Unusual Options Activity

BlackBerry (BBRY)- A rollout from 9,400 June 19 $11 puts ($1.70 credit) into 15,000 July 17 $10 puts ($1.01 debit). There were similar bearish rolls last week. BlackBerry earnings are due out on June 23rd.
B/E Aerospace (BEAV)- 2,000 Jan 2016 $70 calls were purchased for $0.60. Shares were last at $70 back in May of 2014. Last year, management talked about the sale of the company.
Anheuser-Busch InBev (BUD)- The Jan 2016 $110/$130 bull risk reversal was put on 2,500 times for a $1.80 debit. 3G Capital is reportedly interested in acquiring Diageo (they already own a sizable stake in AB InBev).
Cerus (CERS)- 3,000 Nov $5 puts were sold for $0.51-$0.54. They announced a new Chief Medical Officer on June 8th. The stock broke out above $5 early this month.

C&J Energy Services (CJES)- The July $12/$14 bear … Read More »

Free Trade Of The Day Featuring B/E Aerospace (BEAV)

Notes: B/E Aerospace (BEAV) is set to announce Q2 earnings on Wednesday, July 23rd. Back in June the company announced they will split into two separately traded companies (there had first been talk of the company putting themselves up for sale).

B/E Aerospace (BEAV) Options Trade Idea

Buy the (BEAV) Aug $95/$105 call spread for a $3.00 debit or better

(Buy the Aug $95 call and sell the Aug $105 call, all in one trade)

Stop loss- None

1st upside target- $6.00

2nd upside target- $9.00

Summer Sale: From now until the end of August, annual memberships are only $225 (25% off of the regular $299.95 price). This is available for new and existing members. Check out our updated 2014 options performance page here (all … Read More »

Smart Money Report

AAPL- 7,840 July 25 weekly $93 puts were purchased for $1.45 each, against open interest of 2,044 contracts. The net put premium is +$1.8M vs. the call premium of +$542K.  Apple earnings are due out on 7/22. Since the last report, options activity has been predominately bullish. See recent examples from 6/12, 6/13, 6/24, and 6/30.
BEAV- A rollout from 14,199 July $95 calls (credit) into 14,199 Aug. $100 calls (debit). Volume was above the open interest in the Aug. $100 calls. Earnings are due out on 7/23. The call to put ratio is 27:1. Call activity is 8x the average daily volume. Net call premium is +$1.4M vs. net put premium of -$50K. Implied volatility rose 4.5% to 28.56. The stock could trade down to $90 in the near-term before seeing any material upside (former resistance at $90 … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in B/E Aerospace (BEAV) and call buying in Reynolds American (RAI).

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Smart Money Report

BEAV- A roll down from 12,820 July $100 calls (credit) into 12,820 July $95 calls (debit). Volume was above the open interest in the July $95 calls. B/E Aerospace plans to separate into two businesses by early 2015. They also raised 2014 EPS guidance to $4.35.
BKS- Over 3,000 Jan. 2016 $22 calls were purchased for $3.70 each, against open interest of 470 contracts. The call to put ratio was 36:1. Call activity was 2x the average daily volume. Implied volatility rose 6.6% to 47.46. Net call premium was +$432K vs. net put premium of +$187.
KO- A rollout from 12,500 Aug. $41 calls (credit) into 12,500 Jan. 2015 $41 calls (debit). Volume was above the open interest in the Jan. 2015 $41 calls. Shares of Coca-Cola have been consolidating in a range of less than 2% for the last … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call roll down in B/E Aerospace (BEAV) and call buying in Barnes & Noble (BKS).

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Smart Money Report

BEAV- The May $100/$105 call spread was put on 3,300 times for a $1.20 debit. Volume was below the open interest in both options. There has been bullish activity in B/E Aerospace all week, following the intention to sell or breakup the company on Sunday.
NQ- More than 5,000 May $13 calls have traded today with majority being purchased for $0.70-$0.80 each, against open interest of 5,282 contracts. Earnings are due out on 5/15.
RSH- 15,000 Jan. 2016 $1.50 calls were purchased for $0.35 each, against open interest of 6,426 contracts. The call to put ratio is 6:1. On average, 7,752 calls trade per day.
TWTR- The Sep. $27/$35 bull risk reversal was put on 2,500 times for a $1.00 debit. Volume was above the open interest in both options. He/she is betting on Twitter shares being above $36 on September … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call spread in B/E Aerospace (BEAV) and put selling in the Energy ETF (XLE).

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Smart Money Report

BEAV- Another 2,500 May $100 calls were purchased for $1.80-$2.00 each, against open interest of 8,057 contracts. This is the 3rd straight day of big call buying following the plan to sell or break up the company on Sunday. (BEAV) trades at a P/E ratio of 22.61x (2014 estimates), PEG ratio of 0.95x (2014 estimates), 17.8% revenue growth, and has an average analyst price target of $100. On 4/24, D.A. Davidson maintained a buy rating with a $110 price target.
GOOGL- 700 May 30 weekly $515 calls were purchased for $16.40-$16.60 each, against open interest of 14 contracts. This is a $1.16M trade. The stock retested the April lows yesterday and currently has upside potential to $540 in the near-term. This was the largest single option trade in Google at the time of the trade.
KATE- The July 1×2 $33/$40 … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in B/E Aerospace (BEAV) and a bull call spread risk reversal in SunEdison (SUNE).

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Smart Money Report

BEAV- Another 2,772 May $100 calls were bought for $2.40 each, against open interest of 4,123 contracts. There was a large buyer of 3,341 of these calls yesterday for $2.40 each.
GRPN- Over 4k May 9 weekly $8 calls have traded this morning with the majority being bought for $0.10 each, against open interest of 1,602 contracts. Earnings are due out tonight.  The call to put ratio is 2:1. The stock has moved higher after earnings on three out of the last four reports. Shares of the coupon company are down 42% year to date. On 5/2, Morgan Stanley maintained an overweight rating on the stock with a $13 price target.
KING- The May $17/$20 bull risk reversal was put on 3,032 times for a $0.35 debit. Volume was above the open interest in both options. This involves buying the … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in BE Aerospace (BEAV) and a bull risk reversal in King Digital Entertainment (KING).

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