2014-05-21 Smart Money Report (GES) (SHLD)
Smart Money Report
- SHLD- Sears is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for -$1.77 in EPS and revenue of $7.7 billion. Option traders are pricing in a $5.75 move, or 15.73%, in either direction through June options expiration. The put to call ratio in (SHLD) options is currently 1.54, led by a seller of 3,000 July $32 puts for $1.75 each. There has sizable June call buying in recent weeks too. The stock has dropped after earnings on five out of the last six reports.
- BBRY- 9k Sep. $7 puts were sold for $0.63 each, against open interest of 58,634 contracts. Earnings are due out on 6/19. The stock retested the $7 level in April and held as support.
- CLF- A rollout from 17,820 July $18 puts (credit) into 25,034 Aug. $16 puts (debit). Volume was above the open interest in the Aug. $16 puts. CLF shares are on pace to snap a four day losing streak, but the downtrend from November remains intact. (CLF) EPS is expected to decline 93.2% this year with revenues declining 14% and 3.2% expected next year. On 5/15, Macquarie downgraded the stock to underperform with a $10 price target.
- CNQ- 5,000 Jan. 2015 $40 calls were bought for $2.65-$2.70 each, against open interest of 28,848 contracts. The stock trades at a P/E ratio of 11.20x (2014 estimates), 32.6% revenue growth, and has an average analyst price target of $46.
- GES- Large buying in the June $26 and $27 puts today. Earnings are due out on 5/29. Put activity is 12x the average daily volume. The stock has dropped after earnings on the last two reports.
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.