Unusual Options Activity

CBI- Nearly 3,000 Feb 20 $40.50 calls traded this morning with the majority being bought for $0.30 each, against open interest of 16 contracts. These near-term call buyers are specifically going for out-of-the-money options that expire a week before the Q4 earnings report. The call to put ratio is 10:1 and call activity is 2.5x the average daily volume. Shares are now nearing a retest of the 8-month resistance level at the 10-week EMA (breakeven for the calls is at the key moving average). Wall Street analysts continue to lower their price targets as shares have been cut in more than half, but still have a consensus target in the $60’s. Recently on January 22nd, Bank of America initiated the stock with an underperform rating and a $34 price target. Short interest remains relatively high at 8.27%, totaling … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a put rollout in Chicago Bridge & Iron (CBI) and Tesoro Petroleum (TSO).

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