10 Stocks With Unusual Options Activity (JWN, BBRY, JBLU, & more)

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

TUESDAY

Pinnacle Foods (NYSE:PF) – 1,300+ Feb 17 2017 $57.50 calls traded with the majority being bought for $0.55. Last January, Pinnacle acquired the health food company, Boulder Brands, for $975M. The deal has not just contributed to top line results, but is likely to add $0.08-$0.10 per share to FY 2016 earnings.

PF shares have steadily been trending upward since going public in 2013. … Read More »

Unusual Options Activity Report: TSO, AMD, DAL, & More

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

Monday

BioCryst Pharmaceuticals (NASDAQ:BCRX) – 5,000 Mar 17 2017 $10 calls were bought for $2.00. The $472M biotech company is expected to have Phase 2 data results on BCX7353 – APeX-1 (used to reduce or eliminate attacks in HAE patients) due out in the first quarter of 2017. On December 16th, JMP Securities upgraded the stock to outperform with a $10 price target.

Grupo Televisa (NYSE:TV) – Roughly … Read More »

Unusual Options Activity: 10 Stocks To Watch (December 19)

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

Monday

TTM Technologies (NASDAQ:TTMI):  5,000 June 2017 $17.50 calls were bought for $0.65. There was follow through on Tuesday and Wednesday with open interest now at 8,151 contracts. On average, 65 calls traded per day prior to this action.

Salesforce.com (NYSE:CRM):  There was a rollout from 5,000 Dec 16 $68.50 puts (credit $0.34-$0.40 credit) into 5,000 Jan 20 2017 $67.50 puts ($1.49-$1.55 debit) in Salesforce stock options. On … Read More »

Unusual Options Activity

1.TTM Technologies (TTMI)- 5,000 June 2017 $17.50 calls were bought for $0.65 vs total call open interest of just 1,663 contracts (implied volatility +11.3% to 46.99). On average, 65 calls trade per day in the $1.4B semiconductor company.

2.Ocean RIG UDW (ORIG)- 5,000 Dec $2 puts were bought for $0.15 with put activity 30 times the average daily volume. Earnings are due out on December 14th (shares dropped on the last 2 reports).

3. ILG, Inc. (ILG)- There was a rollout from 10,000 Mar 2017 $17 puts ($0.33-$0.36 debit) into 10,000 Jan 2019 $17 puts ($1.58-$1.61 credit). This trader is making a long-term bet that the leisure and travel company will remain above $17 by January 2019 options expiration.

4. Hain Celestial (HAIN)- There was a rollout from 3,000 Dec $40 calls ($0.45-$0.46 credit) into 3,000 Jan 2017 $42.50 calls ($0.80 … Read More »

Where Is Tesla Motors Stock Headed Post SolarCity Merger?

Since going public more than 6 years ago, Tesla Motors (NASDAQ:TSLA) has been a battleground stock between the bulls and bears. The $29B electric car maker has soared an astounding 1057% since the IPO, which can largely be attributed to Elon Musk’s leadership and the potential of the electric car market and its Gigafactory. His personality and bold statements always make Tesla Motors stock a must-watch.

However, short sellers have knocked the company on delivering what they promise in terms of units and of course valuation (not expected to become profitable until 2018).

Investors must now weigh the pros and cons of the controversial $2B deal for SolarCity Corp. (NASDAQ:SCTY) On November 23rd, Morgan Stanley said in a note they see “zero value” created for Tesla shareholders based on SolarCity’s latest financial condition and … Read More »

Options Trading Idea: Starbucks (SBUX) Bear Put Spread

The U.S. equities market has gone straight up since the unexpected victory by President-elect Donald Trump earlier this month. Trading volumes have been on the rise and long-term investors have benefited from an increase in their 401K balances.

The recent price action has brought about other opportunities for traders. As money managers have put capital to work in nearly every major sector (except utilities), it gives contrarians a chance to fade strength in overvalued/challenged companies. Starbucks stock (NASDAQ:SBUX) may be one of those names.

The $82B specialty coffee company sticks out to me on a reward/risk ratio for a relative retracement of its latest rally. Starbucks stock has gone a bit too far, too fast and is running into key price resistance.

Looking at valuation, Starbucks (SBUX) shares trade at a P/E ratio of 26.06x (2017 estimates), 3.82x sales, … Read More »

Pool Corporation Stock Chart (POOL): Trends Point Higher

As the temperature trends lower and the leaves change colors, now might not feel like the right time for traders to consider a position in Pool Corporation stock (NASDAQ:POOL). But, the company continues to perform, regardless of season.

The $4B swimming pool supplier reported a 7%+ rise in sales for Q3 on October 20th as earnings of $1.03 per share topped analyst expectations (5th consecutive quarterly beat). A boost to their EPS guidance and strong positioning for the upcoming swimming season make POOL a great stock to consider, even at this time of year.

