Options Report

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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 »

Options Report

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Unusual Options Activity

BGC Partners (BGCP)- Another 2,500+ Aug $10 calls were sold for $0.25, against open interest of 23,553 contracts. There was selling in these yesterday. On May 6th, roughly 10,000 of these calls were sold as well. The large trader who built up this position in late 2014/early 2015 appears to be in the process of closing it out.
Bank of New York Mellon (BK)- A rollout from 2,500 June 19 $42 calls ($1.72 credit) into 1,700 July $44 calls ($1.00 debit) and 1,700 July $45 calls ($0.65 debit). The $49B global investments firm hit a new high early this morning.
DSW Inc (DSW)- 1,500 July $35 calls were purchased for $2.20-$2.45. Call activity was 4x the average daily volume. Q1 results are due out on May 27th (shares have moved higher after earnings on 3 consecutive reports). This morning, Sterne … Read More »

Unusual Options Activity

AMC Entertainment (AMC)- Nearly 1,500 June $35 calls were bought for $0.55, against open interest of 1,583 contracts. Earnings are due out tomorrow night. They’ve only reported 5 times, but on each occasion the stock went up.
Coca-Cola Enterprises (CCE)- 20,500 Jan 2016 $49 calls were purchased for $2.00, against open interest of 63,363 contracts. This was tied to 717,500 shares. 50,000 were purchased yesterday (also tied to stock). On average, just 1,759 calls trade per day.
Emerald Oil (EOX)- 4,000 July $1 puts were purchased for $0.48-$0.55. Earnings are due out on May 4th (dropped on 5 out of the last 7 reports). If they are still around by then, analysts don’t see the company posting a profit until 2017.
Coca-Cola (KO)- Another 7,500 June 19 $39 puts were sold for $0.33-$0.34, against open interest of 11,809 contracts. There was … Read More »

Options Report

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Unusual Options Activity

AK Steel (AKS)- Another 2,000 June 19 $6 calls were purchased for $0.14, against open interest of 12,548 contracts (large buying in these on Friday). Earnings are due out tomorrow morning. The stock recently broke out of a multi-month downtrend.
H&R Block (HRB)- More than 4,000 July $35 calls were bought for $0.55-$0.60, against open interest of 1,916 contracts. On April 23rd, they said tax results through April 16th helped revenues increase even with fewer returns prepared. EBITDA margins are still projected to be around 30%.
IMAX Corp (IMAX)- 7,000 May $39 calls were purchased for $0.65-$0.80. This was tied to 200,000+ shares. Earnings are due out on April 30th (moved higher on 6 out of the last 7 reports). Large open interest remains in the June $33, $36, and $40 calls (not tied to stock in these instances).
Coca-Cola (KO)- … Read More »

Options Report

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Unusual Options Activity

Bank of America (BAC)- 25,000 Aug $17 calls were purchased for $0.27-$0.28, against open interest of 95,783 contracts. Roughly 50,000 were bought yesterday for $0.24-$0.29. Following the Q1 earnings report on April 15th, Jefferies, BMO Capital, Barclays, and Oppenheimer all lowered their price targets by $1, but still see upside to $18-$21 depending on the analyst.
eBay (EBAY)- More than 7,000 June $60 calls have traded with the majority being purchased for $1.62-$1.67, against open interest of 3,008 contracts. The company beat Q1 EPS estimates by $0.07 last night. PayPal sales rose 14% to $2.11B, now eclipsing eBay marketplace sales.
Gap (GPS)- Over 5,000 May 15 $40 puts have traded with the majority being bought for $0.47-$0.53. Q1 earnings aren’t due out until May 21st, but this could be a hedge or a bearish on April comps since we’re nearing … Read More »

ORM Market Commentary

This is an example of the nightly ORM Market Commentary that is included in my ORM Equity/Option Trader Subscription Service for $9.99 per month (available now!).

Is It Time To Buy Soda Stocks?

Notes: Google (GOOGL) shares trade at a P/E ratio of 19.56x (2015 estimates) with 12.3% EPS growth, price to sales ratio of 5.70x, and a price to sales ratio of 3.60x. Even at a $380B market capitalization, the search giant is still able to grow revenue by 15% annually (likely to top $75B this year). Cost per click has been declining in recent years, which is likely the result of an underperforming stock, but the company has still been able grow the top line (grown their advertising network by about 20% in this time). On a 5-year TTM P/E ratio basis, … Read More »

Options Report

This Options Report is an example of what is included in my ORM Equity/Option Trader Subscription Service for $9.99 per month (available now!).

