2014-03-10 Smart Money Report (EJ) (EUO)
Smart Money Report
- EJ- E-House (China) Holdings is set to announce Q4 earnings before the bell tomorrow morning. Analysts are looking for $0.22 in EPS and revenue of $223 million. Option traders are pricing in a $2.55 move, or 16.49%, in either direction through Mar. options expiration. The call to put ratio in (EJ) options is currently 1.79, led by buying in the Apr. 2014 $19 calls. The stock has gapped higher on the previous three earnings reports.
- AKS- 10k June $6 puts were purchased for $0.66-$0.70 each, against open interest of 1,183 contracts. The middle Bollinger Band (20-day SMA) has acted as resistance over the past two months.
- DAN- The Mar/Apr $22 call calendar was put on 2,200 times for a $0.49 debit. Volume was above the open interest in both options. They sold the Mar. $22 calls and bought the Apr. $22 calls, all in one trade. They’re betting on $22 being a ceiling through Mar. options expiration, but see a sizable move above $22 by Apr. options expiration. (DAN) trades at a P/E ratio of 11.5x and has an average analyst price target of $24.00.
- EUO- 2,445 May $17 calls were purchased for $0.33 each, against open interest of 2,145 contracts. Only 450 calls trade per day on average in the UltraShort Euro Proshares ETF.
- TWTR- Twitter shares have also had selling pressure on recent tests of the middle Bollinger Band, down 0.07% today. The call to put ratio in (TWTR) options is 2.07, led by sizable call selling in the Mar. 14 weekly expiration.
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