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.
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