Unusual Options Activity

Aetna (AET)- There was sizable buying in the July 17 $135 calls (1,500+ traded) and $136 calls (2,500+ traded). The stock is rising on Anthem/Cigna merger talk (CI initially rejected the $184/share offer).
Cheesecake Factory (CAKE)- 1,800 Aug $50 puts were sold for $0.40. Earnings are due out on July 22nd.
Deere (DE)- 2,000 Sep $97.50 calls were purchased for $1.35-$1.38, against open interest of 6,138 contracts. Sizable buying on May 22nd, 26th, and on June 10th too. DE is closing on a test of $95 again. Shares trade at 16.53x 2015 earnings and 0.94x sales.
Red Hat (RHT)- The Sep $85/$90 bull call spread was put on 5,000 times for a $1.10 debit. Following their Q1 earnings beat last week, the stock had been trading just below key resistance at $80. The Sep $85/$90 bull call spread was put … Read More »

Unusual Options Activity: BBRY, HLT, RHT, And More

(This post was originally published on See It Market on June 15th)

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

Monday

Red Hat (RHT) – 2,000 July $80 calls were bought for $2.85-$3.10. Earnings are due out on June 18th (shares have moved higher on 3 out of the last 4 reports).

Tuesday

Whole Foods Market (WFM) – 3,500+ June 19 $40 calls were purchased for $0.44-$0.69. Implied … Read More »

Smart Money Report

BMY- 5,000 Jan 2015 $52.50 calls were bought for $1.61-$1.72 each, against open interest of 32,098 contracts. On 8/25, 4,500 Jan 2015 $52.50 calls were bought for $1.66 each.
DKS- A rollout from 3,000 Sep $43/$46 call spreads (credit) into 3,000 Oct $46/$49 call spreads (debit). Volume was above the open interest in the Oct $46 and $49 calls.
IRM- Over 7,700 Oct $37.50 calls have traded with the majority being purchased for $0.35-$0.40 each, against open interest of 5,540. The call to put ratio is 15:1. Call activity is 7x the average daily volume. Implied volatility rose 13.5% to 25.39. Elliott Management took a position in Iron Mountain shares in Q2.
RHT- The Sep $62.50/$67.50 call spread was put on 5,268 times for a $1.45 debit. Volume was above the open interest in both options. Red Hat earnings are due … Read More »