2014-06-11 Smart Money Report (AAL) (UAL)
Smart Money Report
- AAL- 10,000 Nov. $40 calls were bought for $5.52-$5.60 each, against open interest of 1,844 contracts. Uptrend on the daily and weekly charts remain intact with major support at the $40 level. American Airlines trades at a P/E ratio of 7.01x (2015 estimates) with 16.2% EPS growth, 5% revenue growth, P/S ratio of 1.03x, and has an average analyst price target of $46. On 5/1, (JPM) maintained an overweight rating with a $55 price target.
- AVNR- A rollout from 10,000 June $5 calls (credit) into 10,000 Jan. 2015 $6 calls (debit). Volume was above the open interest in the Jan. 2015 $6 calls. Catalysts for Avanir Pharmaceuticals include: http://phoenix.corporate-ir.net/phoenix.zhtml?c=61699&p=irol-newsArticle&ID=1934460&highlight= http://phoenix.corporate-ir.net/phoenix.zhtml?c=61699&p=irol-newsArticle_print&ID=1912540&highlight=
- COCO- 2,500 Aug. $1 puts were purchased for $0.25 each, against open interest of 5,528 contracts. Typically trades 263 puts per day.
- MGA- 1,000 Sep. $115 calls were bought for $1.85 each, against open interest of 44 contracts. Typically trades 309 calls per day. Implied volatility rose 4.2% to 18.68. The uptrend on the daily and weekly charts remain intact (both are in overbought territory). Magna International trades at a P/E ratio of 11.28x (2015 estimates), PEG ratio of 0.71x (2015 estimates), 5% revenue growth, P/S ratio of 0.66x, 1.41% dividend yield, and has an average analyst price target of $111.50.
- UAL- A rollout from 10,000 June $45 calls (credit) into 10,000 July $48 calls (debit). Volume was above the open interest in the July $48 calls. On the weekly chart, United Continental has long-term support at the 40-week SMA (currently $40.29). A close above $49.20 would confirm a breakout.
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