Smart Money Report
AZN- The Jan 2015 $65/$80/$90 bull call spread risk reversal was put on 10,000 times for a $0.35 debit. Volume was below the open interest in all three options. Net call premium is +$2.2M vs net put premium of -$1.9M.
CVS- More than 5,000 Sep 20 $75 puts were sold for $1.12-$1.19 each, against open interest of 312 contracts. Earnings are due out on 8/5. The stock has moved higher after earnings on 4 out of the last 5 reports. CVS Caremark shares were down 4 out of 5 last week, which brought the stock to test the 50-day EMA. CVS trades at a P/E ratio of 15.25x (2015 estimates) with 12.8% EPS growth (11.5% this year), 4.6% revenue growth (5.7% this year), 1.43% dividend yield, and has an average analyst price target of $82. On 6/6, Susquehanna raised … Read More »
Free Trade Of The Day Featuring Melco Crown Entertainment (MPEL)
Notes: Melco Crown Entertainment (MPEL) is set to announce Q2 earnings in early August.
Melco Crown Entertainment (MPEL) Options Trade Idea
Buy the (MPEL) Aug. $35/$40 call spread for a $1.80 debit or better
(Buy the Aug. $35 call and sell the Aug. $40 call, all in one trade)
Stop loss- None
1st upside target- $3.60
2nd upside target- $4.80
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Smart Money Report
MPEL- Another 1,200 Jan. 2016 $39.66 calls were purchased for $6.29-$6.70 each, against open interest of 9,173 contracts. Nearly 9,000 were bought yesterday. This investor is positioning for a sizable move higher over the next 18-19 months in shares of Melco Crown Entertainment. The stock trades at a P/E ratio of 15.76x (2015 estimates), PEG ratio of 0.75x (2015 estimates), 25.5% revenue growth, and has an average analyst price target of $50. On 5/9, J.P. Morgan Chase maintained an overweight rating with a $41 price target.
MTW- The Sep. $27/$30 call spread was put on 5,020 times for a $1.60 debit. Volume was above the open interest in both options. Call activity is nearly 8x the average daily volume.
SNDK- 6,434 July 19 $100 calls were bought for $3.65-$3.75 each, against open interest of 5,661 contracts. There has been sizable … Read More »