Smart Money Report

1. MCD- McDonald’s is set to announce Q3 earnings before the bell on Monday morning. Analysts are looking for $1.51 in EPS and revenue of $7.3 billion. The options market is implying a $2.37 move, or 2.49%, in either direction through next Friday. Call to put ratio in (MCD) options is 1.46, but today’s largest trade was a seller of 3,544 Nov. $97.50 calls for $0.62.
2. AOL- The Apr. 2014 $28/$40/$46 bull call spread risk reversal was put on 10k times for a $0.05-$0.10 debit. Volume was above the open interest in all three options. AOL is set to report Q3 earnings in early November.
3. BHI- A rollout from 11,000 Oct. $52.50 calls (credit) into 11,000 Jan. 2014 $60 calls (debit). Volume was above the open interest in the Jan. 2014 $60 calls. Baker Hughes topped Q3 EPS estimates this morning by $0.03. He/she is looking for the stock to push into the $60’s by January 2014 options expiration.
4. SWK- The Jan. 2014 $72.50/$80 bull risk reversal was put on 3k times for a $0.25 debit. Volume was above the open interest in both options.
5. AAPL- Apple shares are on pace for its highest close since early January, up 0.76% today. The call to put ratio in (AAPL) options is 2.14, led by activity in the monthly October options that expire after the close.

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AAPL AOL BHI MCD Smart Money Report SWK unusual options activity