2014-05-28 Smart Money Report (ANF) (COST)
Smart Money Report
- ANF- Abercrombie & Fitch is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for -$0.19 in EPS and revenue of $798M. The options market is implying a $3.62 move, or 10.25%, in either direction through Friday’s close. The put to call ratio in (ANF) options is currently 1.39, led by buying in the May 30 weekly $34.50 puts. The stock has moved lower after earnings on four out of the last five reports.
- COST- Costco Wholesale will also be releasing earnings before the bell tomorrow morning. Analysts are looking for $1.09 in EPS and revenue of $25.7 billion. Option traders are pricing in a $2.42 move, or 2.12%, in either direction through Friday’s close. The call to put ratio in (COST) options is currently 1.05, led by activity in the May 30 weekly $115 calls and $113 puts. The stock has moved lower after earnings on three out of the last four reports.
- DOW- The Jan. 2016 $55/$65 call spread was put on 10,000 times for a $2.35 debit. Volume was above the open interest in both options. The long-term investor sees over 26% of upside potential in the chemical company through early 2016. (DOW) trades at a P/E ratio of 14.18x (2015 estimates), PEG ratio of 0.67x (2015 estimates), 4.3% revenue growth (2.4% this year), P/S ratio of 1.06x, and has an average analyst price target of $54.50.
- NOK- 5,530 June 21 $7 calls were purchased for $0.89 each, against open interest of 13,592 contracts. There has been large July $8 call buying this month. Shares of Nokia brokeout above the three resistance line recently.
- XOP- The July $66/$73 put spread was put on 20,000 times for a $1.30 debit. Volume was above the open interest in both options. (GDP), (HK), and (CRK) are the three largest holdings in the XOP.
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