January 31st, 2013
Hain Celestial (HAIN) trading 25X daily puts, the February $50 puts rolled up to $55 strike, staying bearish into 2/5/13 earnings.
Mosaic (MOS) with 3,000 February $62.50 calls seeing offer side buys at $0.49 to $0.53 today
Avon Products (AVP) bullish trader sticking with it and rolls 20,000 March $17 calls to July $17 calls, paying in an additional $0.74 per contract
Lyondell (LYB) already 3,500 February $60 ITM calls bought to open into tomorrow morning earnings report
January 30th, 2013
Gold Miners (GDX) on day lows but rebounded the last few days and today 9,000 June $43.50/$39 bull risk reversals traded to open at $1.42 on the PHLX
Staples (SPLS) bouncing off lows with 14,000 September $15 calls bought to open at $0.70/$0.75 offers, $900K call premium, and after big June $14 call buys earlier this week.
Synovus (SNV) opening sale of 15,000 May $2.50 puts today at $0.22, bullish position with the stock at $2.48
NetApp (NTAP) trades 20,000 June $42/$32 bear risk reversals at $0.63 debit, may be collaring a long stock holding after recent strength and ahead of 2/13 earnings.
January 29th, 2013
Family Dollar (FDO) bearish action with 3,650 April $62.50 deep ITM puts trading today, and will see if added to OI tomorrow. Shares are rolling back over after a brief rally off the lows.
Cree (CREE) with 2,500 June $41 puts bought at $3.60/$3.65 offers, $760K put premium, as Open Interest accumulates in this strike, already above 5,000 looking to fade the recent strength.
Apache (APA) with 1,000 July $85 calls bought $4.95 offers first 10 minutes of trading for $445,000 call premium purchased, bullish flow for second day.
Digital Realty (DLR) trades the February/April $70 put calendar spread 5,000X at $1.70, interesting trade with earnings on 2/15/13 as put volume reaches 30X daily average.
January 28th, 2013
Regions Financial (RF) shares flagging after a strong breakout last week and bullish action today with 3X daily calls and 80% offer side, more than 5,500 of the March $8 calls bought at $0.12/$0.13 offers.
PetSmart (PETM) with 2,000 March $65/$60 put spreads bought at $1.55 to open, trading 14X daily put volume. The action follows 2,000 April $65/$60 put spreads opened on 1-14 and PETM reports on 2/27. Shares are down hard this morning on a Nomura downgrade to Reduce noting Amazon is eating away PETMs market share.
Lab Corp (LH) March $100 calls had no bid on the open today and now 6,000 trading at $0.15 to $0.25, very unusual action. Earnings are on 2/8 and the $8.4B Co. trades 12.2X earnings, 1.5X Sales and 3.1X Book.
Owens Corning (OC) trading 9,850 calls, 9X average with 1,000 February $39 calls closed, 2,040 May $35 and $36 calls closed, but May $41 calls opened 4,590X at $3.20
January 25th, 2013
Nvidia (NVDA) bullish positioning continues today with 6,000 September $14 OTM calls bought to open $1.06, and after 6,000 June $12 calls bought yesterday.
Terex (TEX) trading 10,095 calls with shares up 10.55%, 5X daily calls with 4,000 March $32 calls and 1,400 February $32 calls, opening buyers. Shares broke out of a tight flag this morning and shares trade 11X FY13 earnings, 0.4X Sales, and 1.52X Book, oddly strong ahead of Caterpillar (CAT) earnings Monday morning.
Toyota Motors (TM) large bull flag formed and watching $97 for a breakout. Traders active in calls today for 4.5X daily with 2,000 of the February $100 calls bought to open at $0.82 offers and 430 of the February $95 calls ahead of earnings on 2/5. TM shares have a measured move to $115 on a breakout. The $165B auto manufacturer trades 11.85X earnings, 0.69X Sales and 1.26X book with a 1.55% yield.
Target (TGT) seeing bearish action with 9,000 February $60 puts bought to open at $0.34 to $0.36 ahead of same store sales in early February. Shares have not participated in the rally much and could be a name to roll over easily on any market weakness.
January 24th, 2013
Textron (TXT) now with 5,000 February $29 calls bought to open in the $0.22/$0.31 range, bulls looking for continuation of yesterdays earnings move. TXT shares are breaking out of a large ascending triangle.
Abercrombie & Fitch (ANF) roll of 5,000 February $48 calls out to March $50 calls, staying bullish into 2/13/13 earnings. The $52 and $57.50 levels seen as next resistance, shares holding up well since a major jump last report.
Potash (POT) climbing to highs and nearing a major breakout with the Ag stocks strong after Agrium (AGU) gave a monster guidance boost, and POT reports 1/31 after MOS had fairly strong earning early this month. Traders active in Potash March $45/$40 bull risk reversals today at $0.01 debits, nice high risk/reward play if willing to be long POT at $40.
Baidu (BIDU) buyers active in the March $110 calls at $6.05/$6.10 offers again today for 1,000 in the first 15 minutes, more than $500K call premium bought as shares coil on its 10 day EMA.
Riverbed Tech (RVBD) bullish call buying into Juniper (JNPR) earnings with 4,000 of the February $22 calls that had 5,000 bought back on 1-17-13, and also 1,670 February $20 calls bought today, trading 3X daily calls and $260K call premium bought, Net Delta +140K.
January 23rd, 2013
Electronic Arts (EA) opening sale of 7,500 March $14 straddles at $1.52 ahead of 1/30 earnings, expecting shares to remain range bound
CBOE Holding (CBOE) shares been strong and running since the NYX deal and today a holder of 4,000 March $32.25 calls sells to close at $1.35 bid and buys 4,000 June $34.25 OTM calls at $1 to open, staying bullish but taking off some exposure and moving further OTM.
Fusion-IO (FIO) sinking here as 2,500 February $23 ITM puts bought to open at $2.50/$2.60 offers for $335K put premium, Net Delta -150K as IV jumps, earnings on 1/30
UAL Corp (UAL) June $24/$18 put spreads bought 5,000X at $1.65 ahead of tomorrow mornings earnings report and after 10,000 June $24 puts were bought on 1/18.
January 22nd, 2013
Synaptics (SYNA) bullish February $33 opening call buys for 2,500X at $1.30/$1.35 offers for $270K call premium, +100K Net Delta, and ahead of 1/24 earnings. Shares are forming a tight consolidation after a strong run and the $1.09B Co. trades 16.3X FY13 earnings, 2X Sales and 2.66X book with 12.55% of the float short. Shares have closed sharply higher 4 of its last 5 reports.
Anadarko Petro (APC) bullish flag set-up and plenty of longer-dated large call Open Interest, especially in May where today a large buyer of 10,000 $90 OTM calls at $1.40.
Talisman Energy (TLM) with 4,500 March $12 calls bought to open $0.75 offers, and already a lot of bullish February call OI
Joy Global (JOY) unusual opening buys of 5,000 weekly $65 puts at $0.22 offers today, bearish positioning with URI reporting on 1/23 a potential sympathy mover.
January 18th, 2013
LSI Corp (LSI) reports on 1/23 and buyers of 2,300 February $8 calls to open at $0.10 today, share right below key breakout level of $7.50. The $4.1B Co. trades 11X earnings, 1.7X Sales, and 18.85X cash flow. LSI makes Semiconductors for networking and storage, two segments in Tech that have seen stabilization. LSI has closed higher 8 of its last 9 reports with 3 of the last 6 10%+ closes. Wunderlich started at Buy with a $9 target in late December noting entry into the NAND market.
Facebook (FB) sinking and 26,050 February (1) / February (8th) weekly call calendar trades at $0.14 debit, and with earnings due out on 1/30, positioning for shares to rally up to $34 on earnings, and interesting trade and aligns with the recent bullish call buying in March and June. Shares have next resistance on the Fibonacci retracements at $34.50.
Gold (GLD) with April $180/$195 call spread bought 20,000X, earlier the June 28 (Q) $175/$185 ratio call spread bought 18,300X36,600 at $0.15 debit. Both trades looking for significant upside for Gold through June.
VMware (VMW) seeing active buyers in February $87.50 puts at $1.25 offers today for 3,400 contracts, nearly $350K put premium bought, and earnings on 1/28/13. If shares break $92.50 support a move back to $82.50 is likely.
January 17th, 2013
HSBC (HBC) saw strong call buying last week and breaking out today, the March $57.50 calls attracting strong buying again for 3,500 contracts at $0.73/$0.74
Rock-Tenn (RKT) will report earnings 1/22/13 and potential double top today. The February $80/$70 bear risk reversals trading 2,000X at $0.95 debits, bearish positioning.
GNC been a strong mover since the bullish divergence and breakout at $34 and now 2,500 February $35 calls rolled up to 4,400 February $37.50 calls, earnings in February and staying bullish trading 10X daily calls.
VXX March/June $25 calendar call spreads trading 6,000X today expecting the VXX to stick around this level, spreads trading for $1.75
January 16th, 2013
Merck (MRK) large opening sale of 10,000 January 2014 $40 puts at the $2.57/$2.52 bid this morning
Tiffanys (TIF) with a large opening put sale showing a vote of confidence long term. A trader sold 6,000 January 2014 $55 puts at the $4.25 bid to open.
Apple (AAPL) large trade earlier with 2,000 March $530/$610 call spreads bought at $13.90
ARM Holdings (ARMH) roll of January $41 puts to February $38 puts for 9,500 contracts
January 15th, 2013
Vical (VICL) breaking out today and 1,000 March $5 calls with buyers paying $0.15, IV30 jumping 21%. Shares are jumping after Insider stock buys of more than 460K shares. Vical has blockbuster opportunity with Allovectin in metastatic melanoma. The $286.8M Biotech trades 3X book and 3.3X cash. VICL has more than 5,950 March $2.50 puts in OI from opening sales. Open Interest in the March $5 calls at 4,800 has been building since July 2012.
Nvidia (NVDA) oversold again and buyers active in June $13 calls at $0.73 for $270K call premium, Net Delta +170K. Buyers are paying the offer and 3,480 trading against OI of 5,418 as traders buy into the dip.
Netflix (NFLX) with an interesting large trade as the March $100/$110/$120 Call Fly trades 4,000X800 at $1.45 debit, taking a shot that shares close March expiration in the $101.45 to $118.55 range
Yen (FXY) with 3,000 February $114 calls bought at $0.35 offers, trading 8X daily call volume today, and a major counter-trend play after recent weakness
January 14th, 2013
Noble Energy (NE) strong in offshore today up 2.55% in a quiet tape and trading 4X daily calls with February $35 calls bought 2,000X at $2.79 today and a block of 5,290 February $38 calls trades to open at $0.91
Starbucks (SBUX) reversed early strength and is seeing elevated put buying with 3,600 February $55 puts around $1.90, more than $435K put premium purchased, earnings due out 1/24/13. A large trade just hit at the ISE with 16,500 February $55 puts and 11,755 August $55 calls, and although the puts traded on the $2.06 bid, the rising IV from earlier put buys indicate an opening buy, while the calls were sold to open at $2.51. SBUX shares are consolidating above its 61.8% Fibonacci of the 2012 range at $54.20, resistance $56 and then up at $57.30, but a short term rising wedge has formed. The $40.9B Co. trades 21X forward earnings, 1.67 PEG, 3.08X Sales and 8.08X book value. UBS reiterated Buy last Friday and a raised $64 target.
Total SA (TOT) buyers of 2,800 February $52.50 calls at the $1.40 offer for $265K call premium, bullish action with shares nearing a breakout of the 2012 highs. TOT is strengthening with Crude Oil and the Europe recovery and trades 7.53X earnings and 1.24X book with a 5.6% dividend yield.
JP Morgan (JPM) trades 10,000 January/February $46 calendar call spreads at $0.50 debit ahead of 1/16 earnings.
January 11th, 2013
Allergan (AGN) with an opening buy of 5,000 September $110 calls at $4.05 after 5,000 September $100 calls were bought earlier this week.
Ameritrade (AMTD) broke a long term trend resistance level this week and a large trader rolling up 5,000 January 2014 $16.50 calls to the $19.50 strike, staying very bullish.
VIX March 25/35 call spread traded 67,000X at $0.59 earlier
Talisman Energy (TLM) with 5,000 February calls bought yesterday and now 10,000 July $13 calls bought at $0.65/$0.70
January 10th, 2013
Exelon (EXC) opening sales of 3,500 February $29 puts at $0.75, seeing limited downside and a name that has seen April call buying in recent weeks. The $25B Utility trades 11.5X earnings with a 7.18% yield.
Facebook (FB) with another $3.5M call premium bought today and +1M Net Delta, most active large buys of March $30 calls at $3.20 with 11,500 trading.
CBS Corp (CBS) hot action again today with 3,000 February $40 calls bought at $0.70 offers and 6,000 March $40 calls at $1.10 offers, trading 4X daily calls for $1M in call premium and Net Delta +373K, and after big call buying yesterday.
Ryder (R) trading 5X daily calls with 1,500 May $57.50 OTM calls bought to open today at $1.55, bullish action with shares at $53
January 9th, 2013
Dish Network (DISH) roll up of 5,500 February $36 calls to 8,000 February $38 calls as traders continue to roll calls to higher strikes and stay very bullish DISH which looks set for a move to $40
Range Resources (RRC) crashing and 1,000 February $65 puts bought at $3 offers, $375K put premium bought today
Michael Kors (KORS) large trade looks to be rolling back 7,500 January $55 calls and opening 5,000 January $52.50 calls at $2.35 ahead of next weeks key retail Conference, ICR Xchange.
Jones Group (JNY) traded 5,888 puts, 50X daily average with $87,000 put premium purchased. The January $11 puts most active with 4,000 bought ($0.35), and 1,500 of the February $11 puts ($0.70). The $863M apparel Co. trades 8.9X FY13 earnings, 0.79X book and 4.8X cash flow with heavy debt and 11.35% of the float short. Shares are trading very poorly and near a break of $10.50 support.
January 8th, 2013
Lowes (LOW) roll out of 6,000 January $33 puts to April $34 puts that were bought $1.47 offer to open. Shares put in a double top near $36.50 and nearing a break of $34 and potential gap fill to $32.50.
Sherwin Williams (SHW) failed to breakout again and seeing March $170 calls sold to open 3,500X. Early action sold on $2.15 bids and then the bulk, a block of 2,800, traded $2.20 offer, but IV diving to indicate an opening seller.
United Health (UNH) buyer of 2,500 February $52.50 calls at $0.99 offer to open. UNH has seen January call buying the last two days, but shares breaking recent lows, and earnings on 1/17/13
Monster Energy (MNST) trading 2X daily puts with 3,400 January $50 puts being sold to close an 5,000 March $47.50 puts bought to open at $2.75 to $2.87, bearish positioning.
January 7th, 2013
Zillow (Z) February $25 calls being rolled up to $35 strike 3,000X after making a strong profit
Western Digital (WDC) with 2,660 January weekly $43.50 calls bought and Seagate Tech (STX) with 5,500 weekly $32 calls bought in the first 90 minutes of trading with storage names in focus at CES, Both names have seen large call positions in January rolled out to higher strikes multiple times the past few weeks.
Barnes and Noble (BKS) trades 3,000 April $15/$12 bull risk reversals at $0.30 debit, calls bought offer and puts traded $0.85 mark
Las Vegas Sands (LVS) massive block of 26,800 March $52.25 calls trades at $2.62 to open, and last week big size buyers of February $50 calls with 13,000 March $47.25 calls closed and rolled up.
January 4th, 2013
Morgan Stanley (MS) large adjustment sells 15,000 April 19 calls that were bought back around 12/11 and rolls to February $20 calls for 20,000+ contracts, staying bullish but taking off some exposure after covering initial cost. MS continues to trade well and earnings expected around 1/17
Stanley Works (SWK) longer term view with 1,050 of the January 2014 $75 calls bought to open in the $7.50/$7.60 range, more than $445K call premium bought, as shares setup for a break to new highs.
Viacom (VIAB) a hot name the past few days and a trader rolls 3,000 January $55 calls out to 6,000 March $60 calls, taking some money of the table, but still very bullish as shares break to 5 year highs.
Boyd Gaming (BYD) soared a couple weeks back on heavy January call buying and today 11,000 of the February $8 calls bought to open at $0.20. The $600M casino Co. trades 0.24X sales, 0.5X book, 1.74X cash and 6.4X cash flow, and with 20% of its float short. Pinnacle recently did a deal for Ameristar (ASCA) and these smaller players look to be M&A targets now and Boyd fits the profile.
January 3rd, 2013
Williams Co. (WMB) with a massive bull call spread today as the August $40/$45 call spread bought 30,000X at $0.53. Shares held major trend support on recent weakness and yesterday broke out of this base. The $22.94B energy infrastructure Co. trades 27X earnings, 2.97X sales and 6.9X book with a 3.8% yield.
Russell 2000 (IWM) large trade today appears Feb. 80/75 ratio put spread 50,000X150,000 closed and rolled to April 84/78 ratio put spread 30,000X90,000, often a hedging strategy.
Boston Scientific (BSX) continues to see strong call buying with 5,750 February $6 calls today as shares breakout past resistance and target a move to $6.40, early buyers paying $0.23 for the contracts.
Herbal Life (HLF) another 10,000 May $22.50 puts sold, but this time tied to 10,000 January $37.50 calls bought, other risk reversal with these puts bought May $35 calls and nailed bottom.
January 2nd, 2013
Dril-Quip (DRQ) traded 45X daily options volume as 2,000 June $90/$65 bull risk reversals traded to open at $0.60 credit with shares near $75. Shares are breaking out past a long term down trend line this week and looking to make a move to new highs ($83.80 in 2010). The $3B offshore services provider trades 20X earnings, 4.25X sales and 2.95X book with 29.55% EPS growth seen in FY13 and no debt on the balance sheet. Tudor Pickering upgraded to Buy on 12-20.
Level 3 (LVLT) opening buy of 3,000 February $24 calls at $1.20/$1/25 offers and a name very active with call buying the past 10 days
United Rentals (URI) trading more than 2X daily calls with 1,800 of the January $45 calls being sold, while 3,080 of the January $48 calls being bought to open, roll up in strikes. URI shares touched all time highs today and a great play on the structural shift to renting as opposed to buying for industrial equipment.
February 27th, 2013
Polycom (PLCM) breaking recent lows and been under pressure but buyers come in for 1,200 July $10 calls at $0.85 offers for $100K call premium. PLCM is trading 1.15X Book and 2.46X Cash with no debt, and could be a name to seek strategic alternatives.
Urban Outfitters (URBN) bullish action with 1,500 March $41 calls bought $1.15 to $1.25 range, $130K call premium, after shares re-tested a former breakout and filled a gap, finding support at the 100 day EMA
Dollar Tree (DLTR) March $42.50 calls closed 2,000X and rolled to 3,000 April $47.50 calls, expecting further upside
Capital One (COF) July $55/$62.50 call ratio spread 1,000X2,000 at $1.08
February 26th, 2013
Caterpillar (CAT) with a bullish Net Delta of +295K as nearly $800K in call premium is bought on the day, strong buyers in April calls including a bullish risk reversal 1150X1300 in April $92.5/$85, and also buyers of 2,150 ITM April $87.50 calls and 1,200 April $90 calls with strong signs of a recovery in US construction.
General Mills (GIS) staying strong despite the market pullback and today a spread buys 4,000 October $50 calls and sells 3,000 October $39 puts, continue to see bullish positioning since the Heinz (HNZ) takeover.
Alkermes (ALKS) second day of unusual call buying in May $24 calls at $0.30/$0.35 for 1,250 contracts, a day after 1,900 were bought. ALKS shares are testing trend support on todays lows and looking to bounce. The $2.7B Biotech trades 17.7X earnings, 5X Sales and 2.93X Book and could be a M&A Target.
Occidental Petro (OXY) opening buy of 1,500 April $85 calls at $1.14 as shares become oversold
February 25th, 2013
Kimberly Clark (KMB) trades the July $95/$85 1X2 put spread for 1,000X2,000 at $1.70 debit, nice structure for a trade looking for a pullback in a name with limited downside due to valuation/yield.
Ansys (ANSS) reports earnings 2/28 before the open and 1,650 March $75 puts bought to open $1.65 all the way up to $2.30, trading 3X daily puts and IV30 jumping 30% today.
Cisco (CSCO) seeing bullish options action today once again with strong buying of more than 4,000 October $21 calls at $1.36/$1.37 offers for $475K call premium and +330K Net Delta. CSCO shares turned lower despite strong earnings, but a move through $21.45 would target $23.75 and the true catalyst would be a use of its cash via an acquisition and/or dividend/buyback.
Splunk (SPLK) IV and stock rose after 2,500 March $35 calls traded $2.45/$2.50, breaking out into 2/28 earnings and mentioned as a M&A target recently
Source Fire (FIRE) with bullish April call buying Friday after a strong earnings move and today April $50 and March $55 calls active, but now the largest trade buys 1,250 June $50 calls at $4.60 and sells 1,250 January $70/$40 strangles at $6.60, a trade structure that Goldman often recommends in M&A names.
February 22nd, 2013
AIG shares struggled to hold early gains today and large spreads trading in August. The August $44 calls sold 20,000X to open today and August $39/$34 put spread and August $38/$34 put spread each bought 10,000X. AIG is a top hedge fund holding, so likely a hedge and willing to let shares be called away at $44.
Vornado Realty (VNO) with 2,570 March $85 calls bought at $1.20 and already 4,400 of the $84s in OI from buyers, 2/26 earnings
EMC Corp (EMC) with 10,000 March $24 calls rolled back to $23 strike that are bought at $0.73 to open, looking for these lows to hold.
Talisman Energy (TLM) trades 4,000 October $13/$11 bull risk reversals, these positions building in size all week along with all the other major size in call OI, expecting TLM to be the next target for a Chinese Oil Co., similar action was seen in Nexen (NXY) before it was acquired.
February 21st, 2013
JC Penney (JCP) trades April $20/$17 ratio put spread at $0.30 debit for 20,000X40,000 contracts
Panera (PNRA) bearish action continues with 500 March $155 puts bought today, nearly $200K put premium and active for the second day with shares nearing a major technical breakdown.
Apache (APA) shares crushed the last week and back near November 2012 lows, but buyers of 1,500 March $75 calls today, more than $350K call premium bought.
Nektar Therapeutics (NKTR) trading 3X daily calls with 1,600 March $9 calls bought $0.90/$0.95 and large OI at May $11 calls from 6,000 bought, shares set up well in Biotech and a potential takeover target for AstraZeneca (AZN)
February 20th, 2013
JP Morgan (JPM) a few large trades ahead of the Investor Day next week, one trade bought 5,000 March $49 puts and sold 5,000 May $49 puts for net credit of $1.04, while a big buyer of 5,600 March $50 calls pays the $0.51 offer just now. The weekly $49 calls are very active with buyers as well with 7,800 trading in the first 2.5 hours.
USG Corp (USG) breaking longer term trend support today and March $29 puts bought to open 5,000X at $1.05, trading 4X daily puts. Housing related names weak today after economic data and the Toll Brothers (TOL) earnings.
Garmin (GRMN) slide may stop here near $35, prior support and with a large dividend yield, and traders selling 3,000 April $33 puts to open at $1.09 to $1.11
February 19th, 2013
Rigel Pharma (RIGL) trading 20X daily calls with 2,000 of the July 410/$15 call spreads bought to open at $0.80 to $0.85, expecting the Biotech to turnaround after recent weakness.
Vodafone (VOD) reversing from the gap down and 10,000 July $27/$23 bull risk reversals opened at a $0.14 credit.
Las Vegas Sands (LVS) ITM buyers of 2,200 April $50 calls at $3.20 on weakness with shares down on fears of a Macau slowdown but bouncing near its 50 day EMA, and still large positions in March OI looking for a move higher, possibly on a REIT status for its real estate assets.
