DO


2015-04-08 Unusual Options Activity (AIG) (DO)

Posted on April 8th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-04-08 Unusual Options Activity (AIG) (DO)

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 »


2015-03-04 Traders Bet On More Downside In The Oil Drillers (DO) (RIG)

Posted on March 4th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Trade Ideas, Unusual Options Activity. Comments Off on 2015-03-04 Traders Bet On More Downside In The Oil Drillers (DO) (RIG)

Traders Bet On More Downside In The Oil Drillers

Notes: Long before the oil bear market began in the second half of 2014, Diamond Offshore Drilling (DO) had been struggling (see 2-year weekly chart above). The collapse in energy prices as you might have guessed hasn’t helped the $4B oil & gas driller headquartered in Texas. Earnings estimates for 2015 and 2016 continue to be slashed week after week ($3.12 per share to $2.13 per share for 2015 in just 3 months). This means shares trade at a not so cheap 14.18x (even higher when look at 2016 earnings under $1), price to sales ratio of 1.52x, and a price to book ratio of 0.93x. Revenue of almost $3B in 2014 is expected to shrink 8-9% annually for the next couple of years too on lower activity … Read More »



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