Options Report

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Unusual Options Activity

Bank of America (BAC)- 6,000 Nov $18 calls were purchased for $0.69, against open interest of 140,402 contracts. Also, there was bullish flow into the Aug 21 $18 calls.  Q2 results came in better than expected today (topping both the top and bottom Wall Street estimates).
Centene (CNC)- The Sep $67.50/$80 bull risk reversal was put on another 1,000 times for a $1.10. This was done 4,000 times earlier this month. They agreed to acquire Health Net for $6.8B in a cash and stock deal earlier this month.
Hovnanian Enterprises (HOV)- More than 4,000 Nov $2 puts were purchased for $0.15-$0.20. The long-term downtrend remains intact as EPS estimates for 2015 and 2016 continue to be revised lower nearly every month ($0.05 to -$0.11 for 2015 estimates in just 3 months).
Coca-Cola (KO)- There was a likely rollout from 10,016 Aug … Read More »

Unusual Options Activity

Bank of America (BAC)- 25,000 Aug $17 calls were purchased for $0.27-$0.28, against open interest of 95,783 contracts. Roughly 50,000 were bought yesterday for $0.24-$0.29. Following the Q1 earnings report on April 15th, Jefferies, BMO Capital, Barclays, and Oppenheimer all lowered their price targets by $1, but still see upside to $18-$21 depending on the analyst.
eBay (EBAY)- More than 7,000 June $60 calls have traded with the majority being purchased for $1.62-$1.67, against open interest of 3,008 contracts. The company beat Q1 EPS estimates by $0.07 last night. PayPal sales rose 14% to $2.11B, now eclipsing eBay marketplace sales.
Gap (GPS)- Over 5,000 May 15 $40 puts have traded with the majority being bought for $0.47-$0.53. Q1 earnings aren’t due out until May 21st, but this could be a hedge or a bearish on April comps since we’re nearing … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight put selling in Bank of America (BAC) and call buying in the SPDR S&P 500 ETF Trust (SPY).

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 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Atlas Pipeline Partners (APL) and Bank of America (BAC).

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AAL- The Jan 2015 $32/$40/$45 bull call spread risk reversal was put on 8,000 times for a $0.26 debit. Volume was above the open interest in the Jan 2015 $32 puts. American Airlines Group remain weak despite weakness in oil & gas prices. The stock could retest the Aug 8 lows above $35, if it is unable to hold above the $37 level support level.
BAC- A rollout from 10,000 Sep 20 $17 calls (credit) into 10,000 Sep 26 weekly $17 calls (debit). Volume was below the open interest in both options. Option traders/investors remain bullish on Bank of America in the near-term and long-term (out to early 2016).
BUD- A rollout from 2,000 Sep $115 calls (credit) into 2,000 Oct $120 calls (debit). Volume was above the open interest in the Oct $120 calls. Anheuser-Busch InBev SA is reportedly looking … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a bull call spread risk reversal in American Airline (AAL) and call buying in Bank of America (BAC).

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Smart Money Report

BAC- Another 10,000 Jan 2016 $20 calls were purchased for $0.85 each, against open interest of 446,194 contracts. Earnings are due out on 10/15.
BCS- The Jan 2016 $15/$15 bull risk reversal was put on another 5,000 times for a $0.25-$0.30 debit. Volume was below the open interest in both options. This trade has now been done 25,000 times since 9/12.
ETP- 5,000 Dec $60 calls were bought for $1.40 each and 5k Dec $62.50 calls were bought for $0.65 each. Volume was above the open interest in both options. Energy Transfer Partners and  Energy Transfer Equity could be the next to consolidate in the MLP space (similar to the Kinder Morgan consolidation).
RAD- 10,000 Jan 2015 $5.50 puts were sold for $0.43 each, against open interest of 7,972 contracts. (RAD) beat Q2 EPS and revenue estimates this morning, but it … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Bank of America (BAC) and put selling in Rite Aid (RAD).

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Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a bull risk reversal in Bank of America (BAC) and a call rollout in Darden Restaurants (DRI).

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Smart Money Report

BAC- The Nov $16/$17 bull risk reversal was put on 10,000 times for a $0.20 credit. Volume was below the open interest in both options. There were nearly 20,000 Oct 18 $17 calls bought yesterday.
GPS- 4,906 Mar 2015 $48 calls were sold for $2.15 each, against open interest of 8 contracts. Given the rise from $39 to $46 in Gap shares over the last month, selling these calls against a long stock position allows you stay in the trade with upside to effectively $50.15.
HLF- More than 4,400 Sep 20 $55 calls have traded with the majority being purchased for $1.07-$1.10 each, against open interest of 2,006 contracts. The call to put ratio in Herbalife is 3:1. Call activity is over 2x the average daily volume.
TRW- 2,500 Jan 2015 $100 calls were bought for $4.10-$4.25 each, against open interest … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a bull risk reversal in Bank of America (BAC) and call selling in Gap (GPS).

