Smart Money Report

ACAS- Large buying in the Jan 2015 $14 and $15 calls today (also buying in the Oct and Nov $14 calls). Volume was above the open interest in the Jan 2015 $14 calls. Call activity is 6x the average daily volume. The stock is down 8% from the September close at $15.42. Yesterday, American Capital Agency announced the sale of Avalon Laboratories to Nordson (NDSN) for $180M.
CVS- 3,955 Oct 31 weekly $79 puts were sold for $0.75 each, against open interest of 264 contracts. Shares of CVS Health are now starting to bounce off of the test of the 50-day EMA (which is near $79).
EMC- A likely rollout from 40,000 Jan 2015 $31 calls (credit) into 40,000 Apr 2015 $31 calls (debit). Volume was above the open interest in the Apr 2015 $31 calls. Earnings are due out … Read More »

Smart Money Report

A- The Aug/Nov $57.50 call calendar was put on 5,000 times for a $1.58 debit. Volume was above the open interest in both options. Earnings are due out 8/14. They sold the Aug $57.50 calls and bought the Nov $57.50 calls. This means they look for the Agilent Technologies shares to struggle with $57.50 in the near-term, but see gains later this year.
ACAS- The Nov $14/$17 bull risk reversal was put on 3,187 times for a $0.05 debit. Volume was below the open interest in both options. American Capital earnings are due out on 8/6.
F- 20,000 Dec $18 calls were purchased for $0.48 each, against open interest of 13,016 contracts. This was tied to a sale of 1,624,960 shares for $17.11.
MET- The Jan 2016 $45/$52.50 bull risk reversal was put on 2,500 times for a $2.45 debit. Volume … Read More »

Smart Money Report

ACAS- 3,000 Nov. $17 calls were bought for $0.30 each, against open interest of 911 contracts. Large buying in the Aug. $16 calls for $0.20-$0.23 each on 6/23.
ANR- 6,500 Jan. 2016 $3.50 puts were purchased for $1.05 each, against open interest of 8,084 contracts. The longer-term downtrend in Alpha Natural Resources remains intact.
TTWO- The Jan. 2016 $17/$25 bull risk reversal was put on 2,500 times for a $1.25 debit. Volume was above the open interest in both options. Option activity is over 2x the average daily volume. The stock is nearing resistance at the $22.50 level. A breakout above there could take it to $25. (TTWO) trades at a P/E ratio of 15.28x (2015 estimates) with 42.6% EPS growth (-76.3% this year), 8.6% revenue growth, P/S ratio of 0.72x, and has an average analyst price target of $24. … Read More »

 Smart Money Report

HAL- Halliburton is set to announce Q1 earnings before the bell on Monday morning. Analysts are looking for $0.72 in EPS and revenue of $7.2 billion. Option traders are pricing in a $2.51 move, or 4.14%, in either direction through next Friday’s close. The call to put ratio in (HAL) options is currently 2.39, led by a buyer of 1,850 May 17 $60 calls for $2.10 each. On Wednesday, there was a rollout from 4k May 17 $57.50 calls (credit) into 10k May 17 $62.50 calls (debit). The stock has fallen after reporting earnings on the last three reports, but moved higher on the four previous reports before then.
ACAS- 3,000 Nov. $15 calls were purchased for $1.25 each, against open interest of 163 contracts. Earnings are due out on 4/29.
DBD- A rollout from 3k Apr. $40 puts (credit) into 3k … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in American Capital (ACAS) and a put rollout in Diebold (DBD).

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 Free Trade of the Day
United States Natural Gas Fund (UNG)

United States Natural Gas Fund (UNG) Options Trade Idea

Buy the (UNG) Mar. 7 weekly $26.50 Put for $0.90 or better

Stop loss- $0.40

Upside target- $2.00

Updates: American Capital (ACAS) shares rose for the third consecutive trading session, adding 2.93% today. Unusual Options Activity in American Capital

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Unusual Options Activity In American Capital

My commentary on American Capital for TraderPlanet

http://www.traderplanet.com/commentaries/view/165912-unusual-options-activity-in-american-capital/