2014-12-16 Smart Money Report (C) (GRUB)

Posted on December 16th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2014-12-16 Smart Money Report (C) (GRUB)

Smart Money Report

  1. AMJ- The Jan 2015 $41/$45 bull risk reversal was put on 5,000 times for a $0.45 debit. Volume was above the open interest in both options. This is a bullish bet on the MLP companies. There was also a buyer of 5,000 Jan 2015 $40/$45 bull risk reversals for a $0 debit.
  2. C- 5,270 Jan 30 weekly $48.50 puts were sold for $0.78 each, against no previous open interest. Shares of Citigroup are trading back at the 100-day simple moving average. Earnings are due out on 1/15. The stock has moved higher after earnings on 3 straight reports.
  3. GRUB- 3,527 Mar 2015 $35 calls were purchased for $2.50 each, against open interest of 531 contracts. Call activity is 10x the average daily volume in GrubHub. Implied volatility rose 6.8% to 52.17. This morning Goldman Sachs upgraded the stock to buy from neutral and raised their price target to $43 from $42.
  4. SJNK- 14,000+ June 2015 $29 calls were bought for $0.25 each, against open interest of 341 contracts. The SPDR Barclays Short-Term High Yield Bond ETF currently has a 5.53% yield and the ETF hit a new low on the year today. Normally only trades 44 calls per day (also a buyer of 2,800 Mar 2015 $29 calls for $0.25 each).
  5. SU- 2,500 Jan 2017 $35 calls were bought for $2.65-$2.90 each, against open interest of 36 contracts. Suncor Energy shares are starting to find support at the $26 support level from April of 2013.

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