Open Interest Updates From The Previous Trading Days Action

ADT Corp. (ADT)- Mar $39 call open interest went from 5,073 to 6,823 contracts (more buying on Friday).
CABELA’s (CAB)- Mar $60 call open interest went from 1,288 to 6,842 contracts (buying on Friday).
ConocoPhillips (COP)- Apr 17 $65 call open interest went from 10,756 to 14,680 contracts (buying on Friday).
Golar LNG (GLNG)- Mar $35 call open interest went from 3,601 to 7,427 contracts (buying on Friday).
ChipMOS Technologies (IMOS)- June $25 call open interest went from 815 to 1,930 contracts (buying on Friday).
Plains All American Pipeline (PAA)- Aug $47.50 call open interest went from 9,316 to 12,316 contracts and Aug $47.50 put open interest went from 7,160 … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in KAR Auction Services (KAR) and Coca-Cola (KO).

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 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Citigroup (C) and Coca-Cola (KO).

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Smart Money Report

AA- 15,000 Dec 20 $15 puts were purchased for $0.43 each, against open interest of 46,317 contracts. Alcoa shares have struggled with the $16.25-$16.50 resistance level since mid September.
GNRC- Large selling in the Nov $52.50 and $55 calls today. Volume was below the open interest in both options. Earnings are due out on 11/6. Shares of Generac Holdings have dropped after earnings on the last two reports. The large buyer of these calls in August doesn’t see much hope for the stock to return into the $50’s by November options expiration now.
HCA- The Nov 22 $65/$72 bull risk reversal was put on 5,000 times for a $0.55 debit. Volume was above the open interest in both options. Yesterday, Barclays raised their price target to $81 from $75 on HCA Holdings (kept the overweight rating), following the Q3 results.
KO- … Read More »

Coca-Cola Has Been Unfazed By The Recent Market Weakness
My commentary on Coca-Cola (KO) for TraderPlanet

Shares of Coca-Cola (KO) are up 5.82% year to date and now starting to break out above the three month resistance level at $42.25. This breakout above the ascending triangle setups for a minimum measured move to $45.75 in the coming months ($42.25-$38.75=$3.50+$42.25=$45.75). This move is also significant since it is happening on increasing volume over the last two trading days and in the face of recent market volatility…Click here to read more on my commentary on Coca-Cola.

Smart Money Report

CIEN- 2,500 Jan 2015 $20 puts were sold for $2.21 each, against open interest of 3,648 contracts. 1,000 were sold for $2.07-$2.08 on 7/10. Since soaring higher on 6/5 following a better than expected Q2 earnings report, Ciena shares have been filling the gap.
HD- A rollout from 7,699 July 25 weekly $78 puts (debit) into 7,699 Aug 29 weekly $78 puts (credit). Volume was above the open interest in the Aug 29 weekly puts. Home Depot shares printed a bullish hammer at $78 earlier this month (also around the 200-day SMA).
KO- 8,921 Aug 16 $42 calls were purchased for $0.85 each, against open interest of 31,687 contracts. Earnings are due out on 7/22. On 7/16, Nomura maintained a buy rating on Coca-Cola, but raised their price target to $54 from $53.50.
TTS- Another 1,250 Feb 2015 $12.50 calls were … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Coca-Cola (KO) and a bull call spread risk reversal in Time Warner (TWX).

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Smart Money Report

BEAV- A roll down from 12,820 July $100 calls (credit) into 12,820 July $95 calls (debit). Volume was above the open interest in the July $95 calls. B/E Aerospace plans to separate into two businesses by early 2015. They also raised 2014 EPS guidance to $4.35.
BKS- Over 3,000 Jan. 2016 $22 calls were purchased for $3.70 each, against open interest of 470 contracts. The call to put ratio was 36:1. Call activity was 2x the average daily volume. Implied volatility rose 6.6% to 47.46. Net call premium was +$432K vs. net put premium of +$187.
KO- A rollout from 12,500 Aug. $41 calls (credit) into 12,500 Jan. 2015 $41 calls (debit). Volume was above the open interest in the Jan. 2015 $41 calls. Shares of Coca-Cola have been consolidating in a range of less than 2% for the last … Read More »

Smart Money Report

JNJ- Johnson & Johnson is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for $1.48 in EPS and revenue of $18 billion. The options market is implying a $1.90 move, or 1.96%, in either direction through Friday’s close. Call to put ratio in (JNJ) options is currently 1.26, led by activity in the Apr. 19 $97.50 calls. The stock has only declined after earnings on one out of the last four reports.
KO- Another notable report due out tomorrow morning will come from Coca-Cola. Analysts are looking for $0.44 in EPS and revenue of $10.6 billion. Option traders are pricing in a $0.81 move, or 2.10%, in either direction through Friday’s close. The call to put ratio in (KO) options is currently 1.89, led by a buyer of 2,200 June $39 calls and 2,000 Aug. $41 calls. … Read More »

 Consumer Staples: Slow And Steady Wins The Race

Here is my commentary on Consumer Staples for TraderPlanet.com.

http://www.traderplanet.com/commentaries/view/164840-consumer-staples-slow-and-steady-wins-the-race/