2014-05-08 Smart Money Report (GOOGL) (VIX)

Posted on May 8th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-05-08 Smart Money Report (GOOGL) (VIX)

Smart Money Report

  1. BEAV- Another 2,500 May $100 calls were purchased for $1.80-$2.00 each, against open interest of 8,057 contracts. This is the 3rd straight day of big call buying following the plan to sell or break up the company on Sunday. (BEAV) trades at a P/E ratio of 22.61x (2014 estimates), PEG ratio of 0.95x (2014 estimates), 17.8% revenue growth, and has an average analyst price target of $100. On 4/24, D.A. Davidson maintained a buy rating with a $110 price target.
  2. GOOGL- 700 May 30 weekly $515 calls were purchased for $16.40-$16.60 each, against open interest of 14 contracts. This is a $1.16M trade. The stock retested the April lows yesterday and currently has upside potential to $540 in the near-term. This was the largest single option trade in Google at the time of the trade.
  3. KATE- The July 1×2 $33/$40 call spread was put on 20k times for a $2.50 debit. Volume was above the open interest in both options. They bought 10k July $33 calls and sold 10k July $40 calls. Earnings are due out 5/14.
  4. SUNE- The Jan. 2015 $12/$17/$27 bull call spread risk reversal was put on 15,000 times for a $1.59 debit. Volume was above the open interest in all three options. They bought the Jan. 2015 $17 calls and sold the Jan. 2015 $12 puts and Jan. 2015 $27 calls to reduce the cost of the trade.
  5. VIX- The June $17/$20 call spread was put on 12,072 times for a $0.36 debit. There was also a seller of 6,260 June $14 puts for $0.36 too at the same time. Volume was below the open interest in all three options. This call spread in the Volatility Index was the largest trade of the day at the time.

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