2014-05-15 Smart Money Report (AMAT) (XLU)

Posted on May 15th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-05-15 Smart Money Report (AMAT) (XLU)

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.

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