2014-10-10 Smart Money Report (CSCO) (RICE)

Posted on October 10th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-10-10 Smart Money Report (CSCO) (RICE)

Smart Money Report

  1. AAL- 3,000 Oct 31 weekly $32.50 puts were purchased for $2.25 each, against open interest of 127 contracts. Earnings are due out on 10/23. The stock is on pace to close below the $32 support level from April. Given how the puts are in-the-money already it is unlikely to be a hedge on American Airlines.
  2. CSCO- 7,500 Jan 2015 $25 calls were purchased for $0.48 each, against open interest of 85,742 contracts.
  3. CSCO- 10,000 Dec $25 calls were purchased for $0.44-$0.47 each, against open interest of 6,291 contracts. Following the lower guidance from Microchip Technology (MCHP) this morning, maybe tech stocks including Cisco Systems had a sizable pullback.
  4. CZR- 5,000 Dec $10 puts were bought for $1.65-$1.75 each, against open interest of 5,044 contracts. The casino stock bear market (Caesars Entertainment included) has been in place since late Q1.
  5. RICE- A rollout from 8,000 Nov $25 calls (credit) into 8,000 Jan 2015 $25 calls (debit). Volume was above the open interest in the Jan 2015 $25 calls. Rice Energy option traders have done a few of these rollouts (in this case adding more money to a losing trade) since early in the summer.

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