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 »
ORM Market Commentary
Small Cap And Transportation Stocks Are Catching A Bid
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: Since most companies in the Russell 2000 have a majority or all of their revenues from U.S. operations they don’t have the negative impact (or not as directly) of a sharp rise in the U.S. dollar.
iShares Russell 2000 ETF (IWM) Options Trade Idea
Sell the (IWM) Apr 17 $116/$117 bull put spread for a $0.20 credit or better
(Sell the Apr 17 $117 put and buy the Apr … 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
AECOM (ACM)- June $27.50 put open interest went from 3,632 to 8,398 contracts (more buying yesterday).
Air Products & Chemicals (APD)- Apr $140 put open interest went from 2,077 to 4,280 contracts (selling as part of a bull risk reversal yesterday).
Atmel (ATML)- Apr $9 call open interest went from 3,309 to 5,246 contracts (buying yesterday).
Bank of New York Mellon (BK)- Mar 20 $40 call open interest went from 17,027 to 18,663 contracts (more buying).
Anheuser Busch Inbev SA … Read More »
Smart Money Report
NFLX- Netflix is set to announce Q1 earnings after the bell tonight. Analysts are looking for $0.83 in EPS and revenue of $1.3 billion. The options market is implying a $39.20 move, or 11.40%, in either direction through Friday’s close. Call to put ratio in (NFLX) options is currently 1.15, led by a buyer of 650 May 17 $310 calls for $45.65 each. The stock has moved higher on three out of the last five reports.
UTX- United Technologies will release Q1 earnings before the bell tomorrow morning. Analysts are looking for $1.27 in EPS and revenue of $14.7 billion. Option traders are pricing in a $2.32 move, or 1.96%, in either direction through Friday’s close. The call to put ratio in (UTX) options is currently 2.42, led by a seller of 1,781 June $125 calls for $0.55 each. … Read More »
Unusual Options Activity
AMD- 1,330 May 9 weekly $4.50 calls were bought for $0.06 each, against open interest of 163 contracts. (AMD) reported earnings on Thursday night.
NTES- 1k May $70 calls were purchased for $4.10-$4.20 each, against open interest of 115 contracts. Earnings are due out on 5/14. Typically trades 556 calls per day.
BBRY- 9,033 June $8 calls were bought for $0.37 each, against open interest of 11,255 contracts.
MU- 5,791 July $27 calls were purchased for $1.14 each, against open interest of 21,542 contracts. (MU) shares are trying to retest the February highs of $25.68.
SMH- 14,500 Aug. $50 calls were bought for $0.38 each, against open interest of 22,637 contracts. There was large buying in these calls on 4/8 and 4/9.
WPRT- 5,400 Oct. $17 calls were sold for $0.60 each, against open interest of 81 contracts. Earnings are due out on … Read More »
Centene Is Poised For 20%-25% Gains In 2014
My article on Centene for SeekingAlpha http://seekingalpha.com/article/1888081-centene-is-poised-for-20-25-gains-in-2014