoint as well.
Himax Technologies (HIMX)- More than 14,000 Sep $7 calls have traded with the majority being bought for $0.45-$0.50. Earnings are due out on May 14th. The stock is down about $2 year to date. Yesterday, they raised their quarterly dividend to $0.30 from $0.27 (4.38% yield at $0.27).
Ingersoll-Rand (IR)- 1,000+ May $67.50 calls were purchased for $0.35-$0.40. This is a short-term bet going into options expiration.
Southern (SO)- Nearly 20,000 June $43 puts were bought $0.96-$1.14 early this morning. Put activity was 20x the average daily volume. The rise in bond yields across the … Read More »


2015-05-11 Unusual Options Activity (RICE) (RL)

Posted on May 11th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-11 Unusual Options Activity (RICE) (RL)

Unusual Options Activity

Monsanto (MON)- A likely rollout from 5,000+ May 29 weekly $125 calls ($0.55 credit) into 10,000+ May 29 weekly $123 calls ($1.10 debit). They are trying to acquire Syngenta (1st offer was rejected). Last week, there was sizable put selling in SYT.
Rice Energy (RICE)- 2,000 June $22 puts were sold for $0.60-$0.65. This morning, Canaccord Genuity reiterated their buying rating with a $31 price target.
Ralph Lauren (RL)- The May $130/$125 1×2 ratio bear put spread was put on 1,000 times for a $0.45 debit. Earnings are due out on May 13th. Zacks reiterated their strong sell rating on March 27th with a $122 price target.
Tower Semiconductor (TSEM)- The May $17/$18 bull call spread was put on 2,000 times for a $0.32 debit. Earnings are due out on May 13th (shares have moved higher on 5 straight reports).
Vulcan Materials … Read More »


2015-05-07 Unusual Options Activity (WDAY) (WMT)

Posted on May 7th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-07 Unusual Options Activity (WDAY) (WMT)

Unusual Options Activity

Gold Fields (GFI)- 3,000 Oct $4 puts were sold for $0.69. They reported a 10% decline in gold production in Q1, but the stock is trying to bottom at the March lows near $3.60.
Mylan (MYL)- The July $65/$80 bull risk reversal was put on 2,870 times for a $0 debit. Volume was below the open interest in both options. Mylan is still committed to acquiring Perrigo is a stock and cash deal, which is also an effort to avoid being taken over by a larger competitor. Teva Pharmaceutical offered MYL $82 per share value in a stock/cash deal to acquire them recently.
Workday (WDAY)- Roughly 2,750 Sep $105 calls were purchased for $3.10-$3.40 and 2,000 Sep $80 puts were sold for $4.00-$4.20. Nearly 5,000 WDAY Sep $105 calls have been bought and 6,000 Sep $80 puts have been sold … Read More »


2015-05-06 Unusual Options Activity (KSS) (ZNGA)

Posted on May 6th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-06 Unusual Options Activity (KSS) (ZNGA)

Unusual Options Activity

Acadia Healthcare (ACHC)- 5,000 June $65 puts were sold for $1.75-$1.80. The healthcare services company recently beat Q1 estimates and issued strong FY15 guidance. They priced a 4.5M secondary offering at $66.50 per share last night.
SPDR KBW Regional Banking ETF (KRE)- A rollout from 10,000 May 15 $40 puts ($0.15 credit) into 10,000 June 19 $40 puts ($0.66 debit). The regional bank ETF continues to find buyers on pullbacks to the 50-day EMA, so until this ends its best to stay long/neutral.
Kohl’s (KSS)- A likely rollout from 4,000 May $75 calls ($0.85 credit) into 2,000 May $72.50 calls ($1.90-$1.95 debit). Earnings are due out on May 14th (shares moved higher on 4 out of the last 7 reports).
Wendy’s (WEN)- Roughly 4,000 June $12 calls were purchased for $0.15-$0.20. There was large May $10 call buying yesterday ahead of Q1 report. They announced … Read More »


2015-05-05 Unusual Options Activity (AAP) (BLMN)

Posted on May 5th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-05 Unusual Options Activity (AAP) (BLMN)

