Options Report

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Unusual Options Activity

Applied Materials (AMAT)- The July $25/$30 bull call spread was put on 5,373 times for a $0.77 debit. Volume was below the open interest in both options. The company has a pending merger with Tokyo Electron that will be headquartered in the Netherlands (tax inversion, synergies).
Idera Pharmaceuticals (IDRA)- 2,500 Apr $3.50 calls were purchased for $0.35. Call activity was 4x the average daily volume. They were granted orphan drug designation for IMO-8400 yesterday. IMO-8400 is for the treatment of diffuse large B-cell lymphoma.
Intel (INTC)- Over 8,000 Apr 10 weekly $32 calls were bought for $0.14, against open interest of 5,957 contracts. Today, they announced their annual shareholder meeting will be on May 21st. Intel is also rumored to be interested in acquiring Altera.
Staples (SPLS)- The Jan 2017 $13/$17/$22 bull call spread risk reversal was put on 5,000 times … Read More »

Unusual Options Activity

AMAT- Call activity was more than 6x the average daily volume in Applied Materials led by massive buying in the Feb 27 weekly $24, $24.50 and Mar 6 weekly $25 calls this morning. Net call premium was +$2.2M vs net put premium of +$212K (implied volatility +20.5% to 40.68).
BWP- Someone rolled out 123,061 Boardwalk Pipeline Partners Mar $17 calls ($0.65 credit) into 43,844 Sep $18 calls ($1.70 debit). Volume was above the open interest in the Sep $18 calls. On average only 4,445 calls trade per day.
CRTO- This marks the second consecutive trading day of sizable buying in the Mar $45 calls. The largest today is for 1,154 contracts at $1.85. Open interest stood at 2,866 from 319 contracts yesterday, while total call open interest is 8,851 vs total put open interest of 3,283 contracts.
MDRX- 5,000 Mar $11 … Read More »

Unusual Options Activity

AMAT- Over 10,000 Feb 20 $24 calls have traded today with the majority being bought for $1.04-$1.09 each, against open interest of 5,627 contracts. The call to put ratio was 4:1 as implied volatility popped 5.5% to 42.52. On top of this activity there is still massive open interest in the high $20 strike calls in the April options expiration from buying in recent months. Applied Materials will be releasing Q1 earnings on February 11th (stock has gone up after earnings on 3 out of the last 4 reports). On January 20th, Credit Suisse raised their price target to $30 from $26 (outperform rating). Shares tested the prior resistance level, turned current support at $23 recently and was able to bounce (no major resistance until $25.50-$26.00 now).
AMD- Another 25,000 Feb 20 $2.50 puts were purchased for $0.25 each, … Read More »

Smart Money Report

AAL- A rollout from 5,250 Dec 12 weekly $48.50 calls (credit) into 7,500 Jan 9 weekly $52.50 calls (debit). Volume was above the open interest in the Jan 9 weekly $52.50 calls. There have been several of these type of rolls in American Airlines in the last two weeks. On December 2nd, Credit Suisse raised their price target to $58 from $55. My article on (AAL) from November 27th
AMAT- Another rollout from 32,000 Apr 2015 $23 calls (credit) into 50,000 Apr 2015 $25 calls (debit). Volume was below the open interest in both options. Applied Materials shares are up for the 8th consecutive week, but just recently broke out above the $23 resistance level.
IMMU- Sizable buying in the May 2015 $7 and $8 calls today. Volume was above the open interest in both options. Call activity is 15x … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in Applied Materials (AMAT) and put buying in the United States Oil Fund (USO).

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Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Applied Materials (AMAT) and a call rollout in Intel (INTC).

