2014-12-10 Smart Money Report (DOV) (SM)

Posted on December 10th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-12-10 Smart Money Report (DOV) (SM)

Smart Money Report

  1. BUD- 10,000 Mar 2015 $130 calls were purchased for $0.80 each, against open interest of 93 contracts. This was tied to 110,000 shares. On average, only 908 calls trade per day in Anheuser-Busch InBev SA. The stock remains in a steady long-term uptrend and in a sector with big M&A deals rumored.
  2. CVA- 16,534 June 2015 $25 calls were bought for $0.85 each, against open interest of 504 contracts. This was tied to 1.65M shares. Total open interest in Covanta Holdings is just 17,372 contracts.
  3. DOV- A rollout from 1,750 Dec $75 puts (credit) into 2,500 Jan 2015 $70 puts (debit). Volume was above the open interest in the Jan 2015 $70 puts. Dover shares are nearing a retest of the October 15th low of $69.66. On December 9th, Deutsche Bank downgraded the stock to sell from hold with a $65 price target.
  4. FEYE- 2,500 Jan 17 2015 $32 calls were bought for $1.30 each, against open interest of 5,379 contracts. The call to put ratio is 21:1 today in FireEye. In recent weeks the stock has been able to find support around the $30 level.
  5. SM- The Jan 2016 $25/$40 bull risk reversal was put on another 4,000 times for a $0.55-$1.10 debit. Volume was below the open interest in both options. This trade was put on 8,000 times yesterday. Shares of SM Energy are down 67% from the September highs.

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