CBS Corp (CBS) trader rolls out 10,000 March $42 calls closed at $3 and buys 40,000 June $50 calls to open at $0.85 offer, likely expecting more strategic actions out of the Company.
February 15th, 2013
Capital One (COF) poor action today after a hammer looked promising yesterday and large June ITM call buys. Option traders remain bullish with 5,000 January 2014 $50 puts sold at $3.80 to buy 5,000 $57.50/$65 call spreads at $2.30. COF was a top buy of Lone Pine Capital in the recent 13F filing.
Owens Corning (OC) with more than 5,000 January 2014 $50 calls bought to open at $1.65 to $1.80, and already large bullish OI in May calls, a key play on the housing recovery that reports on 2/20.
Dicks Sporting Goods (DKS) with 830 March $49 calls bought at $1.50 offers, more than $125K call premium, earnings due in early March and shares in a tight range recently.
Caterpillar (CAT) red but sitting above prior breakout and key Fibonacci support and a trader sells 2,000 May $90 puts at $2.26 to buy 2,000 of the May $97.50/$105 call spreads at $2.41
February 14th, 2013
Corning (GLW) continuing its strength and 7,400 of the May $13 calls bought today at $0.59/$0.60 offers for $435K call premium and Net Delta +320K. The March $13 call OI remains above 16,200 from big buys as well.
Waste Mgmt. (WM) reversed earlier losses on a weak earnings report and still being seen as a REIT play with 15,500 of the March $37 calls are bought today around $0.30 offers and being chased up to $0.75 now, more than $260K call premium bought, Net Delta +220K.
Nvidia (NVDA) September $13 calls look to be rolling back to the $12 strike 10,000X for a large Delta
Delta Air (DAL) sale of 6,000 June $14 calls and buys 6,000 September $16/$20 call spreads
February 13th, 2013
Juniper (JNPR) seeing some bearish action with 7,300 of the March $21 puts bought today at $0.58, shares re-testing a prior breakout and back below its 20 day MA, also ahead of the Cisco report.
Raytheon (RTN) IV under pressure with opening sales of 7,000 March $52.50 puts in the $0.45 to $0.55 range, traders see limited downside in shares.
CIT Group (CIT) was recently mentioned as a potential acquisition target and trades 2,000 January $50/$55 bull call spreads at $1.05 and sells 2,000 of the $30 puts at $0.80
MAKO Surgical (MAKO) roll of 5,235 February $12.50 puts to May $12.50 puts
February 12th, 2013
Barrick Gold (ABX) looking to put in a double bottom and 5,000 of the January 2014 $40 calls bought to open at $2.66 to $2.75 offers today, more than $1.7M in call premium and Net Delta +280K. ABX will report earnings 2/14 and Gold Miners have been struggling for months.
Keryx Bio (KERX) with a lot of bullish call buying as 3,050 February $7 calls bought ITM and 2,800 March $9 OTM calls, also now an opening sale of 7,000 June $4.50 puts a very bullish signal. KERX has seen bullish action since its big jump including on 1-30 when 5,000 January 2014 $10 calls were bought to open at $2.50.
ARM Holdings (ARMH) with 2,500 of the January 2014 $55 calls bought to open today, OTM, and 1,250 sold the $65s against for vertical spreads, upside positioning along with 600 July $46 calls bought at $2.40 offers.
VeriFone (PAY) falling and March $33 puts with more than 3,000 bought for the second straight day.
February 11th, 2013
Nasdaq (NDAQ) roll up of 3,750 March $28 calls to $31 strike, shares jumped earlier on going private chatter, but this large bullish holder believes shares are headed higher with or without a buyout.
Hewlett Packard (HPQ) trading 21,700 calls in the first 2 hours with Net Delta +395K, active buyers of March $18, $19, $20 and $21 calls. Shares have been consolidating for awhile and the 200 day SMA at $17.65 potential breakout resistance, but much of the positioning may be hoping for a break-up.
Petrobras (PBR) looking very oversold near 5 year lows and hitting lower end of a wedge down pattern.. Option traders taking a 1 week gamble buying 10,000 of the February $16 calls today at $0.21 to $0.25.
February 8th, 2013
Aetna (AET) with a clean breakout today of a large cup pattern that measures to a $65 target and buyers to open of 2,000 July $55 calls today at $1.25, more than $130K call premium bought. The $16.6B managed care Co. remains a nice value at 8.55X earnings, 0.45X Sales and 1.5X Book.
Mondelez International (MDLZ) trading 4X daily puts with 4,580 February $28 puts seeing buyers ahead of 2/13 earnings, cheap plays for earnings downside.
Vodafone (VOD) rips as a 7,000 contract bullish spread sells the March $27 puts and buys the April $29 calls, net $0.03 debit on the spread
Carnival (CCL) buyer of 2,500 April $38.50/$34.50 put spreads at $1.10 to open
Cliffs Natural (CLF) block of 4,500 March $40 calls bought to open at $0.55 offer. CLF will report earnings on 2/12 and the $5.16B Co. now trades 11.5X earnings, 0.81X Book and with a 6.9% yield that could be in jeopardy, although Iron Ore prices have tunred around. Shares have closed lower after 6 of its last 7 earnings reports.
February 7th, 2013
Vivus (VVUS) roll out of 5,000 February $13 calls to March $11 calls bought to open at $2.55, trader paying in a lot more to be bullish.
Liberty Global (LBTYA) July $75 call buy 1,500X at $1.30, and Jan. 2014 $75/$60 bull risk reversal 1,500X at a $1.26 credit, and note the 30,500 July $75 calls remain in OI from an opening buy (roll-out).
Cree (CREE) starting to sell-off as 5,500 March $45 puts are bought to open at $2.58 and $2.62 in two large lots.
Russell (IWM) March 28th Weekly $87/$82/$77 Put Fly Bought 10,000X20,000 at $0.51. IWM also a roll up of 50,000 April $84 puts to the $86 strike
February 6th, 2013
MSCI EAFE Index (EFA) massive trade today with 125,000 December $68 calls sold to open $0.36 and 125,000 April $57 puts bought at $1.08, appears to be a massive collar on a 5.91M share position, buying the dip this morning as the EFA touched its 20 EMA
VF Corp (VFC) February $150 puts being bought to open 3,500X ahead of 2/15 earnings, buyers paying $3/$3.05
Abercrombie (ANF) more upside positioning today with the March $52.50/$57.50 ratio call spreads 5,000X 10,000, zero cost trades
Mid-Cap (MDY) with a buyer of 5,000 March $200 puts at $3.70 to open today
February 5th, 2013
Spectra Energy (SE) trading 8,090 calls with 86% offer side, the March $28 calls most active at 2,700X at $0.60 offers, more than $290K call premium and Net Delta +215K. Spectra Energy already has a lot of bullish OI from large call buying and nearing a break past recent highs.
Achillion Pharma (ACHN) nearing a breakout and 1,000 May $10/$15 call spreads bought to open at $1.15
Bunge (BG) chart staying strong and 1,000 July $82.50 calls bought $2.55/$2.60 offers today to open ahead of 2/7 earnings
Weatherford (WFT) with 15,000 of the April $14 calls bought, look to be adding to recent large buys. Weatherford (WFT) also with 14,800 February $13 calls rolled out to May $15
February 4th, 2013
Yen (FXY) large opening buy of 4,450 March $107 calls at $1.20 offer, BOJ Meeting 2/14
Guess (GES) breaking its 20 day EMA and rolling over after a recent rally, concerns with Europe back in focus, and a buyer comes in for 4,000 June $26.80 puts at $2.90 to $3.10 for $485,000 put premium, bearish positioning although March OI still holds large bullish positions.
Netflix (NFLX) with $1.5M call premium purchased in the first 90 minutes of trading with 2 large lots (200 and 180) of February $175 calls bought at $4.80 and $4.90 offers, a buyer of 160 February $170 calls at the $6 offer, and 500 June $210 OTM calls bought at $10.20 offers this morning, strong bullish flow as shares fight the markets downtrend today.
Royal Caribbean (RCL) trading lower now after a weak FY13 view, and a trader sells 3,700 June $35 puts at $2.27 and 3,000 June $37 calls at $1.94, expecting shares to maintain a sideways range.
February 1st, 2013
Weight Watchers (WTW) with 2,730 of the OTM February $60 calls bought to open in $0.85 to $1.05 range today, trading 4X daily calls, earnings expected around 2/12. The calls seem fairly pricey with the stock at $53.80.
MetLife (MET) another name in the Insurance group breaking out and 20,000 January 2014 $45/$50 call spreads bought to open at $0.75
Barrick Gold (ABX) opening buys of 4,050 ITM February $31 calls looking for a bounce
Lions Gate (LGF) running to new highs with 800 September $20 calls bought to open and also some March call buying, and the 4,400 March $18 calls still holding.
March 28th, 2013
Smithfield Foods (SFD) IV diving as October $29 calls see action. Early sellers on the bid at $1.05 with a $1.05-$1.15 bid-ask brought down the options and then 13,050 traded $1 offer on $0.95/$1 bid-ask. The fall in grain prices should be a positive for Smithfield, so a tough read here, but may be some manipulation with early trades to bring down the price and then bought the big block.
Under Armour (UA) with strong buying of 1,900 July $52.50 calls at $3.10 offers, more than $565K call premium purchased, and shares breaking out today, strong since Nike (NKE) reported and May $50 calls bought 2,000X last week.
Energy Transfer (ETP) with an opening buyer of 7,500 January 2014 $55 calls at $0.75. ETP shares have been running strong and recently posted a great earnings report.
March 27th, 2013
TIBCO Software (TIBX) opening sale of 5,000 January 2015 $18 puts at $3.05, a major vote of confidence to the stock hit hard on earnings recently but looking to put in a double bottom with the December lows.
AngloGold (AU) with 3,000 June $26 calls bought at $0.60 offers
Polycom (PLCM) large bullish trade with the October $12.50/$10 bull risk reversal 3,000X at a 5 cent credit per spread. PLCM has seen a lot of unusual call buying recently, and this trade willing to be long the stock at $10 and positioning for upside.
Coin Star (CSTR) strong and 4,000 July $65 calls bought $1.30 offer, already more than 8,000 in OI
March 26th, 2013
BlackBerry (BBRY) trades a large bullish spread that sells 8,000 April $14 puts to buy 8,000 May $18 calls, net $0.48 credit on the spread, a willing buyer of the stock at $14.
ZIOPHARMA (ZIOP) shares off 62.5% after terminating a key drug study that failed to meet endpoints, and seeing afternoon sizable buy of 10,000 and 2,000 October $3 calls at the $0.30 offer to open.
Chicago Bridge and Iron (CBI) breaking out ahead of Analyst Meeting and 2,050 OTM May $65 calls bought $0.45 to $0.55 offers to open. The large size in April $55 and $60 calls remains in OI.
MFA Financial (MFA) with a strong bull flag formed and 1,000 October $9.50/$8.50 bull risk reversals trade for a net credit. The $3.27B REIT trades 10.1X earnings, 0.98X Book and 8.15X Cash.
March 25th, 2013
Center Point Energy (CNP) with large buys of 6,000 August $25 calls at $0.60 to $0.65, and already 7,000 in OI. CNP shares are flagging after a strong move on news of a Midstream Partnership formation.
Apple (AAPL) largest trade today 3,000 April 12th (W) $465/$480 call spreads bought at $5.90 with shares green in a red tape, recent outperformance versus the S&P and above trend resistance, next major resistance at $486.50.
Lions Gate Entertainment (LGF) opening buys of 2,300 June $24 calls at $0.70 to $0.77 today, trading 1.5X daily calls with this CBS deal for TV Guide Network a positive for LGF, and shares forming a bull flag after a long run.
C-Trip.com (CTRP) spiking with 2,000 April $19 calls bought to open at $1.80 to $2 offers
March 22nd, 2013
Qlik Tech (QLIK) early hot action with 2,000 May $29 calls bought at $1.25
F-5 (FFIV) buyer of 1,200 May $85 puts at $3.95 sells 1,000 May $97.50 calls at $1.82
Lamar Advertising (LAMR) buyer of 4,100 July $48 calls at $3 and sells 2,050 July $50 and $55 calls at $1.90 and $0.50
Informatica (INFA) opening sale of 3,000 January 2014 $40/$30 strangles at $5.90
March 21st, 2013
Allergan (AGN) trades 3,500 April/May $105 put calendar spreads at $0.90, large opening trade looking for a pullback to $105.
Peabody Energy (BTU) seeing more bullish positioning with 2,000 January 2014 $20 calls bought to open $3.75 to $3.80 offers today for $600K call premium.
Disney (DIS) trades 2,000 October $62.5/$50 bull risk reversals at $0.06 credit, clever trade for one willing to be long down at $50
Source Fire (FIRE) June $65 / September $80 call spread bought 1,000X at $1.73
March 20th, 2013
SAIC (SAI) May $13 calls bought 6,000X at $0.35 offer, already 5,000 in OI from recent buying ahead of the Companys plan to split into two, and also earnings 3/26.
Meritage Homes (MTH) has been a standout performer in homebuilders and today with 600 September $50 calls bought $4 to $4.20 with $260 call premium bought. MTH traded above $90 in 2005. The $1.67B builder trades 15.15X earnings, 1.4X Sales and 2.39X Book.
Melco Crown (MPEL) roll out of 5,400 April $20 calls to May $23 calls, setting up well and traders remain bullish with March Macau gaming numbers likely running ahead of estimates.
Cummins (CMI) trading 1,000 spreads with April $120 calls sold to buy the May $11 puts, same spread opened 1,000X yesterday.
March 19th, 2013
Wells Fargo (WFC) buyers of 10,000 January 2015 $45 OTM calls at $1.30 to $1.35 today, bullish action for the long term.
Industrials (XLI) notable opening buy of 16,000 June $43 calls $0.63 offer today
Netflix (NFLX) with an opening buyer of 2,000 June $205/$255 Call Spreads at $8.80 and sells 2,000 June $150 puts at $8.50 to open, similar spread traded 1,000X recently.
Monster Energy (MNST) with another 1,000 of the January $47.50 calls bought $8.20 offer, seeing plenty of action since last week that this could turn around from recent weakness.
March 18th, 2013
JDS Uniphase (JDSU) April $15 puts being rolled to May $15 puts at $0.45 debit for the roll, more than 6,000 with put volume running 7X daily average
Chesapeake Energy (CHK) staying strong after recent breakout and 2,650 May $20 calls bought today at $3.10 to $3.15 offers, bullish positioning with the Net Delta 2 hours into the day at +345K.
Michael Kors (KORS) with very active buyers in March $57.50 weekly calls as 4,575 trade
Res-Med (RMD) unusual buys of 1,000 April $45 calls $0.60 to $0.70
March 15th, 2013
3D Systems (DDD) staying weak with combo spreads selling May $39 calls and buying the May $27/$21 put spreads 2,000X
Rackspace (RAX) buyer of 3,000 January 2014 $55 calls at $4.90, looks to be stock replacement. Rackspace (RAX) with 4,000 April $55 OTM calls bought, trading against about half the volume in April $47.50 and $45 puts in spreads, look to be buying calls and selling bull put spreads with shares filling the August gap and looking to put in a reversal hammer today.
Silver (SLV) with a large buyer of 7,500 October $30 calls at $1.17 offer, more than $800K call premium bought. SLV has been basing for weeks and above $28.50 can make a big run.
Websense (WBSN) July $15 calls bought 1,000X today after 500 bought yesterday, a Company that is up for sale
March 14th, 2013
VIX with around 110,000 May 18/25 call spreads rolled out to June $18/$25 call spreads
Tesoro (TSO) roll of 10,000 March $55 puts to next weeks $55 puts opened at $0.77
Red Wood Trust (RWT) sale of 1,000 July $20 calls to buy 5,000 October $25 calls at $0.95. RWT has moved to $23.50 from $19 since first highlighting unusual buying in July 420 and $22.50 calls, most of which remain in OI.
Ericsson (ERIC) seeing unusual call buying in the first 15 minutes with 2,350 July $13 calls at $0.85 to open, shares nearing recent highs with the 2011 highs up near $15 the next target move. ERIC has a $43B market cap and trades 14.65X earnings, 1.2X Sales and 2X Book with a 1.84% dividend yield. ERIC is a beneficiary of the improving Telecoms pending seen for 2013.
March 13th, 2013
Google (GOOG) with a large trade as the June $800/$700 ratio put spread is bought 3,000X6,000 at $15.50 debit, a strategy often used to protect a long stock position and would make sense given Googles stock run, and willing to buy more stock if it hits $700, near the 200 EMA.
CH Robinson (CHRW) triggered a base breakout earlier and seeing more bullish options positioning with 4,500+ April $60 calls bought $0.80 offers and 2,000 April $57.50 puts sold at $1.25 bids.
Noble Corp (NE) spreads selling 3,050 January $30/$28 put spreads to buy the $50 calls
March 12th, 2013
VeriFone (PAY) shares higher and into the earnings gap on news that the CEO is stepping down, and seeing buyers to open of 3,000 April $23 calls today at $0.60 to $0.70.
Cobalt Energy (CIE) jumping as 3,000 July $30 calls bought at $1.25 to $1.40 offers to open and 2,000 July $20 puts sold at $0.525 to open, bullish positioning in a name with 15,000 April $25/October $27.50 diagonal call spreads in OI.
Global Payments (GPN) trading 15X daily options as 1,000 of the May $50/$45 bull risk reversals trade for a $0.25 debit per spread, bullish play on a stock that reported great results and looking to base at its 20 week EMA.
Time Warner (TWX) roll out of 8,500 April $55 calls to 5,000 July $57.50 calls at $2.46, and the 9,970 July $55 calls remain in OI
March 11th, 2013
Urban Outfitters (URBN) trades 1,000 March/April $42 calendar call spreads at $0.65 into earnings.
VMware (VMW) sweep of April $80 calls this morning moved shares off the lows, nearly 3,000 of those calls trading with shares back above its 20 day EMA
Union Pacific (UNP) staying strong and 5,000 April $135 puts sold to open, willing buyers on a minimal dip, and similar seen a month ago with the 10,000 March $130 puts sold to open that are likely to expire this week.
Genworth Financial (GNW) Net Delta +210K with September bullish 3 way spreads trading 6,500X, buyers of the $12/$15 call spreads that sell the $9 puts to open.
March 8th, 2013
Continental Resources (CLR) with 2,000 of the January 2015 $95 calls bought to open $13.90 to $14.10 today, bullish longer term positioning in the Oil & Gas Co. The $16.7B Co. trades 13.5X earnings and Insiders own 68.66% of the stock, potential for it to eventually go private. CLR has one of the best growth profiles in Oil & Gas.
EMC Corp (EMC) trading 24,600 calls in the first 2 hours with 80% offer side for $610K call premium, large bullish Net Delta +700K, 2X daily average calls and continues the strong buying seen since shares bottomed. The March $23 calls with 17,099 in OI, March $24 calls with 20,118 in OI and 8,260 trading, and fresh buying of 9,800 March $24.50 calls today.
Splunk (SPLK) trading 2,467 calls, 2X daily and continue to see accumulation if the often mentioned takeover candidate. The March $40 calls, April $42.50 calls and new action in May $42.50 calls (1125) accounting for the action.
Newell Rubbermaid (NWL) nice breakout today and buyers of 2,200 April $26 OTM calls at $0.25
March 7th, 2013
The Fresh Market (TFM) is having a rough week after reporting worse than expected earnings and traded 45X daily options volume mainly due to 1 large bullish spread at the PHLX that sold 2,500 September $35 puts to open $2.35 and bought the September $40/$45 call spread at $2.35. The net zero cost trade is willing to be long the stock at $35. The $1.89B healthy foods store trades 23.33X earnings, 1.33 PEG, and 1.48X Sales with 20%+ EPS growth and plenty of expansion opportunity remaining, so a potential rebound play after recent weakness.
Motorola Solutions (MSI) pulling back today after making another new high yesterday and puts trading 7X daily as 1,350 July $60 puts rolled to 4,000 October $55 puts bought to open at $1.50. The $17.4B Co. trades 14.8X earnings, 2X Sales, and 33X FCF. MSI has a large January 2014 $65/$50 strangle sale 5,000X in OI.
Rigel Pharma (RIGL) trading to day lows but seeing strong buyers of 2,000 April $7.50 calls at $0.95 to $1.05 offers with IV30 rising 11.5% to 100.4%. RIGL shares broke into a large gap earlier this week, but pulling back today. Piper boosted its target on RIGL to $9 on 3-5 ahead of Fostamatinib readout, seeing it as an approvable drug.
March 6th, 2013
MBIA (MBI) looking to extend this big move and buyers active in April $14 OTM calls today for 3,000 contracts, nearly $400K call premium, Net Delta +100K on the day. MBIA has resistance at $13.50 from tops in 2011 and 2012 and could measure a move up to near $20 on a breakout. MBIA recently saw its right to restructure upheld in court. The $2.4B Co. trades 0.99X Sales, 0.77X Book and 2.43X Cash. MKM reiterated a Buy and $18 target on 1-15-13.
Lamar Advertising (LAMR) trading 5X daily calls with shares bull flagging below the $47 level and 2,580 of the April $48 calls bought to open $0.95 to $1.10 today, bullish action. The $4.34B Ad Agency that is converting to a REIT trades 47.3X earnings and 17.55X FCF with strong EPS growth. Deutsche Bank raised its target on LAMR to $53 on 2-28.
Aegerion Pharma (AEGR) staying strong with large bullish positioning for the past couple months and today 2,000 March $30 calls rolled to April $35 calls
Apple (AAPL) notable action in the May $460 calls where 20,870 traded including one block of 10,000 at $11.55 2 minutes before the close.
March 5th, 2013
Netflix (NFLX) with a buyer of 1,750 September $200/$250 call spreads at $13.80, tied to a block of 43,750 shares of stock $182.30 below bid, looks to be protecting a new short in the stock.
Teradyne (TER) with 7,000 July $18 calls bought to open $0.95/$1 offers, and still the 7,000 remain in OI at the $16 strike, bullish action piling up.
Republic Services (RSG) trading 10X daily calls with 2,000 April $30 calls bought $1.65 to $1.80
William Sonoma (WSM) with 2,350 March $47 calls bought to open $0.77/$0.80 ahead of earnings expected next week
Foot Locker (FL) broke above its trend resistance and seeing more bullish Acton today with opening buys of 1,900 April $36 calls at $1.05/$1.10 offers ahead of earnings on 3/8, more than $215K call premium. The $5.2B retailer trades cheap at 12.2X earnings, 0.87X Sales, and 2.27X Book with a 2.1% yield and double-digit EPS growth.
March 4th, 2013
Ann Taylor (ANN) seeing bullish action into 3/8 earnings, call buyers late Friday in size and today March $29/$27 bull risk reversals active for 1,500+ contracts.
Micron (MU) continuing strength as DRAM prices rising and 5,000 July $9/$11 call spreads being bought $0.44 today.
AMC Networks (AMCX) trading 30X daily calls as 1,000 June $65 calls bought to open $1.10 to $1.20 offer. Shares were hit hard on earnings but immediately climbed back. The $4.13B Co. trades 15.6X earnings, 3.1X Sales and 16.15X FCF with a strong forward EPS growth outlook.
Riverbed Tech (RVBD) with 1,000 September $18 calls bought $1.28, and already 10,000 in OI from size buyers
March 1st, 2013
Cubist Pharma (CBST) day highs and an unusual buy of 2,000 OTM April $45 calls at $0.90 to open, trades 20X daily calls.
Cabot Oil & Gas (COG) roll of 3,500 January 2014 $60 calls to the $75 strike, taking some money off the table but staying bullish.
