Unusual Options Activity
Bank of America (BAC)- 25,000 Aug $17 calls were purchased for $0.27-$0.28, against open interest of 95,783 contracts. Roughly 50,000 were bought yesterday for $0.24-$0.29. Following the Q1 earnings report on April 15th, Jefferies, BMO Capital, Barclays, and Oppenheimer all lowered their price targets by $1, but still see upside to $18-$21 depending on the analyst.
eBay (EBAY)- More than 7,000 June $60 calls have traded with the majority being purchased for $1.62-$1.67, against open interest of 3,008 contracts. The company beat Q1 EPS estimates by $0.07 last night. PayPal sales rose 14% to $2.11B, now eclipsing eBay marketplace sales.
Gap (GPS)- Over 5,000 May 15 $40 puts have traded with the majority being bought for $0.47-$0.53. Q1 earnings aren’t due out until May 21st, but this could be a hedge or a bearish on April comps since we’re nearing … 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).
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Unusual Options Activity
BERY- Someone sold their 3,000 Mar 2015 $30 calls for $2.60 each, against open interest of 3,356 contracts. He/she bought those calls on November 10th for $0.70. Berry Plastics is set to report earnings on January 29th and the stock is currently up for the eight consecutive week.
C- The two largest single trades of the day in Citigroup were a seller of 6,900 Feb 13 weekly $48.50 puts for $0.65-$0.66 and then 11 minutes later a seller of 10,000+ Mar 20 $47 puts for $0.83-$0.84. Volume was above the open interest in the Feb 13 weekly $48.50 puts. The recent performance in U.S. treasuries has sent the stock down about 8% in less than a week. These big put sales are willing to step in ahead of earnings on January 15th (stock has moved higher after earnings on … Read More »
Smart Money Report
LGF- Lions Gate Entertainment will report Q4 earnings after the bell tonight. Analysts are looking for $0.40 in EPS and revenue of $824 million. Option traders are pricing in a $2.65 move, or 8.95%, in either direction through June options expiration. The call to put ratio in (LGF) options is currently 7:1, led by buying in the June $31 calls. The stock has moved higher after earnings on three out of the last four reports.
CLF- A rollout from 7,000 Oct. $17 puts (credit) into 19,000 Jan. 2015 $12 puts (debit). Volume was above the open interest in the Jan $12 puts. There was a rollout from 3,414 Oct. $18 puts (credit) into 14,830 Jan. 2015 $13 puts (debit) yesterday.
CTXS- More than 1,000 Sep. $70 calls were bought for $1.00-$1.05 each, against open interest of 1,449 contracts. There was … Read More »