2014-07-08 Smart Money Report (CPN) (GNC)
Smart Money Report
- CPN- Large buying in the Jan. 2015 $20 and $21 calls today. Volume was above the open interest in both options. The call to put ratio was 104:1. Call activity was 10x the average daily volume. Net call premium was +$421K vs. net put premium of +$2K. Calpine will release earnings on 8/1.
- GNC- 2,000 Sep. $37.50 calls were purchased for $1.35 each, against open interest of 1,533 contracts. Earnings are due out on 7/24. The call to put ratio was 100:1. Call activity was 4x the average daily volume. Net call premium was +$276K vs. net put premium of +$584. Implied volatility rose 2.7% to 37.18. The long-term downtrend remains intact. GNC Holdings trades at a P/E ratio of 10.15x (2015 estimates), PEG ratio of 0.70x (2015 estimates), 6.9% revenue growth, P/S ratio of 1.18x, 1.81% dividend yield, and has an average analyst price target of $44. On 6/24, Morgan Stanley initiated an equal-weight rating with a $39 price target.
- IGT- Over 84,000 Aug. $13 puts have traded today with the majority being sold for $0.20 each, against open interest of 136 contracts. Earnings are due out on 7/22. Total put traded today exceeds the total put open interest of 89,106 contracts.
- MON- 5,000 Aug. $120 puts were sold for $1.06 each, against open interest of 1,172 contracts. Monsanto has support on the daily chart near the $122.00-$122.75 level.
- S- A rollout from 40,000 July 19 $8 calls (credit) into 60,000 Aug. $9 calls (debit). Volume was above the open interest in the Aug. $9 calls. The call to put ratio was 45:1. Call activity was over 3x the average daily volume. Earnings are due out on 7/30.
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!