Home Depot (HD) May $70 straddle was sold to open 3,000X at $4.83 expecting that $70 level to be sticky
April 30th, 2013
Precision Castparts (PCP) buyers of 1,000 May $195 calls $1.75 to $1.95 offers for 4X daily calls ahead of 5/9 earnings, and Aerospace earnings been strong (BA, BEAV, HON)
Best Buy (BBY) traders staying bullish with 13,000 of the May $26 calls sold today and rolled to 8,250 June $27 calls and 7,000 June $30 calls
Under Armour (UA) trades the June $57.50/$60 ratio call spread 5,000X10,000 to open at the ISE for $0.10 debit
April 29th, 2013
Delta (DAL) with sizable call buying last week and now 15,000 May $18 calls opened at $0.22 to $0.29
Gulfport Energy (GPOR) large spread trades in a recent momentum name as the October $37.50 puts are sold 3,000X to open at $2.05 and the October $30 puts sold 1,500X at $0.95, also the October $42.50 puts sold 750X at $3.20, while October $55/$70 call spread bought 2,500X 3,000 at $2.15 debit, overall a net bullish position with the stock at $52.30. GPOR shares are trading at new all-time highs. The $4B Oil & Gas Co. trades 24.6X earnings, 3.1X Book and sees 125%+ forward EPS growth with 10.75% of its float short. Canaccord initiated at Buy on 4-25-13 with a $59 target.
Open Table (OPEN) buyer of 2,000 May $60 calls at $1.40 to $1.55 as shares base on the 20 week EMA into 5/2 earnings. OPEN has closed higher 2 of its last 3 reports.
Huntsman (HUN) roll out of 26,400 May $19 calls to June $19 calls ahead of earnings tomorrow morning.
April 26th, 2013
Game Stop (GME) sales of May $34 and $35 calls and buys 6,500 May $37 OTM calls $0.66 with earnings due out 5/16, and also 3,000 January $40/$49 call spreads bought at $1.57.
Apple (AAPL) trading 10,000 June $500 calls and puts in a spread, also January 2014 $500 calls and puts 6,000X. These trades are going off as synthetics tied to large blocks of stock, used as an arbitrage strategy for mispricing in the options market, a risk-free profit with breaches of put-call parity. The trades do not take a directional view.
National Bank of Greece (NBG) after early hot action is trading 40,500 calls with 88% on the offer for $1.8M call Delta. The August $1 calls most active with 20,000 bought.
Las Vegas Sands (LVS) with another 10,000 September $60/$70 call spreads bought $2.20 while May $55 calls are sold
April 25th, 2013
TIBCO Software (TIBX) with 2,000 June $20 calls bought to open $0.60 to $0.65 offers looking for the beaten down Tech name to recover.
VMware (VMW) holding the $70 level and buyers active for 1,000 October $77.50 OTM calls at $4.50 offers and a 3,800 block of October $80 calls at $3.70, looking for a recovery in shares later this year.
Dollar Tree (DLTR) near a breakout with earnings expected after May expiry, but buyers of 1,000 May $50 calls this morning at $0.60 offers
April 24th, 2013
Key Energy (KEG) with unusual call buying as 785 December $7.50 calls bought to open at $1 offers ahead of 4/25 earnings. The $1.06B offshore rig contractor trades 8.7X earnings, 0.54X Sales and 0.84X Book but saw a sharp decline in earnings in 2012. FBR raised to Outperform on 4-3-13 with a $10 target. KEG looking to put in a reversal candle this week and form an inverse H&S bottom on the weekly.
Silver (SLV) opening buy of 4,500 October $22.50 calls $1.55 at 10:29am, attempting to hold $22 support
Chart Industries (GTLS) spread sells 500 May $70 puts to buy 500 May $80/$85 call spreads, net $0.50 debit into earnings tomorrow before the open. GTLS gained 10.75% last report
HSBC (HBC) with an opening buy of 3,600+ September $55 calls at $1.38 as shares break a downtrend and back above its 20/50 day EMAs, earnings to be announced on 5/7.
April 23rd, 2013
NetApp (NTAP) trading 23,055 calls before the EMC report and $1.5M call premium bought with Net Delta +428K as 5,000 September $35 calls bought $3 to $3.05 and 5,000 September $36 calls bought $2.53, also recent action buying calls in May with shares refusing to breakdown and seen as a likely M&A target. The $12.3B Co. has been posting strong numbers and trades just 1.83X cash value and 15X earnings.
Waste Mgmt. (WM) reports tomorrow morning and another 5,000 May $39 puts bought today, after 5,000 yesterday
GNC Holdings (GNC) large spread ahead of 4/26 earnings as 10,000 June $37.50 puts sold $1.25 to open and 10,000 June $42.5/$47.50 call spreads bought at $1.60 at the PHLX.
Fusion-IO (FIO) May $15 calls are up big since highlighting the 5,000 bought to open and today roll up to the $17 strike ahead of 4/24 earnings.
April 22nd, 2013
Chesapeake Energy (CHK) opening buy of 5,000 January 2014 $16 puts at $1.35 offer
Hasbro (HAS) faded sharply off morning highs and 4,000 July $45 puts bought to open $1.50 to $1.60 today for $600K put premium.
CBS Corp (CBS) with 1,000 September $49 calls bought $2.20 offer, stock noted this morning as a potential merger play with Time Warner (TWX) and the 40,000 block of June $50 calls in CBS remains in OI.
Lyondell Basell Industries (LYB) with 10,000 September $55 puts sold to open $3.80 to $3.90 as traders see limited downside in the value name in Chemicals.
April 18th, 2013
Masco (MAS) put activity jumps to 13X normal as 12,500 May $18 puts trade, IV falling sharply indicating opening sale, willing buyers of the stock on weakness with shares near major support. The $6.78B building materials Co. trades 18.65X earnings and 0.88X Sales. RBC reiterated a Buy and $25 target on 4-15-13.
Freeport McMoran (FCX) higher today despite terrible earnings as commodity names rebound today and the January 2014 $30/$37 call spread was bought 5000X at $1.65.
Bally Tech (BYI) trading weak ahead of 4/24 earnings and 3,400 May $45 puts bought to open today at $0.90 to $0.95, trading 75X daily put volume.
April 17th, 2013
Apple (AAPL) trading 5,500 of the April 26th weekly $385/$365 put spreads to capture 4/23 earnings
Magnum Hunter (MHR) with 3,350 January 2014 $2.50 calls bought $0.70 with shares down 23%
Endo Pharma (ENDP) with a buyer of 3,000 October $35/$40 call spreads at $2.50
Union Pacific (UNP) large trade ahead of earnings and rolling April $135 short puts to May $135 short puts, more than 9,500 trade.
April 16th, 2013
Norfolk Southern (NSC) with 2,000 May $75 calls bought $2.15 offer to open, bullish call flow for nearly $400K call premium and comes ahead of 4/23 earnings, while CSX will kick off earnings tonight for the rail industry.
Honeywell (HON) shares pulled back yesterday to its 50 day EMA and reports on 4/19, and once again seeing large opening put sales with more than 8,500 May $70 puts sold to open at $0.82 to $0.86.
Shutterfly (SFLY) rallying with 1,300 May $45 calls bought to open at $2.25, a big winner last earnings and next reports in late April.
April 15th, 2013
Red Hat (RHT) modest pullback today after recent strength and active buyers of 1,000 May $50 calls at the $1.75 offer. RHT is coming off a solid quarter with an initial over-reaction and shares been rebounding ever since.
Mondelez (MDLZ) trades 5,000 June $32/$28 bull risk reversals as traders continue to position bullish in a name that could be acquired. In an amended 13F Friday Pershing Square disclosed nearly 6M share stake.
Family Dollar (FDO) with 1,000 May $62.50 calls bought to open at $0.95 to $1.10
April 12th, 2013
Seagate Tech (STX) with a buyer of 3,500 May $37 puts to open this morning at $2.50, earnings on 5/1
Ford (F) opening buy of 20,000 April 26th weekly $14 calls at 8 cents to capture 4/24 earnings
Computer Sciences (CSC) weak and 2,500 May $44 puts bought $1.15, a Company with a history of earnings warnings.
April 11th, 2013
General Motors (GM) strong in early trade and 5,000 May $27 calls bought, Net Delta +300K
ITT Educational (ESI) with 2,500 May $15 calls bought to open at $0.50
Noble Corp (NE) spread trades major size in September with the $38/$45 2X3 call spread for 24,000X36,000, positioning for a move to $45.
April 10th, 2013
ADT Corp (ADT) trading 20X daily puts as the 7,000 May $47 puts that have been very right roll to 10,000 October $43 puts at $3.10
Campbell Soup (CPB) seller of 2,000 of the January 2014 $35 and $37 puts, and buys 1,000 January $50 calls and 2,000 January $55 calls, stacking bullish bets, and may see CPB has the next HNZ, a buyout target.
Constellation Brands (STZ) roll of 2,500 April $45 calls out to 5,000 June $50 calls to open at $2.05, staying bullish
Gap (GPS) April $38 / May $41 call spread bought 5,000X at $0.25 into same store sales
April 9th, 2013
TASER International (TASR) with 6,500 September $12.50 calls bought to open at $0.20 with shares at $7.60, far OTM action, and a potential play on the gun-laws, while TASR has been consistently reporting strong orders.
Altera (ALTR) with 3,000 June $32 calls bought to open $2.30 and already a good amount of size sits in OI for June
Iron Mountain (IRM) with another 4,500 October $37.5/$45 call spreads bought, $1.65 today
April 8th, 2013
Wal-Mart (WMT) with a large buy of 4,000 June $77.50 calls at $1.36 offer as shares break to 52 week highs, and continues to see bullish upside call activity.
Wisdom Tree India Earnings (EPI) July $19 calls bought to open at $0.25 to $0.30 for 15,000 contracts, oversold after a recent pullback and large holdings include Infosys, Reliance, Tata Motors, and ICICI Bank.
Informatica (INFA) opening buy of 2,000 June $32.50 calls at $2.50 to $2.55, more than $480K call premium and +100K Net Delta as shares have given up the strong gains from last quarters results and next reports on 4/25.
April 5th, 2013
Alpha Natural (ANR) shares up 3.75% today with coal recovering some and a large buy of 2,050 September $8 calls at $1.10 on the ISE to open earlier.
Manpower (MAN) trying to close above its 50 EMA with shares well off the lows and active buyers of 2,000 May $55 calls at $1.55 to $1.60, 10X daily call volume. The $4.22B staffing firm trades 15.1X earnings, 0.2X Sales and 1.68X Book with a 1.57% yield and reports earnings around 4/19.
Commvault Systems (CVLT) with 1,000 May $75 calls bought to open today at $2.90 to $2.95 offers, 2X daily call volume with shares slammed this week, but a lot of recent talk as an acquisition target.
Newfield Exploration (NFX) with more than 6,500 April $23 calls bought $0.20 offer, and recently announced a discovery, and still reviewing strategic alternatives for its International operations.
April 4th, 2013
Comstock Resources (CRK) gave up all of its March gains and more recently but looking to put in a hammer reversal today. A large trade in September options is adjusting a position and resulting in 18X daily options volume. The September $12.50 puts were sold 5,000X at $0.75 and may be adding to the current OI, while September $15 and $17.50 calls each bought 2,250X, the September $22.50 calls sold 4,500X at $0.15 and 3,000 September $20 calls traded mid-market $0.425.
S&P (SPX) large holder in September 1,425 calls rolls 25,000 out to March 2014 1,550 calls, staying very bullish the market long term. SPX September 1,425 calls bought originally on 12-11 at $79.60, sold today $146.25, rolled to March 2014 $1,550 calls $88.05
Corning (GLW) shares staying strong through the market pullback and today 5,000 May $13 calls bought $0.71 to $0.74 offers for $129K call premium, though already 28,665 in OI.
Fusion-IO (FIO) opening buys of 2,000 January 2014 $15 calls $2.70 to $2.80 after shares made fresh lows.
April 3rd, 2013
International Gaming Tech (IGT) with a large buy of 3,250 January 2014 $20 calls at $0.60
Pifzer (PFE) large bullish spread sells 7,200 January 2014 $25 puts at $0.72 and buys 3,600 $27/$30 call spreads at $1.64. There has been talk of a breakup of the Company.
Whole Foods (WFM) back near its 2013 lows and trying to hold above the $83 level. Option traders are buying the May $88 calls at $1.25 to $1.30 for 2,400 contracts into the weakness, more than $200K call premium purchased and positioning for a 5-1 earnings recovery.
SAP AG (SAP) with 2,500 May $82.50 puts bought to open at $3.40 to $3.50 offers for nearly $400K put premium.
April 2nd, 2013
Hospital stocks have been seeing a lot of upside call buying, and today with adjustment trades rolling to higher strikes. Tenet (THC) is trading 12X daily calls as 4,500 May $45 calls are rolled up to the $50 strike. HCA Holding (HCA) is trading 5X daily calls as 4,500 June $38.50 calls are rolled up to the $42 strike.
Walgreen (WAG) size call buying continues despite the big run in shares with 9,000 January 2014 $47 calls bought in the $3.30 to $3.41 range today.
Illumina (ILMN) jumping here with 1,000 September $57.50 calls bought $2.95 and 700 September $60 calls at $2.10, more than $585K call premium as shares breakout past $54 and 22.3% of the float is short.
April 1st, 2013
Walter Energy (WLT) broke down below support today and 10,000 May $25 puts bought to open at $1.57 after 4,000 April $35 puts sold to close at $8.70, pressing the gas to the short-side.
International Paper (IP) with more bullish action as 5,000 January 2014 $50 calls bought $2.40 and 5,000 October $43 puts sold at $2.35, a bullish risk reversal spanning multiple months. International Paper (IP) also with sales of 6,000 May $44 puts and buying the May $49 calls 6,000X and May $50 calls 5,000X
ADT Corp (ADT) now with 5,750 May $47 puts bought at $1 to 41.10, trading 9X daily put volume with shares on day lows and breaking to 2 week lows. There is already 5,309 in OI for these puts and will need to confirm the change tomorrow.
January 31st, 2012
Unisys (UIS) trading with a $880M market cal and 6.26X earnings, 0.8 PEG, 0.22X sales, 1.32X cash and 4.44X cash flow with 10.65% of the float short. It averages just 400 calls a day, but more than 2,000 February $20 calls bought on 1-25-12 and OTM $22 calls seeing 280 bought today. Shares have made 10%+ moves the last 9 quarters and 20% or greater in 4 of the last 7, so it is a hit or miss, but options flow bullish this week into results.
JP Morgan (JPM) June $35/$27 put spread bought 20,000X at $1.46 to open on the AMEX, not seeing it tied to any stock
US Steel (X) March $32 calls with 12,250X bought on the day.
Broadcom (BRCM) near day lows and net bullish bias halfway through the day, notably around 2,000 March $35/$38 call spreads bought to open today just under $1. The February $35/$38 1X2 call spread at $0.50 is a good looking upside play.
Altera (ALTR) with 2,000 March $37 puts bought to open at the $1.05 offer today, more than $230,000 in put premium, bearish action in the name failing at resistance.
Louisiana Pacific (LPX) with 5,500 March $9 puts bought here, weak on Plum Creek (PCL) results and put action 20X daily average into 2/7 earnings
January 30th, 2012
Opko Health (OPK) trading 35X daily put volume with 3,000 June $5 puts sold at $0.45/$0.40 to open, 70% bid side and March IV falling. Traders are showing confidence in the $1.5B diagnostics Co., willing to be long stock at a $4.55 basis, currently at $5.29 and earnings expected 2/9/12.
Occidental Petro (OXY) size buys of May $100 calls for 1,500 contracts at the $5.60 offer, over $870,000 in call premium
Rockwood (ROC) spikes here as 2,000 February $50 calls bought to open at $1.15 and $1.25 offers, tied to 30,000 share sale, potential stock replacement. ROC is a chemical Co. that could be next in the M&A surge
Elan (ELN) block of 3,000 February $12 puts trade at $0.15/$0.20, likely playing the Biogen (BIIB) Tysabri results
Fluor (FLR) trading 2X daily put volume with 2,285 February $52.50 puts bought to open this morning
Weatherford (WFT) seeing hot buying in May $20 OTM calls for 9,300 contracts, over $545,000 in call premium and a large bullish Net Delta in trades today
January 27th, 2012
Huntsman (HUN) call buyers back with 4,000 March $13 calls bought at $0.60, trading 2X daily calls with 87% offer side and IV jumping as chemical M&A heats up
Amazon (AMZN) earnings next week and large trade at 12:46pm with the February $210/$225 ratio call spread bought 2,000X4,000 at $1.25, and looks tied to 16,000 shares short at $194.50
Astex Pharma (ASTX) trading 2,125 of the February $2.50 calls, already 6,849 in OI, and IV30 jumping 16.5% today. The Biotech is also breaking out to multi-month highs. The $213.6M Biotech trades 1.7X cash value with no debt. On February 9th Astex is expected to hear from a FDA Panel for Dacogen for treatment of acute myelogneous leukemia with a March 6th PDUFA. Back on 12-30 February $2.50 calls were bought in size, and have been active the past week as well.
Frontier Communications (FTR) putting in a huge hammer reversal today and around 3pm 25,000 February $4 puts were sold at $0.15 bid to open, while March $4 calls being bought up big with 14,000 of those trading, call volume 10X daily and IV30 up an insane 62% today.
EnCana (ECA) now sees a bullish spread like we saw yesterday in various names, the April $16 puts sold 15,000X to buy 7,500 July $21/$23 call spreads, net $0.03 credit on the spread.Coeur DAlene (CDE) a silver miner breaking out and 3,070 February $31 OTM calls bought to open today, traders paying the $0.35 offer, and call volume 2X daily. The $2.5B market cap makes it a potential target considering Mine Finders (MFN) was bought out last weekend.
January 26th, 2012
Waste Mgmt. (WM) bullish action here as more than 3,000 March $35 calls bought on the $0.65 offer to open in multi-exchange sweep
Fossil (FOSL) block of 5,000 February $90 puts bought at $3.30 to open, earnings on 2/14, but ptus tied to 135,000 shares of stock long at $96.81 in slight Delta Negative spread.
Salesforce.com (CRM) March $125/$145 ratio call spread trades 2,000X4,000 at $2.95 on the PHLX, spread tied to 28,000 shares short, protective on short position.
Whiting Petro (WLL) with 5,000 March $42.50 puts sold at $0.725 and the March $52.50/$57.50 ratio call spread bought 5,000X10,000 at $0.75, another large 3 way spread in an Oil and Gas Co.
Robert Half (RHI) earnings after the bell and block of 1,250 February $30 puts bought on $1.20 offer here, a name that averages just 8 puts a day. Shares are trading near major resistance and overbought. The $4.33B staffing Co. trades 32X trailing earnings, 1.2X sales and 43X cash flow, a bit rich, but sees 33% EPS growth. Weak results from Monster (MWW) today may be a bearish sign into results with low hiring rates. Shares have jumped strong the last 3 reports.
DeVry (DV) is another name with a bullish 3 way spread as 8,000 May $30 puts are sold at $0.70 and 4,000 May $45/$50 call spreads are bought for a net debit of $0.50. The spread traded with 168,000 shares of stock below bid, and ESI is down today despite strong numbers, education names under pressure, this spread looks to be protecting a new short position.
Qualcomm (QCOM) block of 232,500 shares bought at $57.95 along with 7,500 March $62.50/$50 collars
January 25th, 2012
Open Table (OPEN) an IV gainer today with 1,780 of the February $47.50 ITM puts bought to open, shares been stalling and earnings 2/7
Open Text (OTEX) confirmation bullish with 1,000 May $50 puts sold to open today, seeing this base holding strong with earnings February 1st
Soda Stream (SODA) traded a bullish 3 way spread with 2,000 February $32.50 puts sold on the $0.40 bid and 2,000 March $42.50/$47.50 call spreads bought at $1.25 to open, net $0.85 debit for the bullish play. Earnings should be coming up in February and reported strong results last quarter, though the move was quickly faded, but this upcoming report will include what was a likely strong Holiday period. Shares are bull flagging below its 200 day EMA after breaking key trend resistance on the move through $35 on 1/4/12. Shares could run back to $50 on a breakout, helped with the 48.9% short float, and many of the high short float names have recently been squeezed. The $770M Co. trades 26.5X earnings, 0.86 PEG, 2.88X sales and 3.3X book and is still a strong growth play at 25% Y/Y in EPS. OpCo reiterated Outperform with a $55 target back on 1-13-12, and on 1-5 the Company announced a Co-Branding deal with Kraft.
Human Genome (HGSI) large spread with 6,650 February $11 calls bought and 1900 February $9/$8 put spreads sold. Nice bull flag breakout today
Uinsys (UIS) ripping with 2,750 calls trading, over 2,000 OTM $20 February calls with earnings 1/31, volume 9X daily with IV jumping, bullish action
January 24th, 2012
Yahoo (YHOO) large trade into earnings, the April/May $16/$18 diagonal call spread 7,500X at $0.86 and this matches similar positioning seen lately with April and July options the most bullish for Yahoo, earnings tonight seen as minor event.
Electronic Arts (EA) down despite an upgrade this morning and 10,000 March $18/$21 bear call spreads trade at $0.88 credit, earnings on 2/1/12 and the 20,000 February $17 puts remain in Open Interest
Clean Energy (CLNE) call volume running 2X daily the first 15 minutes of trading with 75% on the offer, opening buyers into an Obama speech focusing on Energy tonight, and IV30 jumping 11%
Norfolk Southern (NSC) is lower by 1% after disappointing earnings from CSX earlier today, and trading 9,500 puts which is 5X daily average. The common trade is buying the February $72.50 puts and selling the March $70 puts for around 3,500 of those diagonal spreads, seeing downside, but likely limited to key 200 day EMA support at $70. Norfolk Southern has beaten big on earnings and jumped higher the last 3 reports. Shares recently hit all time highs, so a pullback is healthy to get shares out of overbought territory. The $25.5B rail trades 12.7X earnings, 0.99 PEG, 2.37X sales and 2.5X book with a 2.26% yield, raised to Buy with a $92 target at UBS on 1-5-12. Looking at a recent presentation NSC profits are likely to be hurt by weak coal which is the most profitable segment, and Ags as well.
January 23rd, 2012
Kimberly Clark (KMB) bearish ratio put spread trades into earnings with the February $72.5/$70 1X2 spread at $0.20 Debit for 3,000X6,000 contracts with shares at $73.55, looking for a pullback in shares, but limited downside.
Time Warner Cable (TWC) massive put volume at 20X daily with 17,000 February $67.50 puts bought to open today, earnings 1/26 before the open, traders looking to fade the recent strength in shares, expecting weak cable TV results, possibly due to the growth in streaming
Safeway (SWY) late day bullish buying in March $24 calls with 6,500 bought to open in the $0.25/$0.30 range , trading more than 10X daily call volume with $125,000 in premium purchased, shares moving into the July earnings gap. The $7.43B grocer trades 11.95X earnings, 0.17X sales and 1.6X book with a 2.65% yield, so the value is there, and also 12.4% of the float short.
Citrix Systems (CTXS) trading 5X daily put volume with 2,250 February $65 puts bought to open today, potential bearish signal into VMware (VMW) earnings, a sympathy mover. VMW also seeing bearish buyers of February $85 puts with 3,870 trading, and most of the call holders are selling today.
Coach (COH) trading 2,500 February $65 calls into earnings, mostly offer side buys at $2.10, a few large 200+ contract lots bought. Earnings are tomorrow morning and shares are off 1.6% today, but action suggests a move higher on results with major resistance overhead at $67.