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Smart Money Report

BAC- Bank of America is set to release Q2 earnings before the bell tomorrow morning. Analysts are looking for $0.29 in EPS and revenue of $21.6 billion. The options market is implying a $0.48 move, or 3.06%, in either direction through Friday’s close. The call to put ratio is currently 2.06, led by a buyer of 6,732 Aug. 16 $15 calls for $0.94 each. Shares of Bank of America have moved higher after earnings on three out of the last four reports. On 7/7, Oppenheimer maintained an outperform rating, but raised their price target to $20 from $19.
INTC- Intel is set to release Q2 earnings after the bell tonight. Analysts are looking for $0.52 in EPS and revenue of $13.7 billion. The options market is implying a $1.03 move, or 3.28%, in either direction through Friday’s close. The … Read More »

Smart Money Report

BAC- 35,000 Aug. 16 $17 calls were bought for $0.09-$0.11 each, against open interest of 101,282 contracts. Earnings are due out on 7/16. Bank of America was upgraded at Deutsche Bank to a buy rating last night with a $18 price target.
CP- 4,300 July $175 puts were sold for $1.35 each, against open interest of 333 contracts. Earnings are due out on 7/17. Canadian Pacific Railway trades at a P/E ratio of 17.38x (2015 estimates), PEG ratio of 0.73x (2015 estimates), 7.7% revenue growth, and has an average analyst price target of $193. On 6/30, Barclays maintained a overweight rating with a $196 price target. The stock has moved higher after earnings on the last three reports.
SPLS- The Jan. 2015 $9/$13 bull risk reversal was put on 10,000 times for a $0.05 debit. Volume was above the open … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Bank of America (BAC) and a bull risk reversal in Staples (SPLS).

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AAPL- A rollout from 8,389 Jan. 2015 $77.86 calls (credit) into 22,500 Jan. 2015 $95/$110 call spreads (debit). Volume was above open interest in the Jan. 2015 $95 calls. There was a big call spread trade yesterday in Apple.
BAC- 14,000 July 19 $16 calls were bought for $0.22 each, against open interest of 73,169 contracts. Implied volatility rose 4.9% to 22.39. Bank of America shares have short-term support at $15.25. It trades at a P/E ratio of 10.16x (2015 estimates) with 65.2% EPS growth, 3.7% revenue growth (-0.6% this year), P/B ratio of 0.74x, 0.26% dividend yield, and has an average analyst price target of $17.25.
CLF- A rollout from 10,000 Aug 16 $16 puts (credit) into 10,000 Aug 16 $14 puts (debit). Volume was above the open interest in the Aug 16 $14 puts. Cliff Natural Resources remains … Read More »

Unusual Options Activity

 In today’s Unusual Options Activity Report we highlight call buying in Bank of America (BAC) and Coach (COH).

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Smart Money Report

CVX- Chevron is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for $2.55 in EPS and revenue of $54.5 billion. The options market is implying a $2.00 move, or 1.60%, in either direction through Friday’s close. Call to put ratio in (CVX) options is currently 1.72, led by buying in June 21 $125 and July $130 calls. The stock has declined after earnings on the last three reports.
LNKD- LinkedIn will report Q1 earnings after the bell tonight. Analysts are looking for $0.34 in EPS and revenue of $467 million. Option traders are pricing in a $13.05 move, or 8.14%, in either direction through Friday’s close. The call to put ratio in (LNKD) options is currently 1.19, led by activity in the May 2 weekly $170 calls. The stock has declined after earnings on … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight put selling in Apache (APA) and call buying in Bank of America (BAC).

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Smart Money Report

BAC- Bank of America is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for $0.05 in EPS and revenue of $22.3 billion. The options market is implying a $0.53 move, or 3.31%, in either direction through Friday’s close. Call to put ratio in (BAC) options is currently 2.71, led by buying in the Apr. 25 weekly $16.50 calls. The stock has moved higher after reporting earnings on the three previous reports.
YHOO- Yahoo! will release Q1 earnings after the bell tonight. Analysts are looking for $0.37 in EPS and revenue of $1.1 billion. Option traders are pricing in a $2.31 move, or 7.01%, in either direction through Friday’s close. The call to put ratio in (YHOO) options is currently 2.63, led by led by buying in the Apr. 19 $33 and $35 calls. The … Read More »