December Options Trades

Below is a list of some unusual options activity by day for December (starting on December 12th). The data is the beginning of my nightly research for my own personal trading and acts as a rough draft for my weekly unusual options activity posts for SeeItMarket.com. For the most part I typically won’t make note of many ETF/index trades, stock replacements, and shorter-dated activity that I feel has already played out or now offers unfavorable odds. You can follow me on Twitter and Stocktwits for more investing research.

December 12th
1. TTMI- Buyer of 5,000 June 2017 $17.50 calls for $0.65, average daily call volume of 65 contracts, call OI of 1,663 contracts, IV +11.3% to 46.99, call to put ratio of 21:1
2. ORIG- Buyer of 5,000 Dec $2 puts for $0.15, put activity was 30x the average daily volume. Earnings are due out on December 14th … Read More »

Unusual Options Activity

Green Plains (GPRE)- Roughly 1,700 May $31 calls were bought for $1.35-$1.85. Earnings are due out on April 28th (shares have moved higher on 3 of the last 4 reports).
Hertz Global (HTZ)- More than 10,000 Apr 24 weekly $20.50 calls have traded with the majority bought for $0.50. Yesterday, Thrifty Car Rental, a division of Hertz, announced they are expanding to Singapore.
Michael Kors (KORS)- 1,500 May 29 weekly $60 puts were purchased for $1.75 early this morning. Yesterday, Mizuho downgraded the stock to neutral, citing competition from Kate Spade and slowing comp growth as a reason.
Owens Corning (OC)- A rollout from 7,000 May $43 calls ($1.35 credit) into 7,000 June $43 calls ($1.90 debit). This trade occurred yesterday as well. Earnings are due out tomorrow morning.
Staples (SPLS)- 3,000 Sep $14 puts were sold for $0.55 and 3,000 Jan … Read More »

Two Ways To Play The Lost Luster In Michael Kors (KORS)

Notes: Michael Kors (KORS) reported Q3 EPS of $1.48 vs the $1.33 per share consensus estimate on February 5th. Revenue of $1.26B fell short of Wall Street’s projection of $1.30B and comps of +8.6% were well below the +12.6% consensus from Retail Metrics. This was the 1st single digit rate for comparable same store sales in 5+ years. Management made a point of emphasis on 35 straight quarters of comp growth and the fact that they hit 16M “likes” on Facebook, but increased promotional activity still resulted in gross margins ticking lower by 30 basis points to 60.9%. The company issued Q4 guidance of $0.89-$0.92 in EPS vs the $0.94 estimate on revenue of $1.05B-$1.08B vs the $1.15B estimates. Despite the 30%+ correction in the stock, … Read More »

Smart Money Report

DHR- The Mar 2015 $70/$80 bull risk reversal was put on 7,500 times for a $0.65 debit. Volume was below the open interest in both options. This was tied to 500,000 shares. This trade was put on 7,500 times yesterday too. Bank of America said Danaher may buy Agilent Technologies’ Life Science division post the split.
KORS- 3,000 Nov 22 $80 calls were bought for $1.15 each, against open interest of 7,043 contracts. There was sizable put selling in the Michael Kors Oct 18 $70 puts yesterday.
PAAS- More than 6,000 Nov $11 puts were sold for $0.60 each, against open interest of 486 contracts. The stock is nearing a test of prior resistance from last year near $11. There have been several put sales in the gold and silver miners recently (betting on the correction at least pausing in … Read More »

Smart Money Report

BABA- The Nov $85/$95 strangle was put on 3,000 times for a $7.30 credit. Volume was above the open interest in both options. The trader is betting that Alibaba shares will stay between $85-$95 on November options expiration.
BABA- 2,500 Dec $95 calls were sold for $4.30 each, against open interest of 0 contracts. On the 1st day of trading in (BABA) options traders/investors don’t see the stock eclipsing the IPO day high anytime soon. Implied volatility has fallen from the low 40’s to now just under 38%.
KORS- Over 4,300 Oct 18 $70 puts were sold for $1.40 each, against open interest of 3,767 contracts. The trader sees Michael Kors stock holding above the $70 level through October 17th, possibly ending a near 30% slide in the share price from May.
MCHP- A likely rollout from 2,000 Jan 2015 $50 … Read More »

Stock Watchlist Update
An Update On Michael Kors

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Smart Money Report

KORS- Michael Kors will report Q3 earnings before the bell tomorrow morning. Analysts are looking for $0.86 in EPS and revenue of $861 million. The options market is implying a $7.85 move, or 10.16%, in either direction through Friday’s close. Call to put ratio in (KORS) options is currently 1.22.
YUM- Yum Brands is set to announce Q4 earnings after the bell tonight. Analysts are looking for $0.80 in EPS and revenue of $4.3 billion. Option traders are pricing in a $4.40 move, or 6.64%, in either direction through Friday’s close. The call to put ratio in (YUM) options is 1.15.
LB- The Jan. 2015 $42/$52/$62 bull call spread risk reversal was put on 4k times for a $0.85 debit. Volume was above the open interest in all three options. Earnings are due out on 2/26.
OUTR- The Mar. $50/$60 put … Read More »

 Free Trade of the Day
L-3 Communications (LLL)

Notes: If L-3 Communications (LLL) shares are able to close higher on Tuesday or Wednesday, consider the options trade idea below.

L-3 Communications (LLL) Options Trade Idea

Sell the (LLL) Sep. $85/$90 Put Spread for a $1.00 credit or better

(Selling the Sep. $90 Put and buying the Sep. $85 Put, all in one trade)

Buy stop loss reference- A move below $89.50 in the stock

Upside target- $0.00

(You want the put spread to expire worthless)

Updates: Michael Kors (KORS) shares once again closed at an all-time high, rising 1.29% on Friday. Shares of F5 Networks (FFIV) fell 0.88%, but remain above the $82 support level.

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 Free Trade of the Day
F5 Networks (FFIV)

Notes: F5 Networks (FFIV) is set to announce Q4 earnings on Wednesday, October 23rd.

F5 Networks (FFIV) Options Trade Idea

Buy the (FFIV) Sep. $85/$90 Call Spread for a $1.50 debit or better

(Buying in the Sep. $85 Call and selling the Sep. $90 Call, all in one trade)

Stop loss- $0.75

Upside target- $3.00-$4.00

Updates: Michael Kors (KORS) shares rose 1.95% in today’s session, closing at an all-time high. Shares of Facebook (FB) closed within $0.06 of an all-time closing high, adding 1.81%. Both of these names will likely continue to march higher, but make sure that you are raising stop losses or just trim part of the position to lock in gains.

Free offer: Sign up for a free account and have the “Free … Read More »

 Free Trade of the Day
Michael Kors (KORS)

Michael Kors (KORS) Options Trade Idea

Buy the (KORS) Sep. $72.50/$75/$77.50 Call Butterfly for a $0.50 debit or better

(Buy 1 Sep. $72.50 Call, sell 2 Sep. $75 Calls, and sell 1 Sep. $77.50 Call, all in one trade)

Stop loss- None

Upside target- $1.50-$2.00

Updates: Facebook (FB) shares rose 2.29% today, confirming the new current support level at $39.

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SUMMER END SALE: Join now to gain access to the all of the stock watchlist updates (various stock and options trade ideas every night), unusual options activity reports, weekend market updates, direct email access to bounce trade ideas off of … Read More »