Unusual Options Activity
American Eagle Outfitters (AEO)- 3,000+ Aug 7 weekly $17.50 calls were purchased for $0.55-$0.60. The uptrend in shares remains in place as EPS estimates for 2015 and 2016 continue to trend upward.
EMC Corp (EMC)- There was a rollout from 6,000+ Aug 21 $29 calls ($0.15 credit) into 6,000+ Aug 21 $27 calls ($0.64 debit). Earnings are due out on July 22nd. EMC has been range bound between $26 and $27.50 since April. The company doesn’t plan on breaking up despite investor pressure to do so.
Maxim Integrated Products (MXIM)- 6,000 Aug $35 puts were purchased for $2.09-$2.15. Put activity was 9x the average daily volume. Earnings are due out on July 23rd. MXIM shares gapped down by about 8% on the previous earnings report. After recent deals in the semiconductor space they are considered a takeover target.
Texas Instruments (TXN)- … Read More »
Smart Money Report
AAL- 10,000 Nov. $40 calls were bought for $5.52-$5.60 each, against open interest of 1,844 contracts. Uptrend on the daily and weekly charts remain intact with major support at the $40 level. American Airlines trades at a P/E ratio of 7.01x (2015 estimates) with 16.2% EPS growth, 5% revenue growth, P/S ratio of 1.03x, and has an average analyst price target of $46. On 5/1, (JPM) maintained an overweight rating with a $55 price target.
AVNR- A rollout from 10,000 June $5 calls (credit) into 10,000 Jan. 2015 $6 calls (debit). Volume was above the open interest in the Jan. 2015 $6 calls. Catalysts for Avanir Pharmaceuticals include: http://phoenix.corporate-ir.net/phoenix.zhtml?c=61699&p=irol-newsArticle&ID=1934460&highlight= http://phoenix.corporate-ir.net/phoenix.zhtml?c=61699&p=irol-newsArticle_print&ID=1912540&highlight=
COCO- 2,500 Aug. $1 puts were purchased for $0.25 each, against open interest of 5,528 contracts. Typically trades 263 puts per day.
MGA- 1,000 Sep. $115 calls were bought for $1.85 … Read More »
United Continental Is Poised To Soar In Q1
My commentary on United Continental (UAL) for TraderPlanet http://www.traderplanet.com/commentaries/view/165657-united-continental-is-poised-to-soar-in-q1/