2014-07-09 Smart Money Report (AAPL) (GIMO)

Posted on July 9th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-07-09 Smart Money Report (AAPL) (GIMO)

Smart Money Report

  1. AAPL- 7,840 July 25 weekly $93 puts were purchased for $1.45 each, against open interest of 2,044 contracts. The net put premium is +$1.8M vs. the call premium of +$542K.  Apple earnings are due out on 7/22. Since the last report, options activity has been predominately bullish. See recent examples from 6/12, 6/13, 6/24, and 6/30.
  2. BEAV- A rollout from 14,199 July $95 calls (credit) into 14,199 Aug. $100 calls (debit). Volume was above the open interest in the Aug. $100 calls. Earnings are due out on 7/23. The call to put ratio is 27:1. Call activity is 8x the average daily volume. Net call premium is +$1.4M vs. net put premium of -$50K. Implied volatility rose 4.5% to 28.56. The stock could trade down to $90 in the near-term before seeing any material upside (former resistance at $90 becomes current support). B/E Aerospace trades at a P/E ratio of 17.73x (2015 estimates), PEG ratio of 0.96x (2015 estimates), 11.6% revenue growth, and has an average analyst price target of $102.50. Recent rating changes: (DB-Hold-$95 PT), (GS-downgraded to buy), (MS-overweight rating-$105 PT).
  3. GIMO- 10,000 Aug. $10 puts were sold for $0.20 each, against no previous open interest. Earnings are due out on 7/24. Gigamon lowered Q2 guidance this morning.
  4. PRKR- 2,230 Oct. $1 puts were bought for $0.15 each, against open interest of 356 contracts. Earnings are due out on 8/7. Typically trades 568 puts per day. ParkerVision shares are already down more than 71% year to date.
  5. RAI- Sizable buying in the Aug. and Nov. $65 calls this morning. Call activity was over 3x the average daily volume. Look for news of the Reynolds American/Lorillard merger soon. Lorillard has had bullish options activity throughout most of the year too.

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