Smart Money Report

1. AA- 8,000 Dec $15 puts were purchased for $0.56 each, against open interest of 22,748 contracts. Alcoa earnings are due out tonight. The stock has moved higher after earnings on 3 out of the last 4 reports (currently trading right at the 100-day SMA). The options market is implying a $0.84 move through the end of the week.
2. AUY- 7,500 Jan 2015 $5 puts were sold for $0.19 each, against open interest of 4,916 contracts. The Gold ETF (GLD) is so far holding on the test of $115 (held on the correction in June and December of 2013).
3. DOW- 10,000 Nov 22 $50 calls were purchased for $1.25 each, against open interest of 6,292 contracts. This was tied to 350,000 shares. Dow Chemical earnings are due out on 10/22.
4. INFI- 5,000 Oct $12 puts were bought for $0.30 each, against open interest of 6,186 contracts. (INFI) has Phase 2 data due out this quarter.
5. OCN- A rollout from 7,000 Oct $27.50 puts (credit) into 7,000 Nov $27.50 puts (debit). Volume was above the open interest in the Nov $27.50 puts. Ocwen Financial earnings are due out on 10/30. This is unlikely a hedge given that they are buying puts that are $3 ITM.

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AA AUY DOW INFI OCN Smart Money Report unusual options activity