If fact, the winter months have actually been a seasonally strong period for POOL’s stock price (5 year averages listed below).

December: higher 3 of the last 5 years; median return of +1.7%
January: higher 3 of the last 5 years; median return of +3.4%
February: … Read More »

Utility Stocks May Benefit From Weak Jobs Number

Just this past week we found out that U.S. employers added the fewest jobs in May in nearly 6 years.

Non-farm payrolls came in a +38K vs the +164K average economists were expecting (lowest coming in at +90K).

As many market participants were forecasting for the next rate hike from the Federal Reserve in the near future, following the dismal May jobs reports the Fed Fund futures probability dropped from 34% to 3.8% for June. The odds of a 25 to 50 basis point increase for July stands at 31.3%. Now that Janet Yellen and the other Federal Reserve members are likely to hold off on a move closer to normalization in interest rates for the time being, how can traders and investors position themselves? One area to consider is in the higher yielding assets/sectors (high … Read More »

Why LinkedIn Stock (LNKD) Looks Poised To Rally

Following a disastrous revenue outlook in February, LinkedIn Corp (LNKD) reported Q1 results on April 29th that topped Wall Street estimates, soaring 35% on year over year basis to $861M.

The business-oriented social media company trades at a forward P/E ratio of 30.91x (2017 estimates), price to sales ratio of 5.37x, and a price to book ratio of 3.74x. Given the steady annual earnings growth in the 20% to 25% range, paying just over 30x EPS isn’t outrageous for the $15B company.

At 105.5M monthly active users, LinkedIn falls short of Twitter’s 310M and Facebook’s massive 1.65B user base. However, on a revenue/user ratio, LinkedIn’s $28.30 generated per user is quadruple that of Twitter and is well above the $10.80/user that Facebook (the largest social media company) is bringing in on the top line.

Their Talent Solutions segment is leading the company … Read More »

Baidu (BIDU): Chinese Investigation Dragging Stock Lower

Baidu (BIDU), the largest internet search engine company in China, has come under fire as of late after one of its users, a 21 year old university student Wei Zexi died after trying an experimental cancer treatment he found advertised on the website. Once the treatment failed he took to social media to blast Baidu for promoting false medical claims. China’s cyberspace administration is now investigating and the company has until May 31st to comply with the government.

Regulators are proposing limits on health care related advertising and stringent practices for vetting marketers. Baidu has already began terminating relationships, translating to the removal of ads and some revenue.

Search revenue accounts for nearly 80% of total revenue, with a portion coming from health care. Although difficult to measure, it does put some cash flow in jeopardy of diminishing, at least in the short-term. … Read More »

Grain Trade: Soybeans Breakout Points To Higher Prices
(This post was originally published on SeeItMarket)

Unlike an Apple’s quarterly revenue miss or a hedge fund activist tussle with a struggling multi-national corporation, business coverage on one of the world’s most important crops, soybeans, tends to be neglected in favor of a tech IPO or predictions of the next Fed Funds rate hike. Developments in the agricultural markets in recent weeks are putting the spotlight on commodities like soybeans. Moreover, a soybeans breakout appears to be in action.

Flooding and heavy rains in Argentina this spring will mean lower outputs from South America this year. Another fundamental factor that could take place this month is possibility that the USDA increases their export projections due to strong foreign demand across the globe.

Finally, from a currency standpoint, a weakening U.S. dollar (down nearly 5% year to date) is a tailwind not just for … Read More »

American Airlines Stock (AAL): Out Of Gas Or Ready To Fly?

This post was originally published on SeeItMarket.com on May 3rd, 2016

Despite topping Q1 EPS estimates and authorizing a $2B share repurchase program, investors in American Airlines stock (AAL) haven’t been impressed by the company’s performance.

Lower fuel prices have been a tailwind for the largest airline in the world, but revenue fell 4% in the first quarter. Consequently, consolidated passenger yield dipped 7.5% to 15.62 cents.

With oil prices back on the rise in recent months, has American Airlines stock priced in the worst case scenario or is there more downside to come?

Let’s take a look at the AAL chart.

Chart overview:

Want to get our latest investing research and trading ideas? Sign up here.

AAL shares are trading down 37%+ from the all-time high hit in 2015; 18% year to date

American Airlines … Read More »

American Tower ($AMT): Stock Fueled By Demand And Acquisitions
This post was originally published on Andy Nyquist’s SeeItMarket.com

American Tower ($AMT) is a $45B wireless infrastructure provider with cellphone towers located across the world. Last year, the company acquired 11,448 wireless communication sites from Verizon, pushing their total to north of 100,000. More recently in a $179M deal with Bharti Airtel, the real estate investment trust acquired 1,350 towers to expand their presence in Tanzania. And these deals could help push American Tower stock much higher.

Let’s take a look at both the technical and fundamental backdrop for the AMT.

American Tower Stock Chart ($AMT) – Technical Analysis

For nearly a year and half, American Tower stock traded in a $20 range ($83-$103), but its share price is now breaking out of that range to all-time highs.

