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

BTU- 6,000 Dec $18 calls were purchased for $0.46 each, against open interest of 5,513 contracts. The long-term downtrend remains intact in Peabody Energy shares. On 7/23, Nomura lowered their price target to $13 from $16.
CPB- 5,500 Sep $48 calls were bought for $0.30 each, against no previous open interest. The call to put ratio is 30:1. Call activity is 9x the average daily volume. Implied volatility rose 25% to 23.34. Earnings are due out on 9/8. There have been rumors of Buffett being interested in acquiring Campbell Soup.
DLTR- The Oct 1×2 $55/$57.50 ratio call spread was put on 1,000 times for a $0.05 debit. Volume was above the open interest in both options. They bought 1,000 Oct $55 calls and sold 2,000 Oct $57.50 calls. This was likely done against a long stock position to add leverage … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a ratio call spread in Dollar Tree (DLTR) and call buying in Valero Energy (VLO).

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Smart Money Report

BAC- Bank of America is set to release Q2 earnings before the bell tomorrow morning. Analysts are looking for $0.29 in EPS and revenue of $21.6 billion. The options market is implying a $0.48 move, or 3.06%, in either direction through Friday’s close. The call to put ratio is currently 2.06, led by a buyer of 6,732 Aug. 16 $15 calls for $0.94 each. Shares of Bank of America have moved higher after earnings on three out of the last four reports. On 7/7, Oppenheimer maintained an outperform rating, but raised their price target to $20 from $19.
INTC- Intel is set to release Q2 earnings after the bell tonight. Analysts are looking for $0.52 in EPS and revenue of $13.7 billion. The options market is implying a $1.03 move, or 3.28%, in either direction through Friday’s close. The … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Valero Energy (VLO) and put selling in the Retail ETF (XRT).

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