2015-05-20 Unusual Options Activity (ACHN) (BRCD)

Posted on May 20th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-05-20 Unusual Options Activity (ACHN) (BRCD)

Unusual Options Activity

  1. Achillion Pharmaceuticals (ACHN)- 17,500+ Jan 2016 $15 calls were sold for $0.60-$0.70, against open interest of 25,897 contracts. Analysts see the licensing partnership with JNJ/ACHN as a sign that Achillion isn’t a takeover target. UBS downgraded them to neutral this morning.
  2. BGC Partners (BGCP)- Another 7,000 Aug $10 calls were sold for $0.20, against open interest of 20,125 contracts. They’re beginning to sell these quickly (open interest was 36,690 contracts on May 6th).
  3. Brocade Communications Systems (BRCD)- 4,500 June $13 calls were bought for $0.19-$0.24. Earnings are due out tomorrow night (up on 4 of the last 7 reports).
  4. Southwest Airlines (LUV)- Large buying in the July $37 puts (10,000+ traded) and July $38 puts (4,000+ traded). Put activity was 6x the average daily volume. Management said last night that they see revenue per available seat down 3% this year. The rise in oil today isn’t helping the stock either.
  5. Omnicare (OCR)- 1,250 June $100 calls were bought for $1.62-$1.70, against open interest of 1,976 contracts. Large open interest remains in June $90 and $95 calls. In April, Bloomberg reported that CVS Health and Express Scripts are interested in acquiring them (would likely take $100-$105 offer).
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