2014-07-01 Smart Money Report (EBAY) (FOLD)
Smart Money Report
- CX- 10,000 July $14 calls were bought for $0.10-$0.11 each, against open interest of 36,934 contracts. We remain long these calls. Earnings are due out on 7/18. My TraderPlanet article from 6/12 on Cemex.
- CXO- More than 2,400 July $145 puts were bought for $3.90 each, against open interest of 10 contracts. Typically trades 741 puts per day. The put to call ratio is 13:1.
- EBAY- A rollout from 16,486 July 19 $49 calls (credit) into 32,972 July 19 $52.50 calls (debit). Volume was below the open interest in both options. Earnings are due out on 7/16. eBay has moved lower after earnings on four out of the last five reports.
- FOLD- Sizable buying in the Aug, Oct, and Jan. 2015 $5 calls today. Call activity is 15x the average daily volume. Amicus Therapeutics was upgraded by Leerink Partners ($6 price target) and Janney Capital this morning ($5 price target) ahead of the Phase 3 data of Fabry disease treatment this quarter.
- MNK- A rollout from the 3,000 July 19 $80 calls (credit) into 2,000 Aug. 16 $80 calls (debit). Volume was above the open interest in the Aug. 16 $80 calls. The long-term uptrend in Mallinckrodt remains intact. (MNK) trades at a P/E ratio of 12.81x (2015 estimates) with 76.9% EPS growth, 53.3% revenue growth, and has an average analyst price target of $89.
Summer Sale: From now until the end of August, annual memberships are only $225 (25% off of the regular $299.95 price). This is available for new and existing members. Check out our updated 2014 options performance page here (all stock trades are posted on the Weekend Market Updates).
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!