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 »
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Unusual Options Activity
Ctrip.com (CTRP)- A rollout from 2,000 Apr 17 $50 calls ($7.85 credit) into 4,000 Apr 17 $57.50 calls ($2.25 debit). On March 20th, Brean Capital raised their price target to $70 from $65.
Exelon (EXC)- Large buying in the Apr $31, $32, and $33 puts this morning. Put activity was 11x the average daily volume. Talk of rising rates later this year would make the need for “bond-like” stocks like EXC less attractive.
Jive Software (JIVE)- 55,000 May $5 puts were sold for $0.25-$0.30. Typically trades 1,742 puts per day. Shares having basing around $4.90-$5.15 over the last month.
Lumber Liquidators (LL)- A rollout from 1,500 Apr 17 $40 puts ($9.50 credit) into 1,500 May 15 $30 puts ($4.00 debit). Volume was below the open interest in both options. The Feds confirmed this week that they are investigating the company on … Read More »
ORM Market Commentary
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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 »
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Open Interest Updates From The Previous Trading Days Action
HollyFrontier (HFC)- Mar 20 $40 call open interest went from 1,625 to 4,681 contracts (buying yesterday).
Intel (INTC)- Mar 20 $33.50 call open interest went from 3,823 to 28,567 contracts (buying yesterday).
McDonald’s (MCD)- June $97.50 call open interest went from 9,588 to 17,290 contracts (buying yesterday).
Marvell Technology (MRVL)- Apr 17 $18 call open interest went from 3,042 to 10,549 contracts (buying yesterday).
Nucor (NUE)- Mar 20 $47 call open interest went from 452 to 6,007 contracts (buying yesterday).
Read More »
ORM Market Commentary
S&P 500 Nears Key Support Levels
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: A strong U.S. dollar and the start of the Euro Zone QE program on Monday ($1.2T program) are weighing on the currency. Given that this program could last until September 2016 or beyond (2% inflation target), it is not out of the question to see parity against dollar by the time their quantitative easing has ended.
Top Trade Idea Of The Night (IMAX)
Notes: The $2.3B movie … Read More »
Smart Money Report
BAC- Bank of America is set to announce Q3 earnings before the bell tomorrow morning. Analysts are looking for $0.18 in EPS and revenue of $22 billion. Options traders are pricing in a $0.50 move, or 3.48%, in either direction through Friday’s close. The call to put ratio in (BAC) options is 3.12.
PEP- Pepsico will also report earnings in the morning. Analysts are looking for $1.17 in EPS and revenue of $17 billion. The options market is implying a $2.10 move, or 2.59%, in either direction through Friday’s close. Call to put ratio in (PEP) options is currently 2.47.
FXI- The May 2014 $34.50/$42.50 bull risk reversal was put on 26,000 times for a $0.23 credit. Volume was above the open interest in both options.
GE- 25k Dec. $25 calls were bought for $0.41-$0.42 each, against open interest of 55,380 contracts. General … Read More »
Free Trade of the Day
Notes: Pepsico (PEP) is set to announce Q3 earnings on Wednesday, October 16th.
Pepsico (PEP) Options Trade Idea
Buy the (PEP) Oct. $80 Call for $1.62 or better
Stop loss- $1.20
Upside target- $3.00-$3.50
Updates: Time Warner (TWX) shares rose 1.41% today, closing at a one month high. Shares of Beazer Homes USA (BZH) picked up 0.66%, putting in yet another higher low.
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Premium Subscription: Join now to gain access to the all of the stock watchlist updates (30-50 stock and option trade ideas like the one above every week), unusual options activity reports, weekend market updates, Premium Twitter feed, and more! All … Read More »