Unusual Options Activity
American International Group (AIG)- A likely rollout from 42,985 Jan 2016 $60 calls ($1.80 credit) into 42,985 Jan 2017 $60 calls ($4.50 debit). Call activity was over 7x the average daily volume. The insurer trades at a P/E ratio of 11.26x (2015 estimates), price to sales ratio of 1.19x, and a price to book ratio of 0.71x.
ARM Holdings (ARMH)- Over 2,000 May $55 calls were bought for $0.58-$1.10. The Apr $55 calls also saw sizable buying. Call activity was nearly 6x the average daily volume. Goldman Sachs reiterated their conviction buy rating on March 31st.
Diamond Offshore Drilling (DO)- A rollout from 6,300 Apr $30 puts ($1.39 credit) into 6,300 May $22.50/$27.50 put spreads ($1.09 debit). Earnings are due out on May 4th.
Gilead Sciences (GILD)- 10,000 May 15 $105 calls were purchased for $1.69-$1.79, against open interest of 23,926 … Read More »
AIG- American International Group will report Q4 earnings after the bell tonight. Analysts are looking for $1.05 per share in EPS on revenue of $8.7B. Shares of AIG have fallen after earnings on five consecutive earnings reports despite beating EPS estimates by at least $0.02 on each occasion. The company has been going through a transition by naming Peter Hancock the new CEO last summer (replacing the successful Robert Benmosche). The stock trades at a P/E ratio of 10.53x (2015 estimates), price to sales ratio of 1.12x, and a price to book ratio of 0.68x. All of these are relatively low, but revenue is likely to come in flat or slightly lower for 2014 (decline 2-3% in 2015) and is experiencing only low to mid single digit earnings growth. The stock has an average analyst price target of $61.33 … Read More »
Unusual Options Activity
AIG- American International Group will report Q4 earnings after the bell tonight. Analysts are looking for $0.96 in EPS and revenue of $8.6 billion. The options market is implying a $1.79 move, or 3.64%, in either direction through Friday’s close. Call to put ratio in (AIG) options is currently 1.71, led by a buyer of 2k Feb. 28 weekly $50 calls for $0.73-$0.75 each.
CLF- Another major earnings release due out tonight will come from Cliffs Natural Resources. Analysts are looking for $0.82 in EPS and revenue of $1.5 billion. Option traders are pricing in a $1.55 move, or 7.10%, in either direction through Friday’s close. The put to call ratio in (CLF) options is 1.33, led by a buyer of Feb. 14 weekly $21.50 puts for $0.59 each.
CBL- 6,300 Mar. $17.50 calls were bought for $0.52-$0.53 each, against … Read More »