Unusual Options Activity

1. AMD- 1,330 May 9 weekly $4.50 calls were bought for $0.06 each, against open interest of 163 contracts. (AMD) reported earnings on Thursday night.
2. NTES- 1k May $70 calls were purchased for $4.10-$4.20 each, against open interest of 115 contracts. Earnings are due out on 5/14. Typically trades 556 calls per day.
3. BBRY- 9,033 June $8 calls were bought for $0.37 each, against open interest of 11,255 contracts.
4. MU- 5,791 July $27 calls were purchased for $1.14 each, against open interest of 21,542 contracts. (MU) shares are trying to retest the February highs of $25.68.
5. SMH- 14,500 Aug. $50 calls were bought for $0.38 each, against open interest of 22,637 contracts. There was large buying in these calls on 4/8 and 4/9.
6. WPRT- 5,400 Oct. $17 calls were sold for $0.60 each, against open interest of 81 contracts. Earnings are due out on 5/1.
7. CPN- More than 2,600 May $22 calls have traded for $0.60-$0.85 each with majority being purchased, against open interest of 318 contracts. Earnings are due out on 5/1. Implied volatility rose 15.2% to 15.62.
8. XLE- Large buying in the May 17 $91 and $92 puts this morning. Volume was above the open interest in both options.
9. VALE- Roughly 9k May 17 $15 calls were purchased for $0.17-$0.18 each, against open interest of 19,624 contracts. Earnings are due out on 4/30.
10. SBAC- 5,000 May $85 puts were sold for $0.20-$0.40 each, against open interest of 80 contracts. Earnings are due out on 5/1.
11. IOC- The Jan. 2015 $72.50/$100 call spread was put on 3,350 times for a $5.70 debit. Volume was above the open interest in both options. The stock continues to trend higher in a steady uptrend from January.
12. C- A rollout from 20k May 17 $50 calls (credit) into 10k June $50 calls (debit). Volume was below the open interest in both options. We remain long shares of (C).
13. DXJ- The Aug. $40.38/$50.38 bull risk reversal was put on 6,086 times for a $0.34 debit. Volume was above the open interest in the Aug. $40.38 puts. Breakeven on this trade is above the December highs.
14. THC- The May $38/$42 straddle was put on 1,684 times for a $2.05 credit. Volume was above the open interest in both options. Earnings are due out on 5/5. There was large buying in the May $40 calls on Thursday.
15. RMD- 1k May $50 calls were purchased for $1.06-$1.10 each, against open interest of 25 contracts. Earnings are due out on 4/23. The stock has declined after earnings on the previous three reports. (RMD) trades at a P/E ratio of 17.4x (2015 estimates) with 5-8% revenue growth. Average analyst price target of $46. A report could the catalyst for a technical breakout above $48, which could lead to a move up to $52.50-$55.00.
16. RVLT- 1,500 Dec. $2.50 calls were bought for $0.80-$0.85 each, against no previous open interest. IV +10% to 115.51. Typically trades 199 calls per day.
17. PLD- 3,205 May $42 calls were sold for $0.41 each, against open interest of 562 contracts. Earnings are due out on 4/22. The stock is trading right below the $41.50 resistance level.
18. WYN- More than 1,800 June $77.50 calls were purchased for $0.55 each, against no previous open interest. Earnings are due out on 4/24. (WYN) trades at a P/E ratio of 16.7x (2014 estimates), 1.36x (2014 estimates), 3.7% revenue growth, and has an average analyst price target of $82.
19. MNK- The July $50/$70 bull risk reversal was put on 5k times for a $1.25 debit. Volume was above the open interest in the July $50 puts. Earnings are due out on 5/8.
20. NEE- The Sep. $90/$100 bull risk reversal was put on 2,600 times for a $0.60 debit. Volume was above the open interest in the Sep. $90 puts. Earnings are due out on 4/30. We remain long shares of (NEE).
21. ABX- 5,882 Oct. $20 calls were bought for $0.74 each, against open interest of 1,577 contracts. Earnings are due out on 4/30.
22. KBH- 9,434 May $17 calls were purchased for $0.41 each, against open interest of 1,320 contracts. (KBH) trades at a P/E ratio of 11.41x (2015 estimates), PEG ratio of 0.52x (2015 estimates), P/S ratio of 0.64x, 21.8% revenue growth, and an average analyst price target of $21. (KBH) is testing the 8 month support level of $16.
23. GRMN- A likely rollout from 5k July $55 calls (credit) into 8k May $57.50 calls (debit). Volume was above the open interest in the May $57.50 calls. Earnings are due out on 4/30. The stock has moved higher on the last three reports.
24. FB- 30,000 Jan. 2015 $45 puts were bought for $2.77 each, against open interest of 20,029 contracts. Earnings are due out on 4/23.
25. CCJ- 3k May $23 puts were sold for $0.70 each, against open interest of 573 contracts. Earnings are due out on 4/29.
26. NAV- 2,000 May 17 $33 puts were sold for $0.80 each, against open interest of 61 contracts.
27. VIX- The May $15/$21 call spread was put on 12,773 times for a $0.93 debit. Volume was below the open interest in both options.
28. NRG- The Sep. $27/$34 bull risk reversal was put on 40k times for a $0.80 debit. Volume was above the open interest in both options. Earnings are due out on 5/6.
29. CHK- The June $30/$31 call spread was put on 20,000 times for a $0.26 debit. Volume was above the open interest in both options. Earnings are due out on 5/7.
