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Unusual Options Activity
Advanced Micro Devices (AMD)- 19,000 Oct $2 puts were purchased for $0.15. They reported a Q1 net loss of $180M yesterday as sales fell 23% to $1.03B (both missed estimates). Gross margins came in at 31.7% vs the 34% guidance they issued. Today, Bernstein maintained an underperform rating and a $1.50 price target.
Hilton Worldwide (HLT)- Another 2,400 Jan 2016 $35 calls were bought for $1.35, against open interest of 14,354 contracts. Open interest was just 177 contracts on April 10th. There has been big buying on 5 of the last 6 trading days.
Heron Therapeutics (HRTX)- A rollout from 4,000 Apr $12.50 calls ($0.90 credit) into 8,000 June $15/$22.50 call spreads ($2.25 debit). They have Phase 3 data and an NDA filing due out by the end of May and June, respectively.
Occidental Petroleum (OXY)- 5,000 Aug $90 calls were … Read More »
Is Tractor Supply A Buy Ahead Of Earnings? (TSCO)
Notes: The $12B operator of retail farm and ranch stores has more than 1,380 stores located throughout the United States. Tractor Supply trades at a P/E ratio of 28.26x (2015 estimates), price to sales ratio of 2.06x, and a price to book ratio of 9.11x. Earnings are projected to increase 15% annually and sales are projected to rise 10% annually over the next couple of years. About 44% of revenues in 2014 came from their livestock and pet categories. When you put a PEG ratio of 2x on the stock it puts the price at $92, which is probably conservative since the company has beat EPS estimates by $0.05 each in the last two quarters. On February 25th, Barclays raised their price target to $110 from $92 (overweight … Read More »