Options Risk Management

2015-08-28 Options Report (CCUR) (SPWR)

Posted on August 28th, by Mitchell Warren in Options Reports, Options Risk Management, Premium Articles, Unusual Options Activity. Comments Off on 2015-08-28 Options Report (CCUR) (SPWR)

Options Report

Update On Options Risk Management

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ORM Update

I will have the final Options Report and Weekend Market Update out this weekend. Both of these posts won’t be under the paywall (no need to login), so that you’ll be able refer to them several weeks/months down the road. However, they will not be updated.

Open Interest Updates From The Previous Trading Days Action

  1. HomeAway (AWAY)- Oct $30 call open interest went from 6,769 to 10,649 contracts (bought yesterday).
  2. New Gold (NGD)- Sep $2 call open interest went from 4,529 to 10,011 contracts (bought yesterday).
  3. Pandora (P)- Jan 2016 $22 call open interest went from 9,814 to 24,717 contracts (bought as part of a call rollout yesterday).
  4. Perrigo (PRGO)- Nov $200 call open interest went from 2,933 to 4,933 contracts (bought as part of a bull call spread risk reversal yesterday).
  5. Tetraphase Pharmaceuticals (TTPH)- Sep $45 call open interest went from 2,015 to 2,984 contracts (bought yesterday).
  6. Twitter (TWTR)- Jan 2017 $35 call open interest went from 124,043 to 129,997 contracts (bought yesterday).
  7. Xerox (XRX)- Oct $11 call open interest went from 69,390 to 95,415 contracts (bought as part of a 1×2 ratio call spread yesterday).

New Options Trades Today (Top Action: ABT, ASNA, BSX, CCUR, LL, MRO, SPWR, TIF, TROV, URBN, and XRX)

  1. Alcoa (AA)- 15,000+ Sep 4 weekly $9.50 calls were purchased for $0.13-$0.23. Shares rallied above the middle Bollinger Band (20-day SMA) today on heavy volume.
  2. Abbott Laboratories (ABT)- There was sizable buying in the Sep $46 calls (8,300+ traded) and Oct $47 calls (3,000+ traded). Implied volatility rose 34.5% to 38.19. Yesterday, there were reports that ABT was preparing a $25B bid for St. Jude Medical.
  3. Ascena Retail Group (ASNA)- 7,254 Sep $12 puts were bought for $0.60. Also, there was sizable buying in the Oct $11 puts (1,200+ traded) and Oct $12 puts (4,300+ traded). On August 27th, 4,000 Oct $12 puts were bought for $1.00-$1.15. Earnings are due out on September 21st.
  4. Franklin Resources (BEN)- 5,000 Apr 2016 $45 calls were purchased for $1.75-$1.90. On August 14th, 6,000 Jan 2016 $49.50 calls were bought for $0.55-$0.60.
  5. United States Brent Oil Fund (BNO)- There was a rollout from 2,249 Sep $15 calls ($2.37 credit) into 6,941 Sep $18 calls ($0.65 debit). This is a Brent crude oil fund.
  6. Boston Scientific (BSX)- 2,000 Nov $18 calls were purchased for $0.58, against open interest of 1,970 contracts. Yesterday, Goldman Sachs upgraded the stock to buy from neutral.
  7. Baxalta (BXLT)- 2,500 Sep $37.50 calls were bought for $1.20. Earlier today, Bloomberg reported that BXLT was looking at acquiring Ariad Pharmaceuticals.
  8. Concurrent Computer (CCUR)- 7,700 Dec $5 puts were sold for $0.30-$0.35. Typically trades 15 option contracts per day.
  9. GoDaddy (GDDY)- There was a rollout from 1,050 Sep $29 puts ($3.90 credit) into 1,800 Sep $26 puts ($1.80 debit). They paid $2.75-$2.80 for the Sep $29 puts on August 6th.
  10. GrubHub (GRUB)- 3,000 Sep $30 calls were bought for $0.50-$0.90. This week, the stock traded below the 2014 IPO price (all-time low).
  11. Lumber Liquidators (LL)- 2,500 Jan 2016 $15 puts were purchased for $3.39-$3.40, against open interest of 10,684 contracts. 10,000 were bought yesterday as well.
  12. Marathon Oil (MRO)- 9,300+ Sep 4 weekly $17.50 calls traded with the majority being purchased for $0.23-$0.44. Implied volatility spiked 30.4% to 73.81.
  13. Sprint (S)- More than 20,000 Oct 16 $5 puts were bought for $0.39. Put activity was 8x the average daily volume.
  14. SandRidge Energy (SD)- 10,000 Oct 16 $0.50 calls were bought for $0.15. The stock has bounced off of multi-year lows, but the trend remains lower.
  15. Seadrill (SDRL)- 6,000+ Sep 18 $8.50 calls traded with the majority being purchased for $0.20-$0.45. Last night, they topped Q2 EPS estimates by $0.12.
  16. SunPower (SPWR)- There was sizable buying in the Sep 18 $23.50 calls (1,700+ traded), Sep 18 $24 calls (2,500+ traded), and the Sep 18 $25 calls (5,400+ traded). Call activity was over 5x the average daily volume. Earnings growth is projected to be in the mid-teens for the next 2 years.
  17. Tiffany & Co (TIF)- The Sep $85/$87.50 1×2 ratio call spread was put on 4,000 times for a $0.05 credit. Shares are trying to bottom once again at the $82 level.
  18. T-Mobile US (TMUS)- The Nov $40 straddle was put on 10,000 times for a $4.80 credit. He/she sees the stock hanging around $40 through November options expiration.