30. ZNGA- 10k May 17 $4 calls were sold for $0.55 each, against open interest of 75,765 contracts. Earnings are due out on 4/23.
31. CNC- 2,000 June $55 puts were purchased for $2.35 each, against open interest of 4 contracts. Earnings are due out tomorrow. Typically trades 98 puts per day. This trade was tied to a purchase of 78k shares for $56.67.
32. HUBG- 2,500 May $45 calls were bought for $1.00 each, against open interest of 7 contracts.
33. AKS Earnings Preview- 2k Jan. 2015 $7 calls were purchased for $1.20-$1.21 each, against open interest of 5,257 contracts. Earnings are due out tomorrow morning. The stock has moved higher on three out of the last four earnings reports. (AKS) is testing the 100-day SMA. Trades at a P/E ratio of 7.93x (2015 estimates), P/S ratio of 0.17x, 2.4% revenue growth, and has an average analyst price target of $6.
34. BK Earnings Preview– Large open interest from buying on 3/7 remains in the Sep. $35 calls. The stock put in a higher on the weekly chart over the past few weeks. The stock has moved lower on 4 out of the last 5 reports. (BK) trades at a P/E ratio of 14.05x (2014 estimates), P/B ratio of 1.07x, 3.5% revenue growth, and has an average analyst price target of $34.50. (BK) shares go ex-dividend on 4/23. The $0.17 dividend is payable on 5/7.
35. HPT- 2k June $30 calls were sold for $0.50 each, against open interest of 1,105 contracts. Earnings are due out on 5/6.
36. JNS Earnings Preview- Sizable buying in the May $10 and June $11 puts. Volume was above the open interest in both options. Earnings are due out out tomorrow morning. Implied volatility +17.5% to 40.93. Typically trades 298 puts per day vs. 5,719 today. (JNS) shares have dropped on 5 out of the last 7 reports. Stock is struggling to regain the $11.50 level.
37. YUM- 3k July $80 calls were bought for $1.62 each, against open interest of 3,595 contracts. Earnings are due out tomorrow afternoon.
38. COH- The May 2 weekly $45/$48 put spread was put on 9,100 times for a $0.90 debit. Volume was above the open interest in both options. Earnings are due out on 4/29. They bought the May 2 weekly $48 puts and sold the May 2 weekly $45 puts to reduce the cost of the trade.
39. MCD- 954 Apr. 25 weekly $99 puts were sold for $0.76 each, against open interest of 1,180 contracts. Earnings are due out tomorrow morning. (MCD) has dropped on three out of the last four reports. (MCD) trades at a P/E ratio of 17.13x (2014 estimates), 3.6% revenue growth, and has an average analyst price target of $103.50.
40. FURX- 2k June $105 calls were purchased for $3.90 each, against no previous open interest. Earnings are due out on 5/7. Typically trades 238 calls per day.
41. MTG- 2,080 May 17 $8 puts were sold for $0.30 each, against open interest of 7,038 contracts. Earnings are due out out tomorrow morning. (MTG) has moved higher on the last three earnings reports. Trades at a P/E ratio of 11.12x (2015 estimates), expected 3.7% revenue growth, average analyst price target of $11.
42. CNC- The May $52.50/$60 bull risk reversal was put on 2k times for a $0.50 debit. Volume was above the open in both options. Earnings are due out tomorrow morning. They bought the May $60 calls and sold the May $52.50 puts to reduce the cost.
43. EDU- Nearly 4k May $28 calls have traded today with the majority being bought for $1.10-$1.15 each, against open interest of 3,078 contracts. Earnings are due out on 4/28. Implied volatility rose 10.6% to 54.38. (EDU) trades at a P/E ratio of 16.63x (2015 estimates), 21% revenue growth, and has an average analyst price target of $38.
44. CL- 4,000 June $72.50 calls were purchased for $0.24 each, against no previous open interest. Earnings are due out on 4/25.
45. ELX- Roughly 3,500 Oct. $8 calls have traded today with the majority being bought for $0.40 each, against open interest of 217 contracts. Earnings are due out on 4/30.
46. ERIC- More than 6k July $14 calls were purchased for $0.30-$0.35 each, against open interest of 12,358 contracts. Earnings are due out on 4/23.
47. AKS- 10,000 Jan. 2015 $2 puts were sold for $0.31 each, against open interest of 366 contracts. Earnings are due out tomorrow morning.
48. DHR- The Sep. $70/$77.50 bull risk reversal was put on 3,500 times for a $0.30 debit. Volume was above the open interest in both options. They bought the Sep. $77.50 calls and then sold the Sep. $70 puts to reduce the cost of the trade. The stock recently tested the 200-day SMA.
49. BID- The Jan. 2015 $35/$41/$50 bull call spread risk reversal was out on 5k times for a $0.75 debit. Volume was above the open interest in all three options. Earnings are due out on 5/8. They bought the $41 calls and sold the $35 puts and $50 calls to reduce the cost of the trade.

Updates: We sold 2/3’s of our (FANG) shares for $74.18 each, resulting in a gain of 8.98%.

We’re long the (KBH) May $16/$18 call spreads for a $0.81 debit. (KBH) trades at a P/E ratio of 11.41x (2015 estimates), PEG ratio of 0.52x (2015 estimates), P/S ratio of 0.64x, 21.8% revenue growth, and an average analyst price target of $21. (KBH) is testing the 8 month support level of $16.

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AKS BK CNC DHR EDU EL FURX HUBG MCD MNK NAV unusual options activity VIX YUM