Grainer (GWW) put volume running 6X daily with $466,000 in call premium purchased, bearish into 1/25 earnings, a name that has run a long way and starting to become overbought and over-valued. The July 200/185 ratio put spread traded 350X700 at a $1.70 net credit
Starwood Hotels (HOT) failed breakout and now reversing down 0.8%, and seeing offer side put buying including 1,390 March $52.50 puts opened, earnings on 2-2-12 before the open. At 23.9X forward earnings, 1.93X sales and 28.4X cash flow, shares may have ran too far, too fast, and a pullback looks long overdue especially with the lodging industry exposure to Europe and Asia.
January 20th, 2012
Apple (AAPL) largest trade today 5,000 January (next week expiration) $385/$390 bull put spreads at $0.40 credit for 1/24 earnings. More than 10,000 of these spreads have traded all together, seeing limited downside for shares and selling the credit spread into todays weakness.
Melco Crown (MPEL) trading 13,500+ April $14 far OTM calls on the offer, though calls look tied to short stock. Call volume running 8X daily volume in the name with $830,000 in call premium purchased. Shares broke out of a downtrend last week and trade 18.9X earnings, 0.52 PEG and 2.18X book.
Range Resources (RRC) sees a similar spread looking for Natural Gas and shale names to continue lower, as the March $52.50/$48 ratio put spread is bought 3,500X7,000 at a $0.20 debit. This spread would target a move down to the 200 week EMA, which looks likely based on the current weakness on the chart.
WellPoint (WLP) stock falling back to support, shares bull flagging into 1/25 earnings and the February $70/$75/$80 butterfly call spreads seeing action with 1,200X2,400 trading, a nice looking bullish trade on shares.
First Niagara Financial (FNFG) traded 7,098 calls on the day which is 70X daily call volume, hot action with 70$ bought on the offer and IV30 jumping 20.8% ahead of earnings on January 26th before the open. A big buyer of 2,000 February $10 calls at $0.15 kicked off the action in the early afternoon, while later more than 3,750 April $10 calls were also bought to open, record amount of bullish call buying. Shares are beginning to break out of a cup and handle pattern with an upside target at $11. The $2B Regional Bank trades 9.8X earnings, 2.06X sales and 0.71X book value.
Analog Devices (ADI) reports earnings in mid-February and a trader sells 2,150 February $40 straddles for $2.35 here, expecting this level to be "sticky"
January 19th, 2012
Starbucks (SBUX) reports earnings on 1/26 and today 5,000 of the April $43/$39 put spreads bought at $0.57, shares looking very oversold, and also over-valued, although positive news today on expansion plans into India.
Cavium (CAVM) 3,000 contract 3 way spread in February from last week adjusted, the February $33 calls and $27 short puts closed, and February $30 puts sold 3,000X to open and February $35 calls bought 3,000X to open, while the short 3,000 February $37 calls remain in Open Interest, staying bullish the name.
Broadcom (BRCM) closing on day highs trading 38,000 calls, 3X average with buyers leading the action, including 2,000 February 35/38 call spreads at $1.05 late in the day
Skyworks Solutions (SWKS) seeing the most bullish read into earnings with 20,800 calls and just 3,100 puts trading and 55% of calls on the offer, Net Delta of 289,000 with buyers active in January $19, $20, and $21 calls since the open. Also, more than 2,000 February $20 calls trading, fresh buying. Shares have been on a big run lately, but at 9X earnings and 13.5X cash flow, remain cheap with upside potential as the Semi industry orders pick-up.
Aetna (AET) traded 9,394 puts on the day which is 6X daily put volume and more than $620,000 in put premium purchased, bearish action after United Health (UNH) traded weak on fairly good results. Aetna reports earnings on February 1st, and today buyers were active in April $42 puts for 4,100 contracts, and 1,300 of the July $40 puts. Aetna was rejected at major 2011 high resistance just below $45 and could pullback to $41.50 or so. The $16B Co. trades 8.7X earnings, 0.47X sales and 1.5X book, but sees a decline in EPS of 1.2% next year, some uncertainty in this industry. Barclays reiterated Overweight and raised its target to $59 last week.
Gulfport Energy (GPOR) trading 8X daily call volume with 1,500 January $25 calls rolled to 2,500 February $30 calls, a bullish trader staying very bullish. Shares look to be carving out a base along its 50 week EMA and ready for a run higher. The $1.8B Oil & Gas Co. trades 13.1X earnings, 0.35 PEG, and 3.5X book, a strong small cap growth play in the industry. Wunderlich started shares Buy with a $41 target yesterday.
January 18th, 2012
NXP Semi (NXPI) trading 3,040 calls in the first 10 minutes with the February $17.50 calls seeing more than 2,000 bought, and the $20 calls also active, bullish buying pushing IV higher as Semis strengthen after Linear Tech (LLTC) and ASML Corp (ASML) posted strong quarterly results. Call action is 3X daily in just 10 minutes of trading. Shares are also breaking out past key resistance, a projected move to $21. The $4.25B Semi trades 9.88X earnings, 0.36 PEG, 0.98X sales and 3.13X book, and is a play on NFC which is expected to be in a lot of new devices for 2012
America Movil (AMX) potentially basing, and a bullish 3 way spread trades with 1,500 August $19 puts sold at 0.73 to buy 1,500 August 23/27 call spreads at $1.43, net $0.70 debit on the spread, positioned for upside, and willing to be long at a $19.70 basis.
Caterpillar (CAT) saw one of the most bullish readings on the day with $2M in call premium bought and $1.4M in put premium sold, Net Delta 548,000 as traders focused on May options, buyers of more than 6,000 $95 deep ITM calls while more than 14,000 of the $90 puts were sold to open, many of the trades in a 1X2 ratio risk reversal spread. Caterpillar shares continue to break higher, measured move target of the channel breakout is $110. At 11.5X earnings, 0.69 PEG, and 1.2X sales shares are still cheap with 33% EPS growth seen for 2012. Barclays hiked its price target to $128 from $115 last week, Overweight rated.
Credit Suisse (CS) broke a short term downtrend today, and up 4.6%, also seeing 5,500 March $27 calls bought to open on the day, a name that has seen hot February and March call buying the last two weeks.
AK Steel (AKS) pops here as 5,000 June $11 calls bought at $0.67
January 17th, 2012
Energy (XLE) trading 66,800 puts today which is 2X average, over $1.7M in put premium bought, looks like the March $63 puts closed 30,000X+ and March $68 puts bought to open 15,000X.
Chesapeake Energy (CHK) shares broke support and February puts active on Friday with bearish flow, now trading at the lowest level since late 2010. A trader just purchased 35,000 January 2013 $35/$45 call spreads at $0.35. These spreads are way OTM and would require shares to gain 75%, so the only real possibility would be a big buyout offer. The $14.11B Co. now trades 0.87X book, and Foreign Oil is interested in acquiring US Shale Assets.
Acorda Therapeutics (ACOR) trading 6,000 calls, 12X daily with 2,000 January $20 calls sold to close, and 2,000 April $25/$30 call spreads bought at $2.50 to open, staying bullish the Biotech trending higher, a play in the MS group.
Linear Tech (LLTC) large block of Jan. 30 calls bought at $0.60 to open 15 minutes before the bell into earnings, more than 2,300X. Also, back on 12-22 more than 3,250 February $30 calls were bought to open, and more than 5,000 sit in Open Interest. The Analog Semi Co. trades 12.7X earnings, PEG 1 and 21.4X cash flow with a 3.2% dividend yield.
Cree (CREE) trading up 3.5% in front of earnings, but with 6,500 February $22/$18 put spreads bought to open at $0.99 into earnings after the bell. Last week buyers targeted more than 5,000 March $25 calls to open, so a mixed read into results. Another popular front month trade today is the January $24/$27.50 call spread 2,000X at $0.82. Shares have traded higher the past few weeks and sit right below the 50 day EMA, while $25 is major long term resistance overhead for the downtrend. Crees IV Skew through March is fairly flat, a bullish bias with OTM calls bid up just as high as the puts. January IV at 127% compares to February at 65.6%. Cree has traded lower 6 of its last 7 reports, and over the last 6 has averaged 12.5% moves on earnings. Cree has a 65% EPS beat rate and 59% revenue beat rate. The adoption of LED has come at a slower pace than expected and overseas slowdowns likely to weigh on the forecast yet again. At 24.9X trailing earnings, 2.7X sales and 1.06X book, downside appears minimal on valuation, still a fairly good longer term growth play. Over-supply, rising expenses, and pricing pressure all lead to a likely guidance cut, also weak margins expected. The straddle is pricing in a just under a 10% move.
January 13th, 2012Cloud Peak Energy (CLD) near day lows and January IV up 10% with 3,300 January $20 puts bought today. Shares are near the break of trend support, and although the coal name is cheap on valuation, with PCX cutting production today, could see more of that for the industry. Put volume is running 17X daily average.
Covidien (COV) falling and ready to roll below the 20/50 EMA crossover and 2,000 February $45 puts bought to open at $1.45.
VIX trading 100,000 March 30/45 call spreads today, rolled from 100,000 February 35/55 call spreads, possibly extending a hedge
Home Construction (ITB) potential fade play or protecting a long position with 5,000 April $12 puts bought at $0.60 to open
Microsoft (MSFT) roll of 80,000 January $26 calls to 117,000 July $28 calls, likely extending a buy write position
Coca Cola (KO) weak again and the January 2013 $75/$50 bear risk reversal trades 10,000X at a $0.20 debit, shares falling since a double top was formed at $70.50. The spread is a collar on 320,000 shares of stock bought.
January 12th, 2012
Exxon (XOM) traded 41,669 puts to 27,345 calls, bearish bias with $1.1M in put premium purchased, and negative Net Delta of 658K. The February $87.50 puts saw notable buying with 4,007 trading. Shares recently were rejected at major long term resistance near $87. The $407B Co. could face similar earnings issues that Chevron (CVX) is forecasting, and trades 10.2X earnings, 0.86X sales, and 2.6X book with a 2.22% yield. If shares break the recent $83.94 lows expect a move back to $81.
Regeneron Pharma (REGN) volatility sales with 3,000 February 85/65 strangles sold at $3.40
Kohls (KSS) spread looking for continued weakness, the February $46/$44 ratio put spread trades 2,000X4,000 at $0.10 debit on the NYSE to open
JP Morgan (JPM) reports tomorrow before the open and trading 74,000 calls and 56,000 puts today, in-line with average day. On the day a bearish bias with Net Delta -685,000, and $1.6M in put premium purchased while $478K in call premium sold. The largest traded of the day was Delta Neutral with 6,000 February $36 calls. Traders looking for a pullback are most active in Jan. 36 weekly puts with 5,600 trading. JPM shares have made a big run and expectations have risen, today testing channel resistance, so a pullback to 34.50 may be in the cards. Overall, the longer term bias has been bullish with plenty of Open Interest remaining in Feb 35 calls, and the large June ratio call spread traded yesterday. The February $36 calls are very active today with 10,900 trading.
Assured Guaranty (AGO) IV up with shares continuing to breakout and 2,590 of the February $15 calls trading, opening buyers.
NovaGold (NG) buyers in January 2013 $10 calls for more than 10,000 contracts today, over $475,000 in call premium bought, open interest already elevated, so want to check the Open Interest change tomorrow. Shares are on the lows of the day here.
Newell Rubbermaid (NWL) traded 390,000 shares of stock with 10,000 March $18 calls at $0.65
January 11th, 2012Altera (ALTR) sees some bearish positioning with 3,000 February $34 puts bought to open at $0.70, multi-exchange sweep, over $230,000 in put premium bought in the Semi today. Altera gave terrible guidance recently but shares always seem to recover. Shares are now struggling at resistance and could roll over.
JP Morgan (JPM) opening buyer of the June $37/$40 call ratio spread 7,000X14,000 at $0.23 credit, earnings this Friday
Ultra Petroleum (UPL) was one of the many Natural Gas related stocks hit hard on the day with prices hit hard. On the day IV30 jumped 15.1% and traded 15,960 calls and 13,300 puts, 6X and 13X respectively. The most interesting action was in June with the $28 calls bought 5,000X and the $26 puts sold 5,000X in bullish risk reversals at $0.25 debits. Shares hit there lowest level since 2005 back in October but rebounded sharply, and now near a move back to that $25 level, shares oversold, possible capitulation. Ultra Petro is a Green River Basin and Marcellus Shale play and we could see a lot of M&A in this group with the names getting hit hard, as the assets remain valuable to Foreign Oil. The $4.12B Co. trades 10.8X earnings, 0.6 PEG, and 2.8X book value, raised to Buy at Canaccord on 12-21 with a $53 target.
Halozyme (HALO) bullish action with March $10 calls bought 1,877X today, 85% on the offer and IV30 surging 34.3% with shares breaking out. The $990.6M Biotech is presenting at the JP Morgan Conf. today at 2pm PT.
JA Solar (JASO) February $1.50 calls with 2,500 bought now, yet another Chinese solar name with bullish activity, action ahead of February 13th when the US Department of Commerce could determine whether preliminary duties should be imposed on imported solar modules/cells.
Sara Lee (SLE) stock moving higher and 6,500 January 2013 $20/$17.50 bullish risk reversals trade 6,500X at $0.10 debit. Last Friday 10,000 July $20 calls were bought to open.
January 10th, 2012
Fortinet (FTNT) chart looks ugly, but late buyer of 2,000 January $20 calls at $0.75 offer on the PHLX and then another 2,500 bought into the close, very suspicious action. Fortinet is considered a highly likely takeover target in Tech.
Textron (TXT) breaking out and trading 9,933 calls on the day with more than 4,000 January $19 calls being rolled out and up to the February $21 calls. The stock trades 11.35X earnings, 0.48X sales and 1.6X book. Shares have pushed through the 200 day EMA today on good volume.
NII Holdings (NIHD) had more than 5,000 far OTM June $27 calls bought to open last week, and today a buyer of 3,000 March $23 calls at $1.05 to open on the ISE is looking for the beaten down name to recover strong.
Tiffanys (TIF) bullish 3 way spread with 2,500 January 2013 $50 puts sold to buy 2,500 January 2013 $60/$75 call spreads, net $0.20 debit
Marvell Tech (MRVL) early morning buyer of 2,500 May $17/$20 call spreads at $0.81, and later another 2,500 were bought, bullish positioning in the recently hot Semi.
Sina Corp (SINA) bull flagging intraday, bullish options flow with $3.6M in call premium bought today, a big 1,600 contract January 2014 $60/$40 bull risk reversal traded at $5.70 to open, longer term bullish view on the beaten down China growth stock.
American Eagle (AEO) seeing more attempts to buy the weakness with call volume 5X daily average today, big buys in May $15 calls with 17,500 trading against OI 11,361. On the day more than $750,000 in call premium purchased and Net Delta above 400,000. Action in the calls began at 1:45pm and has seen IV jumping since.
January 9th, 2012General Motors (GM) trader staying bullish with a roll of 12,500 January $20 calls to 12,500 February $20 calls at $3.20, leading the large early bullish action
Cardinal Health (CAH) February $41 calls seeing hot action again with 4,869 trading after 5,000 bought last week, vying for that big VA contract
Norfolk Southern (NSC) unusual purchase of 1,400 January 2014 $100 calls with stock at $76.17, potentially seeing eventual buyout of the Rail
Polycom (PLCM) is trading 3,070 calls on the day, 2X daily with IV30 up 15%, 72% offer side action with $144,000 in call premium bought today, the February 17.50 and even the 22.50 calls seeing buys. Shares put in a long base along $14.50 and now today breaking out above its 50 day SMA on fairly good volume. The beaten down Tech name now has just a $2.9B market cap, and trades 12.8X earnings, 1.4 PEG, 2X sales and 18.66X cash flow with 21.7% EPS growth seen for next year, so shares are cheap. Earnings are 1/23/12 and shares tend to move big. Citi raised to Buy on 12-21.
January 6th, 2012
Talisman Energy (TLM) IV jumping as call volume rips to 9X daily with 71% on the offer, as 4,300 January $13 calls bought and 1,450 February $13 calls
Estee Lauder (EL) shares breaking 20 day EMA, bearish action with opening February $105 ITM call sales on the bid for more than 1,550 contracts, pushing IV lower
Agrium (AGU) off 2.3% at lows of the day, yet trading 3X daily call volume with 3,300 OTM February $80 calls bought to open today, buyers paying the $0.60 offer, unusual action, the kind of speculation you would see for a buyout, Agrium trading with an $11.33B market cap.
Fusion-IO (FIO) shares breakout past $28 this morning and call volume heats up with 1,200 February $30 calls bought at $2.90, opening bullish buyers. The $2.37B Co. trades 70.55X forward earnings, but is the future of storage, a major growth/momentum name.
RR Donnelley (RRD) traded 5,598 puts yesterday, buyers of 5,400 January 2014 $8 puts at $1.15/$1.20, more than $239,000 in put premium purchased, shares at $15. This looks to be a longer term bearish bet, a play on the theme of a dying industry, print media, as RRD makes magazines, books, and other print material. Very interesting action yesterday, and I can see the rationale as E-Books are sure to takeover the market by 2014.
Citrix Systems (CTXS) climbing back from weakness on a downgrade and trading 3X daily call volume, two days after a buyer of 1,500 February $62.50 calls. Today the January $60 calls with 2,000 bought to open, and 1,500 of the March $60 ITM calls, bullish action.
VIX June $24/$16 ratio put spread bought 20,000X40,000 at $0.90
January 5th, 2012
CVR Energy (CVI) February $22.50/$17.50 bullish risk reversal opened 1,500X at $0.10 debit, bullish play on refiner nearing entry into large gap
Intermune (ITMN) shares up 11.86% on the day after announcing initial Esbriet sales in Germany, and a trader opens 2,000 February/April $15 calendar call spreads at $1.10 on the NYSE
Signet (SIG) traded 57.7X daily call volume, buyers in January $45 and February $50 calls, IV30 jumped 5.8%. The $4B jewelry retailer is still a great value name, and near a breakout to 5 year highs. Shares trade 11.2X earnings, 0.9 PEG, 1.11X sales and 1.89X book value, and has reported consistently strong results.
American Axle (AXL) traders rolling up 3,000 January $10 calls to the $11 strike, taking some off the table, but still bullish
Canadian Pacific (CP) shares traded near all time highs and February options active, on trader puts on 1,000 February $70/$65 bullish risk reversals at $0.70 to open, and another trader sold 750 of those $65 puts to open. The $11.7B rail is in the sweet spot for Transportation and trades 15.9X earnings, 2.35X sales, and 2.3X book with a 1.71% dividend yield. JP Morgan upgraded to Neutral yesterday on hopes for management changes, and option traders positioning for upside, thinking that shares definitely hold above the recent $65 breakout level.
Van-Heusen (PVH) seller of volatility, 1,640 March $80/$67.50 strangles sold to open on the AMEX at $4.35
OmniVision Tech (OVTI) June $14 calls with 2,400 bought today near $1.45 offer, active bullish flow for shares to recover. Shares trade 1.5X cash value with nearly zero debt.
January 4th, 2012
Dunkin Brands (DNKN) not doing much today after positive Analyst coverage, shares just up 1% failing at its 50 day EMA near $25.50. Put volume is running above 7,000 on the day with the February $25/$22.50 ratio put spreads bought at $0.50 today for 2,000X4,000, looking for shares to head lower, although downside fairly limited. Shares of the $3B Co. do look pricey at this level, trading 27.2X earnings, 4.88X sales and 4.06X book with no dividend. It is tough to justify Institutions buying the stock, as Starbucks (SBUX) is outperforming, no need for anyone to be long Dunkin. The spread then traded another 2,950X5,900 contracts at $1 near the close.
Acme Packet (APKT) massive put roll with the 7,000 February $32.50 puts rolled down to 13,800 February $25 puts bought to open at $2.50, looking for further downside to shares as guidance continues to be cut.
Southwestern Energy (SWN) now also seeing buyers in February $34 calls with 2,500 trading, and then another 2,500 bought later with 5,000 now trading
NutriSystem (NTRI) is a name highlighted for weeks with bullish call action, buyers were playing March and later options for a recovery when shares were under $11. Now shares are breaking out in a big way, up 5.6% today and an opening buyer pays $2.95 for 4,000 March $12 ITM calls.
Yahoo (YHOO) July $16/$19 ratio call spread has traded 60,000X120,000 now on the day
Dollar Thrifty (DTG) trading 3,900 calls and IV30 up 4% today, buyer of 1,500 February $75 calls at $1.35 to open, also some buyers of the $72.50 calls at $3.10. A deal for the Company recently fell through, but potentially it is seen as eventually getting done.
January 3rd, 2012
Retail (XRT) bearish spread with 31,350 March $52/$47 put spreads bought at $1.43 on the AMEX ahead of same store sales on Thursday. This comes aster 5,470 February 51/46 put spreads were bought in the XRT last Thursday at $1.
Tibco Software (TIBX) moving to lows on the day, weak in a strong tape as cloud/software names fade, and 1,000 February $22 puts bought to open at the $1 offer.
Sohu.com (SOHU) making day highs and bullish action heats up with more than 1,550 February $60 calls bought at the $1.80 offer to open.
Microchip Tech (MCHP) rejected at $37 resistance and trading 3X daily put volume with 2,100 February $36 puts bought to open on the day, bearish positioning in the Semi. MCHP has a 3.8% yield.
RPC Inc. (RES) trading 3,985 calls, often featured in takeover chatter, trading 7X daily call volume, mostly offer side buys in February $22.50 calls trading 2,260, and IV30 jumping big 19.6% today to 64.6%. On the weekly chart shares really have a good long base formed and nearing a trend break to the upside with room to $25. The $2.7B oilfield services Co. trades cheap at 7X earnings, 0.4 PEG, and 3.77X book with stronger growth outlook than peers. Canaccord has a Buy and $24 target on shares.
January 2nd, 2012
Cheesecake Factory (CAKE) traded 3X daily call volume with the bullish action in April $28 ITM calls as 1,825 were bought to open at $3.40. Shares has a fairly quiet year in 2011, basing along the 200 week EMA and now looking to breakout for a run at the double top level of $34. At 15.86X earnings, 0.96X sales and 14.3X cash flow valuation is fair, and 17% of the float is short, so a potential squeeze name, and the $1.6B market cap could make it an acquisition target. Stephens started Overweight with a $34 target in late November, and the Company is starting to expand Internationally.
Discover Financial (DFS) traded 4X daily call volume and 6X daily put volume as strategists bought 3,600+ July $24 straddles at $5.40, expecting 2012 to be more volatile for Discover. Shares have been coiling in a tight consolidation pattern and need to break $25 for a push to $27, a Company with improving fundamentals and the credit card stocks have been strong. Discover trades just 7.25X earnings, 0.63 PEG and 1.28X cash value, raised to Buy at Stifel with a $29 target on 12-16.
February 29th, 2012
AT&T (T) near day highs breaking out on the daily and weekly charts and $430,000 in call premium bought with big buys in April and May $31 calls for 6,000 and 7,800 respectively.
Home Depot (HD) trades 2,900 April $47 and 1,050 April $48 calls, offer side buying as shares break out and look for new closing highs
Metro PCS (PCS) down 6.7%, but opening sales of 12,000 April $10 puts at $0.50 to $0.55 here to open, willing longs selling premium into this weakness.
Qihoo 360 (QIHU) breaking out past 200 day EMA today, up 6.45%, and a buyer of 1,650 April $20 calls at $2.35 to open earlier, also action in April $22.50 calls as call volume is more than 2X daily.
Cree (CREE) shares on the move hgiher after 10,000 January 2014 $45 calls bought to open at $5
AIG trading 3X daily call volume with a massive block of 16,500 April $32 OTM calls bought to open at $0.38, more than 19,000 trading, and $125,000 in call premium. Shares recently jumped on earnings, though the move was faded, and has seen plenty of call activity the past few weeks. These are speculative far OTM calls, but a notable sized trade.
