2015-04-01 Unusual Options Activity (AAL) (CVS)

Posted on April 1st, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-04-01 Unusual Options Activity (AAL) (CVS)

Unusual Options Activity

  1. American Airlines (AAL)- A rollout from 20,000 Apr 17 $52.50 calls ($0.80 credit) into 20,000 May 15 $52.50 calls ($2.14 debit). Shares are being hit today, following the downgrade to hold from buy at Deutsche Bank (price target slashed to $58 from $78).
  2. CVS Health (CVS)- 3,370 May 8 weekly $98.50 puts were sold for $1.20-$1.23. There has been consistent put selling for months now.
  3. LifeLock (LOCK)- 30,000 May $13 puts were sold for $0.35, against open interest of 21,550 contracts. Sizable selling in these on March 24th-26th for $0.45-$0.50. Earnings are due out near the end of this month.
  4. Rowan Companies (RDC)- 10,000 Jan 2016 $13 puts were purchased for $0.95. The stock lost its early gains after the put purchase as the longer-term downtrend is still in place. 2015 EPS estimates have been cut by 18% in the last three months to just $2.76 per share.
  5. Consumer Discretionary SPDR ETF (XLY)- A rollout from 25,000 Apr 17 $78 calls ($0.07 credit) into 25,000 June $80 calls ($0.41-$0.42 debit). Walt Disney, Comcast, Home Depot, and Amazon.com make up more than 26% of the ETF.
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