Unusual Options Activity
American Eagle Outfitters (AEO)- 3,000+ Aug 7 weekly $17.50 calls were purchased for $0.55-$0.60. The uptrend in shares remains in place as EPS estimates for 2015 and 2016 continue to trend upward.
EMC Corp (EMC)- There was a rollout from 6,000+ Aug 21 $29 calls ($0.15 credit) into 6,000+ Aug 21 $27 calls ($0.64 debit). Earnings are due out on July 22nd. EMC has been range bound between $26 and $27.50 since April. The company doesn’t plan on breaking up despite investor pressure to do so.
Maxim Integrated Products (MXIM)- 6,000 Aug $35 puts were purchased for $2.09-$2.15. Put activity was 9x the average daily volume. Earnings are due out on July 23rd. MXIM shares gapped down by about 8% on the previous earnings report. After recent deals in the semiconductor space they are considered a takeover target.
Texas Instruments (TXN)- … Read More »
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Unusual Options Activity
AcelRx Pharmaceuticals (ACRX)- 2,000 July $2.50 calls were purchased for $1.40-$1.50. Call activity was 9x the average daily volume. They have Phase 3 data due out in Q4.
FedEx (FDX)- More than 4,000 June 5 weekly $180 calls have traded with the majority being bought for $0.75-$1.25.
iShares China Large-Cap ETF (FXI)- The Nov $41.50/$52.50/$57 bull call spread risk reversal was put on 10,000 times for a $0.35 debit. He/she is betting that the pullback in Chinese stocks has run its course and will make new highs by November (possibly up to $57). If the ETF falls below $41.50 he/she faces significantly more losses than the $0.35 debit the trade was put on for (requires margin).
Heron Therapeutics (HRTX)- A rollout from 1,250 Sep $17.50 calls ($9.60 credit) into 2,500 Sep $27.50/$35 bull call spreads ($2.60 debit). Bulls continue … Read More »
2015-03-18 More M&A Coming Soon From The Semiconductors? (MXIM) | More M&A Coming Soon From The Semiconductors?
More M&A Coming Soon From The Semiconductors? (MXIM)
Notes: Maxim Integrated Products is a $10B diversified semiconductor company. Along with other semis like (CY) and (ATML), it too saw unusual call buying today (plus the 2,200 purchased earlier this month). This type of activity suggests to me there is likely to be another (FSL)/(NXPI) type merger coming soon and it very well could have (CY), (MXIM), or (ATML) involved since they are in the $3B-$10B range (Freescale has a $13B market cap currently). Maxim trades at a P/E ratio of 19.16x (June16 estimates), P/S ratio of 4.27x, and a P/B ratio of 4.56x. Growth is expected to come back to the company in FY16 to the tune of 27.7% earnings growth and 7.6% top line growth. Cash holdings and short-term investments have been hovering around the $1.4B … Read More »