Form Factor (FORM) trading 15X daily call volume with July $6 calls bought at $0.30 offer for 1,440 contracts, also some April $5 action, shares basing for months now. The $257.76M Semi trades 0.74X book and 0.87X cash.
February 28th, 2012
Ford (F) block of 20,000 April $12 calls trades on $0.66 offer, sales due this week. The calls traded with 1.2M shares of stock, potential stock replacement.
AGCO Corp (AGCO) Aug 50/60 call spread bought 5000X at $4.40 into JOY earnings
Occidental Petro (OXY) did not hold its full breakout, but is looking to close over $105 and just before 3pm large buys in April $105 calls at the $3.80 offer, more than 2,700 trading, net $560,000 in call premium bought in it today.
RenRen (RENN) trading 7,700 calls, more than daily with 56% offer side, over 3,600 March $6 calls bought around $0.20 offers, shares forming a tight consolidation pattern, and earnings on 3-8-12.
Amazon.com (AMZN) first day of bullish call flow in awhile with $430K in premium bought, large positive Net Delta 191K, the April $190 calls seeing buyers in the $3.95 to $4.25 area to the tune of 2,900 contracts 2 hours into the session.
Kroger (KR) earnings March 1st and massive spread this morning with the March $25/$22 strangle sold 19,750X at $0.29 to buy 19,750 April $23 puts at $0.50, net $0.21 debit on the spread, a very interesting spread. Safeway (SWY) was crushed on earnings last week.
February 27th, 2012
Mitek Systems (MITK) real unusual action with 500 October $22.50 puts sold to open on bids today, shares at $11.90, so expecting shares to climb, willing to be long at $22.50 minus the $10.50, a $12.50 basis. Put volume running 6X daily
Oil Exploration (XOP) showed some weakness today and more than 5,000 March $60 puts bought to open on the session, nearly $500,000 in put premium purchased on the day.
Cleveland Bio (CBLI) trading 2,820 calls today, more than 25X average, and 70% offer side with buyers in March $5 and October $5 and $7.50 calls, IV30 jumping 17% today.
Universal Display (PANL) traded 4X daily put volume with 1,500 April $43 puts bought to open ahead of 2/28 earnings.
Netflix (NFLX) seeing buyers in April $100 puts today as well, 2,300 bought in size trades at $6.10 offers, while weekly calls seeing some upside buying
Cable Vision (CVC) traded 1,000 June $16/$14 bull risk reversals at $0.50 into earnings
Newfield Exploration (NFX) back at support and very oversold as 5,000 April $35 puts sold to open at $1.20 bids, calling a bottom in shares
February 24th, 2012
Hartford Financial (HIG) buyer of 2,900 April $23/$18 bull risk reversals at a $0.02 credit, not a bad trade, willing long at $18 basically with upside exposure, and Paulson calling for a break-up to unlock value.
Oncothyreon (ONTY) trading 23,000 calls and 6,000 puts with over $700,000 in call premium purchased today, the March $10/$17 call spread traded 2,800+ at 11:55am and also 1,800 March $15/$18 call spreads at Noon and 1,000 March $10/$17 call spreads. Overall a very bullish bias in a Biotech that has seen a lot of bullish positioning in recent weeks. The April 9/15 call spread bought 500X at 1.40 as well as the Company speaks at a Conference next week.
Potash (POT) massive roll out of more than 12,800 March $45 calls to April $45 calls, sticking bullish, traded on the PHLX
Iron Mountain (IRM) now trading 3,450 calls on the day, more than 20X daily average with $165,000 in call premium purchased, action in April $27.50 and July $30 calls
Dish Networks (DISH) March IV jumping today with big call buys as 2,800 March $28 calls and 6,200 March $30 calls trading, still see it as a potential acquisition target for AT&T (T)
United Tech (UTX) seeing unusual action with 3,700 of the March (weekly) $85 calls bought to open in the $0.38 to $0.42 range.
February 23rd, 2012
TRW Automotive (TRW) 3 way spread in April as 5,000 of the $0.40 puts are sold and the $45/$50 ratio call spread is bought 5,000X10,000, about a $0.33 debit per spread. TRW shares put in a large rounded bottom and have been running strong. The spread traded with 115,000 shares below bid, so potentially protecting a short position in stock.
Target (TGT) now at day highs and trader buying more time with 5,000 March $55 calls sold and 5,000 April $57.50 calls bought to open
Childrens Place (PLCE) trading 4,100 calls which is 8X daily average with March $50/$52.50 call spreads and 2,000 of the June $50 calls bought to open, more than $650,000 in call premium purchased. The bullish action comes with shares under pressure lately, and ahead of 3-7-12 earnings.
Oracle (ORCL) with earnings due in late March for April expiration with a massive sale of 36,000 April $30 calls at $0.55 and purchase of 18,000 April $27 puts at $0.63, and not seeing a matching stock trade with the spread.
February 22nd, 2012
Lowes (LOW) off 2.7% today and starting to breakdown, but call buyers active in March $28 calls with 5,840 trading against OI 3,525, cheap OTM calls at $0.30. More than 70% of the action on the offer, buyers paying $0.30 to $0.35, and ahead of 2/27 earnings before the open. Home Depot reported great results earlier this week, although the reaction was faded.
Kinder Morgan (KMI) shares rebound off day lows and near 50 day EMA and prior breakout support as a block of 3,500 April $32.50 calls are bought to open at $0.55 on the ISE. There is also action in June $35 calls with more than 4,000 trading. Call volume is running 2X daily today. The $22.7B Energy Infrastructure play trades 24.11X earnings, 2.74X sales and with a 3.87% dividend yield.
Focus Media (FMCN) trading 11,340 puts, 1.5X daily with size buyers of March $23/$17 and $23/$19 put spreads, more than $300,000 in put premium bought, bearish positioning with shares failing at the 200 day EMA.
Target (TGT) bullish combo trade into earnings tomorrow before the open with 2,500 April $50 puts sold at $0.74 and the April $52.50/$55 call spread bought 2,500X at $1.17, continuing bullish action that was seen late last week.
February 21st, 2012
L-3 Communications (LLL) with an unusual 2,600 March $75 calls bought at $0.15 offers, also some action in April $75 calls for 500 contracts. Shares are trading in an extremely tight range the past few weeks with a move over $71.15 triggering a breakout. The $7.1B Aerospace and Defense Co. trades cheap at 8.15X earnings, 0.47X sales, 1.07X book and with a 2.82% yield.
Mens Wearhouse (MW) traded 10X daily options volume as the March $40/$38 bear risk reversals traded 1,000X at $0.20, bearish positioning ahead of 3/7/12 earnings. Shares are overbought at the highest level since 2007 and closed the day with a bearish engulfing pattern. At 14.75X earnings, 0.85X sales and 43.2X cash flow, the valuation is not all that attractive for a low growth name in retail.
NutriSystem (NTRI) bottoming pattern and 2,000 March $12/$10 bull risk reversals trade at $0.30, earnings on March 5th, and a lot of Open Interest still in March calls.
Valeant Pharma (VRX) March IV spikes higher as 5,000 $50 calls are bought to open at $0.75 to $0.80 in front of 2/27 earnings, shares weak today and re-tested near its $45 breakout and 200 day EMA.Youku.com (YOKU) traded 13,790 puts and just 3,600 calls with put volume 8X daily average, the March $20/$15 put spreads bought more than 4,000X at $1.50 and the March $21/$16 put spreads 1,900X at $1.42. More than $920,000 in put premium purchased in YOKU, which has yet to confirm an earnings date, but closed 16% and 14% lower its last two reports.
Kinross Gold (KGC) more than 2,500 ITM March $10 calls bought at $1.39 offer to open
February 17th, 2012
Research in Motion (RIMM) roll of 5,000 February $15 puts out to next weeks $15 puts bought at $0.40 to open, looking for shares to fall next week
Hertz (HTZ) with 2,000 June $15/$12 bull risk reversals at $0.35 debit, earnings on 2/22, shares hit yesterday on CAR results.
BP jumps as 6,045 April $44 calls bought $3.75
Amylin (AMLN) roll up of 5,115 March $16 calls to 6,500 March $20 calls
Watson Pharma (WPI) roll of 2,500 February $60 calls to March $60 calls, trading 3X daily call volume
February 16th, 2012
Adobe (ADBE) February $31 calls being closed to the tune of 4,900 contracts today, while rolled to April $33 calls for 4,900 contracts, staying bullish the name
Rock-Tenn (RKT) interesting trade today with 1,000 July $75/$60 bull risk reversals at $0.40, and more than 2,850 April $70 calls remain in Open Interest
General Mills (GIS) opening buyer 5,000 February $40 puts at $0.20, could be playing Campbell Soup (CPB) and Heinz (HNZ) earnings tomorrow.
Oasis Petro (OAS) call volume jumps to 10X daily with 3,500 February $30 calls rolled to March $30 calls at $1.05 debit per roll, ahead of 2-22 earnings, a name that also has seen May $35 call buying.
Yahoo (YHOO) 3 way spread with 20,000 July $16/$14 bull risk reversals with an added sale of 20,000 April $16 calls, net credit on the trade
February 15th, 2012
Freeport McMoran (FCX) roll of 20,000 February $41 puts to 20,000 March $40 puts
DreamWorks Animation (DWA) call volume of 4,389 ran 8X daily average that started with a big buy of 2,000 March $20 calls at $0.525 on the PHLX to open, and some further action came in as 3,630 traded on the session. March IV shot up more than 12% after the trade hit at 2pm. The traders are fairly speculative as earnings are to be reported on 2/28/12 after the close, but shares are forming a nice bullish consolidation pattern above its 50 day EMA and after a long term basing pattern shares have broken a long downtrend with the 50 week EMA at $21 a near term target. Goldman cut shares to Sell on 1-17-12 and slashed its target to $15. The call buys came 22 minutes after a DJ news wire announced the Company will announce a venture with 2 Chinese Media Groups. DreamWorks trades 11.1X trailing earnings, 2.1X sales and 1.2X book with no debt, and the 28% short float, 23.77 days to cover, could cause a major short squeeze rally in shares.
ITT Educational (ESI) profitable trade rolls 2,405 April 70 calls up to 5,250 April $80 calls, looking for more upside
Southwestern Energy (SWN) roll of 15,000 March $34 calls to $36 strike, patience has paid off in this name and still a lot of long March call positions in Open Interest
Nordstrom (JWN) traded 5,280 puts, 5X daily average with late day buyers in the February $50 puts for more than 4,300 contracts in the $0.65 to $0.77 range, ahead of 2/16 after market earnings. Shares are struggling to break through long term resistance. The $10.7B apparel Co. trades 14.25X earnings, 1.01X sales and 19.5X cash flow with a 1.8% yield. Nordstrom beat estimates in both November and December same store sales reports. Shares have closed lower 5 of the last 7 earnings reports.
MAG Silver (MVG) volume breakout today with 30X daily call volume as 2,200 February $5 calls rolled to 3,200 March $7.50 calls, staying bullish the small miner
Tibco Software (TIBX) tight flag and 500 May $32 calls bought on $0.90 offer to open
Masco (MAS) roll out of 3,100 April $12 calls to 6,200 July $10 ITM calls, paying an additional $1.65 per spread and doubled the size, bullish move, shares reacting strong.
February 14th, 2012
Deckers (DECK) now trading at day lows and put volume 3X daily with 3,400 of the March $77.50 puts bought at $4.10 and $4.20 offers, more than $2M in put premium purchased as bearish action continues in DECK.
Imax Corp (IMAX) roll up of the 7,000 March $23 calls to 6,880 March $25 calls, stock very strong today
Tesla Motors (TSLA) trading 5,775 calls, 2X daily, with $195,000 in call premium bought, 60% offer side action with February $31, $32, and $33 call buys into tomorrows earnings. If the trend continues with highly shorted names soaring on earnings, Tesla fits the profil with 44.7% of its float short.
Motorola Solutions (MSI) trading 2X daily put volume with 1,750 July $49 ITM puts bought to open on $3.90 offer today, more than $560,000 in put premium purchased, shares looking at an ugly close after briefly touching new highs. Shares were crushed on earnings and recovered the whole move, but now traders positioning for shares to fall again. The $15.65B Co. trades 14.7X earnings, 1.9X sales and 3X book with a 1.83% yield. Argus raised to Buy with a $55 target on 1-30-12.
Micron (MU) trading 9,290 calls the first 5 minutes with 72% offer side, buyers in March and April $9 calls active
February 13th, 2012
S&P (SPY) trading 2.7 puts for every call today, the March 30 (W) $128/$118/$108 Put Fly traded 25,000X50,000 at $0.71 on the ISE
Citi (C) block of 45,000 September $40 puts was just sold to open at the $8.05 bid, shares at $33.30, a willing long of 4M shares at a $31.95 cost basis, very bullish trade.
Zynga (ZNGA) March $11 calls being sold to close 15,000X and rolled to the March $13 strike with 15,000 bought, earnings tomorrow after the close and traders adjusting positions to take off some gains and let some ride. Shares are forming a large bull flag into results.
Regions Financial (RF) quietly made highs today for the past 6 months and trading 6,080 calls which is 1.5X daily with 4,000 August $5.50 calls bought today, already 16,201 in Open Interest, while the 8,200+ May $5.50 calls also remain in Open Interest
Cliffs Natural (CLF) seeing bearish spreads in March with the $82.50/$62.50 bearish risk reversals trading 2,200X at $0.04 debits, coming ahead of 2-15 earnings, although the Company already cut its guidance. Shares are starting to break 20 day EMA support and under $70 shares head back to $60.
Salesforce (CRM) roll out of 7,000 March $125 calls to 11,520 March $135/$155 call spreads, takes some profits on position.
Select Comfort (SCSS) buyer of 900 September $35 calls on $2.25 offer on the CBOE, shares at $29.40, bullish play
February 10th, 2012
Medivation (MDVN) shares have cooled after a large gap move on positive date and now holding the 10 day EMA. A trader sold 250,000 shares of stock earlier against 4,950 March $70 calls bought at $4.30 on the NYSE, works out to a Delta Neutral spread.
Rackspace (RAX) February $50 call block bought 3,000X at $1.35 offer on the ISE, earnings are on 2/13 after the close. The calls are tied to 126,000 shares of stock traded 48.85, below bid, Delta Neutral.
Cirrus Logic (CRUS) put activity jumps to 8X daily as the June $16/$13 OTM put spread bought 3,700X at $0.55. Cirrus shares gapped up on a strong outlook in January and since have pulled back, using the 20 day EMA as support. At 13.8X earnings, 0.46 PEG, and 3.37X sales Cirrus remains cheap, so the spread may just be protective.
Darden Restaurants (DRI) notable strength today and with 1,600 March $50 calls trading, 500 bought at $0.95 near the open at 9:40am, and another 500 bought at $1.33 at 11:30am
RPX Corp (RPXC) up 14.6% on a deal with Alcatel Lucent (ALU) and trading 1,300 calls, 30X daily average with IV30 jumping 38%. Traders active in May $20 calls from $1/80 to $2.40 with 1,200 trading, looking for more upside. The $845.77M Co. reports earnings 2/13/12, and trades 22X earnings, 2.9X book and 3.4X cash. Barclays raised to Overweight on 1-3-12.
February 9th, 2012
American Electric & Power (AEP) sitting on support and unusual action with 5,100 calls bought at February $40 strike today, $0.15 contracts.
Alpha Natural (ANR) trading 2,900 June $26/$18 bull risk reversals at $0.07 debits, traders continue to position in Coals for June/July time frame
Trip Advisor (TRIP) opening bullish buyer of 1,240 June $25 ITM calls at $5.30 with shares down 16.9% on earnings
Pan American Silver (PAAS) may make a run here as 1,500 March $24 calls bought on the $1.35 offer to open
February 8th, 2012
Bunge (BG) actually the name seeing strongest bullish bias into earnings with 6,020 calls trading and mostly offer side, while 4000 July $65 OTM calls bought to open at $1.50 on 1-26. Bunge trades cheap at 8.75X earnings, 0.93 PEG, 0.15X sales and 0.73X book.
Heinz (HNZ) buyer of 3,000 January 2014 $50/$65 call spreads, earnings 2/17 and this spread looking long term with shares at $51.89. Spread traded with 129,000 shares, potentially stock replacement strategy
Radian (RDN) massive buyers of March $4 calls with 7,600+ trading, also 3,100 of the $3.50 callss as IV spikes into the close, earnings not until 2/23. Call volume running 10X daily with 75% bought on the offer, $270,000 in call premium purchased.
Century Aluminum (CENX) trading 2,875 calls, 2X average with 73% offer side, March $12/$13 calls seeing some bullish action as shares near a key breakout, rejected at the 200 day EMA earlier today.
Caterpillar (CAT) seeing strong buying in the May $115 calls today for 4,170 contracts, more than $1.9M in call premium purchased, shares consolidating under that $115 level right now, and still one of the better value names in the market that is hitting on all cylinders.
February 7th, 2012
UPS with 2,550 March $75 straddles sold to open at $3.33
Energy (XLE) big buyer of 50,500 March 30 (W) $72 puts at $2.25 on the PHLX this morning, large bearish trade
Gilead (GILD) bullish spreads trading with 3,840 March $60 calls bought at $0.745 and 2,430 May $45 puts sold at $1.11, opening ratio risk reversals.
Reynolds (RAI) looks to be a roll of 3,000 February $40 puts to May $40 puts with earnings tomorrow before the open, possible calendar put spread opened. Put volume running 8X daily
OCZ Tech (OCZ) sales in March $6 and $7.50 calls, but 3,500 June $10 calls bought to open at $1.25 in the strong momentum name, call activity running 5X daily
Stec (STEC) trades the February/March $11 calendar put spread at $0.36 for 2,700 contracts, earnings likely next week
February 6th, 2012Tesla (TSLA) trading 1.5X daily call volume with IV jumping here as February $33 calls seeing some size bought at $0.75 with 1,500 trading, also 765 $32s bought
Lender Processing Services (LPS) buyer of 8,000 February $19 calls at $0.90 offer to open into 2/13 earnings, shares in a large cup and handle pattern. Trade was noted as a spread, and looks tied to stock as a volatility trade, tied to 400,000 shares below bid at 18.90.
Dillards (DDS) was a strong chart highlighted this morning, and also cheap on valuation at 10.3X earnings and 6.4X free cash flow with 31.6% of the float short. Call action 2X normal with 1,500 March $50 calls bought to open today at $2.05, more than $115,000 in call premium.
Riverbed Tech (RVBD) upgraded at Pac Crest this morning and trying to fill the earnings gap, bullish buying of more than 1,225 June $26 calls on the $3.10 offer early
Anadarko Petro (APC) ripping through resistance today and a massive block of 25,000 March $90 calls is bought at $1.95 with IV surging into the close. The position is opening, while big blocks of May $85 calls are closed more than 13,000X, a roll back.
February 3rd, 2012
Bank Rate (RATE) unusual buying of 1,775 February $25 puts into Monday earnings, traders paying $1.20 to $1.60 and IV30 jumping 20.5% with put volume running nearly 20X daily average.
Cognizant Tech (CTSH) being faded to near day lows and put volume 2X daily with 1,800 February $70/$67.50 put spreads bought at $0.41 into 2/8 earnings, also 1,000 March $72.50 puts bought last week.
Pioneer Natural (PXD) trades 5,000 February $95 puts on $0.70 offer and 2,500 February $105/$115 bull call spreads at $2.95, earnings on 2/6
Expeditors (EXPD) with another 2,250 January 2013 $47.50/$40 bull risk reversals at $0.10 credit, continue to like this name with these trades piling up
Salesforce.com (CRM) January 2013 $135/$100 bull risk reversal traded 1,000X at $3.60
February 2nd, 2012
Occidental Petro (OXY) with the large call sale yesterday, and today the May $97.50 puts being bought at $6.15 offers for 2,400+ contracts, over $1.8M in put premium as Oil weakens.
Limited (LTD) hit new highs today on strong sales results, trading 8,570 calls which is 4X daily as February $43 calls rolled to March $45 with 3,000 of the $45s bought to open
Gold Miners (GDX) with 10,000 March $56/$51 put spreads bought to open at $1.35, bearish action with the GDX at trend resistance off the prior tops and its 200 day SMA. Also, Newmont Mining (NEM)traded 15,447 puts, 2X daily with 57% offer side, buyers in March $62.50 and $60 puts for 3,400 and 5,800 respectively. Barrick Gold (ABX) also saw bearish action with 62% of its 13,000 puts bought offer side.
Questcor Pharma (QCOR) buyer of 2,500 March $30 puts at $1.625, tied to 61,600 shares
Dynavax Tech (DVAX) shares broke out today and signs of confidence with 5,000 July $2.50 puts sold to open at $0.12
Fiserv (FISV) with long term resistance overhead into earnings after the bell sees a buyer of 2,000 March $65 calls at $1.30, tied to 78,000 shares of stock, Delta Neutral. Shares have traded lower 4 of the last 5 reports. The $9N maker of e-commerce systems trades fairly cheap at 12.5X earnings, 1.7 PEG, and 11.33X cash flow.
February 1st, 2012
Ciena (CIEN) with offer side buys of 2,020 February $15 calls at $0.53, likely playing a sympathy move on JDS Uniphase (JDSU) earnings tonight, a bullish flag formed right on its 200 day EMA
Amarin (AMRN) with early offer side action as 3,000 February $8 calls bought at $0.70 to start the morning, and IV jumping, shares setting up a bullish consolidation pattern and could breakout over $8.50
Huntsman (HUN) roll of 4,000 February $12 calls to 4,000 March $14 calls, taking $0.80 off the table per spread, but staying bullish
Lennar (LEN) with a roll of 5,000 May $16 puts to 5,000 August $19 puts, extending a bearish play, expecting the homebuilder to turn lower in coming months.
Sonic (SONC) call volume running at 8,500 contracts is 160X daily average with a big block of 4,100 March $7.50 calls at $0.25 coming in after February $7.50 calls saw buyers just after 12:30pm, big surge in IV30 of 7.9% as shares move off a basing pattern and through the 50 day EMA on big volume.
Hess (HES) with a late day buyer of 5,000 March $55 calls, a few days of big bullish call buys in this name now
March 30th, 2012
MicroStrategy (MSTR) showing up for unusual call buying for second time in 2 weeks, trading 2,070 calls which is 7X average, more than 740 May $135 calls bought around $12. Shares have formed a large cup and handle with breakout potential at $143 for a $30+ move. The $1.5B Co. is in the hot spot for M&A, enterprise software for business intelligence, and mobile/social intelligence applications. Shares trade 29X earnings, 2.66X sales and 8.85X book. UBS reiterated Neutral on 3-22-12 with a raised $140 target.
Russell 2000 (IWM) large 3 way spread in June with 40,000 of the $89 calls sold and 40,000 of the $77/$70 put spreads bought, paying around $0.15 for these spreads. A block of 341,000 shares was bought at $82.78 shortly after these spreads traded, and is tied to options, so may be a collared position.
AMD Corp. (AMD) with 10,000 January 2013 $10 calls bought at $0.475 in a block yesterday, added to Open Interest that is now above 28,000, and AMD has seen a lot of bullish positioning lately, along with many Semiconductor stocks. Shares are bull flagging on the daily and can breakout above $8.25. The $5.68B Co. trades 9.9X earnings, 0.86X sales and 3.56X book, raised to Buy with a $10 target at Longbow on 2-7-12.
VeriFone (PAY) trading 6,340 calls which is 3X daily with 56% offer side, the April $50 calls with size buyers on the $2.45 offer and 2,600 of those trading, also 1,600 of the $52.50 calls. Shares continue to climb and looking at that $55 resistance target.
March 29th, 2012
Aetna (AET) now trading 9,700 calls with 72% offer side, more than $700,000 in call premium purchased, shares bull flagging intraday after a large bull flag breakout on the daily, holding up in a weak market.