  19. TrovaGene (TROV)- The Jan 2016 $7.50/$10 bull call spread was put on 2,500 times for a $0.50 debit. Leerink Swann initiated them with an outperform rating and a $9 price target on August 14th. According to the Leerink report, “TROV is an early stage pure play in the cancer liquid biopsy market, a market with the potential in our view to be the largest in molecular diagnostics.” The analyst believes that there could be large market opportunity for the company’s products, while seeing TrovaGene as an early mover that has unique capabilities. While early studies have validated the test performance of the company’s pipeline products, more data is expected going forward. For now, the early performance of these product, when compared to the company’s plan, indicate clinical interest. The management team has already assembled to address the market opportunity.
  20. Transenterix (TRXC)- The Jan 2016 $2.50/$5 1×2 ratio call spread was put on 5,000 times for a $0.45 debit. Typically trades 22 calls per day.
  21. Urban Outfitters (URBN)- 5,000+ Sep $31 puts were purchased for $0.90-$0.95. They missed Q2 sales estimates on August 17th. Shares are retesting the downtrend resistance today.
  22. United States Oil Fund (USO)- The Oct 16 $12.50/$14 bear put spread was put on 50,000+ times for a $0.42-$0.45 debit. He/she sees oil retesting the August lows in the next couple of months.
  23. Xerox (XRX)- There was a likely rollout from 4,137 Sep $12 calls ($0.10 credit) into 4,137 Sep $11 calls ($0.24 debit). Large open interest remains in the Sep and Oct calls. Rumors have been that they are going to break up the company.

Notable List Of Equities/ETFs I’m Tracking With Unusual Options Activity

  1. AbbVie (ABBV)- 8,000 Jan 2016 $70 calls were purchased for $3.80 on June 8th too, against open interest of 30,618 contracts. Roughly 14,000 were bought on June 5th for $3.40-$3.50. Jefferies maintained their buy rating this morning; upped their price target to $90 from $86.
  2. Aetna (AET)- There was a likely rollout from 4,000 Sep 18 $105 puts ($0.65 credit) into 4,000 Sep 18 $115 puts ($3.30 debit) on August 21st. If the test of the 100-day SMA doesn’t end up holding then buying these puts makes sense for a play to $110 or below. They are in the process of acquiring Humana for $34B.
  3. American International Group (AIG)- On April 8th, there was a rollout from 42,985 Jan 2016 $60 calls ($1.80 credit) into 42,985 Jan 2017 $60 calls ($4.50 debit). A rollout from 5,000 May 15 $55 calls ($2.65 credit) and 10,000 May 15 $57.50 calls ($1.12 credit) into 15,000 Jan 2016 $60 calls ($2.48 debit) on April 13th. Analysis of (AIG) from April 13th
  4. Ally Financial (ALLY)- 9,919 Jan 2016 $20 puts were bought for $0.70 on August 11th, against open interest of 13,967 contracts. On August 10th, 12,500 of these were bought for $0.60. The downtrend since the IPO last year remains intact.
  5. JPMorgan Alerian MLP Index ETN (AMJ)- On August 5th, there was sizable buying in the Sep $34 puts (10,000 traded), Sep $36 puts (2,400+ traded), and Sep $37 puts (6,100+ traded). On August 6th, there was a rollout from 10,000+ Aug $38 puts ($3.02-$3.73 credit) and 3,000+ Sep $37 puts ($3.59-$3.85 credit) into 15,000 Sep $34 puts ($1.45-$1.95 debit).
  6. Ascena Retail Group (ASNA)- 4,000 Oct $12 puts were purchased for $1.00-$1.15 on August 27th. Earnings are due out on September 21st.
  7. Atmel (ATML)- Another 11,000+ Sep $8 calls were bought for $0.45-$0.50 on August 19th, against open interest of 33,408 contracts. There’s been big buying since August 12th.
  8. HomeAway (AWAY)- Another 2,500 Oct $30 calls were purchased for $1.50 on August 27th, against open interest of 6,769 contracts. This was tied to a sale of 112,500 shares.
  9. Baxter International (BAX)- On August 5th, there was a likely rollout from 5,696 Aug 21 $40 calls ($2.45 credit) into 8,142 Jan 2016 $42.50 calls ($2.45 debit). Third Point disclosed a 7% stake in the company today.
  10. Best Buy (BBY)- The Sep 18 $28.49/$35.49 bull risk reversal was put on 3,000 times for a $0.09 credit on August 13th. On August 14th, the Sep 18 $29.49/$35.49 bull risk reversal was put on 3,000 times for a $0.02 credit.
  11. Strategic Hotels & Resorts (BEE)- 10,000+ Dec $15 calls were purchased for $0.45-$0.65 on August 10th. Call activity was 63x the average daily volume. The hotel REIT reportedly hired a bank to help them explore a sale of the company last month. eBay founder Pierre Omidyar is interested. Bill Gates’s Cascade Investment added to their position (now a 9.8% stake after today’s disclosure).
  12. Franklin Resources (BEN)- 6,000 Jan 2016 $49.50 calls were bought for $0.55-$0.60 on August 14th. Call activity was 38x the average daily volume.
  13. Ball Corp (BLL)- 2,428 Feb 2016 $72.50 calls were purchased for $2.60 and 2,428 Sep $62.50 puts were sold for $0.90-$0.95 on July 27th. Over 12,000 remain in open interest in the Feb $72.50 calls from buying in recent months. They are trying to acquire Rexam (would combine the two largest can makers in the world), but there are still regulatory hurdles to overcome.
  14. Baxalta (BXLT)- The Feb 2015 $35/$40 bull risk reversal was put on 2,350 times for a $1.50 debit on August 13th. On August 4th, Shire made a $30.6B offer for BXLT (current market cap of $26B). Now there were reports today for $50 per share. On August 14th, 1,000 Sep $40 calls were purchased for $2.00, against open interest of 4,690 contracts.
