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.
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