Weekend Market Update
The Japanese Equity Rally Persists
Today’s ORM Market Commentary is an example of what will be included in my ORM Equity/Option Trader Subscription Service for $9.99 per month. Email me at Mitchell@OptionsRiskManagement.com or tweet me @MitchellKWarren on StockTwits/Twitter if you’d like for me to notify you when it is available or if you have any other questions.
Notes: Almost 5,000 Mar $39 calls were bought during the first two hours of trading on March 5th (majority for $0.80 each). As these calls have dropped, 2,000+ were bought today for $0.45-$0.55 each. Not to mention there were sizable purchases in the May $40 (3,100+ traded) and July $38 calls (1,200+ traded) for $1.10-$1.25 and $2.69-$2.70, respectively. The $6.7B home security company trades at a P/E ratio of 17.59x (Sep16 estimates) with 6.2% EPS growth, price … Read More »
(This Options Report is an example of what will be included in my ORM Equity/Option Trader Subscription Service for $9.99 per month)
Email me at Mitchell@OptionsRiskManagement.com or tweet me @MitchellKWarren on StockTwits/Twitter if you’d like for me to notify you when it is available or if you have any other questions.
Open Interest Updates From The Previous Trading Days Action
Gilead Sciences (GILD)- May 15 $90 put open interest went from 19,233 to 22,465 contracts, May 15 $100 call open interest went from 20,521 to 25,574 contracts, and May 15 $115 call open interest went from 7,877 to 12,938 contracts (bull call spread risk reversal put on for a $2.60 debit).
McDonald’s (MCD)- June $97.50 call open interest went from 17,290 to 42,008 contracts (more buying yesterday).
PDL BioPharma (PDLI)- May $7 call open interest went from 2,476 … Read More »
Unusual Options Activity
CAB- For the third day this year there has been unusual buying in the Feb $60 calls. Roughly 900 were bought this morning for $0.40-$0.50 each, against open interest of 1,069 contracts. January 7th and 20th were the other two days that saw action, paying up to $1.05. On average only 183 calls trade per day. Cabela’s reports Q4 earnings before the bell on February 12th (shares have gone up on 5 out of the last 7 reports). Since the March 2014 peak above $72, shares have fallen nearly 25% in that time. The stock now trades at a P/E ratio of 15.57x (2015 estimates) with 11.8% EPS growth, price to sales ratio of 1.08x, and a price to book ratio of 2.22x. Revenue is likely to hit the $4B mark annually this year, rising over 12%. With … Read More »