Unusual Options Activity

ConocoPhillips (COP)- There was sizable selling in the Mar and Apr calls today. Call activity was nearly 4x the average daily volume. The 3%+ drop in oil prices is resulting in most energy stocks giving up some of yesterday’s gains.
eBay (EBAY)- The Oct $52.50/$62.50/$70 bull call spread risk reversal was put on 8,500 times for a $0.38 credit. This same trade was put on two days ago 18,000+ times. Shares are moving closer to the flat line on the session even after Piper Jaffey’s Gene Munster downgraded the stock to underweight from neutral with a $49 price target.
Gilead Sciences (GILD)- The Apr 24 weekly 1×2 $104/$108 call spread was put on 6,897 times for a $0.32 debit and the Apr 24 weekly 1×2 $95/$99 put spread was put on 6,897 times for a $0.12 credit. He/she is betting … Read More »

Unusual Options Activity

CAB- For the third day this year there has been unusual buying in the Feb $60 calls. Roughly 900 were bought this morning for $0.40-$0.50 each, against open interest of 1,069 contracts. January 7th and 20th were the other two days that saw action, paying up to $1.05. On average only 183 calls trade per day. Cabela’s reports Q4 earnings before the bell on February 12th (shares have gone up on 5 out of the last 7 reports). Since the March 2014 peak above $72, shares have fallen nearly 25% in that time. The stock now trades at a P/E ratio of 15.57x (2015 estimates) with 11.8% EPS growth, price to sales ratio of 1.08x, and a price to book ratio of 2.22x. Revenue is likely to hit the $4B mark annually this year, rising over 12%. With … Read More »

Unusual Options Activity

CLR- 20,000 June $35 puts were sold for $2.40-$2.45 each, against open interest of 330 contracts. Put activity is 7x the average daily volume. He/she is making a mildly bullish bet that Continental Resources shares won’t close below the $35 level on June options expiration (they get to keep the $2.40-$2.45 credit if stays above $35). Late in 2014 the stock bounced off of the multi-year support level at $30 and has recently been able to reclaim the 10-week exponential moving average (similar to the 50-day EMA). The drastic fall in oil prices has resulted in a once $80 stock been cut in half in just a few months as 2015 EPS estimates have been slashed to $0.91 from $3.59. Q4 earnings won’t be released until February 24th (dropped on the last 7 reports).
EXEL- More than 27,000 calls … Read More »

Smart Money Report

BABA- 10,000 Nov 22 $91 puts were sold for $2.80 each, against open interest of 59 contracts. Alibaba earnings are due out on 11/4 (this being their first report as a publicly traded company). The options market is currently pricing in about a $7.50 move through that week.
CBSO- The Nov 22 $30 straddle was put on 6,000 times for a $1.61 credit. Volume was above the open interest in both options. Earnings are due out on 11/4. The trader is betting on a move above $31.61 or below $28.39 in CBS Outdoor Americas on November monthly options expiration.
CSCO- 17,000 Nov 22 $23 puts were purchased for $0.44-$0.47 each, against open interest of 11,372 contracts. Cisco Systems earnings are due out on 11/12. The stock has dropped after earnings on 5 out of the last 7 reports.
RSX- A rollout … Read More »

Unusual Options Activity

In today’s Unusual Options Activity Report we highlight put buying in Cisco Systems (CSCO) and call buying in ZIOPHARM Oncology (ZIOP).

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