  15. Chesapeake Energy (CHK)- A rollout from 5,000 Jan 2016 $12 puts ($2.07 credit) into 10,000 Jan 2016 $10 puts ($1.06 debit) on June 25th. Major support isn’t until the 2008 lows near $8.50. Another 10,000+ Jan 2016 $10 puts were purchased for $1.19-$1.25 on June 26th, against open interest of 73,248 contracts. 10,000 Oct $10 puts were purchased for $1.13 on July 17th, against open interest of 14,611 contracts. They are projected to lose $0.21 and $0.19 in EPS this year and next year, respectively. On July 13th, Barclays reiterated their sell rating and lowered their price target to $7 from $10. On July 23rd, there was a rollout from 11,700 Oct $11 puts ($2.69 credit) into 24,500 Oct $8 puts ($1.00 debit). Also, 26,000 Jan 2016 $7 puts were bought for $1.30. On July 28th, there was a rollout from 60,000 Sep 18 $8 puts ($1.15 credit) into 60,000 Sep 18 $6 puts ($0.54 debit). On August 14th, 12,000 Oct $7 puts were bought for $0.84, against open interest of 23,344 contracts. This was part of a rollout from August puts.
  16. Comerica (CMA)- There was a rollout from 29,446 Jan 2016 $55 calls ($0.43 credit) into 33,446 Jan 2016 $50 calls ($1.32 debit) on August 27th.
  17. ConocoPhillips (COP)- There was a rollout from 19,000+ Sep 18 $47.50 puts ($4.06-$4.28 credit) into 19,000+ Sep 18 $43 puts ($1.61-$1.73 debit) on August 24th. Options traders are still betting that the bottom isn’t in yet for oil & gas stocks.
  18. Cash America International (CSH)- Roughly 4,000 Sep $25 puts were bought for $1.45-$1.60 on June 30th, against open interest of 7,529 contracts. 3,000 were bought yesterday for $1.20-$1.25.
  19. Cablevision Systems (CVC)- 4,000 Dec $27 calls were purchased for $1.35-$1.45 on July 8th. Another 2,218 Dec $27 calls were bought for $1.40 later in the afternoon, now up to 10,000+ traded. Some see them as the next cable M&A target (possibly Altice). On July 16th, there was large buying in the Sep $30 calls (12,800+ traded) and Dec $30 calls (3,500+ traded).
  20. CVR Refining (CVRR)- 2,500 Jan 2016 $20 calls were purchased for $1.00 and 2,000 Jan 2016 $17.50 puts were sold for $1.35 on June 11th.
  21. CVS Health (CVS)- 4,200 Oct 2 weekly $96 puts were sold for $1.70 on August 24th. Put sellers have consistently targeted the stock and especially on weakness.
  22. Chevron (CVX)- 8,000 Oct 16 $75 puts were purchased for $1.25-$1.27 on August 19th. The stock is trading at 3+ year lows after this week’s decline (today’s weekly crude oil inventory numbers didn’t help).
  23. Delphi Automotive (DLPH)- There was a rollout from 3,454 Aug $75 puts ($1.55 credit) into 2,500 Sep $70 puts ($1.75 debit) on August 21st. Weakness in the market lead to a break down below the $74.70 level.
  24. Devon Energy (DVN)- There was a rollout from 5,490 Jan 2016 $42.50 puts ($7.55 credit) into 6,570 Jan 2016 $35 puts ($3.35 debit) on August 26th. Oil stocks are seeing some buying pressure today after news of SLB acquiring CAM in a stock and cash deal.
  25. Electronic Arts (EA)- There was a rollout from 2,590 Jan 2016 $65 calls ($12.40 credit) into 3,100 Jan 2016 $80 calls ($4.20 debit) on August 5th. On July 30th, they topped Q1 estimates and upped their FY16 guidance thanks to hype from “Star Wars”.
  26. Fastenal (FAST)- 5,000 Sep $40 puts were purchased for $0.65 on August 5th. On August 24th, there was a rollout from 3,700+ Sep $40 puts ($2.50 credit) into 3,700+ Sep $38 puts ($1.40 debit). Also, there was a rollout from 5,000 Sep $40 puts ($2.55 credit) into 5,000 Sep $37 puts ($1.05 debit). Today, Baird downgraded them from outperform to neutral.
  27. Fiat Chrysler Automobiles (FCAU)- 3,000 Jan 2017 $20 calls were purchased for $1.77-$1.90 on June 11th, against open interest of 8,171 contracts. The stock recently bounced off of the 100-day SMA. FCAU trades at a forward P/E ratio of 11.86x, 0.18x sales, and 1.20x book. Analysis of (FCAU) from June 11th
  28. FuelCell Energy (FCEL)- 5,000 Oct $1 puts were purchased for $0.34-$0.35. Typically trades 74 puts per day. This could be a bankruptcy bet.
  29. Freeport-McMoRan (FCX)- There was a rollout from 48,000 Jan 2016 $10 puts ($1.75 credit) into 72,000 Jan 2016 $8 puts ($0.90 debit) on August 12th. On August 18th, 10,000+ Sep 18 $10 puts were purchased for $0.89-$0.92, against open interest of 5,852 contracts. Overall options activity has been net bearish in recent months.
  30. Ferrellgas Partners (FGP)- There was a rollout from 2,500 Aug $22.50 puts ($1.75 credit) into 3,100 Nov $20 puts ($1.05-$1.10 debit) on August 17th. Major support is down at the $19 level.
  31. Gap (GPS)- There was a rollout from 11,228 Sep 18 $35 puts ($1.04 credit) into 33,000+ Sep 18 $34 puts ($0.72-$0.84 debit) on August 11th. Last night, they reported a small decline in July comps and issued weak Q2 guidance.
