Unusual Options Activity
American Airlines Group (AAL)- A rollout from 2,000 Mar 20 $50 calls ($2.89 credit) into 5,000 May 15 $57.50 calls ($1.74 debit). It was announced yesterday that (AAL) will be replacing Allergan (AGN) in the S&P 500.
HCP Inc (HCP)- Another 1,000+ Apr $42.50 calls were bought for $0.35-$0.40 each early this morning, against open interest of 14,788 contracts. There was big buying in these calls yesterday.
ING Groep NV (ING)- 14,000 Oct $15 calls were purchased for $0.87-$1.00 each. Call activity was 54x the average daily volume. Prior to this action, total call open interest was just 6,941 contracts.
Medtronic (MDT)- Another 1,000 Mar 27 weekly $75.50 puts were sold for $0.50-$0.51 each (4,250 were sold for $0.98 each on 2/18). Analysis on (MDT) from 3/13
Consumer Discretionary Select Sector SPDR Fund (XLY)- Another 20,000 June $73 outs were bought for … Read More »
ORM Market Commentary
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Is It Time To Buy Soda Stocks?
Notes: Google (GOOGL) shares trade at a P/E ratio of 19.56x (2015 estimates) with 12.3% EPS growth, price to sales ratio of 5.70x, and a price to sales ratio of 3.60x. Even at a $380B market capitalization, the search giant is still able to grow revenue by 15% annually (likely to top $75B this year). Cost per click has been declining in recent years, which is likely the result of an underperforming stock, but the company has still been able grow the top line (grown their advertising network by about 20% in this time). On a 5-year TTM P/E ratio basis, … Read More »
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Open Interest Updates From The Previous Trading Days Action
ADT Corp. (ADT)- Mar $39 call open interest went from 5,073 to 6,823 contracts (more buying on Friday).
CABELA’s (CAB)- Mar $60 call open interest went from 1,288 to 6,842 contracts (buying on Friday).
ConocoPhillips (COP)- Apr 17 $65 call open interest went from 10,756 to 14,680 contracts (buying on Friday).
Golar LNG (GLNG)- Mar $35 call open interest went from 3,601 to 7,427 contracts (buying on Friday).
ChipMOS Technologies (IMOS)- June $25 call open interest went from 815 to 1,930 contracts (buying on Friday).
Plains All American Pipeline (PAA)- Aug $47.50 call open interest went from 9,316 to 12,316 contracts and Aug $47.50 put open interest went from 7,160 … Read More »
Smart Money Report
HCP- 1,458 Nov. $45 calls were sold for $0.25-$0.30 each, against open interest of 912 contracts. This is a likely against a long stock position, creating a covered call. HCP shares have been basing in the $41-$42 range for the last week.
SWY- 2,500 Mar. 2014 $28 puts were sold for $1.15 each, against open interest of 466 contracts. He/she thinks shares of Safeway will stay above the $28 level through March 2014 options expiration.
VIAB- The Dec. $80/$85/$92.50 bull call spread risk reversal was put on 12,500 times for a $0.90 debit. Volume was above the open interest in all three options.
AAPL- Apple shares are on pace to close out the week near the lows, down 0.89% today. The call to put ratio in the Oct. 4 Weekly options is 2.18, led by activity in the $490 and $500 calls.
Free … Read More »