Unusual Options Activity
C- Roughly 20,000 Mar 2015 $52.50 calls were bought for $0.55-$0.70 each, against open interest of 9,485 contracts. The call to put ratio was 2:1 and call activity was 3x the average daily volume. This morning, Citigroup missed Q4 EPS and revenue estimates, sending shares lower. The stock is now coming in for a retest of the $46 support level that has held for nearly two years. Tangible book value of the company is now $56.83 per share.
CSCO- A likely rollout from 15,000 Mar 2015 $30 calls ($0.32 credit) into 15,000 Mar 2015 $28 calls ($0.96 debit) today. Volume was above the open interest in the Mar 2015 $28 calls. He/she is likely doing a roll down to get a higher delta on the trade and is willing to pay up for it. Q2 earnings are due out … Read More »
Smart Money Report
AGCO- 5,000 Feb 2015 $45 puts were sold for $3.05 each, against open interest of 5,197 contracts. 5,000 Feb 2015 $45 puts were bought for $2.40-$2.50 on 9/25 (part of a rollout from the $50 puts). AGCO lowered Q3, FY14 EPS guidance this morning. Earnings are due out on 10/28.
GG- The Nov 1×2 $25/$28 ratio call spread was put on 4,000 times for a $0.19 debit. Volume was above the open interest in both options. This trade is likely done against an existing long stock position in Goldcorp to add leverage without adding any additional shares (upside would be capped at $28 through November options expiration).
INXN- A rollout from 5,000 Oct $30 calls (credit) into 5,000 Jan 2015 $30 calls (debit). Volume was above the open interest in the Jan 2015 $30 calls. Total call open interest is … Read More »