Unusual Options Activity

Advanced Auto Parts (AAP)- A rollout from 3,500 May $150 puts ($5.10 credit) into 3,500 June $135/$145 put spreads ($3.90 debit). The May $150 puts were initially bought for $4.00-$4.10 on April 23rd. Earnings are due out on May 21st (shares dropped on the last two reports). The stock is starting to breakdown below the 40-week SMA (200-day SMA).
Bloomin’ Brands (BLMN)- 2,100+ Oct $20 puts were sold for $0.85-$0.90. He/she sees the downside risk being limited to about $2 (already down $4 from the March high). The company reported Q1 US comps at +3.6%, but the light 2015 revenue guidance is weighting on shares today.
Dillard’s (DDS)- The June $110/$125 bear put spread was put on 1,000 times for a $3.15 debit. Earnings are due out on May 14th. The stock has been rolling over in recent weeks, which … Read More »


2015-05-04 Unusual Options Activity (CVC) (GE)

Posted on May 4th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-04 Unusual Options Activity (CVC) (GE)

Unusual Options Activity

Cablevision Systems (CVC)- 6,000+ Sep $20 calls were purchased for $1.55-$1.80. Call activity was 8x the average daily volume. They topped Q1 earnings and revenue estimates this morning. Average monthly RPC rose 4.8% to $155.34.
Express Scripts (ESRX)- Over 2,000 Aug $95 calls were bought for $1.50-$1.64. There was sizable June and July call buying last week. They recently announced an accelerated $5.5B share repurchase program and are rumored to a potential acquirer of Omnicare.
General Electric (GE)- There was sizable buying in the June 19 $28 calls (22,000+ traded) and Sep $28 calls (7,000 + traded). Volume was below the open interest in both options. My article on (GE) from April for TraderPlanet
Marathon Oil (MRO)- 6,000 May 8 weekly $30 puts were purchased for $0.20-$0.23. Earnings are due out on May 6th (shares have dropped on 5 straight reports).
SouFun … Read More »


2015-04-30 Unusual Options Activity (AEO) (GNC)

Posted on April 30th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-04-30 Unusual Options Activity (AEO) (GNC)

Unusual Options Activity

American Eagle Outfitters (AEO)- 2,000 May 15 $16 calls were purchased for $0.40-$0.43. Notice that this comes on the last day of the month (could be a play on Apr comps). Short interest is 14%, or 25M+ shares as of late.
GNC Holdings (GNC)- Nearly 2,000 June $42.50 calls were bought for $2.15-$2.25. Call activity was 4x the average daily volume. They missed Q1 earnings and sales estimates plus issued weak FY15 EPS guidance. However, the stock is finding buyer at $41 today.
LifeLock (LOCK)- 5,000+ June $14 puts were sold for $0.30. The large seller of May $13 puts remains in open interest (likely to expire worthless just as they wanted). They added 421k new members in Q1 as revenues rose 25% year over year.
Masco (MAS)- Sizable buying in the May $26 calls (1,800+ traded) and $27 calls (2,500+ traded). … Read More »


2015-04-29 Unusual Options Activity (ALLE) (GLD)

Posted on April 29th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-04-29 Unusual Options Activity (ALLE) (GLD)

Unusual Options Activity

Allegion (ALLE)- The May $55/$60 bear put spread was put on 1,786 times for a $1.40 debit. On average, just 24 puts trade per day. Earnings are due out tonight or tomorrow morning. The long-term uptrend remains intact, but shares have fallen on 2 out of the last 3 reports.
Boyd Gaming (BYD)- 3,000 May $13 calls were bought for $0.60-$0.65. Earnings are due out tomorrow night. Shares have alternated between up and down post earnings moves in the last 7 quarters with the previous report resulting in a lower close.
SPDR Gold Trust ETF (GLD)- The Jan 2016 $110/$120/$140 bull call spread risk reversal was put on 2,500 times for a $0.32 credit. Volume was below the open interest in all three options. There was massive buying in the June 19 $120 calls for $1.10-$1.25 yesterday (also been bullish … Read More »



Wordpress SEO Plugin by SEOPressor