2014-12-05 Smart Money Report (AAL) (AMAT)

Posted on December 5th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-12-05 Smart Money Report (AAL) (AMAT)

Smart Money Report

  1. AAL- A rollout from 5,250 Dec 12 weekly $48.50 calls (credit) into 7,500 Jan 9 weekly $52.50 calls (debit). Volume was above the open interest in the Jan 9 weekly $52.50 calls. There have been several of these type of rolls in American Airlines in the last two weeks. On December 2nd, Credit Suisse raised their price target to $58 from $55. My article on (AAL) from November 27th
  2. AMAT- Another rollout from 32,000 Apr 2015 $23 calls (credit) into 50,000 Apr 2015 $25 calls (debit). Volume was below the open interest in both options. Applied Materials shares are up for the 8th consecutive week, but just recently broke out above the $23 resistance level.
  3. IMMU- Sizable buying in the May 2015 $7 and $8 calls today. Volume was above the open interest in both options. Call activity is 15x the average daily volume. Immunomedics has Phase 3 data due out in the 1st half of 2015.
  4. TOT- 2,500 Jan 2015 $52.50 puts were bought for $1.00 each, against open interest of 3,617 contracts. 3,000 of these were bought for $1.95 each on October 17th. Energy stocks, like Total SA, remain under pressure as oil & gas prices trend lower.
  5. WMT- Another 5,000 Jan 17 2015 $85 calls were purchased for $1.09-$1.12 each, against open interest of 58,774 contracts. Following yesterday’s large buying open interest rose to 58,774 from 49,590 contracts. One beneficiary of lower gas prices is Wal-Mart Stores, rallying more than $10 from the October lows. In the near-term the stock may retest the $79-$80 breakout level from November, following the snap of the 4-week winning streak.

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