Smart Money Report

1. AMAT- A rollout from 17,000 Jan. 2015 $20 calls (credit) into 28,000 Jan. 2015 $24 calls (debit). Volume was above the open interest in the Jan. 2015 $24 calls. The long-term uptrend remains intact, but is now at the highest level in the RSI on the weekly chart. A better entry would be near $21. Applied Materials trades at a P/E ratio of 17.05x (2015 estimates), PEG ratio of 0.68x (2015 estimates), 9% revenue growth, 1.75% dividend yield, and has an average analyst price target of $22.
2. CTXS- 2,000 July $62.50 puts were sold for $0.55-$0.56 each, against open interest of 228 contracts. Earnings are due out on 7/23. This is a mildly bullish bet that Citrix Systems is stay above support at the $62-$63 level through July options expiration.
3. MU- The June 27 weekly 1×2 $27/$30 put spread was put on 7,800 times for a $0.25 debit. Volume was above the open interest in both options. Earnings are due out tonight. Max gain on this trade (or hedge) is at $27 on Friday’s close. Profits trail off below $27. Micron Technology has moved lower after earnings on 5 out of the last 7 reports.
4. SONC- Sizable buying in the July $22.50 and $25 calls today ahead of earnings tonight. The call to put ratio is 3:1. Call activity is 9x the average daily volume. Sonic has moved higher after earnings on four out of the last five reports.
5. USB- 10,000 Jan. 2015 $44 calls were purchased for $1.60 each, against open interest of 872 contracts. Earnings are due out on 7/16. Shares of US Bancorp are starting to move above the $43.50 resistance level from March/April. It trades at a P/E ratio of 13.01x (2015 estimates) with 8.4% EPS growth, 5% revenue growth, 2.24% dividend yield, and has an average analyst price target of $44. On 5/14, Nomura initiated a buy rating with a $51 price target.

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!

AMAT CTXS MU Smart Money Report SONC unusual options activity USB