Smart Money Report
BAC- 35,000 Aug. 16 $17 calls were bought for $0.09-$0.11 each, against open interest of 101,282 contracts. Earnings are due out on 7/16. Bank of America was upgraded at Deutsche Bank to a buy rating last night with a $18 price target.
CP- 4,300 July $175 puts were sold for $1.35 each, against open interest of 333 contracts. Earnings are due out on 7/17. Canadian Pacific Railway trades at a P/E ratio of 17.38x (2015 estimates), PEG ratio of 0.73x (2015 estimates), 7.7% revenue growth, and has an average analyst price target of $193. On 6/30, Barclays maintained a overweight rating with a $196 price target. The stock has moved higher after earnings on the last three reports.
SPLS- The Jan. 2015 $9/$13 bull risk reversal was put on 10,000 times for a $0.05 debit. Volume was above the open … Read More »
Smart Money Report
TSO- Tesoro Petroleum is set to announce Q1 earnings after the bell tonight. Analysts are looking for $0.43 in EPS and revenue of $8.7 billion. The options market is implying a $2.50 move, or 4.41%, in either direction through Friday’s close. Call to put ratio in (TSO) options is currently 11:1, led by a buyer of 4,600 June $60 calls for $1.12-$1.13 each. The stock has moved higher after earnings on four out of the last seven reports.
YELP- Another major Q1 report due out tonight will come from Yelp. Analysts are looking for -$0.06 in EPS and revenue of $75.1 million. Option traders are pricing in a $8.10 move, or 14.34%, in either direction through Friday’s close. The call to put ratio is currently 2:1, led … Read More »
Free Trade of the Day featuring Canadian Pacific Railway (CP)
Notes: Canadian Pacific Railways (CP) shares go ex-dividend on Wednesday, March 26th. The $0.315 dividend will be payable on Monday, April 28th. (CP) is set to announce Q1 earnings in late April.
Canadian Pacific Railways (CP) Options Trade Idea
Buy the (CP) Apr. 2014 $155/$170 call spread for a $5.00 debit or better
(Buy the Apr. 2014 $155 call and sell the Apr. 2014 $170 call, all in one trade)
Stop loss- None
1st upside target- $10.00
2nd upside target- $14.00
Updates: Medtronic (MDT) shares rose 1.65% on above average volume on Friday. We remain long the May 2014 $60 calls.
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