Options Report

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Unusual Options Activity

Ascena Retail Group (ASNA)- 10,000 June $14 puts were purchased for $0.35-$0.40. Typically trades 123 puts per day. Earnings are due out in early June. Given the weak April comps out of $GPS last night, the Lane Bryant, Maurices, and dressbarn stores may disappoint as well.
Himax Technologies (HIMX)- More than 14,000 Sep $7 calls have traded with the majority being bought for $0.45-$0.50. Earnings are due out on May 14th. The stock is down about $2 year to date. Yesterday, they raised their quarterly dividend to $0.30 from $0.27 (4.38% yield at $0.27).
Ingersoll-Rand (IR)- 1,000+ May $67.50 calls were purchased for $0.35-$0.40. This is a short-term bet going into options expiration.
Southern (SO)- Nearly 20,000 June $43 puts were bought $0.96-$1.14 early this morning. Put activity was 20x the average daily volume. The rise in bond yields across the … Read More »

Unusual Options Activity

Gold Fields (GFI)- 3,000 Oct $4 puts were sold for $0.69. They reported a 10% decline in gold production in Q1, but the stock is trying to bottom at the March lows near $3.60.
Mylan (MYL)- The July $65/$80 bull risk reversal was put on 2,870 times for a $0 debit. Volume was below the open interest in both options. Mylan is still committed to acquiring Perrigo is a stock and cash deal, which is also an effort to avoid being taken over by a larger competitor. Teva Pharmaceutical offered MYL $82 per share value in a stock/cash deal to acquire them recently.
Workday (WDAY)- Roughly 2,750 Sep $105 calls were purchased for $3.10-$3.40 and 2,000 Sep $80 puts were sold for $4.00-$4.20. Nearly 5,000 WDAY Sep $105 calls have been bought and 6,000 Sep $80 puts have been sold … Read More »

Options Report

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Unusual Options Activity

BB&T Corp (BBT)- A rollout from 2,280 Apr $39 puts ($1.05 credit) into 3,420 Apr $38 puts ($0.59 debit). They initially rolled from 1,140 Apr $40 puts ($1.07 credit) into the Apr $39 puts ($0.56 debit) on March 24th.
BioTime (BTX)- More than 2,400 Sep $7.50 calls traded with the majority being bought for $0.50-$0.55, against open interest of 2,935 contracts.  Roughly 2,000 were bought on March 24th for $0.65. Last week, the stock broke out above the June 2013 resistance level at $4.75.
Cepheid (CPHD)- 2,500 May $50 puts were sold for $1.50 each. Earnings are due out in the middle of April.
H&R Block (HRB)- There was sizable buying in the May $32 calls (2,300 traded) and July $32 calls (3,350 traded) today. Implied volatility jumped 12.9% to 26.21. Tax season earnings will come out in early June.
Wal-Mart Stores … Read More »

Options Report

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Open Interest Updates From The Previous Trading Days Action

Athersys (ATHX)- July $3 call open interest went from 5,287 to 8,199 contracts (more buying on Friday).
Bank of New York Mellon (BK)- Mar 20 $40 call open interest went from 4,068 to 13,063 contracts (more buying).
Owens Corning (OC)- May $41 call open interest went from 2,778 to 4,722 contracts (more buying).

New Options Trades

Arcos Dorados (ARCO)- More than 5,000 Mar $5 puts were bought on March 9th for $0.50-$0.55 each. On average, only 55 puts … Read More »

Smart Money Report

AAL- A rollout from 5,250 Dec 12 weekly $48.50 calls (credit) into 7,500 Jan 9 weekly $52.50 calls (debit). Volume was above the open interest in the Jan 9 weekly $52.50 calls. There have been several of these type of rolls in American Airlines in the last two weeks. On December 2nd, Credit Suisse raised their price target to $58 from $55. My article on (AAL) from November 27th
AMAT- Another rollout from 32,000 Apr 2015 $23 calls (credit) into 50,000 Apr 2015 $25 calls (debit). Volume was below the open interest in both options. Applied Materials shares are up for the 8th consecutive week, but just recently broke out above the $23 resistance level.
IMMU- Sizable buying in the May 2015 $7 and $8 calls today. Volume was above the open interest in both options. Call activity is 15x … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight call buying in Immunomedics (IMMU) and Wal-Mart Stores (WMT).

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Smart Money Report

BABA- The Nov $85/$95 strangle was put on 3,000 times for a $7.30 credit. Volume was above the open interest in both options. The trader is betting that Alibaba shares will stay between $85-$95 on November options expiration.
BABA- 2,500 Dec $95 calls were sold for $4.30 each, against open interest of 0 contracts. On the 1st day of trading in (BABA) options traders/investors don’t see the stock eclipsing the IPO day high anytime soon. Implied volatility has fallen from the low 40’s to now just under 38%.
KORS- Over 4,300 Oct 18 $70 puts were sold for $1.40 each, against open interest of 3,767 contracts. The trader sees Michael Kors stock holding above the $70 level through October 17th, possibly ending a near 30% slide in the share price from May.
MCHP- A likely rollout from 2,000 Jan 2015 $50 … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call rollout in Microchip Technology (MCHP) and call buying in Wal-Mart Stores (WMT).

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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 »

Smart Money Report

TSLA- Tesla Motors will report Q4 earnings after the bell tonight. Analysts are looking for $0.19 in EPS and revenue of $663 million. The options market is implying a $23.55 move, or 12.08%, in either direction through Friday’s close. Call to put ratio in (TSLA) options is currently 1.05. The stock has opened lower 4 out of the last 7 days following earnings.
WMT- Wal-Mart Stores is set to announce Q4 earnings before the bell tomorrow morning. Analysts are looking for $1.60 in EPS and revenue of $130 billion. Option traders are pricing in a $1.54 move, or 2.06%, in either direction through Friday’s close. The put to call ratio in (WMT) options is 1.20.
ASH- A rollout from 5k Feb. $95 calls (credit) into 10k Mar. $100 calls (debit). Volume was above the open interest in the Mar. $100 calls.
GDX- A rollout … Read More »

Smart Money Report

CSCO- Cisco Systems will report Q1 earnings after the bell tonight. Analysts are looking for $0.51 in EPS and revenue of $12.4 billion. The options market is implying a $1.16 move, or 4.86%, in either direction through Friday’s close. Call to put ratio in (CSCO) options is currently 2.63.
WMT- Wal-Mart Stores will release Q3 results before the bell tomorrow morning. Analysts are looking for $1.13 in EPS and revenue of $117 billion. Options traders are pricing in a $1.96 move, or 2.48%, in either direction through Friday’s close. The put to call ratio in (WMT) options is 1.06.
AMTD- 6,800 Jan. 2015 $35 calls were bought for $1.20 each, against open interest of 390 contracts.
BHP- 4,485 Dec. $47.50 puts were purchased for $1.17 each, against open interest of 138 contracts.
CELG- 7,500 Dec. 6 weekly $140 puts were sold for $1.44 … Read More »