2015-07-20 Unusual Options Activity (AKS) (AMD)
Posted on July 20th, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-07-20 Unusual Options Activity (AKS) (AMD)
Unusual Options Activity
- AK Steel (AKS)- There was a rollout from 16,431 Sep $3 puts ($0.47 credit) into 32,177 Jan 2016 $2 puts ($0.24 debit). Steel prices are hitting multi-year lows and EPS estimates continue to be revised lower because of it (-$0.47 to -$0.90 for 2015 in just three months).
- Advanced Micro Devices (AMD)- There was a rollout from 10,029 Oct $2 puts ($0.32 credit) into 20,058 Jan 2016 $1.50 puts ($0.16 debit). On July 17th, Citigroup lowered their price target to $1.50 from $2 citing market share loss, burning through their cash, and weak PC demand.
- Baxter International (BAX)- 15,000+ Aug 21 $38.50 calls were purchased for $0.48. Earnings are due out on July 29th. They spun off Baxalta, a developer new treatments for people with orphan diseases and underserved conditions, last month.
- Citigroup (C)- 10,000+ Sep $60 calls were bought for $1.15-$1.23, against open interest of 16,355 contracts. The bank trades at a P/E ratio of 9.91x (2016 estimates), price to sales ratio of 2.56x, and a price to book ratio of 0.88x. Last week, shares broke out above the $57 level, which sets up for a move to $60+ later in the year.
- PayPal (PYPL)- The Aug $40 straddle was put on 3,000 times for a $4.00 credit. He/she thinks the recent EBAY spinoff won’t move above $44 or below $36 by August options expiration (trade is profitable between that range).
Options Reports (20-40+ large trades per day, open interest updates, and a list of notable activity I’m monitoring) are included in my ORM Equity/Option Trader Subscription Service for $9.99 per month (join now!).
1 On 1 Options Mentoring: Learn more about my 1 on 1 equity/options mentoring courses that help can you improve your trading odds and risk management skills (two hour courses start at $99).
Feel free to email me (Mitchell@OptionsRiskManagement.com) anytime if you have questions about my subscription service or mentoring courses, I’d be happy to help.