2015-07-02 Unusual Options Activity (ACE) (CY)

Posted on July 2nd, by Mitchell Warren in Free Articles, Options Risk Management, Smart Money Report, Unusual Options Activity. Comments Off on 2015-07-02 Unusual Options Activity (ACE) (CY)

Unusual Options Activity

  1. ACE Limited (ACE)- 2,000 Nov $100 puts were sold for $3.30. They are acquiring insurance competitor, Chubb, for $28.3B in a cash and stock deal. Earnings are due out on July 21st.
  2. ARM Holdings (ARMH)- 1,700 Oct $44 puts were bought for $1.40-$1.45. Also, there was sizable buying in the July and Aug puts (put activity was 17x the average daily volume). Shares are nearing a test of the $48 support level. Several tech stocks have saw big put buying in recent days. Earnings are due out on July 22nd.

ARM Holdings

  1. Cypress Semiconductor (CY)- 9,000+ Sep $12 calls were bought for $0.70-$0.80. Earnings are due out on July 16th (shares have moved higher after earnings on 5 out of the last 6 reports). Yesterday, Barclays initiated the stock with an overweight rating and a $15 price target.
  2. Swift Transportation (SWFT)- The Aug $22 straddle was put on 5,000 times for a $2.95 debit. Earnings are due out on July 23rd. He/she is betting on SWFT moving above $24.95 or below $19.05 by August options expiration (bet on volatility ahead of earnings).
  3. 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. Similar activity occurred yesterday as well. 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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