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Unusual Options Activity
Anika Therapeutics (ANIK)- More than 1,300 June $50 calls were bought for $1.50-$1.55. Call activity was 17x the average daily volume. Short interest in the stock stands at roughly 16% of the float.
Fidelity National Financial (FNF)- 2,500 July $36 calls were bought for $2.45 (this was tied to 162,500 shares). Earnings are due out on May 4th. A close above the $38.00-$38.21 resistance level would setup for a move to the low $40’s. FNF currently has an average analyst price target of $40.53.
SPDR KBW Regional Banking ETF (KRE)- The May 15 $38/$43 bull risk reversal was put on 5,000 times for an $0.11 debit. The ETF is closing in on a retest of the $41.50-$42.00 resistance level ahead of Q1 earnings season. At a 1.30% weighting, Cathay Bancorp is the largest holding in the ETF (M&T Bank is … Read More »
Smart Money Report
MPEL- Another 1,200 Jan. 2016 $39.66 calls were purchased for $6.29-$6.70 each, against open interest of 9,173 contracts. Nearly 9,000 were bought yesterday. This investor is positioning for a sizable move higher over the next 18-19 months in shares of Melco Crown Entertainment. The stock trades at a P/E ratio of 15.76x (2015 estimates), PEG ratio of 0.75x (2015 estimates), 25.5% revenue growth, and has an average analyst price target of $50. On 5/9, J.P. Morgan Chase maintained an overweight rating with a $41 price target.
MTW- The Sep. $27/$30 call spread was put on 5,020 times for a $1.60 debit. Volume was above the open interest in both options. Call activity is nearly 8x the average daily volume.
SNDK- 6,434 July 19 $100 calls were bought for $3.65-$3.75 each, against open interest of 5,661 contracts. There has been sizable … Read More »
Smart Money Report
DOW- 6,170 Jan. 2014 $44 calls were purchased for $1.46 each, against open interest of 66,564 contracts.
GRA- A rollout from 6,291 Mar. 2014 $90 puts (credit) into 5,034 June 2014 $90 puts (debit). Volume was above the open interest in June 2014 $90 puts.
SPY- A rollout from 6,023 Dec. 31 $184 calls (credit) into 6,023 Jan. 3 weekly $184.50 calls (debit). Volume was above the open interest in Jan. 3 weekly $184.50 calls.
XOM- 9,746 Jan. 2014 $100 puts were purchased for $0.87 each, against open interest of 8,884 contracts.
AAPL- Apple shares are down for the third consecutive trading session, losing 0.62% today. The call to put ratio in (AAPL) options is 1.68, led by sizable selling on call side.
Free Trial: If you would like to know more about premium content or you would like a free trial of … Read More »
Smart Money Report
FB- Facebook will report Q3 earnings after the bell tonight. Analysts are looking for $0.18 in EPS and revenue of $1.9 billion. Options traders are pricing in a $5.79 move, or 11.68%, in either direction through Friday’s close. The call to put ratio in (FB) options is 1.95, but is led by a seller of 37,500 Nov. $70 calls for $0.11 each.
XOM- Exxon Mobil is set to release Q3 results before the bell tomorrow morning. Analysts are looking for $1.81 in EPS and revenue of $107 billion. The options market is implying a $1.61 move, or 1.80%, in either direction through Friday’s close. Call to put ratio in (XOM) options is currently 1.58.
FBC- Another 5k Apr. 2014 $15 puts were purchased for $1.45 each, against open interest of 5,155 contracts.
VGK- 9.000 June 2014 $58 calls were purchased for $2.25-$2.30 each, … Read More »
Anatomy of the Long Call
When you are bullish on a stock or ETF, one way to express that view is by buying a call option. The long call is an aggressive option strategy, but at the same time the simplist. By owning a call option you have the right, but not the obligation, to buy that specific stock for the strike price of the option in the future. Know that every call option controls 100 shares of the underlying (stock, ETF, futures contract, etc.).
Buying a call option gives you limited risk (cost of the option), with unlimited reward.
Options have expiration dates unlike stocks. Monthly option contract’s last day of trading is on the third Friday of the month and expire on Saturday. Weekly option’s last day of trading is also on Friday, but they expire on the same … Read More »