Rare Elements (REE) late surge in call action now running 3X daily average with 71% offer size, Net Delta of +349K as 8,000 April $6 calls bought in the $0.60 to $0.70 range, shares nearing a tight consolidation breakout, and IV ripping into the close, IV30 jumps 16%. The $271M rare earth play has 15.7% of the float short and MolyCorp (MCP) has been hot lately. The group is seeing renewed interest.
Terex (TEX) shares have dipped back near prior support and will attempt to close today with a bullish hammer on its 50 day moving average. A trader puts on 3,400 April $25/$20 bull risk reversals at a $0.10 credit on the ISE, willing to be long at $20.
Seagate Tech (STX) unusually large buy of 6,835 April $28 (next week expiration) calls at $0.18 to open
Nu Skin (NUS) unusual bearish action with 1,390 May $55 puts bought to open in $2.10 to $2.45 range, over $225K in put premium, put volume 30X daily with shares falling 4.8%.
Cisco (CSCO) June $22/$19 bull risk reversals active again today, more than 16,000 of the spreads trading
March 28th, 2012
Equinix (EQIX) trading to new all time highs against a weak tape with 850 September $150 calls bought at the $16 offer, more than $1.1M in call premium bought today in a name that has seen a lot of bullish call flow in recent weeks.
Aruba Networks (ARUN) buyers of 2,600 May $21 ITM calls on $3.20 offer to open, big buyers as it is at Analyst Meeting
Amylin (AMLN) traded the July $20/$16 put spread 10,000X at $1.35 along with 10,000 July $30 calls sold at $0.75, a $0.60 debit collar on 400,000 shares of stock. The strategy is protective and willing to let shares get called away at $30 after Amylin rejected a takeover offer, and Deutsche Bank and others see $30 as a more fair price tag, although over-written so sees unlikely the offer is above $30. Interestingly I saw a similar strategy on 2/10/12 when a trader bought a lot of stock around $17 and sold 12,780 April 22 calls while buying 12,780 April 15/12 put spreads, a position that is now extremely profitable. On 2-14-12 11,000 April 21/24 call spreads were bought at $0.58 as well, so traders were positioning for this deal roughly 6 weeks ago, very bullish options flow I highlighted to clients.
Aussie Dollar (FXA) June $104/$94 put spread bought 4,300X, bearish action continues in this currencys ETF, a play on weakening commodities and global growth.
Aeropostale (ARO) higher on an upgrade and same store sales tomorrow, bulls buying April $23 calls at $0.45 offers for 3,150 contracts, trading active at 2X daily, and $130K in call premium purchased.
Walgreen (WAG) moving to day highs in weak tape and 4,500 May $35 calls bought this morning
March 27th, 2012
Nuance (NUAN) bullish 3 way spread in July with 1,000 $24 puts sold to buy the $27/$33 call spread 1000X at $0.20 Net Debit
AOL shares have quietly been breaking out on the weekly and today July $20/$18 bull risk reversals active at $0.40 debits with more than 1,750 of those trading.
Microsoft (MSFT) trades 60,000 January 2014 $45 calls on the offers $0.77/$0.78 to open.
Nvidia (NVDA) moving out of that base highlighted yesterday and 1,500 May $15 calls bought on $0.76 offer just now.
Schlumberger (SLB) moving off lows, hit again with everything commodity, especially oil, related, but a big buyer of 3,250 May $70 calls at the $3.35 offer at 12:08pm on the ISE looks to have stabilized shares.
March 26th, 2012
Corning (GLW) rips to day highs as 35,000 January 2014 $20 calls bought to open at $0.80, this after the January 2014 $17 calls were recently bought in size, more than 56,000 in Open Interest
Cedar Fair (FUN) trading 15X daily call volume as 1,000 September $30/$35 call spreads bought at $1.60 to open, shares forming a nice bull flag on the daily. Cedar Fair is a 5.4% yield name trading 11.4X forward earnings, 1.59X sales, and 22.6X cash flow.
LAM Research (LRCX) bullish action continues today with 8,223 calls trading, 2.5X average and continued action in June, the $42s some more small buyers and even 1,500 OTM $48s, but now 5,000 June $45 calls bought to open, more than $775,000 in call premium bought and Net Delta +173K as shares near major $45 breakout.
Christopher & Bank (CBK) trading 1,260 calls, averaged just 27 a day with 73% offer side, earnings 3/27 after the close. April $2.50 calls with 1,010 opened today. At 0.18X sales, 0.67X book, and 1.43X cash value it could be one in a long line of apparel/retail comeback stories.
March 23rd, 2012
Accenture (ACN) starting to breakout to highs after fantastic earnings and a large buyer comes in for 5,000 January 2014 $65 calls at $7.80 on the CBOE, large bullish position, seeing a lot of upside remaining in the name.
Staples (SPLS) surge in May 17 calls bought on the $0.50 offer, more than 5,000 contracts with $250,000 in call premium, Net Delta +213K
Ross Stores (ROST) buyers of 2,000 April $57.50 calls at $0.80 and $0.85 offers, over $100K in premium, bullish flow with same store sales in two weeks, shares finally pulled back the last 2 days.
Schlumberger (SLB) buyer of 1,000 August 80/90 call spreads at $1.77
March 22nd, 2012
Thoratec (THOR) trading 20X daily call volume as 5,000 April $34 calls rolled to May $34 calls, paying another $1.60 debit per roll, staying bullish the name.
Energizer (ENR) traded 55X daily put volume with a combo spread as 1,000 May $80 calls sold at $0.59 the and May $75/$70 ratio put spread bought 1,000X2,000 at $0.68, net $0.09 debit on the large spread. The $4.88B battery Co. trades 17X trailing earnings and 2.3X book. Shares suffered a key trend breakdown today on heavy volume.
Geo Group (GEO) massive trade 5 minutes before the close with 15,000 June $20 calls bought and 10,000 June $17.50 puts sold, shares up 2.7% on big volume today. The $1.08B prison operator trades 10.7X earnings, 0.67X sales and 1.06X book. Trades with 750K shares, potential stock replacement.
Map Pharma (MAPP) trade sells 2,500 April 10/7.50 put spreads and buys 2,500 April 22.50 calls ahead of the 3-26 PDUFA. The September $20 calls were bought in size (2,500) late in the day as well.
Spectrum Pharma (SPPI) sale of 2,000 May $10 puts with purchase of 2,000 August $16 calls, net $1.20 debit as traders continue to position for upside in this Biotech
March 21st, 2012
Ross Stores (ROST) large spread seen across many retailers lately, the April 52.50 puts sold 10,000X and the April 57.5/60 ratio call spread trades 5,000X10,000
Ascena Retail (ASNA) traded 7,125 calls with 76% on the offer, more than $540,000 in call premium purchased and Net Delta +190K as shares continue to make new highs. The April $45 calls traded 5,889 against OI 8,169 and April IV took off higher with shares when the buying started with shares at day lows just before 2pm. Shares are now at $44.50, well above the $38 level when call buyers first attacked this name with bullishness, and recently have rolled positions out to this $45 strike looking for more, and todays action looks to be additional bullish buying. The $3.4B Co. that owns Dress Barn, Maurices, and Justice is still a fairly good value at 14.1X earnings, 1.3 PEG, 1.11X sales and 14.9X cash flow. The Company announced a 2:1 stock split on 3-8 for holders as of record date 3-20.
Infinera (INFN) has been subject of takeover chatter and action positioning for a move higher, traded 9X daily call volume as more than 3,300 January 2013 OTM $10 calls bought to open on $0.75 and $0.80 offers. There is a 10.4% short float, 11.57 days to cover in shares.
Abercrombie (ANF) roll of 5,000 May 57.5/62.5 call spreads out to August 60/70 call spreads 5000X, spread costs $1.04 more to open, buying more time and leaving more room for upside.
Expeditors (EXPD) April $47.50 calls hot with 2,240 trading offer side into Fed-Ex (FDX) earnings, and after positive mention by Jefferies Analyst on CNBC
March 20th, 2012
Elan (ELN) trades 4,600 May/July $16 call calendar spreads at $1.10, good trade strategy seeing some more near term upside and positioning for its Alzheimers drug data likely to come during July options expiration.
Morgan Stanley (MS) with 4,800 March $21 weekly calls bought with early hot action, buyers paying $0.11 to $0.12, and Banks acting well with MS a lead on the FaceBook IPO. The weekly action is definitely bullish and continues a pattern of bullish flow in the name.
Suncor Energy (SU) January 2014 $45 calls bought 20,000X at $2.80 to open, looking real long term shares are basing along prior resistance, now support.
Lowes (LOW) large spread appears to be a roll of 5,000 April $29 calls to 5,000 May $31 calls, will check OI tomorrow, could be a diagonal spread.
Harry Winston Diamonds (HWD) trades more than 3,000 August $12.50 puts on the $0.60 bid, opening sales, while the August $15 calls trade more than 6,000, not on the bid but traded $1.14 with a $1.10/$1.30 bid-ask, so both sides look to be a sale, unbalanced strangle sale. Options volume running 3X daily, shares 4.6% lower despite the strong move in TIF today, and HWD reporting soon.
March 19th, 2012
Oracle (ORCL) options very active into 3/20 earnings, large April $30/$27 bull ratio risk reversals rolled to June $30/$28 bull risk reversals, 17,500 in the calls and 9000 in the puts.
Home Depot (HD) on day lows although this morning April $49/$47 bull risk reversals traded more than 5,000X at $0.46 debits, look to be positioning for a bullish move based on housing data later this week, seen as a better way to play the group than the actual builders. More than $300,000 in call premium bought and $100,000 in put premium sold, Net Delta +300K in the trades today.
ConAgra Foods (CAG) trading 3,749 calls which is 2X daily, and 2,400 April $26 calls bought to open ahead of 3/22 earnings. Shares have pulled back in a tight channel to its 20 week EMA, and a break above $27 could point the way to $30. The $10.9B maker of packaged foods trades 13.55X earnings, 0.85X sales, 2.33X book and with ahealthy 3.65% dividend, so valuation fairly attractive and costs were more under control in Q4. Back on March 9th a trader sold 3,000 January 2013 30/20 put spreads at $4.25 credit to open. I would also note than 11,000 January 2013 $25 calls in Open Interest, which goes back to last May.
Denbury Resources (DNR) 3 way spread with 12,000 May $18 puts sold at $0.60 and the $20/$22 call spread bought 12,000X at $0.70, net debit $0.10 for the bullish spread and options volume at 15X average.
Ultra Short Silver (ZSL) with more than 4,600 August $10 calls bought and 5,000 August $13 puts sold t open, traded 2X daily options volume, expecting Silver to collapse.
US Steel (X) staying near day highs and up 7% now with positive UBS comments this morning, suspiciously after noting big bullish action in the name on Friday. Shares are above its 200 day SMA for the first time since last April and the move on big volume. Today US Steel is trading 45,550 calls, already well above the average daily volume of 30K, and 54% offer side with $1.2M in call premium bought and positive Net Delta of 378K. The March weekly call garnering much of the action with 8700 of the $32 calls trading and action in the $30/$31 calls as well.
March 16th, 2012
EXCO Resources (XCO) trading 14,000 calls, 7X average, as 10,000 April $8 calls bought to open near $0.30/$0.35, also 2,000 of the $7 calls, more than $180,000 in call premium. XCO is a beaten down gas name but starting to move strong off its base on strong volume.
Huntington Bancshares (HBAN) seeing large bearish options flow with 6,000 October $6 puts bought to open around $0.42, more than $175K in put premium. Recent action in the KRE and another regional bank CMA starting to show the group may get hit this Summer.
Juniper (JNPR) April $22 calls with some large buys as 4,530 trade against OI of 8,378, buyers paying $0.64 to $0.70 as $213,000 in call premium is purchased. Shares have been trading weak, but trying to base on oversold levels.
CVR Energy (CVI) trading 5X daily call volume with 90% offer side in April $25/$27.5/$30 calls, while April $25 puts bought 2,000X against long stock, overall bullish action in the name Icahn is looking to acquire. Shares pulled back to its 50 EMA and bounced and now look to make a run past $28 to new highs through $30. Icahn extended his offer at $30/share to April 2, 2012, but it does look to be a low-ball offer. The $2.33B refiner trades 7.3X earnings, 0.46X sales and 2X book, and Global Hunter has a $38 target. The Icahn offer does have "contingent value rights" for holders to receive more than $30 if the Company is sold at a higher price.
Ultra Petro (UPL) starting to breakout and 2,000 April $25 calls bought on the offer at $0.95
March 15th, 2012
Barrick Gold (ABX) April position rolled to a July 3 way spread with 9000 $41 puts sold and the $44/$49 call spread bought 8000X14000
Arch Coal (ACI) with 6,000 January 2013 $15 calls bought today, also 6,000 January 2013 $8 puts sold on bids. Coal names finally reversing higher today and have seen a lot of bullish longer term options flow in June and Jan. 2013 strikes.
Hovnanian (HOV) trading 4X daily call volume with 5,255 April $3 calls bought to open at $0.30, 92% offer side action as Homebuilders continue to be market leaders.
March 14th, 2012
Home Away (AWAY) IV30 gainer today with 12.5% rise, trading 10X daily put volume as 2,000 April $25 puts bought to open, recent disappointing earnings
Apollo (APOL) another IV30 gainer with it up 15% as 2,000 April $40 puts bought to open, bearish positioning, more than $230,000 in put premium bought.
Urban Outfitters (URBN) moving to day highs and recovering from earnings weakness, holding its 50 day EMA, while 2,500 April $30 calls are bought to open today.
Spectrum Pharma (SPPI) put seller back with 5,000 April $13s sold around $0.90, traders showing a lot of faith in this name, lots of willing longs.
Reliance Steel & Aluminum (RS) trading 5,100 calls which is 20X daily average with 94% on the offer, the March $55 calls expiring Friday being bought at $0.90 to $1.05 with 4,850 trading against OI 4,273 and March IV has jumped from 25% to 50% since 1:30pm, major surge. Steel names are acting well today and RS shares have been in a long consolidation flag, holding 50 day EMA as support and outperforming peers by a wide margin. The $4.15B Co. trades 8.55X earnings, 1.08 PEG, 0.5X sales and 1.3X book, very cheap and makes a lot of sense as a buyout target. The Company reported better than expected resutls on 2-16-12. CLSA cut to Underperform back on 1-30-12, but the action today is interesting as it is above OI and IV movement indicates opening buying action with no near term catalyst expected.
March 13th, 2012
Con-Way (CNW) trading 2,040 March 32.5 calls against OI 1205, front month volatility jumping significantly today with shares breaking out on strong volume. CNW presents at JPM Conf. tomorrow.
Norfolk Southern (NSC) IV starting to jump as 3,700 April $65 puts are bought to open at $1.25 offers, more than $480,000 in put premium, bearish positioning and outpaces the call action seen yesterday. Put volume is running 2X daily, Net -138K Delta.
Aruba Networks (ARUN) bull buying some time and rolls 2,000 March $22 calls to April $23 calls
Johnson Controls (JCI) traders staying bullish with call volume 2X daily, the March $30 calls being rolled to April $30 calls 2,500X
Mark West Energy (MWE) is a great MLP with Marcellus Shale exposure and down 3.33% on a share offering, but traders playing the May $60/$57.50 bull risk reversals for more than 2,000X. Net Delta +162K in trades in the first hour. The 4.95% yield makes it a great long term hold.
March 12th, 2012
Gold Miners (GDX) April $56/$60 call spread with 22,500 short $52 puts closed and rolled to June with 26,250 June $50 puts sold to open $2.19 and the $54/$59 call spread bought 15,000X, traders buying more time for upside with the gold miners.
Fortinet (FTNT) seeing further bullish action with 750 June $31 OTM calls bought and April $28 calls with 200 rolled from March $26 calls
Western Digital (WDC) roll of 12,000 March $41 calls to 9,000 April $43 calls
Oracle (ORCL) large trade with earnings on 3/20 as the April $30/$27 bull risk reversal at 17,759X9,000 contracts rolled to June $30/$28 for same number of contracts.
March 9th, 2012
Trinity Industries (TRN) trading 3,700 April $35 calls with 56% offer side, more than $90,000 in call premium bought and call volume running more than 10X daily average. Shares pulled back to the 50 day EMA and have bounced, and recently reported blowout earnings, as a play on the rail-car refresh cycle.
Rentech Nitrogen Partners (RNF) trading 40X daily options volume with 1,000 April $25/$22.50 bull risk reversals at $0.70 bought to open on the PHLX, also some further action in the calls. The realtively new issue pulled back to its 50 EMA, based, and then ripped higher today by 6% on volume. The new fertilizer play trades 10.7X earnings, 5X sales and 17X cash, initiated with a Buy and $28 target at Felti & Co this morning.
Crocs (CROX) trading higher on takeover chatter, but holding strong and making move to day highs as 1,300 June $22 calls bought to open on $0.75 offer just now, bullish to see longer term action. Crocs (CROX) also with 3,000 June $21/$25 call spreads bought at $0.80 to open.
Alpha Natural (ANR) running to day highs and putting in a potential bottom, large bullish September ratio call spread earlier this week and today trading 11,200 calls with 60% offer side, big buys of June $20 calls around $0.85 for 4,000 contracts. Also potential for M&A to spark the coal names the next few months.
Agnico Eagle Mines (AEM) trading 10,000 calls as shares consolidate under the 50 EMA after that impressive post-earnings candle. More than $1.3M in call premium bought today and high Net Delta of 207K, big buys in August with one block of 4,020 $40 calls bought at $2.25, also 999 $35 calls and 2,260 $37.50 calls trading. The $616B miner trades 14.4X earnings, 3.38X sales and 1.9X book with a 2.22% yield, reiterated Perform with a $43 target at RBC on 2-13-12.
Kodiak Oil & Gas (KOG) trading 4,580 calls and 83% on the offer, buyers in size for March and June $10 calls, more than $260,000 in call premium bought. Longer term action remains very bullish with more than 10,000 January 2013 10/15 call spreads in Open Interest. Shares put in a solid base near $8.50 and now back above all major EMAs.
First Solar (FSLR) roll out of 4,260 March $30 puts to 5,250 April $25/$20 put spreads
March 8th, 2012
Teradyne (TER) April $16/$18 call spreads bought 5,000X, trading 10X daily call volume, likely a roll back in strikes for a better Delta on the rebound, need to confirm in OI report tomorrow.
Elan (ELN) spikes as 9,300 July $12 puts sold at $1 and 9,300 October $17 calls bought at $1.50, bullish spread, and Elan considered a potential major winner with its Alzheimers drug likely to present data this summer, considered closest to a potential winner in that space.
Questcor Pharma (QCOR) unusual spread in July with 645 $34 puts sold and the $42/$50 ratio call spread bought 2,581X3,872
Abercrombie (ANF) ripping higher and looking at a potential big breakout into the November gap and 2,000 August $52.50 calls bought at $4.30 today.
March 7th, 2012
Regions Financial (RF) in a tight flag and 3,000 May $6 calls bought on the $0.36 offer, the May $5.50 calls stacked with more than 9,600 in Open Interest.
Kinross Gold (KGC) now trading 13,859 calls with 83% offer side, the April $11 and $12 calls very active with call volume 2X daily as shares try to bottom at a familiar level.
Corning (GLW) on the move intraday and 30,000 January 2014 $17 calls bought to open at $1.30, looking for this value name to turn things around longer term
Credit Suisse (CS) shares rebounding above $25 support and 5,000 April $27 calls bought to open at $1.10
Tibco Software (TIBX) trading more than daily average calls with $150,000 in premium purchased, April $28 and $29 calls with some size buyers on the offer today, earnings on 3/29. Shares tested major support yesterday and up 2.3% today, resistance levels overhead at $30 and $31 for the strong growth Tech stock.
March 6th, 2012
Halliburton (HAL) shares are oversold and under-valued now trading below $34, and one trader sold 3,000 April $32 puts at $0.89 to buy the April $34/$40 call spread 1,500X at $1.55
Ascena Retail (ASNA) trading 12X daily call volume as 4,000 April $39 calls rolled out to the $42 strike, taking off some exposure, but stays bullish
Tyson (TSN) with 1,600 April $19 calls bought at $0.75 to $0.80 offers and 1,000 March $19 calls also bought, ahead of Smithfield (SFD) earnings this week
Metals (XME) trades over 30,000 April $43 puts at $1.05 offer
Oil Exploration (XOP) trades more than 35,000 April $50 puts on $0.81 offer
Materials (XLB) trades over 30,000 April $35 puts at $0.92
March 5th, 2012
Clean Energy (CLNE) shares green in a red tape and 5,000 April $18 puts sold to open today, earnings 3/12, traders continue to be bullish CLNE and WPRT as energy alternatives.
Motorola Solutions (MSI) March $50 calls getting very hot again here with 4,000 trading, note than 3,000 bought on a day last week, Analyst Meeting this Friday
Baker Hughes (BHI) trading 5,000 March $47 puts, bid-side sales, shares looking to bottom intraday
Alpha Natural (ANR) another coal name with bullish risk reversals, the April $19/$14 spread trading 2,000X at $0.17
Materials (XLB) another ETF with a large block of June puts bought, the $35 puts at $1.23 for 17,500+
iShares Comex Gold Trust (IAU) seeing call volume 4X daily with 6,700 October $17 calls bought to open today, buyers paying $0.95
March 2nd, 2012
Watson Pharma (WPI) trades 1,000 May $65/$55 bull risk reversals at a $0.30 credit, willing to be long the beaten down name, but wanting upside exposure.
Weatherford (WFT) continuous call action has continued despite recent sell-off on accounting issues, and today trading 23,000 calls the first 45 minutes, 1.5X daily average with 60% offer and $430,000 in call premium, focus on the March $17 calls in size buys with 11,000 trading, and IV30 jumping 11%.
Metals (XME) continue to act weak and 15,000 block of June $51 puts bought at $3.50 offer
Align Tech (ALGN) trades 8X daily call volume, 90% on offer for $185,000 in call premium, the April 25, 26, and 27 calls, shares spike
March 1st, 2012
First Solar (FSLR) large March $34/$27 put spreads being closed for profits, but staying bearish with big buys of the $30 puts to open, more than 18,000 of those trading today.
Herbal Life (HLF) very profitable March $60 call holders rolling out to April $67.50s for 3,200 contracts
Limited (LTD) sees a similar strategy as many retail names saw earlier this week as 6,000 April $47/$50 call spreads bought as shares move off the lows, paying $1 on the spread, along with 12,000 April 40 puts at $0.35
William Sonoma (WSM) opening sale of 5,000 March $41/$36 strangles at $0.60 into 3-8-12 earnings, expecting range to hold.
Micro Strategy (MSTR) trading 1,778 calls, 6X daily with 70% on the offer, more than $375,000 in call premium purchased, action in front month March $125 and $130 calls, and also way out in July $150 and $175 calls, shares at $140. Shares have formed a large cup and handle pattern and breaking out today and the $170 highs from July 2011 the next target. The $1.46B enterprise software Co. trades 27.34X earnings, 2.6X sales and 7.3X cash. MSTR missed on earnings by $0.13 last quarter but still have traded strong and Raymond James raised to Perform on 2-21. BMO feels the stock is cheap based on growth and set to benefit from its investment binge.
Stone Energy (SGY) traded nearly 10X daily options volume on the day with 2,000 June $36/$30 bullish risk reversals at a $0.25 to $0.30 credit. Also, more than 900 June $38 OTM calls were bought on the $1.30 and $1.35 offers. Shares traded strong volume on the day, next key breakout level is at $35. The $1.59B Oil & Gas Co. trades 8X earnings and 2.4X book.
