2014-05-05 Smart Money Report (NRG) (THC)
Smart Money Report
- NRG- NRG Energy is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for -$0.13 in EPS and revenue of $2.1 billion. The options market is implying a $1.25 move, or 3.71%, in either direction through May options expiration. Call to put ratio in (NRG) options is currently 40:1, led by buying in the May and June $34 calls. Call and put activity are below the average daily volume today. The stock has moved lower after earnings on three out of the last four reports.
- THC- Tenet Healthcare will report Q1 earnings after the bell tonight. Analysts are looking for -$0.14 in EPS and revenue of $3.9 billion. Option traders are pricing in a $3.30 move, or 7.36%, in either direction through May options expiration. The call to put ratio in (THC) options is currently 40:1, led by a seller of 10k Nov. $49 calls for $2.75-$2.80 each. Large open interest remains in the May $40 calls from buying on 4/17. The stock has moved lower after earnings on the last three reports.
- COL- 5,280 July $85 calls were purchased for $0.60 each, against open interest of 673 contracts. Rockwell Collins call activity is 67 times the average daily volume.
- HLT- 3,000 May $22 calls were bought for $0.65 each, against open interest of 926 contracts. Earnings are due out on 5/9. Hilton Worldwide call activity is 5 times the average daily volume. Implied volatility is +15% to 34.77.
- KRFT- 4,000 June $44 puts were purchased for $0.62-$0.64 each, against open interest of 2,297 contracts. Kraft Foods put activity is over 4 times the average daily volume.
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