Unusual Options Activity
AAN- Another 500 Feb $30 calls were bought for $2.30-$2.45 each, against open interest of 3,382 contracts. On average, only 149 calls trade per day. If shares are able to hold above the $31 resistance level through the close it will setup for a measured move to $33 in the near-term. Read more about the initial call activity in Aaron’s here.
DFS- The Apr $52.50/$60 bull risk reversal was put on 2,500 times for a $0.05 credit today. Volume was above the open interest in both options. Option activity was 11x the average daily volume. This trade is profitable as long as the stock stays above the short put strike ($52.50) and see sizable gains if Discover Financial Services shares rally above $60 by April options expiration. Last night, the company reported weaker than expected Q4 EPS and revenue … Read More »
DFS Earnings Preview- Highlighted buying in the July $65 calls earlier today. Call to put ratio at 3:1. Stock put in a higher low on the weekly chart over the past two weeks and has moved higher after earnings on the past two reports. Average analyst price target of $63.50.
FTI Earnings Preview- Over 1,500 May $57.50 calls were bought for $0.65-$0.80 each today ahead of earnings tonight. Typically trades 275 calls per day. Call to put ratio is 13:1. This oil related services & equipment company has no major resistance until the $58-$60 level. Trades at a forward PEG ratio of 0.92x (2014 estimates), 8.7% revenue growth, and has an average analyst price target of $62. The stock has moved lower on the last three reports, but has moved higher on three of the four reports before then.
IGT Earnings … Read More »