Weekend Market Update
The S&P 500 Rallies On The ECB QE Announcement
SPDR S&P 500 ETF Trust (SPY) Options Trade Ideas
Sell the (SPY) Feb 20 $187.50/$188.50 bull put spread for a $0.15 credit or better
(Sell the Feb 20 $188.50 put and buy the Feb 20 $187.50 put, all in one trade)
Stop loss reference- A move below $188.50 in the underlying
Upside target- $0.05 or less
Maximum gain potential- 17.6%
Buy the (SPY) Feb 20 $205/$212 bull call spread for a $2.75 debit or better
(Buy the Feb 20 $205 call and sell the Feb 20 $212 call, all in one trade)
Stop loss- $0.95
1st upside target- $5.50
2nd upside target- A move in the underlying to $212-$215
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Smart Money Report
CFX- 4,000 July $67.50 puts were sold for $0.50-$0.55 each, against open interest of 6 contracts. Colfax trades at a P/E ratio of 22.67x (2015 estimates), PEG ratio of 0.97x (2015 estimates), 7.2% revenue growth, and has an average analyst price target of $75.
EPI- 15,000 June 27 weekly $22.50 calls were purchased for $0.35 each, against open interest of 414 contracts. Look for a retest of $23 in the near-term in the India equity ETF.
ESI- 1,500 July $19 calls were bought for $0.89 each, against open interest of 25 contracts. Typically trades 367 calls per day. Shares of ITT Educational Services are down 64% from the January highs.
EWJ- A rollout from 250,000 June 21 $11 calls (credit) into 250,000 July $11 calls (debit). Volume was above the open interest in the July $11 calls. The Japan equity ETF … Read More »
Smart Money Report
EPI- 20,000 Jan. 2016 $16 puts were sold for $2.95 each, against no previous open interest. He/she thinks the WisdomTree India Earnings Fund will be above the $16 level on January 2016 options expiration, but can make money as long as it stays above $13.05.
SIRI- 16,125 Mar. 2014 $3.50 puts were bought for $0.19 each, against open interest of 596 contracts. Shares of Sirius XM Radio are now in negative territory, after trading within one cent of the $4 level this morning.
SYNA- 1,500 Dec. $40 calls were purchased for $5.09-$5.20 each, against open interest of 98 contracts.
AAPL- Apple shares are lower by 0.36% today, following an initial gap higher this morning on the iPhone 5S and 5C launch day. The call to put ratio in the Sep. 27 weekly options is currently 1.49, led by activity in the … Read More »