2014-04-17 Smart Money Report (HAL) (THC)

Posted on April 17th, by Mitchell Warren in Options Risk Management, Unusual Options Activity. Comments Off on 2014-04-17 Smart Money Report (HAL) (THC)

 Smart Money Report

  1. HAL- Halliburton is set to announce Q1 earnings before the bell on Monday morning. Analysts are looking for $0.72 in EPS and revenue of $7.2 billion. Option traders are pricing in a $2.51 move, or 4.14%, in either direction through next Friday’s close. The call to put ratio in (HAL) options is currently 2.39, led by a buyer of 1,850 May 17 $60 calls for $2.10 each. On Wednesday, there was a rollout from 4k May 17 $57.50 calls (credit) into 10k May 17 $62.50 calls (debit). The stock has fallen after reporting earnings on the last three reports, but moved higher on the four previous reports before then.
  2. ACAS- 3,000 Nov. $15 calls were purchased for $1.25 each, against open interest of 163 contracts. Earnings are due out on 4/29.
  3. DBD- A rollout from 3k Apr. $40 puts (credit) into 3k May $40 puts (debit). Volume was above the open interest in the May $40 puts. Earnings are due out on 4/29.
  4. INSM- The June $15/$20 1×2 ratio call spread was put on 2,500 times for a $0.70 debit. Volume was above the open interest in both options. They sold twice as many June $20 calls to reduce the cost of the trade. The maximum gain is achieved on a close at $20 on June options expiration.
  5. THC- 4,423 May $40 calls were purchased for $1.25 each, against open interest of 179 contracts. Earnings are due out on 5/5. Tenet Healthcare trades at a P/S ratio of 0.34x and a P/E ratio of 16.15x (2015 estimates) with expectations of 86.3% EPS growth next year. The average analyst price target is $51.50.
  6. VWO- 9,000 May 17 $41 calls were sold for $0.90-$0.93 each, against open interest of 553 contracts.

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