2014-09-29 Smart Money Report (BABA) (KORS)

Posted on September 29th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-09-29 Smart Money Report (BABA) (KORS)

Smart Money Report

  1. BABA- The Nov $85/$95 strangle was put on 3,000 times for a $7.30 credit. Volume was above the open interest in both options. The trader is betting that Alibaba shares will stay between $85-$95 on November options expiration.
  2. BABA- 2,500 Dec $95 calls were sold for $4.30 each, against open interest of 0 contracts. On the 1st day of trading in (BABA) options traders/investors don’t see the stock eclipsing the IPO day high anytime soon. Implied volatility has fallen from the low 40’s to now just under 38%.
  3. KORS- Over 4,300 Oct 18 $70 puts were sold for $1.40 each, against open interest of 3,767 contracts. The trader sees Michael Kors stock holding above the $70 level through October 17th, possibly ending a near 30% slide in the share price from May.
  4. MCHP- A likely rollout from 2,000 Jan 2015 $50 calls (credit) into 2,000 Oct $48 calls (debit). Volume was above the open interest in the Oct $48 calls. Q2 earnings aren’t expected to be released until after October options expiration (10/28 or 10/29).
  5. WMT- 11,000 Nov 22 $80 calls were purchased for $0.28-$0.30 each, against open interest of 15,663 contracts. Wal-Mart Stores Oct 18 and Nov 22 calls have been actively bought in the past month, but the stock remains in a tight $2 range.

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