The setup is very similar to 2014 and the massive rally that ensued. American Tower stock rallied … Read More »

2 Trade Ideas Amidst The Stock Market Whipsaw: $CAT $CINF

This post was originally published on SeeItMarket.com on February 10th

Trading in the equity markets has become increasingly more difficult since last summer, ending a series of buying opportunities with deeper corrections in the stock market and more volatility for stocks.

While the easy money has been made in the latest bull market, there still remains opportunity for investors on the long side and on the short side for those more adept to managing risk on bearish positions.

Below I look at two potential stock trade ideas that I am considering over the near-term (1 bullish and 1 bearish). And like I said, the key with any trade plan is managing risk and understanding when/where to get out.

The two trade ideas are Caterpillar (CAT) and Cincinnati Financial (CINF).  Let’s start with CAT.

Caterpillar Stock Chart – … Read More »

Progressive Insurance Bullish Trading Setup After Q4 Earnings

This post was originally published on February 3rd, 2016 on Andrew Nyquist’s SeeItMarket

Known for their flamboyant spokeswoman Flo and innovative features such as “Snapshot”, Progressive Insurance has transformed into one of the largest car insurers in the United States over the last eight decades.

On January 27th, the Progressive Corp (PGR) topped fourth quarter earnings estimates by $0.06 per share. Net premiums written came in shy of the Wall Street consensus, but were up 4.9% to $4.84B. For FY15 revenue jumped nearly 8% to $20.8B on solid investment gains and an uptick in premiums written. One notable negative from the report was the 110 basis point spike in the combined ratio to 92% (percentage of premiums taken in vs claims and expenses paid out).

All in all, I believe Progressive Insurance stock (PGR) … Read More »

2 Oil Refiners Ready To Rise In 2016

This post was originally published on SeeItMarket on December 28th, 2015

2015 was a year dominated by crashing commodity headlines (especially oil prices) and chatter of when the Federal Reserve was finally going to hike rates for the first time since 2006. The 10-15% drop in integrated energy companies like Chevron and BP may seem like a common occurrence or even 25-50% hair cuts in the smaller, more leveraged producers, but there was a bright spot in the industry for investors: select oil refiners stocks.

Below I’ll review two oil & gas refiners that have outperformed and could continue heading into the new year.

A combination of a massive oil glut and an 11-year low in light sweet crude oil prices has led to a boom in the refiners and select oil refiners stocks. Those located near key … Read More »

Is It Time To Fade The Rally In US Steel Corp (X)

This was originally published on Andrew Nyquist’s SeeItMarket.com on December 25th

Shares of United States Steel Corp. (X) have collapsed 81% from the 2014 highs, but is it still too early to call for a bottom in the once great steel producer?

China’s mass production rate of steel has led to “dumping” in the United States and other areas of the world, which essentially means those foreign competitors are selling below or at production costs. Tack on a stronger U.S. Dollar and you have continued downward pressure on the likes of US Steel, Nucor (NUE), AK Steel (AKS), and more.

And this could keep their respective stock prices suppressed a bit longer.

Despite tariffs levied by the U.S. Commerce Department on December 23rd, the market reacted as if the anti-dumping tariffs were less … Read More »

MGM Resorts REIT Plans May Lead To Longer-Term Gains

This post was originally published on SeeItMarket.com on November 30th

Casino stocks have been some of the worst performers since the beginning of last year. Las Vegas Sands (LVS) has fallen 46% and Wynn Resorts (WYNN) has collapsed 74% from the 2014 highs. And as share prices tumble lower across much of the industry, it is not wise to try and catch a falling knife without fundamental and technical support backing your thesis (and a very patient careful plan).

Of the larger companies, I explain below why MGM Resorts International (MGM) could be one of the few worth considering as an investment.

On October 29th, MGM Resorts International reported Q3 earnings of $0.15 per share vs the $0.03 estimate on in-line revenue of $2.3B. Sales were down over 8% on a year over year basis, but … Read More »

Options Trading Idea: Acquisitions Fueling Expedia’s Growth (EXPE)

This post was originally published on SeeItMarket.com

Earlier this month Expedia (EXPE) announced a $3.9B cash and stock deal for HomeAway. While it isn’t expected to be completed until the first quarter of 2016, the acquisition of the home vacation rental company puts them in a position to compete with the industry leader Airbnb. If it gets regulatory approval it would mean nearly $8B in deals in just two years for Expedia.

And this could mean upside for Expedia’s stock price near-term.

In September, Expedia closed their previously largest purchase of rival Orbitz for $1.6B. Trivago, Travelocity, Wotif are some other notable brands they’ve recently added to their portfolio to stay competitive with Priceline.com (PCLN).

Expedia stock (EXPE) trades at a P/E ratio of 20.02x (2016 estimates), price to sales ratio of 2.48x, and a price to book … Read More »