Smart Money Report

1. AA- Alcoa will report Q2 earnings after the bell tonight. Analysts are looking for $0.06 in EPS and revenue of $5.8 billion. The July 12 weekly $8 straddle costs $0.39, or 5% of the current share price. Call to put ratio in the July 12 weekly options is 1.95.
2. AVT- A rollout from 1,456 July $34 calls into 1,456 Aug. $34 calls for a net $0.50-$0.55 credit. This was likely a covered call rollout strategy in which he/she own shares of Avnet.
3. DLLR- 5k Jan. 2014 $15 calls were bought for $1.55 each, against open interest of 5,127 contracts. Check the open interest tomorrow morning for confirmation of new activity.
4. ELN- A likely rollout from 10k July $14 calls for $0.40 each into 10k Jan. 2014 $14 calls for a $1.10 debit. Volume was above the open interest in the Jan. 2014 $14 calls.
5. AAPL- Apple shares are underperforming compared to the broader market, down 0.90%. The call to put ratio in the July 12 weekly options is 1.42, led by activity in the $420 and $425 calls.

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