April 30th, 2012
eBay (EBAY) trader believes in the long term value proposition for shares with PayPal leading the way, and buys 8,975 January 2014 $40 calls at the $8.50 offer to open on the PHLX.
First Solar (FSLR) with an opening buyer of 3,000 January 2013 $30/$40 call spreads at $0.77, looking for the stock to finally bottom and recover.
Athena Health (ATHN) shares remained in a range on earnings, still a great looking bull flag and a buyer comes in for 2,000 June $75/$85 call spreads at $2.05, call volume nearly 10X daily average. The $2.6B growth Co. has 26.8% of its float short.
Eastman Chemical (EMN) action picking up with 2,500 September $52.50 calls bought offer side, looks to be adding to buys seen the last few weeks.
Abercrombie (ANF) weekly options large trade as 5,000 $48 puts sold and the $50/$52.50 call ratio spread bought 5,000X10,000, net debit $0.24 on the spread with retailers set to report same store sales Thursday. Spread tied to 170K shares, potential stock replacement.
April 27th, 2012
Goldcorp (GG) with a large bullish 3 way spread as 12,000 October $36 puts sold to but the October $40/$48 call spread 12,000X at 5 cent credits for the spread, trader willing to be long GG stock down at $36 but attempting to call a bottom and participate to the upside in a recovery. Gold mining stocks have been under a lot of pressure, but Gold looks ready to breakout higher and the group could see strength in coming weeks. At 11.8X earnings, 1.4 PEG, and 1.5X book shares are also attractive on valuation at this level.
Aeropostale (ARO) traded 8,066 calls with 80% bought offer side, 4X daily, and most of the action in the last half hour as big buys flooded May $22/$23 calls for 3,000 and 4,800 respectively, more than $525K in call premium, Net Delta +305K. Shares broke out past resistance and closed strong, and trades 16.1X earnings and 0.8X sales with retailers set to announce same store sales this week, earnings 5/17.
Clean Energy (CLNE) traded 9,235 calls with 54% offer side, more than $360K call premium and 207K Net Delta, big buys in May $18 calls where 4,400 traded, also action in December $18/$19 calls. Shares started to breakout past downtrend resistance and triggered a bullish MACD and ADX crossover.
EXCO Resources (XCO) with a buyer of 15,000 September $8/$10 call spreads at $0.40 as shares are moving off a bottom with natural gas names finally starting to show strength.
April 26th, 2012
Prudential (PRU) reports earnings May 2nd and the June $62.50/$57.50 bullish risk reversal trades 2,000X at $0.28, insurance names acting strong recently.
Western Digital (WDC) set to report tonight and looks like an adjustment trade as 3,000 May $43/$39 bull reversals closed and trader sells 4,000 July $39 puts and buys the July $45/$49 call spread 5,000X6,000 as bullish positioning continues.
Ensco (ESV) roll of 3,000 May $50 calls up to 5,000 May $52.50 calls, earnings 5/3 with shares breaking out of a long base today.
Gap (GPS) sale of 8,500 January $30 calls and 6,500 September $34 calls, while 5,000 June $30 calls bought to open, position adjustment
April 25th, 2012
Vivus (VVUS) June $28 calls seeing large blocks bought at $0.95 offers for 5,000 contracts.
Brunswick (BC) spread sold 1,800 June $29 calls to buy 1,800 May $26 puts ahead of earnings tomorrow morning. Shares are trading near 10 year highs into earnings. Traders also bought 3,000 May $26 puts on 4-20 spread against 1,500 June $24 puts.
Amylin (AMLN) spread 2,500X as July $20 puts sold $0.90 to buy October $26/$30 call spread at $2.05
Starbucks (SBUX) June $62.50/$65 call ratio spreads trade 1,500X3,000 at $0.05 net credit, earnings 4/26
Threshold (THLD) put sellers are active again, today with 5,000 September $5 puts at $0.70, longer term confidence.
April 24th, 2012
Baidu (BIDU) large pre-earnings trade at 1:15pm with 2,000 June $135/$145 call spreads bought to open at $4.40
Home Away (AWAY) strong +3.6% ahead of earnings and 850+ May $25/$22.50 bull risk reversals trading today.
OmniVision Tech (OVTI) trades 26,000 puts, 5X daily with a block of 13,500 May $15 puts at 17 cents and more than 5,000 May $16 puts at $0.35, offer side OTM buys, possibly seeing an issue with Apple news tonight if it discloses suppliers for the iPhone 5, which seems unlikely.
Rosetta Resources (ROSE) a name that could attract buyers with the recent rotation to energy names, and a trader sells 6,000 June $35 puts to buy 6,000 June $50/$55 call spreads, net $0.45 debit for the spread, earnings due early May.
Juniper (JNPR) trading 24,280 calls and 13,270 puts into earnings with a large positive Net Delta at +405K, more than $900K in call premium bought. The June $20/$21 call spreads are trading 3,500X, both legs trading on offer for around $0.46, unusual strategy. The June $20 puts also with 3,000 bought today though, and 2,000 are tied to short May $23 calls in spread trades. Shares are clutching to $20 as support into results.
April 23rd, 2012
Netflix (NFLX) pre-earnings popular spread trade looks to be selling May $120 calls and buying April (weekly) $100 puts for $4.30 debits. The volume in each of those contracts is above 10,000 and opening trading.
US Steel (X) reports earnings tomorrow morning and largest trade 2,750 June $29 calls bought on $1.52 offer, and more than 4,400 now trading. X block of 12,500 May $30 calls trades with 437,500 shares of stock, slight Delta positive.
Finisar (FNSR) trades to day lows into the close, broke down completely today, and 3,000 May $16 puts bought to open at $0.75 offer
Infinity Pharma (INFI) trading near 10 year highs at $12.96 and a trader sells 3,000 July $12.50 puts to open at $0.85, confident in the Biotech and willing to be long at $11.65 basis. Shares of the $346.6M Biotech had a key breakout at $10 and having been resilient lately. Shares trade 3.74X sales and 3X cash. Infinity will present at the Deutsche Bank Conf. on 5-7-12.
National Oilwell Varco (NOV) June $80/$85 ratio call spreads bought to open 3,000X6,000 at $0.46 debits ahead of 4/25 earnings, a top value in Oil Services and holding up well above $75 support.
April 20th, 2012
Incyte (INCY) trading 10X daily call volume as 2,500 April $17.50 calls rolled to 2,500 May $20 calls, staying bullish with a $0.30 profit on the April calls, net $0.60exposure now on the May $20 calls.
Chart Industries (GTLS) trading 1,300 calls with buyers at $2.90 for the May $75 calls today, more than $240K in call premium. Shares are bull flagging above its 50 day EMA and coming off a 10% gain and breakout last quarter on earnings. GTLS will report 4/26/12 before the open. The $2.17B Co. trades 18.6X earnings, 2.7X sales and 3.5X book, and impressive growth forecasts.
Amarin (AMRN) shares higher by 9% and looking strong after a pullback to the 50 day EMA, JP Morgan initiating Outperform with a $22 target, more than a double. A trader believes the call and bought 2,000 September $12/$18 call spreads at $1.45.
Deutsche Bank (DB) May $45/$40 put spreads seeing a lot of attention today with more than 6,000 traded, started with 3,150 bought 10 minutes after the opening bell at $1.45, more than $1.1M in put premium purchased today and Net Delta -200K. Deutsche Bank shares are bear flagging and could break down below $44, and sure to see weakness if the European debt crisis continues to worsen.
April 19th, 2012
Brazil (EWZ) large bullish spread with 10,000 June $61 calls bought $2.90 and 20,000 June $55 puts sold at $0.76, looking for a rebound in emerging markets
Yelp (YELP) May 25/21 put spread bought 1,500X at $1.80 today, trading 3.5X daily put volume
Pandora (P) June $9 calls active with buyers for 3,000 contracts at $0.65, although the flow in Pandora options has been unreliable the past few weeks
EXCO Resources (XCO) big action in May $6 calls for 11,400 contracts, buyers at $0.40 to $0.45 for $265K premium, moving off another bottom, tricky name to call a bottom in however
Cirrus Logic (CRUS) with 1,580 May $24 puts bought $1.70 offer, more than $200K put premium in bearish action ahead of 4/25 earnings as Apple suppliers trade weak
Zynga (ZNGA) continues to get hit hard giving up all of its rally, but today trading 15,000 calls with 58% offer side, more than $470K call premium, notable interest in May $10 calls at $0.85 late in the day and 6,900 of those trading, earnings set for 4/26.
April 18th, 2012
Analog Devices (ADI) bearish buyers of 2,660 April $39 puts ahead of a few Semi earnings reports this week, Net Delta -200K looking for this name to breakdown in the next two days.
Avon (AVP) trades 4,000 January $25/$17.50 bull risk reversals at $0.10 as traders position for a potential higher takeover offer, block of 10,150 January $22 calls also traded in a buy write.
New Gold (NGD) roll of 7,000 April 9 calls to May $9 calls, staying bullish with shares building a base.
Lowes (LOW) looks to be adjustment trade as 7,500 July $1 calls rolled to 11,250 July $33 calls, staying bullish the housing retailer that is breaking out this week.
Tesla (TSLA) ripping and putting in a hammer on its 100 EMA, shares oversold and 2,550 May $32 calls bought to open at $2.05.
Nokia (NOK) trades 4,600 January $5/$3 bull risk reversals into earnings tomorrow morning
April 17th, 2012
MIPS Tech (MIPS) on the move and 2,500 July $7 calls bought today, recent reports it is looking for a sale.
Game Stop (GME) rolls of 4,450 April $25 ITM puts to July $21 OTM puts, put volume at 4X daily average, staying bearish despite the two day pop in shares
Gap (GPS) sale of 6,000 May $28 calls, likely closing, rolls out to 6,000 September $29/$34 call spreads at $1.08, further longer term bullish positioning in the recovering retailer.
Qihoo 360 (QIHU) rising and active call buying of 1,500 May $19 calls at $3.50 and 900 May $20 calls with buyers at $2.95 to $3.20.
April 16th, 2012
F-5 (FFIV) pre-earnings bearish positioning continues with 6,000 April $110 puts trading, 2X daily volume and $700K in put premium. Earnings 4/18
Emerging Markets (EEM) Put/Call at 6.3 with 37,500 June $40/$35 put spreads trading
Chubb (CB) spike with 2,000 April $70 calls bought, earnings 4/19 and shares breaking out, similar bullish action lately in TRV also reporting this week
International Gaming Tech (IGT) opening buyers of 1,400 May $17 puts $1.25 offers
April 13th, 2012
The Gap (GPS) bullish call flow continues today and seen for weeks now, the May $27 calls with 3,300 bought today, more than $185K in premium. Jefferies was out positive this morning and hiked their target to $40, shares near a key $26.75 breakout level.
Safeway (SWY) April $22 calls now with 5,865 trading, strong buying action, stock ripping after bullish flow earlier this week
Johnson Controls (JCI) seeing bullish call action with 1,000 May 30 and 500 May 31 calls bought to open, earnings 4/20/12
Riverbed Tech (RVBD) buyer of 1,750 May $27 puts to open $2.56 offer, earnings 4/19/12
April 12th, 2012
Seagate Tech (STX) seeing a lot of bullish large buys in June $28 calls with 7,400 trading, buyers paying around $1.80, more than $820K in call premium bought ahead of 4/17 earnings.
Titan International (TWI) buyer of 2,000 May $25 calls, trading 10X daily call volume as IV jumps, also saw unusual call buying in this name last week. The Company sells wheels and tired to Ag. equipment Cos, so based on TITN/TSCO announcements, it should be having a strong quarter, earnings 4/25
US Steel (X) bullish buying in May $25 calls with size trades at $3.90 to $4, Net Delta +258K as 5,000 bought to open this morning, hot call buying across the metals
Arena Pharma (ARNA) buyer of 13,450 May $3.50/$5 call spreads at $0.37, potential roll back in strikes
Google (GOOG) as of 2pm trading 106,770 calls and 76,500 puts, net premium of $5.4M with $4.4M on the call side, bullish overall bias, small net delta of +15K. Largest trade of the day 1:53pm on the iSE with May $710/$750/$790 call fly for 500X1000 contracts at $2.90 debit, a $145,000 trade. The April/May $675 call calendar traded 250X at $5.40 as well, and overall the large trades last few days a bullish bias into results.
April 11th, 2012
Google (GOOG) large spread trades a day before earnings with 1,150 January 2013 $575 puts sold at $33.10 to buy 1,150 January 2013 $635/$725 call spreads at $34.10, net $1 debit for a spread that could pay out $90. The trade would turn $115,000 into $10,350,000 if GOOG closes above $725 next January.
Gold (GLD) with a large bullish ratio call spread, the May $170/$185 ratio call spread traded 15,000X30,000 at $0.70 debit to open on the PHLX. Gold (GLD) buyer of 764,500 shares and sells 34,750 March 2013 $190 calls in a buy write
Industrials (XLI) big buying in the May $36 calls just under $1, offer side action for 7,500 contracts, more than $870K in call premium bought first 10 minutes. Industrials (XLI) also trades 21,500 May $38/$34 bull risk reversals at $0.21 credit
Gilead (GILD) April $48/$52.50 call spread bought at $1.05 for 8,750 contracts
April 10th, 2012
Credit Suisse (CS) May IV jumping as 5,000 of the $27 calls bought on the $0.70 offer. Credit Suisse still has 5,000 June $29 and 10,000 June $33 calls in Open Interest. Shares of the Swiss Bank are nearly back to the $25 level that acted as support earlier this year on three occasions. The $32.4B Bank trades 7.2X earnings, 0.87X book and 0.85X cash flow with a 3.08% yield.
International Paper (IP) size buyers of ITM July $30 calls at $3.70 offer for more than 1,600 contracts, seeing the sell-off as overdone in the cheap valuation name.
Market making fresh lows, but notable afternoon buyers in Tech (XLK) September $30 calls for more than 11,000 contracts, more than $1.5M in call premium purchased as earnings season is right around the corner and Tech should lead.
Ralph Lauren (RL) hit hard and traded 11,400 puts, looks like 2,500 April 175/165 put spreads from 3/19 rolled to April 170/160 put spreads.
April 9th, 2012
CoinStar (CSTR) sellers of 1,000 May $57.50 puts to buy 1,000 May $65/$75 call spreads, $0.50 net debit for spreads, earnings next on 4/26 and shares have held up well since the last blowout report.
Pfizer (PFE) put sellers active with 8,000 June $22 puts sold around $0.77 bids, one of the names Barrons recommended put sales in this weekend.
JC Penneys (JCP) interesting long term spreads with 2,500 January 2014 $25 puts sold to open and the $35/$45 call spreads bought, net $0.35 debit for the 3 way bullish spread.
Deere (DE) roll down of 9,500 April $90 puts to the $82.50 strike
April 5th, 2012
JDS Uniphase (JDSU) seller of 5,000 June $12 puts buys the $14/$17 call spread 5,000X for net $0.31 debit on the bullish 3 way spread. Shares hit the 50 day EMA today on its lows, and showing a small bounce.
Estee Lauder (EL) trading day highs in a tight bull flag but buyers of 2,650 May $60 puts paying $1.45 offer, more than $225K in put premium, trading 4X daily put volume.
Eastman Chemical (EMN) with 2,650 of the September $52.50 calls bought on $4.70 offer, same calls accumulated a couple weeks back, trading 1.5X daily average and $725,000 in call premium purchased. The group is strong and EMN could look to takeout $55 highs soon.
WellCare (WCG) trader closing out June $65 calls with 3,200 trading, and opening bullish 3 way spreads with 3,300 June $60 puts sold and the $75/$85 call spreads bought 2,065X, further bullish action in this name.
April 4th, 2012
Qualcomm (QCOM) with a 3 way spread in July as 6,650 October $72.50 calls sold (same strike that had 6,200 bought yesterday), while 6,650 October $65/$60 put spreads bought, net $0.73 credit on the spread. Spread may be a hedge against new long stock position, collared. Qualcomm (QCOM) now trades 10,000 January 2013 $75/$60 bullish risk reversals at $0.70 credit, willing to be long at $59.30 cost basis, bullish trade
AIG trading around 2,000 August $32/$30 bull risk reversals today at $0.50, bullish flow in size lately in the name, and upgraded today, up in a weak tape.
Spectrum (SPPI) broke support and off 5.7%, but seller of 5,000 April $12 puts, while 2,000 May $15 calls bought. The April and May $13 puts each still with 10,000 puts in Open Interest that were sold to open.
Jack in the Box (JACK) block of 6,000 September $25 calls trades at the $1.10 offer to open, more than 60X daily call average. The calls traded with a block of 240,000 shares of stock, Delta Neutral.
Gap (GPS) strong in a weak tape, up 2.5% before same store sales, and today 7,500 January 2013 $30/$37 OTM call spreads bought at $1.30 to open, the surge in bullish options action continues in the name. On 3-22 there was a buyer of 5,000 September $30/$33 OTM call spreads. On 4-2-12 a buyer of 6,500 May $28/$30 call spreads.
April 3rd, 2012
American Eagle (AEO) with bullish buyers of 4,500 May $18 calls at the $0.65 offer two days ahead of same store sales, a stock that held up well in a weak tape, and more than $300,000 in call premium purchased. Traders have been positioning bullish in AEO for weeks, trading near $18 resistance and a breakout targets $22.
Treasury 20 Year (TLT) opening buy of 25,000 July 100/95 put spreads at $0.62, another downside play, and the May 107 puts from pre-FOMC Minutes have already doubled.
US Steel (X) trades 14,569 July $32 calls and 29,136 July $42 calls, both appear to be closing, while October $35/$44 call spread bought to open 14,569X at $1.54
Exxon (XOM) July $90/$80 bull risk reversals active with 4,000 trading
Travelers (TRV) IV jumps as 5,000 April $60 calls bought on $0.60 offer, earnings on 4/19/12. Shares have closed higher 5 of the last 6 reports, last quarter the exception
April 2nd, 2012
Aruba Networks (ARUN) has willing buyers on weakness as 2,775 July $20 puts sold to open today at $1.40 bids, a name that has seen a lot of call buying the last 10 days as well, including a buyer of 250 May $21 calls at $2.65 just now.
CarMax (KMX) spiked with 2,500 April $34 calls bought to open in the $1.60 to $1.75 range on the offers, $300,000 in call premium ahead of 4/5 pre-market earnings, and 6X daily call volume.
The Gap (GPS) with a buyer of 6,500 May $28/$30 call spreads at $0.41 to open on the AMEX, bulls continue to position for upside in this name, same store sales, on Thursday.
Nasdaq (QQQ) large trade with 15,000 September $60 puts sold at $1.40, 10,000 September $71 calls bought at $1.68 and 20,000 June $70 calls bought at $0.915.
May 31st, 2012
Verizon (VZ) possibly topping finally and breaking its 10 day EMA today, leading bearish flow with Net Delta -266K, action in June $41 puts for 5,500 contracts today, offer side buyers. A pullback to the $40/$39.5 area is possible and puts are very cheap in the name.
Cliffs Natural (CLF) roll of 3,000 July $65 puts down to the $55 strike, trader has been very right on the name, rolled to the $65s on 5-8 from the $72.50s and has been riding this name lower.
Range Resources (RRC) breaking lower as the Natural Gas rally fizzles and 2,100 September $52.50 puts bought in $3.50 to $4 range, more than $420K put premium.
TeraData (TDC) seeing opening buyers of 1,500 July $70 puts, large size buyer at $4.90, more than $370K put premium, Net Delta -72K. Shares are finally breaking the 50 day EMA.
Forest Labs (FRX) with 2,500 August $33 calls bought at $3.10 offers, more than $275K call premium and Net Delta +174K today. Shares are beginning to breakout of a tight weekly flag and could see a move to $38+. Leerink upgraded to Outperform this morning to a $41 target and noted AstraZeneca (AZN) could buy FRX in the 40-50 range. Icahn is threatening another proxy fight with FRX, and owns 9.92% of the Company.
May 30th, 2012
Holly Frontier (HFC) rebounded off its 200 day EMA and now at day highs fighting the tape, and buyers active in OTM September $38 calls at $0.95 for 2,400 contracts, this after the September $40 calls saw 9,000+ accumulate last week.
TJX Co. (TJX) July $42.50 calls seeing buyers on $1.10 offers, more than 1,000 trading with same store sales tomorrow.
Pan America Silver (PAAS) with 2,150 July $17 calls seeing action on $1.10 offer, more than $240K call premium, Net Delta +100K.
May 29th, 2012
Walter Energy (WLT) faded off early strength with Goldman positive on coal names this morning, although it reiterated a Sell rating on WLT noting M&A expectations that are too bullish. Shares were rejected on the falling 10 day EMA this morning. Calls are trading 3X puts today with notable action in the June $62.50 calls with 4,145 trading vs. OI 2,178. The June IV Skew does look to be pricing in M&A expectations with OTM calls bid higher.
OmniVision (OVTI) higher on reports of the iPhone 5 contract win an trading 5,575 calls the first 30 minutes with 85% offer side, more than 2,000 July $17 calls bought in size on the $0.80 offer, earnings set for 5-31-12.
Honeywell (HON) trading 4,000 calls, nearly 2X daily average with mostly offer side action in July $55 calls with 1,850 bought to open.
Seagate Tech (STX) attracted a massive bullish 3 way spread in July similar to the one seen earlier in the day in peer Western Digital (WDC). A trader sold 18,100 July $17 puts at $0.22 and bought the $26/$31 call spread at $1.23, large opening trade and Net Delta +550K on the day with $1.3M in call premium purchased and $650K put premium sold. Similar to WDC, STX was down on a downgrade from Barclays citing weak PC demand and a shift to other forms of storage. Shares got down near April lows and potential to find support here, while a large gap still exists down to $21.05. The $10.65B Co. trades 5.75X trailing earnings, 0.8X sales, 9.35X cash flow and offers a 4% dividend yield.
May 23rd, 2012
Intel (INTC) block buyer of 7,900 Aug. 27 calls $0.55 offer to open at 12:03pm on the ISE, shares touched the 50 week EMA and former breakout level, now support, on the lows today
Harley Davidson (HOG) trading 1,600 of the June/July $47 call calendar spreads at $1.10
Amgens (AMGN) IV depressed and a block of 5,000 October $60 puts trades to open at $1.87 on the ISE with a $1.86/$1.91 bid-ask. The block traded with 115,000 shares of stock, Delta Neutral with shares breaking the 50 day EMA today and losing its momentum.
May 22nd, 2012
Strayer (STRA) looks like it would breakdown ugly below $90, and the October $105/$60 bear risk reversal trades 600X at $0.10 credit, unusually large trade in the name
NetApp (NTAP) strategist in the weekly options buys the May $34/$37 ratio call spread 3,000X6,000 at $0.35 debit on the ISE, earnings tomorrow after the close.
Tiffanys (TIF) action continues to be cautious into earnings 5/24 before the market opens, the June $62.50 puts with size buyers today at 2:57pm, more than 3,350 trading, offer side buys at $3.35 for nearly $500K put premium.
Mosaic (MOS) large position in 20,000 June $50 puts is rolled to 30,000 July $47.50 puts, and the June $50 puts were bought to open at $1 on 5-1-12 and sold today at $3.15, while the trader paid $3 on the July puts, extending a bearish position in a name that could lose major support and make its way to $40 or lower.
Goodrich Petro (GDP) rallied yesterday when a Canaccord Analyst called it a potential triple with success at its Tuscaloosa Marine Shale, and that it may be a takeover target, a Buy rating and $27 target. Option traders were not very active yesterday, but today trading 6X daily call volume with 3,470 June $17.50 OTM calls bought to open in the $0.70 to $1.05 range and IV30 jumping 8% today. GDp shares have major resistance up at $20, short term at $17.50. The $567M Oil & Gas Co. trades 4.5X book and 32.1% of the float is short, 6.5 days to cover.
