Smart Money Report

1. AMAT- Another 14,000 Jan. 2015 $22 calls were bought for $0.71-$0.73 each, against open interest of 111,946 contracts. Earnings are due out tonight. There has been large Jan. 2015 call buying in Applied Materials recently.
2. CCK- Sizable buying in the July $48 and Oct. $46 puts today. Volume was above the open interest in both options. Put activity is 17x the average daily volume. Crown Holdings shares hit a new 52-week high yesterday and trades at a P/E ratio of 14.32x (2014 estimates), PEG ratio of 1.10x (2014 estimates), P/S ratio of 0.77x, has 6.8% revenue growth, and has an average analyst price target of $52. Given the strong fundamental and technical take, this could be a hedge on a long stock position after the recent run up.
3. GT- 10,000 Oct. $27 calls were purchased for $1.13-$1.24 each, against open interest of 10,615 contracts. There was large buying in these calls on 5/7 and 5/8. Call activity is over 2x the average daily volume. They missed Q1 EPS and revenue estimates on 4/29.
4. PVA- The Jan. 2016 $10/$20 bull risk reversal was put on 2k times for a $0.25 debit. Volume was below the open interest in both options. Shares of Penn Virginia are down for the sixth consecutive trading session and could trade down to $13 before seeing any sizable buyers come into the stock (a close below the 100-day SMA could trigger that).
5. XLU- 7,500 May 23 weekly $42 puts were purchased for $0.26 each, against open interest of 115 contracts. The put to call ratio is 5:1 in the utility ETF.

Free Trial: If you would like to know more about premium content or you would like a free trial of our service, email me at Mitchell@OptionsRiskManagement.com .

Premium Membership: Join now to gain access to the all of the stock watchlist updates, unusual options activity reports, earnings trade ideas, weekend market updates, Premium Twitter feed, and more! All for just $29.95/month or save by purchasing an annual subscription. Join me and the other ORM traders in the chat room today!

1 On 1 Options Mentoring: Learn more about 1 on 1 options mentoring courses that help can you improve your trading odds and risk management skills.

AMAT CCK GT PVA Smart Money Report unusual options activity XLU