Unusual Options Activity

1. Ascena Retail Group (ASNA)- 10,000 June $14 puts were purchased for $0.35-$0.40. Typically trades 123 puts per day. Earnings are due out in early June. Given the weak April comps out of $GPS last night, the Lane Bryant, Maurices, and dressbarn stores may disappoint as well.
2. Himax Technologies (HIMX)- More than 14,000 Sep $7 calls have traded with the majority being bought for $0.45-$0.50. Earnings are due out on May 14th. The stock is down about $2 year to date. Yesterday, they raised their quarterly dividend to $0.30 from $0.27 (4.38% yield at $0.27).
3. Ingersoll-Rand (IR)- 1,000+ May $67.50 calls were purchased for $0.35-$0.40. This is a short-term bet going into options expiration.
4. Southern (SO)- Nearly 20,000 June $43 puts were bought $0.96-$1.14 early this morning. Put activity was 20x the average daily volume. The rise in bond yields across the globe lately (especially US) is making dividends from utilities like Southern less attractive.
5. Wal-Mart Stores (WMT)- Roughly 5,000 May 22 weekly $79 calls were bought for $1.07-$1.45. Earnings are due out on May 19th. The call buyer is likely making a direct bet on earnings given the chosen options expiration. A weekly close above the 10-week EMA would be significant since the stock hasn’t done so in three months.

ASNA HIMX IR SO unusual options activity WMT