  32. General Electric (GE)- The Jan 2017 $30/$35 bull call spread was put on 125,000 times for a $0.52 debit on February 27th. Analysis of (GE) from July 7th
  33. General Mills (GIS)- More than 3,000 Sep $60 calls were purchased for $0.55-$0.60 on July 23rd, against open interest of 2,225 contracts. There was sizable call buying on July 20th too. On July 21st, RBC Capital upgraded the stock to outperform with a $65 price target.
  34. GNC Holdings (GNC)- They missed Q1 earnings and sales estimates plus issued weak FY15 EPS guidance. However, the stock is finding buyer at $41 today. On May 1st, 7,500 Jan 2017 $47.50 calls were bought for $6.20. On May 4th, 7,000 Jan 2016 $47.50 calls were purchased for $3.30. On May 22nd, the Sep $42.50/$47.50 bull risk reversal was put on 2,500 times for a $0.45 debit.
  35. Generac (GNRC)- 1,500+ Sep $30 calls were bought for $0.64-$1.10 on August 26th. Call activity was 16x the average daily volume. On August 6th, the company missed Q2 estimates and issued weak FY15 guidance. They authorized a $200M share repurchase program. The stock has been crushed lately, but heading into the hurricane and winter season this could see a nice bounce off of the lows.
  36. Graphic Packaging (GPK)- The Dec $12.50/$15 bull risk reversal was put on 12,000 times for a $0.30 debit on June 9th. Options activity was 125x the average daily volume. GPK is once again trying to attract buyers on the pullback to $14. Analysis of (GPK) from June 9th
  37. Gulfport Energy (GPOR)- 3,000 Oct $35 puts were purchased for $1.80-$1.90 on July 1st. Shares are setting up for a retest of the 2015 low of $35.
  38. Halliburton (HAL)- 20,000+ Oct 16 $40 calls were purchased for $1.38-$1.50 on August 27th. The 8%+ rebound in oil prices today is helping the overall sector.
  39. WisdomTree Europe Hedged Equity Fund (HEDJ)- Another 5,500+ Feb $65 calls were purchased for $3.60-$3.70 on July 13th, against open interest of 61,124 contracts. Since June 29th there has been sizable buying in these calls.
  40. Hartford Financial Services (HIG)- On August 17th, there was a rollout from 9,000 Aug 21 $49 calls ($0.73 credit) into 9,000 Sep 18 $50 calls ($1.48 debit). On August 18th, there was a rollout from 15,000 Aug 21 $49 calls ($0.86 credit) into 15,000 Sep 18 $50 calls ($1.61 debit). Analysis of (HIG) from July 1st
  41. Hilton Worldwide (HLT)- 5,000+ Jan 2016 $35 calls were bought for $1.42-$1.45 on April 13th, against open interest of 3,011 contracts. 2,500 were bought on April 10th for $1.35 too. On April 17th, another 2,400 Jan 2016 $35 calls were bought for $1.35. On April 20th, another 6,386 Jan 2016 $35 calls were bought for $1.60, against open interest of 16,804 contracts. On May 21st, 5,000 Oct $29 calls were purchased for $2.14-$2.15.
  42. Starwood Hotels & Resorts Worldwide (HOT)- More than 8,000 Sep $75 calls traded with the majority being bought for $2.79-$3.80 on August 12th. Implied volatility spiked 15.7% to 35.28. Back in April, the luxury hotel operator said they were exploring strategic alternatives (including a sale of the company).
  43. Helmerich & Payne (HP)- Another 2,000+ Sep $60 puts were bought for $3.40-$3.80 on July 17th, against open interest of 4,252 contracts. More than 4,000 were purchased on July 15th and 16th.
  44. Heron Therapeutics (HRTX)- A rollout from 2,500 Sep $17.50 calls ($6.80 credit) into 5,000 Sep $25 calls ($3.40 debit) on June 2nd. Later in the day, there was another rollout from 1,250 Sep $17.50 calls ($6.35 credit) into 2,500 Sep $25 calls ($3.05 debit). On June 23rd, there was a rollout from 2,500 Sep $27.50 calls ($4.55 credit) into 3,500 Oct $35 calls ($7.00 debit). On July 24th, there was a rollout from 2,000 Sep $25 calls ($7.90 credit) into 3,000 Oct $35 calls ($4.90 debit). On July 23rd, they initiated a 2nd Phase 2 clinical trial of HTX-011 (post-operative pain). On July 30th, there was a rollout from 2,000 Sep $25 calls ($7.75 credit) into 3,300 Oct $35 calls ($5.25 debit). On August 12th, the Oct $25/$30/$45 bull call spread risk reversal was put on 5,000 times for a $0.40 debit. This involves buying the Oct $30 calls and selling the Oct $25 puts and $45 calls to reduce the cost of the trade. On August 21st, 5,000 Oct $40 calls were bought for $4.40-$4.50.
  45. Headwaters (HW)- 1,300+ Nov $21 calls were purchased for $0.55-$0.65 on July 20th. Call activity was 5x the average daily volume.
  46. Incyte (INCY)- The Jan 2016 $135/$165 bull call spread was put on 5,000 times for a $6.00 debit on August 27th. They have Phase 2, 3 data due out next year.
  47. International Paper (IP)- There was a rollout from 4,000 Sep 18 $46 puts ($2.20 credit) into 5,000 Sep 18 $43 puts ($0.98 debit) on August 21st. The stock has fallen 4 straight days, which resulted in a drop below the $46 support level.
  48. JetBlue Airways (JBLU)- 3,000 Jan 2016 $24 calls were purchased for $1.80 on July 20th. Shares recently broke out above the $22 resistance level.
