Options Report

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Open Interest Updates From The Previous Trading Days Action

Athersys (ATHX)- July $3 call open interest went from 5,287 to 8,199 contracts (more buying on Friday).
Bank of New York Mellon (BK)- Mar 20 $40 call open interest went from 4,068 to 13,063 contracts (more buying).
Owens Corning (OC)- May $41 call open interest went from 2,778 to 4,722 contracts (more buying).

New Options Trades

Arcos Dorados (ARCO)- More than 5,000 Mar $5 puts were bought on March 9th for $0.50-$0.55 each. On average, only 55 puts … Read More »

How To Trade The Pullback In Burlington Stores

Notes: Read about my fundamental analysis on Burlington Stores from December 10th here. The Mar 2015 $50 calls can now be bought for $2.15-$2.20 each (traded as high as $4.00 on December 23rd). An alternative trade idea would be the Mar 2015 $45 calls for $4.40-$4.50. These offer a higher delta with roughly the same theta (time decay). Breakeven on the $45’s would be $49.50 and $52.20 on the $50 calls (if held to options expiration).

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Two latest articles

Nike’s … Read More »

Smart Money Report

BURL- Another rollout from 1,700 Mar 2015 $45 calls (credit) into 2,600 Mar 2015 $50 calls (debit). Volume was below the open interest in both options. Prior to today’s action, Mar 2015 $50 call open interest stood at 10,047 contracts. My article on Burlington Stores from December 10th
FXI- 8,000 Jan 17 2015 $41.50 puts were sold for $0.93 each, against open interest of 142 contracts. The China Equity ETF is trying once again to breakout above the $42 resistance level and he/she is betting that last week’s gap doesn’t get filled over the next three weeks (at least doesn’t finish below $41.50, but will have to buy the ETF if it does).
LINE- A rollout from 2,500 Jan 2015 $13 puts (credit) into 3,500 Feb 2015 $10 puts (debit). Volume was above the open interest in the Feb 2015 … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Burlington Stores (BURL) and the Financial Select Sector SPDR Fund (XLF).

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Bain Capital’s Burlington Stores Secondary Offering Gives Investors A Chance To Buy On A Dip
My article on Burlington Store’s (BURL) for Seeking Alpha

Burlington Stores (NYSE:BURL) is a $3.25B off-price apparel retailer that operates more than 500 stores in 44 states and Puerto Rico. In October of 2013, Bain Capital took the company public on the NYSE and the stock hasn’t looked back since then. Year to date, BURL shares are up a whopping 36.94% in a year where the SPDR S&P Retail Index ETF (NYSEARCA:XRT) is fractionally higher by 3.39%…Click here to read the rest of the article.

The Outperformance In Burlington Stores Isn’t Over Yet

My commentary on Burlington Stores (BURL) for TraderPlanet.com.

Smart Money Report

BURL- The Sep $35 straddle was put on 3,000 times for a $3.35 credit. Volume was above the open interest in both options. Earnings  are due out on 9/9. The trader is betting on the stock staying around the $35 level through Sep options expiration. Breakevens are at $38.35 and $32.65. The stock has moved $2-$4 the day after reporting on the 3 reports as a public company.
DKS- 3,000 Sep $46 calls were sold for $0.65 each, against open interest of 1,917 contracts. The stock has resistance in the $46-$47.50 range. They reported Q2 EPS of $0.67 vs the $0.66 estimate and revenue of $1.69B vs the $1.65B estimate this morning. They repurchased $100M in stock in the quarter. Sporting Goods comps were+4.1% while Golf Galaxy comps came in at -9.3%.
EXAS- 2,000 Oct $17 puts were sold for … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a straddle in Burlington Stores (BURL) and call selling in the Dicks Sporting Goods (DKS).

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