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

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.

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