Options Report

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Unusual Options Activity

Arena Pharmaceuticals (ARNA)- 2,000 Oct $5 calls were purchased for $0.60. They received an additional patent for Belviq, their weight loss drug, this morning. Shares have been range bound between $4 and $5 for most of 2015.
Cisco Systems (CSCO)- 8,000 May 15 $27 calls were bought for $1.01-$1.07, against open interest of 4,900 contracts. The stock trades at just 12x earnings and has a multi-billion dollar buyback program and a 3% dividend.
Kohl’s (KSS)- 2,500 Oct $70 puts were purchased for $2.30. This is likely a hedge after the $20 run up year to date.
Outerwall (OUTR)- The May 15 $70/$80 call spread was put on another 2,000 times for a $2.38 debit. This trade happened yesterday for a $2.00 debit. Q1 earnings are due out on May 7th. Shares have moved higher after earnings on 6 straight reports.
Xerox (XRX)- … Read More »

Unusual Options Activity

PowerShares DB Agriculture (DBA)- More than 5,000 July $23 puts have traded with the majority bought for $0.83-$0.85. The agriculture ETF typically trades 139 puts per day, but is seeing this action come hitting resistance at the 10-week exponential moving average.
ONEOK (OKE)- Over 6,000 Apr 17 $50 calls were sold for $0.80-$0.90, against open interest of 17,279 contracts. There was large buying in these on March 30th for $0.45-$0.60.
Outerwall (OUTR)- The May 15 $70/$80 bull call spread was put on 2,000 times for a $2.00 debit. Q1 earnings are due out on May 7th (shares have moved higher after earnings on 6 straight reports).
Spectra Energy (SE)- The May $34/$38 bull risk reversal was put on 10,000 times for a $0.05 credit. Spectra Energy plans on increasing capex spending more than 30% to $2.8B over the next few years … Read More »

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 »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a bull call spread risk reversal in L Brands (LB) and a put spread in Outerwall (OUTR).

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