Options Report

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Unusual Options Activity

Advanced Auto Parts (AAP)- A rollout from 3,500 May $150 puts ($5.10 credit) into 3,500 June $135/$145 put spreads ($3.90 debit). The May $150 puts were initially bought for $4.00-$4.10 on April 23rd. Earnings are due out on May 21st (shares dropped on the last two reports). The stock is starting to breakdown below the 40-week SMA (200-day SMA).
Bloomin’ Brands (BLMN)- 2,100+ Oct $20 puts were sold for $0.85-$0.90. He/she sees the downside risk being limited to about $2 (already down $4 from the March high). The company reported Q1 US comps at +3.6%, but the light 2015 revenue guidance is weighting on shares today.
Dillard’s (DDS)- The June $110/$125 bear put spread was put on 1,000 times for a $3.15 debit. Earnings are due out on May 14th. The stock has been rolling over in recent weeks, which … 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 »

Unusual Options Activity

CLNY- 2,000 Feb $25 puts were sold for $1.20 each, against no previous open interest (typically trades just 36 puts per day). He/she is making a bet that Colony Financial shares are able to breakout above the $24.50 resistance level and end above $25 on February options expiration (breakeven down at $23.80). The real estate and investment company trades at a reasonable forward P/E ratio of 13.40x on revenue that will more than double in a two year stretch (end of 2013 through 2015).
CYH- Someone rolled out 2,500 Jan 2015 $48 calls ($6.37-$6.38 credit) into 4,000 Mar $55 calls ($3.56 debit). Volume was above the open interest in the Mar $55 calls. Call activity is more than 10x the average daily volume. Shares of Community Health Systems just successfully tested support at the 50-day EMA for the second … Read More »

Smart Money Report

WFC- Wells Fargo is set to announce Q3 earnings tomorrow morning. Analysts are looking for $0.97 in EPS and revenue of $21.0 billion. Options traders are pricing in a $0.98 move, or 2.38%, in either direction through tomorrow. The call to put ratio in (WFC) options is currently 1.80. According to earningswhispers.com, the whisper number for tonight is $1.02 in EPS.
CHMT- The Dec. $25 straddle was sold 5,000 times for a $3.40 credit. Volume was above the open interest in both options.
IWM- 30k Oct. $102 puts were bought for $0.28 each, against open interest of 92,207 contracts.
RAX- 3,500 Nov. $42.50 puts were bought for $1.70 and 2,500 Nov. $37.50 puts were sold for $0.60, creating a bear put spread. Volume was above the open interest in both options.
SE- 3,500 Jan. $36 calls were bought for $0.54 each, … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight large call buying in Spectra Energy (SE) and put buying in the Russell 2000 ETF (IWM).

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