  49. J.C. Penney (JCP)- Roughly 8,700 Sep 11 weekly $8.50 calls were purchased for $0.33-$0.35 on August 19th. On August 17th, B. Riley initiated the stock with a buy rating and a $12.50 price target. Q2 comps were up 4.1% and on August 14th, the retailer reaffirmed FY16 guidance.
  50. JD.com (JD)- 9,500 Sep 11 weekly $25.50 puts were purchased for $0.80-$0.85 on August 11th. On August 7th, they topped Q2 estimates, but the Q3 guidance (mid-point) was slightly below Wall Street estimates. Alibaba is going more heavily into electronics (JD.com’s primary market). The stock is breaking down through the $29 support level and the 200-day simple moving average.
  51. Jive Software (JIVE)- On August 14th, roughly 13,000 Sep $4 puts were sold for $0.10-$0.15.
  52. KKR & CO (KKR)- Another 10,000 Dec $21 calls were purchased for $0.65-$0.70 on August 21st, against open interest of 10,410 contracts. 10,000 of these were bought for $0.80 on August 20th.
  53. Kroger (KR)- 7,000+ Sep $37.50 calls traded with a large percentage being purchased for $1.25-$1.30 on August 19th, against open interest of 11,143 contracts. There was sizable buying in these on July 27th and August 11th. Also, today, nearly 6,000 Oct $36.25 puts were purchased for $1.05-$1.20. Earnings are due out on September 11th.
  54. Lumber Liquidators (LL)- 10,000 Jan 2016 $15 puts were bought for $3.30 on August 27th. Stock is off of the August lows, but negative press/potential lawsuits still loom over the company.
  55. Laredo Petroleum (LPI)- There was a rollout from 8,000 Aug $9 puts ($0.15-$0.20 credit) into 8,000 Sep $9 puts ($0.70-$0.80 debit) on August 17th. Shares snapped an 8 week losing streak, but the long-term downtrend is still in place.
  56. Lam Research (LRCX)- There was a rollout from 3,583 Aug $75 puts ($4.02 credit) into 4,500 Sep $72.50 puts ($3.70 debit) on August 12th. Major support is down around the $69-$70 level.
  57. Mattel (MAT)- The Jan 2016 $18/$25 bear put spread was put on 3,153 times for a $2.00 debit on June 4th. Shares trade at a rich 18.87x 2015 earnings for a company that is expected to see both the top and bottom shrink compared to 2014. The long-term downtrend remains intact (next major support level is at the April lows near $22). Analysis of (MAT) from June 4th
  58. Mondelez International (MDLZ)- 10,000 Oct $37 puts were sold for $0.39-$0.41 on August 24th. He/she is using the pullback (and increase in implied volatility) to sell OTM puts for elevated premiums (sees limited downside).
  59. MGM Resorts International (MGM)- 4,000 Dec $21 calls were bought for $1.47 on August 24th, against open interest of 3,187 contracts. Shares made another sharp rally off of the intra-day test of $17 again.
  60. Monsanto (MON)- A rollout from 10,500 Jan 2016 $115 calls ($3.15 credit) into 8,000 Jan 2017 $115 calls ($7.45 debit) on June 25th. They issued weak Q4 guidance on June 24th, but are still pursuing a SYT takeover. On August 18th, there was a rollout from 4,000 Sep 18 $95 puts ($0.42 credit) into 4,000 Sep 18 $100 puts ($1.25 debit). Small rallies back to the middle Bollinger Bands (20-day SMA) has been low risk shorting opportunities since late May. On August 21st, there was a rollout from 4,000 Sep 18 $100 puts ($3.20-$3.25 credit) into 6,000 Oct 16 $90 puts ($1.31 debit).
  61. Merck (MRK)- The Jan 2016 $55/$60/$65 bull call spread risk reversal was put on 6,500 times for a $0.15 credit on August 3rd.
  62. Marathon Oil (MRO)- There was a rollout from 16,000 Jan 2016 $16 puts ($3.06 credit) into 19,000 Jan 2016 $13 puts ($1.44 debit) on August 26th. On August 24th, Bank of America downgraded them to neutral from buy and lowered their price target to $20 from $36.
  63. Navient (NAVI)- Nearly 3,000 Oct $12.50 puts were purchased for $0.70-$0.85 on August 24th. This would be the 8th straight weekly decline in the consumer lending company.
  64. National Fuel Gas (NFG)- The Jan 2016 $50/$65 bull risk reversal was put on 3,500+ times for a $0.40-$0.55 credit on July 23rd. This trade was done 4,000 times on July 21st and July 22nd.
  65. Oasis Petroleum (OAS)- 5,000 Nov $12 calls were purchased for $1.00-$1.20 on August 10th, against open interest of 3,266 contracts. On August 6th, Wunderlich upgraded to buy and raised their price target to $14 from $11.
  66. Market Vectors Oil Services ETF (OIH)- There was a rollout from 21,500 Oct $31 puts ($2.04 credit) into 34,000 Oct $29 puts ($1.19 debit) on August 4th. On July 22nd, the Oct $31 puts were bought for $1.60. On August 13th, 10,000 Sep 18 $30 puts were bought for $0.81-$0.86, against open interest of 12,746 contracts. On August 24th, there was a rollout from 34,000 Oct 16 $29 puts ($2.58 credit) into 45,000 Oct 16 $26 puts ($1.26 debit). They paid $1.19 for Oct 16 $29 puts on August 4th.
