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 »
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 … Read More »