2014-03-20 Smart Money Report (DRI) (NKE)
Smart Money Report
- DRI- Darden Restaurants is set to announce Q3 earnings before the bell tomorrow morning. Analysts are looking for $0.82 in EPS and revenue of $2.3 billion. The options market is implying a $1.80 move, or 3.64%, in either direction through Friday’s close. Call to put ratio in (DRI) options is currently 13.00:1, led by buying in the Apr. 2014 $52.50 calls. The stock has fallen after earnings on the three previous reports.
- NKE- Nike will report Q3 earnings after the bell tonight. Analysts are looking for $0.72 in EPS and revenue of $6.7 billion. Option traders are pricing in a $3.32 move, or 4.22%, in either direction through Friday’s close. The call to put ratio in (NKE) options is 2.21:1, led by buying in the Mar. 2014 $80 calls. The stock has moved higher after earnings on four out of the last five reports.
- GM- Roughly 5k June $35 calls were purchased for up $2.08 each, against open interest of 95,185 contracts. Open interest was 6,613 on 3/13.
- JNJ- 10,000 Apr. $92.50 puts were sold for $0.95-$1.03 each, against open interest of 3,874 contracts. Earnings are due out on 4/15. (JNJ) trades at a P/E ratio of 15.99x (2014 estimates), expected revenue growth of 4.0-4.5% over the next two years and has an average analyst price target of $102. The stock has current support at $92.00-$92.50.
- ZNGA- 10k Apr. $5 calls were bought for $0.33 each, against open interest of 18,472 contracts. Zynga shares have short-term support at the $5 level.
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