  67. PBF Energy (PBF)- The Jan 2016 $22.50/$35 bull risk reversal was put on 3,000 times for a $0.15-$0.30 credit on June 11th. Options activity was 37x the average daily volume. Shares are starting to find support at the uptrend line from October. On June 5th, Scotia Howard Weil added them as a Focus Stock; upped their price target to $35 from $32. Analysis of (PBF) from June 11th
  68. Progressive (PGR)- 12,000+ Nov $27 calls were bought for $1.40-$1.60 on June 10th. Call activity was 130x the average daily volume (IV +17% to 18.04). 10,000 Feb 2016 $30 calls were bought for $1.45 on July 15th. They are growing revenue in the high single digit range annually (trades at 0.89x sales). Analysis of (PGR) from July 15th
  69. PMC-Sierra (PMCS)- There was a rollout from 24,000 Jan 2016 $10 calls ($0.02 credit) into 24,000 Jan 2016 $8 calls ($0.25 debit) on August 10th. On July 23rd, they announced plans to reduce annual spending by 14% ($40M each year). This is a sizable amount for a $1B company.
  70. Post Holdings (POST)- There was a rollout from 7,300+ Sep $45 calls ($8.60 credit) into 14,000+ Dec $60 calls ($2.51 debit) on August 4th. On August 14th, there was a rollout from 4,085 Dec $50 calls ($13.80-$13.90 credit) into 10,000 Dec $70 calls ($3.40 debit). Shares broke out above the $60 resistance level this week.
  71. Potash (POT)- The Jan 2017 $20/$25 bear put spread was put on 6,000 times for a $2.09 debit on August 19th. This was part of a rollout from Jan 2016 puts. Analysis of (POT) from August 19th
  72. Rite Aid (RAD)- There was a rollout from 21,515 Aug 14 weekly $9 calls ($0.08 credit) into 21,515 Sep 18 $9 calls ($0.55 debit). Analysis of (RAD) from August 4th
  73. Royal Gold (RGLD)- 2,500 Oct $45 puts were sold for $2.05 on August 27th. In 2013, the stock bottomed at $41.53, but he/she thinks (roughly) $45 will be the low this through November options expiration.
  74. Transocean (RIG)- The Nov $9/$13 bear put spread was put on 14,000+ times for a $1.00-$1.02 debit on July 13th. On July 14th, the Nov $9/$13 bear put spread was put on another 8,500 times for a $0.96 debit and then an additional 8,500 times for a $0.97 debit around midday. On July 16th, the Nov $9/$13 bear put spread was put on another 5,500 times for a $1.17 debit. On July 17th, the Nov $9/$13 bear put spread was put on another 5,850 times for a $1.28 debit. On August 3rd, there was a rollout from 90,300 Nov $13 puts ($2.38  credit) into 90,300 Nov $12 puts ($1.88 debit). The Nov $13 put position was built up from July 10th through July 29th.
  75. Repros Therapeutics (RPRX)- More than 2,000 Nov $8 calls were bought for $2.00-$2.10 on July 28th. They have an advisory committee meeting and a PDUFA date in November.
  76. Sinclair Broadcast (SBGI)- The Jan 2016 $16/$23 bear put spread was put on another 5,000 times for a $1.45 debit on August 24th. This was done 20,000 times on Friday for a $1.20 debit.
  77. Six Flags Entertainment (SIX)- A rollout from 1,776 May $45 calls ($2.85 credit) into 1,776 Sep $45 calls ($3.90 debit) on May 12th. This trader has been rolling out a call positions for several months now. On May 15th, Wedbush initiated the stock with an outperform rating and a $58 price target. Analysis of (SIX) from May 12th
  78. St. Jude Medical (STJ)- The Oct $65/$75 bull risk reversal was put on 2,800+ times for a $0.05 debit on April 30th. On April 23rd, Piper Jaffrey upped their price target to $84 from $74. On May 29th, there was sizable buying in the July $75 calls (4,200+ traded).
  79. Steel Dynamics (STLD)- There was a rollout from 3,935 Aug $19 calls ($2.10 credit) into 5,000 Sep $21 calls ($1.00 debit) on August 17th. On July 20th, the company topped Q2 estimates, which led to S&P Capital IQ upping their 12-month price target to $26 from $25.
  80. Southwestern Energy (SWN)- 10,000+ Jan 2017 $15 puts were purchased for $2.62-$2.63 on August 4th. Earnings estimates for 2015 and 2016 are still in free fall due to the bear market in the oil & gas markets. SWN trades at a rich P/E ratio of 23.53x (2016 estimates).
  81. Molson Coors Brewing (TAP)-  More than 6,400 Oct $70 calls traded with the majority being purchased for $2.69-$2.90 on August 24th.
  82. TerraForm Power (TERP)- There was a rollout from 2,550 Sep $30 puts ($5.30 credit) into 4,250 Sep $25 puts ($2.25 debit) on August 7th. Last night, the company missed Q2 revenue estimates.
  83. Teva Pharmaceutical Industries (TEVA)- Also, there was a likely rollout from 17,300 Dec $70 calls ($3.45 credit) into 17,795 Dec $80 calls ($1.05 debit). They are buying Allergan’s generic business for $40.5B.
  84. TreeHouse Foods (THS)- The Nov $80/$90 bull call spread was put on 1,000 times for a $2.75 debit on August 19th. This trade was done a combined 2,300 times on August 13th and 17th. Coffee and egg pricing have dampened the company’s performance much of this year.
  85. TiVo (TIVO)- Roughly 3,800 Sep $9 puts were purchased for $0.16-$0.21 on August 11th. The one year downtrend remains intact; major support is down at the $8 level. Earnings are due out late this month.
  86. TJX Companies (TJX)- 4,500 Oct $65 calls were purchased for $3.60-$3.80 on June 3rd. On July 13th, 3,500 Aug $65 puts were sold for $0.66, against open interest of 3,285 contracts. Analysis of (TJX) from June 3rd
  87. iShares 20+ Year Treasury Bond ETF (TLT)- 10,000 Dec $115 puts were bought for $2.10 on August 26th. Some Wall Street firms (and ) believe China is selling large amounts of U.S. treasuries.
