2014-06-09 Smart Money Report (DG) (SPLK)
Posted on June 9th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-06-09 Smart Money Report (DG) (SPLK)
Smart Money Report
- DG- A rollout from 5,700 Jan. 2015 $65 calls (credit) into 5,700 Jan. 2015 $70 calls (debit). Volume was above the open interest in the Jan. 2015 $70 calls.
- NE- 3,250 Sep. $35 calls were purchased for $0.50 each, against open interest of 1,577 contracts. The call to put ratio is over 4:1. Implied volatility rose 2.7% to 25.18. The stock has been basing in a $3+ range for most of 2014. It trades at a P/E ratio of 8.32x (2015 estimates) with 12% EPS growth, 10.1% revenue growth, P/B ratio of 0.93x, 4.72% dividend yield, and has an average analyst price target of $35.50.
- NVDA- 7,787 Jan. 2015 $21 calls were bought for $0.91 each, against open interest of 98 contracts. $19.37 is the level to watch for a breakout in (NVDA). The stock trades at a P/E ratio of 18.99x (2015 estimates) with 11% EPS growth, 4.7% revenue growth, 1.77% dividend yield, and has an average analyst price target of $19. On 5/19, RBC Capital upgraded to the stock to outperform with a $26 price target.
- SPLK- The Nov. $50/$65 call spread was put on 3,000 times for a $2.95 debit. Volume was above the open interest in both options. The call to put ratio was 16:1. Implied volatility rose 5.2% to 58.41. Splunk has yet to sustain a move above the middle Bollinger Band (20-day SMA). This a $885K bet on a nearly $20 move by November.
- WAG- A rollout from 11,100 Jan. 2015 $70 calls (credit) into 16,100 Jan. 2015 $75 calls (debit). Volume was above the open interest in the Jan. 2015 $75 calls.
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