2014-07-24 Smart Money Report (AMZN) (BIDU)


Posted on July 24th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-07-24 Smart Money Report (AMZN) (BIDU)

 Smart Money Report

  1. AMZN- Amazon.com will report Q2 earnings after the bell tonight. Analysts are looking for Analysts are looking for -$0.15 in EPS and revenue of $19.3B. The options market is implying a $22.20 move, or 6.15%, in either direction through Friday’s close. The call to put ratio is currently 1.18. There was large buying in the Oct $400 calls on 4/10 and 4/10 for $6.95-$8.20. Open interest currently sits at 10,500 contracts. The stock has closed higher the day after earnings on 4 out of the last 7 reports (down after the last 2 reports).
  2. BIDU- Baidu is also going to report earnings after the bell tonight. Analysts are looking for $7.97 in EPS and revenue of $11.9B. The options market is implying a $14.00 move, or 6.85%, in either direction through Friday’s close. The call to put ratio is currently 1.65, led by a buyer of 2,120 July 25 weekly 1×2 $210/$225 ratio call spreads for a $2.90 debit. This was likely done against an existing long stock position to leverage the trade without adding any additional shares. The stock has closed higher the day after earnings on 4 straight reports (down on the 3 prior reports).
  3. BID- The Oct $43/$50 call spread was put on 15,000 times for a $1.05 debit. Volume was above the open interest in both options. The call to put ratio is 22:1. Call activity is 38x the average daily volume. Net call premium is +$2M vs net put premium of +$53K. This was tied to a sale of 360,000 shares of stock. Earnings are due out on 8/6.
  4. NTRI- 2,500 Sep $18 calls were sold for $1.00-$1.05 each, against open interest of 618 contracts. Earnings are due out on 7/29. Despite the uptrend in the stock this year, there is major resistance in the $18-$19 level from last year.
  5. WEC- 3,000 Jan 2015 $50 calls were bought for $0.30 each, against open interest of 1,732 contracts. The call to put ratio is 75:1. Call activity is 11x the average daily volume. Earnings are due out on 7/30. This was rumored as a target of Warren Buffett’s earlier this year.

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