2014-08-18 Smart Money Report (CPB) (RIO)

Posted on August 18th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-08-18 Smart Money Report (CPB) (RIO)

Smart Money Report

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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).

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