2014-07-21 Smart Money Report (BIDU) (MCP)
Smart Money Report
- BIDU- A rollout from 3,745 Sep $185 calls (credit) into over 3,000 Dec $200 calls (debit). Volume was above the open interest in the Dec $200 calls. Earnings are due out on 7/24. Baidu shares have moved higher after earnings on four straight reports. They beat EPS estimates last quarter by $1.20 and was revenues rise 59% year over year.
- CSCO- More than 18,000 Sep $27 calls have traded with the majority being purchased for $0.44-$0.46 each, against open interest of 91,324 contracts. Cisco Systems earnings are due out on 8/13. RBC Capital maintained an outperform rating, but raised their price target to $28 from $24.
- IMAX- Another 2,500 Aug $26 calls were bought for $0.55 each, against open interest of 4,480 contracts. The call to put ratio is 66:1. Call activity is over 2x the average daily volume. Over 4,000 were bought for $0.54-$0.55 each on 7/16. Earnings are due out on 7/24. IMAX was upgraded this morning to buy at Stifel Nicolaus ($32 price target) and B. Riley this morning.
- MCP- 6,000 Sep $2 calls were bought for $0.29-$0.30 each, against open interest of 8,064 contracts. There has been large Sep $2.50 call buying this summer. Molycorp earnings are due out on 8/6.
- RF- 4,000 Aug $10 puts were purchased for $0.19-$0.21 each, against open interest of 3,970 contracts. Earnings are due out tomorrow morning. Regions Financial shares have only dropped on two out of the last seven reports.
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!