  88. Tangoe (TNGO)- 10,000 Sep $7.50 puts were sold for $0.25 on August 11th. On August 6th, they reported weak Q2 results and issued worse than expected Q3, FY15 guidance. Shares have been cut in half in the last few months, but this put seller is betting on the post-earnings collapse coming to an end. TNGO trades at a P/E ratio of 11.51x (2016 estimates), price to sales ratio of 1.43x, and a price to book ratio of 1.70x. Another 3,250 Sep $7.50 puts were sold for $0.30 on August 13th, against open interest of 10,260 contracts.
  89. Total S.A. (TOT)- 5,000 Nov $42.50 puts were purchased for $1.00-$1.05 on August 19th. Put activity was 16x the average daily volume.
  90. Tetraphase Pharmaceuticals (TTPH)- 1,000 Sep $45 calls were bought for $4.20 on August 27th, against open interest of 2,015 contracts. They have Phase 3 trial data due out by the end of September. Short interest is 7.5% of the float.
  91. Time Warner Cable (TWC)- There was a rollout from 4,650 July $180 calls ($4.75-$4.76 credit) into 25,000 Oct $200 calls ($1.55-$1.56 debit) on July 13th. TWC is nearing a breakout above the $184-$185 resistance level. CHTR and Time Warner Cable are in the process of merging. On July 15th, there was a rollout from 5,000 July $180 calls ($6.25 credit) into 20,000 Oct $200 calls ($3.55 debit).
  92. Twitter (TWTR)- Another 6,000+ Jan 2017 $35 calls were bought for $8.15 on July 1st, against open interest of 15,940 contracts. 11,000 were purchased on June 30th as well. On July 14th, another 5,719 Jan 2017 $35 calls were bought for $8.85, against open interest of 39,710 contracts. More than 10,000 Sep $45 calls traded with the majority being purchased for $0.67-$0.72 on July 23rd, against open interest of 10,244 contracts. On July 27th, another 5,895 Jan 2017 $35 calls were bought for $7.75, against open interest of 64,172 contracts. On August 27th, another 6,000 Jan 2017 $35 calls were purchased for $4.05-$4.10, against open interest of 124,043 contracts.
  93. TherapeuticsMD (TXMD)- The Oct $10/Dec $7.50 call calendar was put on 5,000+ times for a $1.60 debit on July 30th.
  94. Textron (TXT)- Over 4,000 Sep $40 puts were bought for $1.27-$1.32 on August 21st, against open interest of 2,294 contracts. Today, shares broke down below the $40.50 July support level. On July 28th, the company reported that Q2 sales were down 8.6% on year over year basis.
  95. U.S. Bancorp (USB)- On June 10th, 5,500 Sep $46 calls were purchased for $0.85-$0.94. On July 16th, there was a rollout from 2,632 July 17 $44 calls ($2.12 credit) into 2,700 Sep $45 calls ($1.82 debit). Analysis of (USB) from July 15th
  96. iShares MSCI USA Minimum Volatility Index Fund (USMV)- 2,250 Sep $41 calls were bought for $1.35-$1.40 on August 10th. This is a low volatility ETF for U.S. equities.
  97. Vipshop Holdings (VIPS)- Nearly 6,000 Sep 18 $19 puts were bought for $1.05-$1.20 on August 17th, against open interest of 8,443 contracts. Shares have been trading in a steady downtrend since April.
  98. Walgreens Boots Alliance (WBA)- There was a rollout from 17,500 Jan 2016 $75 calls ($17.93 credit) into 17,500 Jan 2016 $95 calls ($4.85 debit). The stock is bouncing off of support at the 50-day EMA and the $92 level. Analysis of (WBA) from August 12th
  99. Waste Connections (WCN)- A rollout from 6,441 June $45 calls ($2.40 credit) into 6,441 Dec $45 calls ($3.80 debit) on May 7th. On April 29th, Imperial Capital raised their price target to $54 from $51. Waste companies have saw big call buying lately.
  100. Workday (WDAY)- There was a rollout from 18,000 Jan 2016 $85 calls ($4.10 credit) into 6,000 Jan 2017 $80 calls ($13.85 debit) on August 27th. On August 26th, the company reported a surprise Q2 profit and a 51% revenue increase, topping analyst estimates.
  102. Weatherford International (WFT)- 4,000 Jan 2017 $10 puts were bought for $1.47 on July 1st. On July 21st, 20,000 Jan 2017 $8 puts were bought for $0.95. On August 12th, there was a rollout from 6,000 Aug 21 $10.50 puts ($0.43 credit) into 4,500 Sep 18 $11 puts ($1.03 debit). On August 18th, 30,000 Sep 18 $9 puts were purchased for $0.39-$0.45. Analysis of (WFT) from July 1st
  103. WhiteWave Foods (WWAV)- A rollout from 3,000 July $45/$50 call spreads ($1.75 credit) into 2,000 Oct $47.50/$55 call spreads ($2.20 debit) on April 6th. Last week’s Q1 report reaffirms my belief that they could be an attractive target of a bigger food/beverage company. Last fall, Stifel (buy rating) highlighted WhiteWave as an M&A target of the larger beverage companies. On June 4th, 4,000 Oct $50/$60 bull call spreads were put on for a $2.15 debit. On July 6th, there was a rollout from 6,000 July $50 calls ($0.65-$0.70 credit) into the Oct $45 calls (1,700+ traded) and Oct $50 calls (4,100+ traded).
