Unusual Options Activity
American Capital Agency (AGNC)- 5,000 July 17 $19.50 puts were sold for $0.23. He/she is betting on limited downside near-term in the beaten down REIT (yields 12.15% currently).
Heron Therapeutics (HRTX)- A rollout from 2,500 Sep $27.50 calls ($4.55 credit) into 3,500 Oct $35 calls ($7.00 debit). Shares of the biotech have more than doubled in just one month, but option traders continue to roll there bullish positions, giving them additional time.
Medtronic (MDT)- 4,630 July 24 weekly $75.50 puts were sold for $0.74. Large put selling like this has been about a once to twice among occurrence in the medical device maker. Most of these trades have expired worthless, which is exactly what they want to happen.
Pfizer (PFE)- 10,000 Oct $35 calls were bought for $0.76. There was big buying in the July 17 $35 calls yesterday. They agreed … Read More »
Smart Money Report
AGNC- A rollout from 6,500 June 21 $23 calls (debit) into 6,500 Sep. $24 calls (credit). Volume was above the open interest in Sep. $24 calls. A likely covered call rollout by three additional months. The steady uptrend from December remains intact. The REIT currently has a yield of 10.98%.
CBS- 5,000 July 3 weekly $61 calls were purchased for $1.90 each, against open interest of 8 contracts. This was tied to 225,000 shares of stock. We remain long shares of CBS and the July 19 $60/$65 call spreads. http://www.traderplanet.com/commentaries/view/166505-cbs-10-upside-into-the-summer/
HOT- 3,600 Aug. $78.70 puts were sold for $1.63 each, against open interest of 220 contracts. Starwood Hotels & Resorts Worldwide trades at a P/E ratio of 25.00x (2015 estimates), PEG ratio of 1.79x (2015 estimates), 5.9% revenue growth, 1.73% dividend yield, and has an average analyst price target of … Read More »