2014-08-18 Smart Money Report (CPB) (RIO)
Smart Money Report
- BTU- 6,000 Dec $18 calls were purchased for $0.46 each, against open interest of 5,513 contracts. The long-term downtrend remains intact in Peabody Energy shares. On 7/23, Nomura lowered their price target to $13 from $16.
- CPB- 5,500 Sep $48 calls were bought for $0.30 each, against no previous open interest. The call to put ratio is 30:1. Call activity is 9x the average daily volume. Implied volatility rose 25% to 23.34. Earnings are due out on 9/8. There have been rumors of Buffett being interested in acquiring Campbell Soup.
- DLTR- The Oct 1×2 $55/$57.50 ratio call spread was put on 1,000 times for a $0.05 debit. Volume was above the open interest in both options. They bought 1,000 Oct $55 calls and sold 2,000 Oct $57.50 calls. This was likely done against a long stock position to add leverage without adding an additional shares. Earnings are due out on 8/21.
- RIO- 3,650 Oct $55 puts were sold for $1.27 each, against open interest of 5,063 contracts. Over 26,000 set in open interest in the Sep $60 calls from large buying in the last month.
- VLO- 6,000 Sep 20 $55 calls were bought for $1.05-$1.11 each, against open interest of 17,819 contracts. There was large buying in these on 7/31. A completion of the gap fill would take the stock back to $55.57 (6/24 low).
Summer Sale: From now until Sunday, August 31st, 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!