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

AK Steel (AKS)- There was a rollout from 16,431 Sep $3 puts ($0.47 credit) into 32,177 Jan 2016 $2 puts ($0.24 debit). Steel prices are hitting multi-year lows and EPS estimates continue to be revised lower because of it (-$0.47 to -$0.90 for 2015 in just three months).
Advanced Micro Devices (AMD)- There was a rollout from 10,029 Oct $2 puts ($0.32 credit) into 20,058 Jan 2016 $1.50 puts ($0.16 debit). On July 17th, Citigroup lowered their price target to $1.50 from $2 citing market share loss, burning through their cash, and weak PC demand.
Baxter International (BAX)- 15,000+ Aug 21 $38.50 calls were purchased for $0.48. Earnings are due out on July 29th. They spun off Baxalta, a developer new treatments for people with orphan diseases and underserved conditions, last month.
Citigroup (C)- 10,000+ Sep $60 calls were bought for … Read More »

Options Report

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Unusual Options Activity

Advanced Micro Devices (AMD)- Roughly 14,000 Aug $2.50 calls were purchased for $0.30. They’re rumored to looking at separating/ spinning off part of the business, but they have so far denied the Reuters report. Q2 earnings are due out on July 16th.
Chesapeake Energy (CHK)- A likely rollout from 5,000 Jan 2016 $12 puts ($2.07 credit) into 10,000 Jan 2016 $10 puts ($1.06 debit). The stock is down for the 5th consecutive week, but doesn’t have any major support until the 2008 lows near $8.50. Analyst EPS estimates for 2015 and 2016 have only worsened in recent months, falling to -$0.16 from +$0.04 for this year.

HCA Holdings (HCA)- The July 17 $85/$92.50 bull call spread was closed out 4,080 times for a $4.30 credit. They put this on yesterday for $1.95 debit. Hospital stocks rallied around 10 … Read More »

Options Report

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Unusual Options Activity

Advanced Micro Devices (AMD)- 19,000 Oct $2 puts were purchased for $0.15. They reported a Q1 net loss of $180M yesterday as sales fell 23% to $1.03B (both missed estimates). Gross margins came in at 31.7% vs the 34% guidance they issued. Today, Bernstein maintained an underperform rating and a $1.50 price target.
Hilton Worldwide (HLT)- Another 2,400 Jan 2016 $35 calls were bought for $1.35, against open interest of 14,354 contracts. Open interest was just 177 contracts on April 10th. There has been big buying on 5 of the last 6 trading days.
Heron Therapeutics (HRTX)- A rollout from 4,000 Apr $12.50 calls ($0.90 credit) into 8,000 June $15/$22.50 call spreads ($2.25 debit). They have Phase 3 data and an NDA filing due out by the end of May and June, respectively.
Occidental Petroleum (OXY)- 5,000 Aug $90 calls were … 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 »

Unusual Options Activity

AMD- Roughly 60,000 Feb 20 $2.50 puts were bought for $0.16-$0.17 each, against open interest of 680 contracts. Put activity was nearly 7x the average daily volume and the put to call ratio was 38:1. Advanced Micro Devices reports Q4 earnings on January 20th (the stock has fallen after the results on 5 out of the last 7 reports). EPS estimates for 2014 and 2015 are still on the decline ($0.15 to $0.09 in three months for 2015). Revenue is likely to shrink nearly 6% this year to under $5.2B. On December 30th, Citigroup initiated the stock with a sell rating.
COF- The Feb $72.50/$77.50 bear put spread was put on 2,000 times for a $1.10 debit today. Volume was above the open interest in both options. Put activity was 4x the average daily volume and the put to … Read More »

Smart Money Report

AKAM- Another 1,600 Nov 22 $60 calls were purchased for $1.20-$1.26 each, against open interest of 10,444 contracts. 7,572 Akamai Technologies Nov 22 $60 calls were purchased for $1.36 each on October 15th. There was also a seller of Nov 22 $50 puts (2,639 times) for $1.10 each. Q3 earnings are due out tomorrow afternoon.
AMD- 52,000 Jan 2015 $3 puts were sold for $0.42-$0.43 each, against open interest of 87,056 contracts. Regardless of whether this is a new position or someone closing out a long put position (check open interest tomorrow for confirmation), he/she likely sees the correction coming to an end at least through the next three months in Advanced Micro Devices.
PAYX- 35,000 Dec $46 calls were sold for $0.75-$0.80 each, against open interest of 663 contracts. Paychex shares are new highs and is up for the … Read More »