2015-04-23 Unusual Options Activity (BAC) (EBAY)

Posted on April 23rd, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-04-23 Unusual Options Activity (BAC) (EBAY)

Unusual Options Activity

  1. Bank of America (BAC)- 25,000 Aug $17 calls were purchased for $0.27-$0.28, against open interest of 95,783 contracts. Roughly 50,000 were bought yesterday for $0.24-$0.29. Following the Q1 earnings report on April 15th, Jefferies, BMO Capital, Barclays, and Oppenheimer all lowered their price targets by $1, but still see upside to $18-$21 depending on the analyst.
  2. eBay (EBAY)- More than 7,000 June $60 calls have traded with the majority being purchased for $1.62-$1.67, against open interest of 3,008 contracts. The company beat Q1 EPS estimates by $0.07 last night. PayPal sales rose 14% to $2.11B, now eclipsing eBay marketplace sales.
  3. Gap (GPS)- Over 5,000 May 15 $40 puts have traded with the majority being bought for $0.47-$0.53. Q1 earnings aren’t due out until May 21st, but this could be a hedge or a bearish on April comps since we’re nearing the end of the month.
  4. Coca-Cola (KO)- Roughly 3,500 July $44 calls were bought for $0.23-$0.26, against open interest of 9,200 contracts. 9,000 were bought yesterday for $0.23-$0.27. Yesterday, they reported a Q1 EPS and revenue beat despite currency headwinds.
  5. Scientific Games (SGMS)- 4,000 May $12 puts were sold for $0.75-$0.78. Q1 earnings are due out in the first full week of May (shares have moved higher on 4 out of the last 7 reports). He/she sees any downside being limited to the $12 level through May options expiration.
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