2014-07-23 Smart Money Report (GILD) (INO)
Smart Money Report
- FB- Facebook will release Q2 earnings after the bell tonight. Analysts are looking for $0.32 in EPS and revenue of $2.8B. The options market is implying a $4.96 move, or 7.01%, in either direction through Friday’s close. The call to put ratio is currently 1.43, led by activity in the Sep $80 calls. The stock has moved higher after earnings on 4 out of the last 5 reports (5 out of the last 7 too). The whisper number for tonight is $0.36 in EPS vs the $0.32 consensus Wall Street estimate, according to EarningsWhispers.com.
- APC- 10,000 Jan 2016 $160 calls were bought for $1.72 each, against open interest of 11,092 contracts. 10,000 were bought yesterday. There was also sizable buying in the Nov $135 calls today.
- ATML- More than 7,000 Aug $9 calls were bought for $0.50 each, against open interest of 4,836 contracts. The call to put ratio is 19:1. Call activity is 4x the average daily volume. Net call premium is +$325K vs bet put premium of +$8K. Implied volatility rose 13.8% to 54.32. Earnings are due out on 8/6. The stock has been able to find support on tests of the 50-day EMA this month, but continues to print lower highs. (ATML) trades at a P/E ratio of 14.50x (2015 estimates) with 40.9% EPS growth (63% this year), 8.7% revenue growth (5.5% this year), P/S ratio of 2.77x, P/B ratio of 4.27x, and has an average analyst price target of $10.
- GILD- The Aug 16 $87.50/$91/$95 bull call spread risk reversal was put on 3,000 times for a $0.31 credit. Volume was above the open interest in the Aug 16 $91 calls. Earnings are due out tonight. The stock has moved higher after earnings on 6 out of the last 7 reports.
- INO- 5,000 Aug $13 puts were bought for $2.25-$2.35 each, against open interest of 80 contracts. They had Phase 2 data for Cervical dysplasia released this morning.
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!
