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 »
Smart Money Report
HPQ- Hewlett-Packard will report Q4 earnings after the bell tonight. Analysts are looking for $1.00 in EPS and revenue of $27.9 billion. The options market is implying a $1.90 move, or 7.53%, in either direction through Friday’s close. Call to put ratio in (HPQ) options is currently 1.44.
TIVO- Another name to release earnings results after the bell is TiVo. Analysts are looking for $0.06 in EPS and revenue of $81.4 million. Options traders are pricing in a $0.79 move, or 5.88%, in either direction through Friday’s close. The call to put ratio in (TIVO) options is 4.82, led by a seller of 900 Dec. $14 calls for $0.36 each.
ACHN- 2k Jan. 2014 $4 calls were purchased for $0.20 each, against open interest of 3,489 contracts.
MPC- 9,103 Apr. 2014 $85 calls were sold for $5.10 each, against open interest of 472 … Read More »