  104. Energy Select Sector SPDR Fund (XLE)- On August 26th, there was a rollout from 60,000 Sep 30 Q $64 puts ($4.60-$5.45 credit) into nearly 40,000 Oct 16 $58 puts ($2.25 debit). They paid $0.86-$2.82 for those Sep 30 Q $64 puts throughout August. Exxon Mobil, Chevron, Schlumberger, and Kinder Morgan are 40%+ of the ETF.
  105. Industrial Select Sector SPDR Fund (XLI)- Another 7,000+ Sep $55 puts were bought for $1.37-$1.38 on July 20th, against open interest of 79,683 contracts. Also, there was a rollout from 80,845 Sep 18 $55 puts ($2.10 credit) into 129,300 Sep 4 weekly $53.50 puts ($1.09 debit). The Sep 18 $55 puts were initially bought for $1.37-$1.38 within the previous week. On August 19th, there was a rollout from 10,000 Aug 21 $54 puts ($0.25-$0.27 credit) into 10,000 Aug 28 weekly $53.50 puts ($0.33-$0.37 debit). There was a similar roll on August 18th into the Aug 28 weekly $54 puts done 15,000 times. On August 27th, there was a rollout from 10,000 Sep 4 weekly $49 puts ($0.22 credit) into 10,000 Sep 11 weekly $50.50 puts ($0.71 debit). The top holdings are GE MMM UTX BA UNP HON UPS DHR CAT and LMT.
  106. Xilinx (XLNX)- Over 7,000 Jan 2016 $45 calls were purchased for $2.60-$3.00 on April 10th, against open interest of 6,301 contracts. On April 13th, another 6,000+ Jan 2016 $45 calls were purchased for $3.04-$3.10. On August 18th, the Dec $36/$47 bull risk reversal was put on 5,500 times for a $0.58 debit. On August 19th, roughly 14,000 Sep 18 $40 puts were bought for $0.39-$0.46.
  107. Health Care Select Sector SPDR Fund (XLV)- 11,000+ Sep $77 puts were purchased for $1.89 on July 21st. The healthcare ETF could retest the 50-day EMA (around $75) in the near-term. Johnson & Johnson, Pfizer, Gilead Sciences, and Merck account for more than 28% of the weighting.
  108. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)- There was a rollout from 18,180 Sep 18 $39 puts ($3.20 credit) into 28,800 Sep 18 $36 puts ($1.78 debit) on August 3rd. On July 22nd, those Sep 18 $39 puts were bought for $2.12. On August 13th, there was a rollout from 8,100 Aug 21 $37.50 puts ($0.40 credit) into 5,500 Sep 11 weekly $38.50 puts ($1.61 debit). On August 21st, there was a rollout from 5,500 Sep 11 weekly $38.50 puts ($3.59 credit) into 8,000 Sep 11 weekly $35 puts ($1.60 debit). On August 24th, there was a rollout from 9,000 Sep 18 $38 puts ($4.70 credit) into 13,500 Sep 18 $29/$34 bear put spreads ($1.67 debit). He/she is taking some profits on their puts, but still sees additional downside risk.
  109. XPO Logistics (XPO)- The Feb 2015 $45/$55 bull call spread was put on 3,000 times for a $2.10 debit on August 18th. On August 21st, the Feb 2015 $45/$55 bull call spread was put on another 3,000 times for a $1.35 debit. This was tied to 47,600 shares. On August 11th, Deutsche Bank raised their price target to $59 from $58. On August 27th, the Nov $30/$40/$45 bull call spread risk reversal was put on 3,500 times for a $0.20 credit.
  110. SPDR S&P Retail ETF (XRT)- The Sep 18 $89/$94 bear put spread was put on 6,000 times for a $0.77-$0.78 debit on August 10th. This trade was done 19,000 times on August 7th as well. On August 17th, there was a rollout from 7,500 Aug 21 $97.50 puts ($0.80 credit) into 7,500 Sep 18 $92/$97 bear put spreads ($1.38 debit). On August 21st, the Sep 11 weekly $88/$92.50 bear put spread was put on 5,000 times for a $1.25 debit. Top holdings include AMZN NFLX NTRI WBA EXPE BURL and PSMT.
  111. Xerox (XRX)- There was sizable buying in the Oct $11 calls (6,500+ traded) on July 17th. Today, they said they will book a $145M software impairment charge as they will refocus their government healthcare business. On June 22nd, Susquehanna reiterated their buying rating and a $16.50 price target. On July 23rd, there was a rollout from 25,000 Aug $11 calls ($0.32 credit) into 25,000 Oct $11 calls ($0.49 debit). On July 27th, there was a rollout from 10,281 Aug $11 calls ($0.24-$0.25 credit) into 10,281 Oct $11 calls ($0.46 debit). On July 28th, another 6,000+ Oct $11 calls were bought for $0.35-$0.37, against open interest of 36,292 contracts. On August 14th, there was sizable buying in the Sep $10 calls (6,000+ traded) and Oct $11 calls (11,000+ traded). On August 17th, 7,000+ Sep $12 calls traded with the majority being purchased for $0.13-$0.25. Rumors are that the company is looking at breaking up/spin off. On August 27th, the Oct $11/$12 1×2 ratio call spread was put on 25,000 times for a $0.01 debit.
  112. Zayo Group (ZAYO)- 8,000 Dec $30 calls were purchased for $0.91-$0.92 and 4,000 Dec $25 puts were sold for $1.83 on July 2nd. Similar activity occurred yesterday as well. On July 20th, another 4,000 Dec $30 calls were bought for $0.80 and 2,000 Dec $25 puts were sold for $1.85. The bandwidth infrastructure provider across the U.S. and Europe went public in October of last year, up $6 since then. They are projected to become profitable next year as they currently trade at a price to sales ratio of 4.84x and a price to book ratio of 5.39x.

 



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