Smart Money Report

1. FRAN- Francesca’s will report Q1 earnings after the bell tonight. Analysts are looking for $0.26 in EPS and revenue of $79.8 million. The options market is pricing in a $3.85 move, or 12.86%, in either direction through June options expiration. Call to put ratio in the June options is 1.33, slightly in favor of the bulls.
2. PAY- Another big earnings report tonight will come from VeriFone Systems. Analysts are looking for $0.47 in EPS and revenue of $440 million. Options traders are pricing in a $2.75 move, or 12.52%, in either direction through June options. The call to put ratio in the June options is currently at 3.19.
3. LUX- 10,000 June $50 puts were sold for $0.40 each, against open interest of 26 contracts. Luxottica Group shares have fallen through the 50-day EMA for the first this year during the past two sessions. He/she is looking for support at $50 level.
4. OIS- The Sep. $105/$115 call spread was put on 5k times for a $2.25 credit and at the same time 5k Sep. $85 puts were sold for $2.25, resulting a $0 cost bull call spread risk reversal. Open interest was lower than today’s action in all three options. He/she is using the recent weakness in Oil States International to position for a rally in the 3rd quarter.
5. AAPL- Shares of Apple are near the lows of the day, currently down 0.84%. Call to put ratio in the June 7 weekly options remains above the 1.0 level, now at 1.52. The $450 call is the most active strike once again, which is accounting for more than a fourth of the call active.

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