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Smart Money Report

AAPL- The Sep 26 weekly $102/$105 1×2 ratio call spread was put on 10,406 times for a $0.45 debit. Volume was above the open interest in both options. Yesterday’s bullish option trade in Apple.
ACT- A rollout from 2,000 Sep 20 $240 calls (credit) into 2,000 Oct 18 $240 calls (debit). Volume was above the open interest in the Oct 18 $240 calls. There were rumors earlier today of M&A speculation between Pfizer (PFE) and Actavis.
AMAT- A rollout from 20,000 Jan 2015 $22 calls (credit) into 20,000 Apr 2015 $23 calls (debit). Volume was above the open interest in the Apr 2015 $23 calls. On 8/21, S&P Equity Research maintained a strong buy rating on Applied Materials.
KRE- The Dec $37/$40 bull risk reversal was put on 7,000 times for a $0.74 debit. Volume was above the open interest in … Read More »

Smart Money Report

AMAT- 5,000 Apr 2015 $25 calls were purchased for $1.24-$1.25 each, against open interest of 76 contracts. Large open interest still remains in upside calls in the Jan 2015 options expiration.
CTL- 2,000 Jan 2016 $40 calls were bought for $3.50 each, against open interest of 5,824 contracts. This was tied to a sale of 110,000 shares.
FRO- 10,000 Jan 2015 $2 puts were purchased for $0.30 and 10,000 Jan 2015 $2 calls were sold for $0.45-$0.50 each. Volume was above the open interest in both options. This bear risk reversal (or collar) in Frontline is profitable below $2.20 on Jan 2015 options expiration.
GES- The Jan 2016 $20/$28 bull risk reversal was put on 2,000 times for a $0.65 debit. Volume was above the open interest in the Jan 2016 $28 calls. Guess? missed Q3 EPS, revenue estimates and lowered … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Applied Materials (AMAT) and a bull risk reversal in Guess? (GES).

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Smart Money Report

AMAT- Roughly 7,000 Oct $22 calls were bought for $1.26 each, against open interest of 43,650 contracts. Last night, they reported Q3 EPS of $0.28 vs the $0.27 estimate and revenue of $2.27B vs the $2.29B estimate. Gross margins rose 2.6% to 45.5% year over year. They expect Q4 EPS of $0.25-$0.29 vs the $0.27 estimate.
CF- A rollout from 6,000 Jan 2015 $290 calls (credit) into 6,000 Jan 2016 $300 calls (debit). Volume was above the open interest in the Jan 2016 $300 calls. CF Industries raised their quarterly dividend 50% to $1.50 per share and authorized an additional $1B billion buyback through Dec 31st, 2016.
EJ- 4,938 Jan 2015 $10 puts were sold for $0.90 each, against open interest of 206 contracts. The uptrend from June remains intact (buying opportunities have been on pullbacks to the middle Bollinger … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Applied Materials (AMAT) and put selling in Oracle (ORCL).

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Smart Money Report

AAPL- A rollout from 1,397 Aug. 16 $89.29 calls (credit) into 1,397 Jan. 2015 $90/$100 call spreads (debit). Volume was below the open interest in all three options. The call to put ratio is over 2:1.
AMAT- A rollout from 8,500 Jan. 2015 $20 calls (credit) into 14k Jan. 2015 $24 calls (debit). Volume was below the open interest in both options. There was a similar rollout yesterday.

IGT- A rollout from 5,000 July $16 calls (credit) into 3,550 Aug. $16 calls (debit). Volume was above the open interest in the Aug. $16 calls. Earnings are due out on 7/22. They are looking to sell the company too (announced recently).
MEOH- The Jan. 2015 $57.50/$67.50 bull risk reversal was put on 2,500 times for a $0.95 debit. Volume was above the open interest in both options. Option activity is nearly 7x the … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call spread in Apple (AAPL) and a call rollout in Applied Materials (AMAT).

