2014-06-03 Smart Money Report (ACI) (JD)
Posted on June 3rd, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-06-03 Smart Money Report (ACI) (JD)
Smart Money Report
- ACI- 10,000 Oct. $4 puts were purchased for $0.85-$0.92 each, against open interest of 6,501 contracts. This is unlikely a hedge in Arch Coal given how far in-the-money these puts are. The put to call ratio is 39:1. Put activity is over 2x the average daily volume.
- JD- 10,000 July $21 puts were sold for $0.40 each, against open interest of 370 contracts. (JD) has total option open interest of 590 contracts. This only the 8th trading day for the stock.
- RF- Another 3,000 July $11 calls were bought for $0.12 each, against open interest of 8,472 contracts. There has been large buying in these calls in recent days.
- SNDK- Nearly 4,000 June 21 $100 calls were purchased for $1.12-$1.38 each, against open interest of 1,110 contracts. The call to put ratio is 2.5:1. Net call premium is +$638K vs. net put premium of -$102K. IV +3.9% to 28.81. The stock is now up nine days in a row. SanDisk trades at a P/E ratio of 14.94x (2015 estimates) with 7.9% EPS growth, 8.6% revenue growth, and has an average analyst price target of $99. On 5/8, ISI Group maintained a strong buy rating with a $110 price target.
- YELP- 4,000 July 19 $60 puts were purchased for $3.32-$3.58 each, against open interest of 219 contracts.The $70 level is a major hurdle for Yelp. If it fails there we’ll likely see a move back into the $50’s. The put to call ratio is nearly 2:1.
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.
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!
