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Unusual Options Activity
Achillion Pharmaceuticals (ACHN)- 17,500+ Jan 2016 $15 calls were sold for $0.60-$0.70, against open interest of 25,897 contracts. Analysts see the licensing partnership with JNJ/ACHN as a sign that Achillion isn’t a takeover target. UBS downgraded them to neutral this morning.
BGC Partners (BGCP)- Another 7,000 Aug $10 calls were sold for $0.20, against open interest of 20,125 contracts. They’re beginning to sell these quickly (open interest was 36,690 contracts on May 6th).
Brocade Communications Systems (BRCD)- 4,500 June $13 calls were bought for $0.19-$0.24. Earnings are due out tomorrow night (up on 4 of the last 7 reports).
Southwest Airlines (LUV)- Large buying in the July $37 puts (10,000+ traded) and July $38 puts (4,000+ traded). Put activity was 6x the average daily volume. Management said last night that they see revenue per available seat down 3% this year. The … Read More »
Call Buyers Look For New Highs In Omnicare Soon (OCR)
Notes: On February 25th, Omnicare reported Q4 EPS of $0.96 (beat estimates by a penny) on revenue of $1.63B vs the $1.61B Wall Street estimate (6% year over year increase). The Specialty Care Group segment is driving the growth as sales jumped 21% to $443M in the fourth quarter (third straight quarter of high double digit growth). Shares of the $7.6B healthcare services company trade at a P/E ratio of 18.85x (2015 estimates), price to sales ratio of 1.17x, and a price to book ratio of 2.94x. Earnings are projected to grow in the low double digit range and sales in the mid-single digit range annually this year and in 2016. Following the latest quarterly report (Q1 earnings out on April 29th), Cowen raised their price target … Read More »
Free Trade Of The Day Featuring Omnicare (OCR)
Notes: Omnicare (OMC) is set to announce Q2 earnings on Monday, July 21st. The stock has moved higher after earnings on three out of the last five reports.
Omnicare (OCR) Options Trade Idea
Buy the (OCR) Aug. $70 call for $1.00 or better
Stop loss- None
1st upside target- $2.00
2nd upside target- $3.00
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