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Smart Money Report

AMAT- A rollout from 17,000 Jan. 2015 $20 calls (credit) into 28,000 Jan. 2015 $24 calls (debit). Volume was above the open interest in the Jan. 2015 $24 calls. The long-term uptrend remains intact, but is now at the highest level in the RSI on the weekly chart. A better entry would be near $21. Applied Materials trades at a P/E ratio of 17.05x (2015 estimates), PEG ratio of 0.68x (2015 estimates), 9% revenue growth, 1.75% dividend yield, and has an average analyst price target of $22.
CTXS- 2,000 July $62.50 puts were sold for $0.55-$0.56 each, against open interest of 228 contracts. Earnings are due out on 7/23. This is a mildly bullish bet that Citrix Systems is stay above support at the $62-$63 level through July options expiration.
MU- The June 27 weekly 1×2 $27/$30 put spread was … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in Applied Materials (AMAT) and call buying in U.S. Bancorp (USB).

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Smart Money Report

AMAT- Another 14,000 Jan. 2015 $22 calls were bought for $0.71-$0.73 each, against open interest of 111,946 contracts. Earnings are due out tonight. There has been large Jan. 2015 call buying in Applied Materials recently.
CCK- Sizable buying in the July $48 and Oct. $46 puts today. Volume was above the open interest in both options. Put activity is 17x the average daily volume. Crown Holdings shares hit a new 52-week high yesterday and trades at a P/E ratio of 14.32x (2014 estimates), PEG ratio of 1.10x (2014 estimates), P/S ratio of 0.77x, has 6.8% revenue growth, and has an average analyst price target of $52. Given the strong fundamental and technical take, this could be a hedge on a long stock position after the recent run up.
GT- 10,000 Oct. $27 calls were purchased for $1.13-$1.24 each, against open … Read More »

Smart Money Report

AMAT- 5,000 Jan. 2015 $21 calls were bought for $1.10-$1.12 each, against open interest of 5,245 contracts. Earnings are due out tomorrow. There has been large Jan. 2015 call buying in the last 2-3 months.
NBR- 3,000 Sep. $26 calls were bought for $1.95 each, against open interest of 902 contracts. This was tied to a sale of 162k shares for $26.08 each. There was large buying in the June $25 calls too.
NUS- 1,800 June $75 puts were purchased for $3.70 each, against open interest of 3,249 contracts. Implied volatility rose 9.7% to 44.10. Net call premium was -$25K vs. net put premium of +$584K. On a close below $75 in Nu Skin Enterprises, we’ll likely see a retest of the $68-$70 support level.
RMTI- A rollout from 3,095 May $11 puts (credit) into 3k June $9 puts (debit). Volume … Read More »

Smart Money Report

TSLA- Tesla Motors is set to announce Q1 earnings after the bell tonight. Analysts are looking for $0.12 in EPS and revenue of $700 million. Option traders are pricing in a $20.60 move, or 10.25%, in either direction through Friday’s close. The call to put ratio in (TSLA) options is currently 1.02, led by a seller of 1,150 June 21 $200 puts for $16.10 each (this trade was tied to a 50k share sale at $202.06). The stock has moved higher after earnings on three out of the last four reports.
AMAT- Another 13k Jan. 2015 $22 calls were purchased for $0.78 each, against open interest of 97,181 contracts. Earnings are due out on 5/15. On 4/15, open interest was 56,091 in these calls.
FB- 6,200 June 21 $55 puts were bought for $1.93 each, against open interest of 17,182 … Read More »

Smart Money Report

AMAT- Applied Materials will report Q4 earnings after the bell tonight. Analysts are looking for $0.18 in EPS and revenue of $2.0 billion. The options market is implying a $0.68 move, or 3.87%, in either direction through Friday’s close. Put to call ratio in (AMAT) options is currently 1.37.
JWN- Nordstrom will also release quarterly results tonight. Analysts are looking for $0.66 in EPS and revenue of $2.9 billion. Options traders are pricing in a $2.68 move, or 4.21%, in either direction through Friday’s close. The put to call ratio in (JWN) options is 1.40.
FOXA- 17k Dec. $35 calls were bought for $0.60 each, against open interest of 22,657 contracts.
OAS- The Feb. 2014 $35/$55/$65 bull call spread risk reversal was put on 3,000 times for a $1.40 debit. Volume was above the open interest in all three options.
AAPL- Apple … Read More »