Unusual Options Activity

Big Lots (BIG)- Roughly 1,200 July $47.50 calls were bought for $1.00-$1.20, against open interest of 1,690 contracts. Call activity was 6x the average daily volume. On May 4th, 1,600+ of these calls were bought on $2.05. Barclays upgraded them overweight from equal weight today with a $53 price target. Comps were +1.6% for Q1 last week.
Citigroup (C)- 12,000+ June 19 $55 calls were bought for $0.72-$0.77, against open interest of 40,017 contracts. They got an upgrade from Goldman Sachs yesterday to buy with a $61 price target.
Heron Therapeutics (HRTX)- A rollout from 2,500 Sep $17.50 calls ($6.80 credit) into 5,000 Sep $25 calls ($3.40 debit). Later in the day, there was another rollout from 1,250 Sep $17.50 calls ($6.35 credit) into 2,500 Sep $25 calls ($3.05 debit). Traders have been rolling call positions and buying calls prior to … Read More »

Unusual Options Activity

Cisco Systems (CSCO)- Over 10,000 July $30 calls were bought for $0.60-$0.65, against open interest of 26,641 contracts. The stock is nearing a retest of the $30 resistance level. On Friday, according to a 13F filing, Bridgewater Associates (Ray Dalios) started a 500,000+ share position in CSCO.
GrubHub (GRUB)- Roughly 2,300 July $45 calls were bought for $0.80. On April 29th, they reported a 50.5% spike in Q1 revenue and active diners rose 46% to 5.60M. On May 6th, JMP Securities reiterated their outperform rating and a $55 price target.
Perrigo (PRGO)- The June $180/$200/$230 bull call spread risk reversal was put on 2,500 times for a $2.00 debit. This was done on Friday as well. Mylan is trying to takeover the smaller competitor. In the mean time, PRGO acquired Patheon’s Mexican business for $34M on May 12th.
Energy Select Sector … Read More »

Energy Stocks Are Starting To Show Signs Of Life (XLE)

Notes: Yesterday, someone rolled out 55,000 June $84/$89 call spreads ($0.36 credit) into 55,000 June $77/$82 call spreads ($1.61 debit). The June $84/$89 call spreads were initially put on for a $1.70 debit on February 3rd. He/she is taking a loss on the June $84/$89 call spreads, but they remain bullish on the sector and decided to add another $68K+ of premium to the trade with a breakeven of $78.61. The top holdings of the (XLE) include: (XOM), (CVX), (SLB), (KMI), (EOG), (COP), (OXY), (PXD), (APC), (WMB). Anadarko Petroleum and ConocoPhillips have both saw big upside call buying in just the last few days. Check out yesterday’s Options Report to see the new activity in (APC) and where traders were placing bets in (COP) last week.

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Options Report

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Open Interest Updates From The Previous Trading Days Action

ADT Corp. (ADT)- Mar $39 call open interest went from 5,073 to 6,823 contracts (more buying on Friday).
CABELA’s (CAB)- Mar $60 call open interest went from 1,288 to 6,842 contracts (buying on Friday).
ConocoPhillips (COP)- Apr 17 $65 call open interest went from 10,756 to 14,680 contracts (buying on Friday).
Golar LNG (GLNG)- Mar $35 call open interest went from 3,601 to 7,427 contracts (buying on Friday).
ChipMOS Technologies (IMOS)- June $25 call open interest went from 815 to 1,930 contracts (buying on Friday).
Plains All American Pipeline (PAA)- Aug $47.50 call open interest went from 9,316 to 12,316 contracts and Aug $47.50 put open interest went from 7,160 … Read More »

Weekend Market Update
Stocks Suffer Worst Two Month Performance Since 2012

Weekly S&P Sectors ETF Performance: Materials (XLB) -1.16%, Consumer Discretionary (XLY) -1.33%, Energy (XLE) -1.45%, Utilities (XLU) -1.67%, Healthcare (XLV) -2.35%, Industrials (XLI) -2.53%, Financials (XLF) -3.20%, Consumer Staples (XLP) -3.28%, Technology (XLK) -3.74%

Various Asset Classes: Spot Volatility Index (VIX) +25.87%, Oil (USO) +4.82%, Bonds (TLT) +2.60%, U.S. Dollar (UUP) -0.32%, Gold (GLD) -0.63%, Agriculture (DBA) -1.45%, S&P 500 (SPX) -2.77%, Dow Jones Industrial Average (DJIA) -2.87%, Nasdaq-100 (NDX) -3.03%, Silver (SLV) -5.54%, Natural Gas (UNG) -8.68%

Economic Data (2/2-2/6)

Monday: 8:30 A.M. EST- Dec Personal Spending (+0.3%), Dec Personal Income (-0.2%), Dec PCE Prices-Core (+0.0%); 10:00 A.M.- Jan ISM Index (54.7), Dec Construction Spending (+0.8%)

Tuesday: 10:00 A.M.- Dec Factory Orders (-2.0%); 2:00 P.M.- Jan … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a put rollout in ConocoPhillips (COP) and put buying in Energy Select Sector SPDR Fund ETF (XLE).

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Smart Money Report

BEAV- The May $100/$105 call spread was put on 3,300 times for a $1.20 debit. Volume was below the open interest in both options. There has been bullish activity in B/E Aerospace all week, following the intention to sell or breakup the company on Sunday.
NQ- More than 5,000 May $13 calls have traded today with majority being purchased for $0.70-$0.80 each, against open interest of 5,282 contracts. Earnings are due out on 5/15.
RSH- 15,000 Jan. 2016 $1.50 calls were purchased for $0.35 each, against open interest of 6,426 contracts. The call to put ratio is 6:1. On average, 7,752 calls trade per day.
TWTR- The Sep. $27/$35 bull risk reversal was put on 2,500 times for a $1.00 debit. Volume was above the open interest in both options. He/she is betting on Twitter shares being above $36 on September … Read More »

 Unusual Options Activity

In today’s Unusual Options Activity Report we highlight a call spread in B/E Aerospace (BEAV) and put selling in the Energy ETF (XLE).

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