2014-08-27 Smart Money Report (HLF) (TRW)
Smart Money Report
- BAC- The Nov $16/$17 bull risk reversal was put on 10,000 times for a $0.20 credit. Volume was below the open interest in both options. There were nearly 20,000 Oct 18 $17 calls bought yesterday.
- GPS- 4,906 Mar 2015 $48 calls were sold for $2.15 each, against open interest of 8 contracts. Given the rise from $39 to $46 in Gap shares over the last month, selling these calls against a long stock position allows you stay in the trade with upside to effectively $50.15.
- HLF- More than 4,400 Sep 20 $55 calls have traded with the majority being purchased for $1.07-$1.10 each, against open interest of 2,006 contracts. The call to put ratio in Herbalife is 3:1. Call activity is over 2x the average daily volume.
- TRW- 2,500 Jan 2015 $100 calls were bought for $4.10-$4.25 each, against open interest of 731 contracts. ZF Friedrichshafen AG was reported in talks to buy TRW Automotive for about $12B ($105 per share).
- XRT- 5,000 Sep 5 weekly $90 calls were purchased for $0.44-$0.50 each, against open interest of 42 contracts. The retail ETF is set to close above the July weekly closing high of $88.65 this week. Options activity remains bullish in the SPDR S&P Retail Index ETF components like Burlington Stores.
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!
