2015-03-13 Weekend Market Update (The Japanese Equity Rally Persists)
Weekend Market Update
The Japanese Equity Rally Persists
Today’s ORM Market Commentary is an example of what will be included in my ORM Equity/Option Trader Subscription Service for $9.99 per month. Email me at Mitchell@OptionsRiskManagement.com or tweet me @MitchellKWarren on StockTwits/Twitter if you’d like for me to notify you when it is available or if you have any other questions.
Notes: Almost 5,000 Mar $39 calls were bought during the first two hours of trading on March 5th (majority for $0.80 each). As these calls have dropped, 2,000+ were bought today for $0.45-$0.55 each. Not to mention there were sizable purchases in the May $40 (3,100+ traded) and July $38 calls (1,200+ traded) for $1.10-$1.25 and $2.69-$2.70, respectively. The $6.7B home security company trades at a P/E ratio of 17.59x (Sep16 estimates) with 6.2% EPS growth, price … Read More »
2015-03-13 Options Report (ADT) (CAB)
(This Options Report is an example of what will be included in my ORM Equity/Option Trader Subscription Service for $9.99 per month)
Email me at Mitchell@OptionsRiskManagement.com or tweet me @MitchellKWarren on StockTwits/Twitter if you’d like for me to notify you when it is available or if you have any other questions.
Open Interest Updates From The Previous Trading Days Action
Gilead Sciences (GILD)- May 15 $90 put open interest went from 19,233 to 22,465 contracts, May 15 $100 call open interest went from 20,521 to 25,574 contracts, and May 15 $115 call open interest went from 7,877 to 12,938 contracts (bull call spread risk reversal put on for a $2.60 debit).
McDonald’s (MCD)- June $97.50 call open interest went from 17,290 to 42,008 contracts (more buying yesterday).
PDL BioPharma (PDLI)- May $7 call open interest went from 2,476 … Read More »
2015-03-05 Unusual Options Activity (ADT) (MRVL)
Unusual Options Activity
ADT- More than 6,000 Mar $39 calls have traded in just over the first two hours of trading (majority bought on the offer for $0.80 each), against open interest of 701 contracts. The call to put ratio was 46:1 and call activity was 3x the average daily volume (implied volatility +14.4% to 32.73). The $6.7B home security company trades at a P/E ratio of 17.59x (Sep16 estimates) with 6.2% EPS growth, price to sales ratio of 1.90x, and a price to book ratio of 2.13x. Mid single digit sales growth is likely to continue through the end of these fiscal year and throughout next year to $3.7B+ annually. In January, the company topped Q1 EPS and revenue estimates as subscribers grew at 13.4% to 262K. While the stock doesn’t exactly trade at a cheap valuation and does face … Read More »
2015-01-27 Pre-Earnings Analysis (ADT) (EA)
ADT- ADT Corp will report Q1 earnings before the bell tomorrow morning. Analysts are looking for $0.49 per share in EPS on revenue of $884M. Shares have moved higher after earnings on 4 out of the last 7 reports. The company has struggled to grow earnings in recent years and there is no signs of momentum coming in the near-term either. They earned $2.02 in FY14 and are only projected to earn $2.12 in FY16 (sales growth in the low to mid single digits). On January 8th, ADT named a new President of Canadian operations and announced a 5% dividend increase to $0.21 per share (2.49% yield), but an emergence of competition from new smart home security technology is still creating a challenge. Raymond James initiated the stock with an outperform rating this morning. The other analyst change this … Read More »
2014-01-17 Smart Money Report (ADT) (ETFC)
Smart Money Report
ADT- 4,500 Apr. $43 calls were bought for $0.84-$0.85 each, against open interest of 6,027 contracts. Earnings are due out on 1/30.
ETFC- A rollout from 2,642 Apr. $18 calls (credit) into 2,500 July $20 calls (debit). Volume was above the open interest in the July $20 calls.
INFI- 2,000 Feb. $12 puts were sold for $0.60 each, against open interest of 822 contracts. Earnings are due out on 2/4.
NBR- 5k June $19 calls were sold for $0.78 each, against open interest of 126 contracts.
RDN- The May $14/$16/$18 bull call spread risk reversal was put on 10,000 times for a $0.00 debit. Volume was above the open interest in all three options. Earnings are due out on 2/11.
TWTR- Twitter was initiated with a buy rating and a $75 price target at Stifel Nicolaus this morning. The call to put ratio … Read More »