Smart Money Report

1. HOV- Hovnanian Enterprises will report Q1 earnings before the bell tomorrow morning. Analysts are looking for -$0.05 in EPS and revenue of $409 million. Options traders are pricing in a $0.75 move, or 12.61%, through June options expiration. In the June options, the open interest in the $7 and $8 calls have over 10k contracts vs the June $6 puts which have OI of 2,524 contracts.
2. ANV- Over 28,000 Dec. $7.50 calls have traded today, with the majority being bought on the offer for up to $2.25 each. Open interest was only 3,295 contracts, so today’s action is new buying. Shares of Allied Nevada Gold are up over 7%.
3. CVS- Nearly 3k June $62.50 calls were purchased for $0.10-$0.14 each, against open interest of 1,424 contracts. CVS Caremark shares are coming off of a successful bounce of the 50-day EMA yesterday.
4. SMH- 5,000 July $40 calls were bought for $0.65 each, against open interest of 222 contracts. Shares of the semiconductor ETF are breaking out to new highs, up 1.40% this afternoon.
5. AAPL- Apple shares continue to trickle higher, rising over $30 from the May lows. Call to put ratio in the June 7 weekly options is currently 1.27. The implied move into Friday’s close is $10, or 2.21%, in either direction, which if it is resolved higher would bring the stock near the multi-month resistance level.

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