Unusual Options Activity

1. Bank of America (BAC)- 6,000 Nov $18 calls were purchased for $0.69, against open interest of 140,402 contracts. Also, there was bullish flow into the Aug 21 $18 calls.  Q2 results came in better than expected today (topping both the top and bottom Wall Street estimates).
2. Centene (CNC)- The Sep $67.50/$80 bull risk reversal was put on another 1,000 times for a $1.10. This was done 4,000 times earlier this month. They agreed to acquire Health Net for $6.8B in a cash and stock deal earlier this month.
3. Hovnanian Enterprises (HOV)- More than 4,000 Nov $2 puts were purchased for $0.15-$0.20. The long-term downtrend remains intact as EPS estimates for 2015 and 2016 continue to be revised lower nearly every month ($0.05 to -$0.11 for 2015 estimates in just 3 months).
4. Coca-Cola (KO)- There was a likely rollout from 10,016 Aug 21 $41 calls ($1.00 credit) into 15,000 Aug 21 $42 calls ($0.54 debit). Volume was below the open interest in both options. Q2 earnings are due out on July 22nd. Yesterday, UBS upgraded the stock to buy from neutral with a 12-month price target of $48. They cited pricing/productivity and long-term international trends.
5. NewLink Genetics (NLNK)- There was a rollout from 1,953 Aug $40 calls ($13.70 credit) into 1,953 Aug $45 calls ($9.50 debit). The Aug $40 calls were bought for $7.00 on July 10th. Shares broke out above $48 on July 13th (resistance now at $57-$58). They had their Investor Day yesterday.

BAC CNC HOV KO NLNK unusual options activity