Unusual Options Activity

Air Products & Chemicals (APD)- 1,000 Aug $125 calls were purchased for $8.30. Earnings are due out on July 30th. This is Bill Ackman’s 2nd largest holding (9.65% stake).
Ingersoll-Rand (IR)- 20,000 Dec $62.50 calls were bought for $2.95-$3.20. Call activity was 38x the average daily volume. IR is down after their Q2 results, but they did reaffirm FY15 guidance.
LyondellBasell Industries (LYB)- There was a rollout from 12,500 Jan 2016 $100 calls ($3.30 credit) into 12,500 Jan 2016 $95 calls ($5.30 debit). They beat Q2 EPS and revenue estimates this morning. The stock is trying to find support at the 200-day SMA.
Navient (NAVI)- Over 3,300 Oct $15 puts were purchased for $0.60-$0.65. Typically trades 58 puts per day. Earnings estimates for 2015 and 2016 continue to fall and the downtrend that started earlier this year in the stock confirms … 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 »

Smart Money Report

AAL- A likely rollout from 3,500 Dec 5 weekly $46.50 calls (credit) into 4,880 Dec 5 weekly $48.50 calls (debit). Volume above the open interest in the Dec 5 weekly $48.50 calls. My article on American Airlines from Thursday
LGF- 7,000 Dec $37 calls were bought for $0.40 each, against open interest of 12,306 contracts. There was large buying in these Lions Gate Entertainment calls on November 20th. Implied volatility initially rose 9.4% to 38.66. Shares of (LGF) are now retesting the $35-$36 resistance level.
MRO- A rollout from 2,000 Dec 20 $31 puts (credit) into 3,500 Jan 17 2015 $27 puts (debit). Volume was above the open interest in the Jan 17 2015 $27 puts. This trader is taking profits on the December Marathon Oil puts and is extending the trade an additional month with expectations of new lows … Read More »

Smart Money Report

EGO- 8,000 Apr 2015 $7 puts were sold for $0.77-$0.78 each, against open interest of 798 contracts. There was selling in the Nov $7 puts today as well. Put activity in Eldorado Gold is 23x the average daily volume.
MU- 9,000 Oct 18 $29 calls were purchased for $3.45 each, against open interest of 24,535 contracts. Earnings are due out tomorrow afternoon. The options market is implying a $2.50 move. The stock has moved higher after earnings on 4 out of the last 7 reports (up after the last one). Micron Technology shares held on the retest of the 100-day SMA yesterday.
TMUS- The Jan 2015 $27/$28/$32 bull risk reversal was put on 5,000 times for a $0.38 debit. Volume was above the open interest in the Jan 2015 $28 and $32 calls. There have been reports that Iliad is … Read More »

Smart Money Report

ANF- Abercrombie & Fitch is set to announce Q1 earnings before the bell tomorrow morning. Analysts are looking for -$0.19 in EPS and revenue of $798M. The options market is implying a $3.62 move, or 10.25%, in either direction through Friday’s close. The put to call ratio in (ANF) options is currently 1.39, led by buying in the May 30 weekly $34.50 puts. The stock has moved lower after earnings on four out of the last five reports.
COST- Costco Wholesale will also be releasing earnings before the bell tomorrow morning. Analysts are looking for $1.09 in EPS and revenue of $25.7 billion. Option traders are pricing in a $2.42 move, or 2.12%, in either direction through Friday’s close. The call to put ratio in (COST) options is currently 1.05, led by activity in the May 30 weekly $115 … Read More »