Gold (GLD) traded a large spread today with the September 166 / December 180 call spread bought 35,000X at zero cost.
May 21st, 2012
Methanex (MEOH) traded 10X daily options volume due to one large spread on the PHLX, the June $30/$25 bullish risk reversal traded 1,000X at a $0.40 debit. MEOH is a name that hit all time highs back in April/May and has reversed 20% from that level and is trading to hold its 50 week EMA as support, and also just above its 200 day SMA at $26.90. MEOH reported results on 4-25-12, beating estimates and raising its dividend. The $2.66B Canadian specialty chemicals Co. with a focus on methanol trades 8.11X forward earnings, 1.02X sales, 1.9X book and 10.55X cash flow with a 2.57% yield, making it a bargain on fundamentals. Scotia raised its target to $39 back on 4-5-12.
Apple (AAPL) spread with 1,700 October $450 puts sold at $15.95 and the October $615/$750 call ratio spread bought 1,700X3,400 at $16.54, overall a $0.59 debit for the upside spread.
Ariba (ARBA) tests its 50 day EMA and near former breakout and bounces while 4,000 June $35 puts are sold to open at $1.225.
Blackrock (BLK) shares climbed this morning, but beginning to fade, news today that Barclays was selling its 19.6% stake of 35.2M shares through a secondary offering. Puts are trading more than 4,100 today, 8X average with $1.1M in put premium purchased, the ITM June $175 puts bought 2,388X today and 720 of the deeper ITM June $180 puts. BLK has long term trend support at $160 and then price support at $140.
May 18th, 2012
Kodiak Oil & Gas (KOG) roll of 5,000 May $7.50 calls to June $7.50 strike, staying bullish the name that has held up better than peers in the Oil & Gas sector.
JC Penney Co. (JCP) with a sale of 5,000 January 2014 $23 puts at $4.55 and the $30/$37 call spread is bought at $2.15, net credit on the spread that is a willing long if shares see much more downside, and wants to have upside exposure, a trader that agrees with Bill Ackmans long term view.
McDermott (MDR) has been giving up earnings gains and 5,000 May $11 puts rolled to June $10 puts
Auxilium Pharma (AUXL) with a buyer of 2,000 June $22.50 calls at $0.45, shares at $17.80 and June IV at 74.45% is elevated, also the IV Skew showing a bullish bias with OTM calls bid up and Open Interest shows 7,000 in the $20 strike, and 5,000 in the $22.5 and $25 strikes. A buy of 3,000 June $25 calls $0.25 on 5-2, 2,900 June $20 calls $1.35 on 5-11, 2,000 Sep. 25 calls on 4-3, 1,100 June $25/$17.5 bull risk reversals on 4-4, and large June/September calendar call spreads on 4-5 stick out as seeing a lot of large trades in the name. AUXL is expecting key Phase 3 data for Xiaflex in Peyronies in June. The $886M Co. trades 3.17X sales and 30.85X cash flow, initiated a Buy with a $26 target at Canaccord on 3-26-12.
May 17th, 2012
Clean Energy Fuels (CLNE) being hit hard and 5,000 June $11 puts bought at $0.40 offers to open, trading 4X daily puts with $230K put premium and IV just now starting to jump.
Terex (TEX) with 2,300 June $17 puts bought to open at $1.15/$1.20 offers, trading $325K put premium first 30 minutes of trading and an ugly looking chart.
AuRico Gold (AUQ) with 2,700 June $7 calls trading, offer side buyers
Apple (AAPL) bullish spread traded late in the day with 1,200 October $450 puts sold at $21.55 to buy the October $615/$750 call ratio spread 1,200X2,400 at $14.48.
May 16th, 2012
Expeditors (EXPD) trading 5X daily call volume with unusual buying of 2,500 June $35 calls on the $3.30 offer, more than $90K call premium, Net Delta +114K. Shares have been losing support and are oversold on the weekly, but lacks much support until $35.75.
Google (GOOG) odd trade here, 7000 May 670 synthetic long trades for $41 credit, a leveraged bet w/ bullish bias into next two days of trading
Chesapeake Energy (CHK) July $13/$9 ratio put spread trades 12,500X25,000 on the PHLX at $0.40 debit, similar to the large June ratio put spread yesterday, and the strategy may be an indication that funds are buying CHK stock and using these spreads to hedge.
Itron (ITRI) broke support this morning and is trading 5X daily put volume as 1,575 June $40 puts are bought to open at $2.50/$2.55 offers
Cheesecake Factory (CAKE) also jumping here with Darden (DRI) and 2,000 June $34 calls bought at $0.35 offers
May 15th, 2012
Herbal Life (HLF) touched new lows today while IV30 hit new 52 week highs, and at 11:15am a buyer of 4,600 May $45/$52.50 call spreads for $1.90 on the ARCA, likely eying Einhorn speaking at Ira Sohn Conf. tomorrow.
Chesapeake Energy (CHK) 12,300 contract May $18/$16 bear risk reversal closed and the June $13/$11 bear risk reversal opened for 12,300 contracts
Altria Group (MO) shares have held up well as a safety name and buyers today active for 2,850 September $31 calls at $1.48 offers, more than $170K call premium with Net Delta+178K. The $64.5B Co. yields a 5.18% dividend.
Newmont Mining (NEM) January 2013 $40/$50/$60 butterfly call spreads trading 8,000X16,000 at $1.07 debit.
May 14th, 2012
Lions Gate (LGF) seeing bullish buyers in May $12 calls for 2,650 contracts with all the action on the offer, buyers paying $0.45/$0.50. Shares have formed a basing pattern and above $12.50 could take off higher.
Exelon (EXC) trading 8,740 calls which is 2X average as 3,000 May $39 calls are rolled out to 5,000 June $39 calls. The $25.7B Utility that has lagged peers and yields 5.4% is looking to move through $39 resistance.
General Mills (GIS) unusual action with 6,600 May $39 puts bought today around $0.14, trading 5X daily puts, and these OTM puts expire this Friday. The last time we saw this in GIS it pre-announced bad earnings and the stock got hit hard.
LAM Research (LRCX) trading 3,200 calls, $460K call premium bought, a name that has consistently seen bullish options flow the past month, buyers today for 1,250 June $42 calls and 1,000 September $43 calls.
ViroPharma (VPHM) roll of 2,500 May 22.5 puts to June 20 puts, staying bearish as shares continue to fall
May 11th, 2012
Marvell Tech (MRVL) day highs with Semis rising, and reports on 5/17, trader closes 10,000 January 2013 $17.5/$22.5 call spreads at $0.50 and buys the August $14 calls at $1.17 for 7,000 contracts.
Elan (ELN) with what appears to be an adjustment trade, closing 3,000 July $17 / May $14 bullish risk reversals, and opening 3,000 October $16/$23 call spreads, also sells 3,000 October $11 puts to open, new 3 way spread in October trades for $0.10 debit.
Newmont Mining (NEM) opening buyer of 5,000 September $50/$57.50 call spreads at $1.30 as traders continue to look for upside in the group
Staples (SPLS) block of 5,000 May $16 calls trades for $0.15 here, earnings on 5/16, options tend to get very active in this name into earnings. The May 14 puts were bought 7,500X on 5-8, while 14,750 May $15 puts were sold to open on 5-3. The straddle is pricing in a 5.3% move while the 4 quarter average max move has been 10.5% on earnings.
Pulte Homes (PHM) May $9 calls with 4,370 trading are active, a lot of Housing Data due out next week.
May 10th, 2012
Endo Pharma (ENDP) trading 10X daily call volume, the July $35/$40 call spread bought 2,500X today at $1.25, may be rolling back a strike judging by Open Interest in the 35s. Shares are at the 100 week EMA and 38.2% Fibonacci at this $33 level. The $3.87B drugmaker trades 5.65X forward earnings, 1.35X sales, and 8X cash flow.
Cognizant Tech (CTSH) large opening sale of 5,750 June $55 puts at $0.75 bid on the AMEX, trader willing to be long 575K shares at $54.25 basis. CTSH shares have been recovering since the large sell-off on earnings.
Metro PCS (PCS) jumped yesterday and today the August $6 puts sold 30,000X and the August $8/$10 call spread bought 30,000X, net $0.20 debit. Spread traded with 1.5M shares, possible stock replacement.
MGM with an opening sale of 4,000 January 2013 $11 puts at $1.44 this morning, and already has some large put sales in June Open Interest. The lows for the week at $11.27 was near the 38.2% Fibonacci at $11.16, last support before a move back to the lower end of the channel near $9 comes into play.
May 9th, 2012
Ultra Petroleum (UPL) September $20 calls active again with buyers today, more than 1,000 trading, More than 4,000 bought and added to Open Interest so far in May.
Carrizo Oil & Gas (CRZO) trading 3,030 calls with 72% offer side, the $1B Natural Gas Co. trading to day highs and near a major long term resistance breakout. Buyers active for 1,000 June $35 alls and 750 July $32.50 calls, specualtive OTM calls in a name that could be a takeout target.
United Rentals (URI) June $42 calls with active buying of 1,200 first 20 minutes, more than $260K call premium, a name that has tended to recover on weakness due to posting great results, a name people want to own.
QQQ seeing large bearish positioning today with $24.9M in put premium bought and $10.2M in call premium sold, Net Delta -9.4M. A common trade involves selling the September (Q) $69 calls and buying the July $64/$61 put spread, this traded 80,000 contracts today. I would note that I also see 8 large blocks of stock in the Qs that traded today above offer, so these may be a hedging strategy.
ARM Holdings (ARMH) October $26 calls with 1,000 bought early, shares bouncing, upgraded at DA Davidson and more than 3,000 bought yesterday
May 8th, 2012
Finisar (FNSR) stock and IV jumps here with 3,400 May $15 calls bought to open on $0.45 offer
Arch Coal (ACI) sale of 11,750 May 11 puts and buys 9,000 June 8/6 put spreads, staying bearish
AGCO day highs and short term buyers of 2,155 May $45 calls, while 700 June 50 calls also bought. The 5,000 August $50/$60 call spreads remain in OI as well, and the Company is trading back near $44 support despite a recent blowout earnings report. Call volume running 9X normal with $215K call premium bought.
Coin Star (CSTR) January 2013 $85/$40 bear risk reversal trades 2,000X at $0.10 to open.
Phillips 66 (PSX), the recent spin-off from Conoco (COP) is trading 4,300 calls, 12X daily with 3,000 August $30 calls bought to open today. Barron;s was positive last weekend on PSX, noting the potential for the refining, chemical, and energy transport Co. is underestimated, and projected the stock could see gains of 30% or more.
May 7th, 2012
Berkshire (BRK.B) having a strong session after reporting earnings and trading 10,900 calls today with 67% offer side, buyers in June calls where Open Interest is already high, more than $235K call premium and Net Delta +128K in trades, shares near a breakout to 2012 highs.
Fossil (FOSL) buyer of the May $120/$105 ratio put spread 1,125X2,250 at $2 into earnings tomorrow morning.
Price Smart (PSMT) shares down 5.3% despite posting impressive 12.3% growth in April sales Year/Year, a Latin American retailer. Traders bought 1,000 May $75 calls at $3.80 at 11:27am, bullish on weakness as call volume reaches 5X daily average.
Abercrombie & Fitch (ANF) sale of 5,000 August $60/$70 call spreads, while the May $52.50/$57.50 call spread bought 7,500X, earnings expected next week.
Ciena (CIEN) seeing 5,000 June $14 calls bought to open, 80% offer side action today with $278K call premium and Net Delta +234K, earnings 5/31. Ciena still has the July 3 way spreads in Open Interest with 13,000 of the $14 puts sold to buy the $16/$20 call spreads. The $1.3B Co. trades 0.76X sales and 2.18X cash with 24.25% of its float short, raised to Buy at Stifel in March with a $20 target.
May 4th, 2012
Alexza (ALXA) down 20% on FDA CRL and trading 93,000 calls, sellers of 35,000 June $1 calls and buyers of 20,000 September $1 and 35,700 December $1 calls as traders hold out hope for eventual approval.
IMAX Corp (IMAX) trading 3X daily call volume with 75% offer side, the May $25 and $26 calls bought in sizable lots for $160K call premium, Net Delta +123K and Implied Volatility jumping on the trades as shares move off session lows. IMAX reported results last week and after initially dipping, recovered nicely and now consolidating above its 50 day EMA. The highs for this week near $25.65 align with the 50% Fibonacci Retracement. The $1.6B Co. trades 20.4X earnings, 6.8X sales and PEG of 4 with 11.25% of the float short. The action today comes ahead of a major movie release, "Avengers" and likely playing for a strong Box Office showing. IMAX also has Conferences with Jefferies, JP Morgan, and Barclays in the next 2 weeks. IMAX is also seeing strength from the Titanic 3D release. Disney also reports next week, so we could see some takeover speculation come back around.
Research in Motion (RIMM) roll of 20,720 June $13 puts to July $12 puts, staying bearish the name
PetMed Express (PETS) a great bull flag here with shares at $13.40 and seeing some small buyers in May $12.50 calls, continuing action from yesterday, and IV30 soaring 66%, one of the largest pre-earnings IV jumps in recent memory. Shares jumped big last report and 23% of the float is short, and at 16.7X earnings, 1.14X sales and 3.3X book with no debt it may also be attractive as a takeover target.
Ingersoll Rand (IR) moving to day highs with a bounce off its 20 day EMA, and trader rolls 3,000 September $38 calls to December $41 calls, although the short September $48 calls and $28 puts remain in OI untouched from the former 3 way spread, now adjusted. Ingersoll Rand (IR) about to go green and now also trades 2,500 December $41/$32 bull risk reversals at $3.35
May 3rd, 2012
MGM seeing big buys in May $13 weekly calls expiring tomorrow with shares at $13 with buyers paying $0.20 for more than 7500 contracts, down 4% on earnings but near support from the last few months. Calls trading 13,000 to 1,480 puts with +283K Net Delta with the Conf. Call not until 11am so shares could stage a nice rally off this level.
Valeant Pharma (VRX) reversed today after making highs, and long time owner of 7,000 July $45 calls sells to close and opens 14,000 July $55 calls at $2.20. VRX prior pullbacks have found support at this 100 EMA and it sits on trend support with todays lows
OCZ Tech (OCZ) punished since reporting earnings, but jump here as 5,000 September $6 calls bought to open at $0.65, also 4,000 September $7 calls trading, bullish flow with shares at $4.95.
Hartford (HIG) rallying back to green after earnings and buyers in June $21/$22 calls with 2,500 and 1,500 trading respectively, more than $345K call premium and +191K Net Delta.
May 2nd, 2012
Onyx Pharma (ONXX) August $50/$40 bull risk reversal 1,000X at $0.20 debit trades, takeover chatter surrounding the name recently.
Denbury (DNR) reports tomorrow morning, buyers coming in for May $20 calls at $0.30 offer for 3,900 contracts, alreadt 16K in OI, partially from a 12K May 20/22 call spread with May 18 puts sold.
Interactive (IACI) with 10,000 May $45 puts rolled to 5,000 October $40 puts, trading 36X daily put volume, shares down on earnings after making new highs early in the day.
Cliffs Natural (CLF) sale of 1,500 May $65 puts and buys 2,000 June $57.50 puts, likely a roll as shares continue to act weak and look headed back to $58.90 and a potential major breakdown
Acme Packet (APKT) trades 2,000 January 2013 $37.50/$22.50 bull risk reversals at $0.95 credit ahead of earnings, risky play in a big mover, but one that has been hit hard the last few months and expectations are low.
May 1st, 2012
Comcast (CMCSA) broke out to new highs today ahead of earnings tomorrow morning, but the May $30/$28 put spreads with 4,000 bought today at $0.37
Avon (AVP) down 7.8% on results and filled the gap from the takeover offer, large seller of 7,500 October $18 puts to open on $1.40 bid is looking for shares to hold the lows.
Universal Display (PANL) actually a ratio put spread, May $44/$39 2,000X4,000 at $0.90 debit.
News Corp (NWSA) trading higher and breaking out ahead of 5/9 earnings, but January 2013 put spread trades 7,500X, the $20/$14 spread for $1.60, bearish play. However, the spread looks protective, tied to 285,000 shares of stock.
June 29th, 2012
Accuity Brands (AYI) is trading 1,000 puts, or 11X daily average into Monday morning earnings, buyers in July $50s. AYI closed down 9.65% last report. The $2B lighting Co. is trading 19.2X trailing earnings, 2.55X book and 16.35X cash flow, but expects to see low growth in North American lighting.
Estee Lauder (EL) fading and trading 4X daily puts with 3,000 OTM July $50 puts bought at $0.35 offer, bearish action with shares vulnerable to a breakdown.
Sky Works Solutions (SWKS) bullish trader adjusting a position selling 2,500 January 2013 $25 calls at $5.25 and buying 4,250 January 2013 $30 calls at $3.10, staying bullish the Apple-tied chip name.
HCA bulls extending bets with 5,500 July $26 calls rolled out to 7,500 August $30 calls
Unisys (UIS) has been flying since unusual call buying with shares at $15, now shares at $19 and trader sells 2,500 July $17 calls to close and buys 6,000 July $19 calls at $0.95, expecting more upside.
June 28th, 2012
Infosys (INFY) will report earnings 7/12/12 and July $42.50 puts with 3,000 bought and August $42.50 puts with 2,000 bought today, shares hit hard last report and remain weak on the chart.
Sherwin Williams (SHW) trading nearly 2X daily puts with 2,025 July $120 puts bought on $1.60 offers today, also some buyers in August $115 and July $125 puts, more than $370K put premium, bearish flow with earnings set for 7/19/12 and shares possibly finally topping after a long run.
Rackspace (RAX) dropping and 2,000 August $44 puts taking offer at $4.20 here for $535K put premium, bearish flow continues in this one.
Bed Bath and Beyond (BBBY) seller of 650 January 2013 $60 puts buys 3,250 November $62.50/$65 call spreads at $1, further positioning in this one for a rebound after the recent collapse in shares.
June 27th, 2012
Warner Chilcott (WCRX) trades 3,000 August $19/$16 bull risk reversals at $0.42 on the AMEX, seeing limited downside and looking for upside with the Company for sale.
Immunogen (IMGN) buyer of 1,000 October $14 calls, rolled out from July $13s, bullish action continues with the highly shorted Biotech breaking out
Fusion-IO (FIO) buyer of 2,000 September $22.50 puts on $3.70 offer to start the day, more than $425K put premium bought.
Game Stop (GME) August $18/$22 call spread trades 12,000X at $0.84, and trades alongside 260,000 shares on $17.76 bid, but fairly good reward/risk on the spread if looking for a bounce.
June 26th, 2012
Patterson-UTI Energy (PTEN) breaking to 1 year lows and seeing call action 12X daily average as 5,000 August $15 calls bought to open at $0.30, look to be very speculative plays with shares at $12.85. The $2B onshore Oil services Co. trades 7.1X earnings, 0.74X sales and 0.77X book, so at this valuation it could become a buyout target. RBC cut to Perform this morning. Higher costs of guar gum has hurt the pressure pumping Cos.
Citrix Systems (CTXS) performing well today +1.1% and trading 2,479 of the July $77.50 calls against OI 378, mostly offer side action at $4 to $4.20, bullish ITM buys. CTXS will not report earnings in July OpEx, but will move on the VMW report which will be in July OpEx. CTXS shares broke out above $77 recently and now re-tested that level, also its 50 day EMA this week. CTXS reported one of the best quarters in Tech last report.
Aeropostale (ARO) shares have been quietly fading below support, but a bullish trader bought 1,000 August $16 calls at $1.20 on the CBOE, and 1,500 of those contracts trading in total. ARO has same store sales next week for June as a potential catalyst. Shares trade 10.4X earnings, 0.55X sales, and 3.1X book value.
Emerson Electric (EMR) starting to breakdown after reporting order trends and the July $44/$40 ratio put spreads trading 1,6000X3,200, put volume 3X daily average.
June 25th, 2012
Synta Pharma (SNTA) trades an unusually bullish spread with 2,500 August $5 puts sold at $0.30 to open and 2,500 February $10 calls bought to open at $2.10, shares have been gaining on strong volume and up more than 100% since highlighting unusual call buying in the August $5 and $7.5 calls back in April. Jefferies reiterated a Buy rating and raised its target to $14 from $7 today. This large trade comes in a week when Top-Line GALAXY lung cancer Phase 2b interim analysis is expected, a 55% reduction in risk of progression needed to be significant. Shares broke out at the $6.50 level of a pattern that measures to a $10.50 target, also being the 5 year highs. The $417M Biotech has 11.3% of its float short and trades 7.27X cash with 0.49 Debt/Equity, a Company that may be forced to raise some money, but also a potential buyout target. SNTA could generate sales of $650M with this lung cancer treatment, more than its current market cap.
SkyWorks Solutions (SWKS) Aug. 29 puts that were bought 5,000X last week trading 3,500 today.
NetApp (NTAP) calls active with 3,900 trading first 30 minutes, buyers leading the flow in the weekly $30 calls for 1,500, likely playing for the June 26th Analyst Day, and Goldman recommended buying July $32/$29 strangle into this event.
Polaris (PII) surge in July $70 calls bought $2.65 offer here for 700 contracts, more than $170K call premium.
June 21st, 2012
Deckers (DECK) broke to new lows but one trader stepped in at 1:28pm on the ARCA by selling 2,500 January 2013 $37.50 puts and buying 2,500 $52.50/$65 call spreads, net $0.15 debit on the spread.
Aetna (AET) with further bullish positioning as 10,000 July $37 puts sold to open and 10,000 July $41/$45 call spreads bought, bullish 3 way spreads ahead of the Supreme Court decision as shares held up well in a rough tape.
Ocwen Financial (OCN) bullish action continued with 25X daily call volume with a block of 5,000 January 2013 $20 calls bought to open at $1.35 and another 2,000 followed the action in, a name featured recently with bullish action, and a strong theme trade on mortgage servicing.
June 20th, 2012
Carrizo Oil & Gas (CRZO) bullish 3 way spread with shares putting in a bottom above $19.50, a sale of 10,000 August $17.50 puts with the August $22.5/$25 call spread bought 5,000X. The $820M Oil & Gas Co. trades 1.57X book and 18.3% of the float short.
Packaging Corp (PKG) with 1,000 August $30 calls bought first 15 minutes, was noted in sell-side comments as potential M&A in this group this morning at Deutsche Bank, Buy-rated and $34 target.
Lions Gate (LGF) early bullish flow with 2,000 July $15 calls bought and 2,000 July $14 puts sold on bids, Net Delta +137K. Shares have recovered strong since initially dropping on earnings.
XIlinx (XLNX) with the January 2013 $35/$30 bull risk reversal traded 1,500X on the CBOE at zero cost. XLNX is a top quality Semi that has been reporting very strong numbers.
June 18th, 2012
Smithfield Foods (SFD) shares up 4.9% and quite a rebound since touching new lows on earnings last week, and today option traders bullish with 2,725 July $20 calls bought to open, more than $180K call premium with buyers paying $0.60 to $0.80 for the calls, volume in calls at 8X daily average.
Clorox (CLX) looks set to close the session in its highs and on the day trades 7,700 calls with 80% offer side, the July $75 calls bought around Noon at the $0.25 offer, and 5,700 of those trading. Citi raised to Buy on 6-1-12 with a new $78 target, and it is a name Icahn has been involved with in the past as a name he wants put up for sale.
Allergan (AGN) a strong name on the rise and October $95 calls with buyers of 500 at $3.80 offers
Bank of America (BAC) with 43,000 July $8 calls trading in 45 minutes of trading, Net Delta +1.5M with 66% offer side, more than $1M call premium paid.
Noble (NE) spread with 1,000 September $29 puts sold at $1.56 and 1,500 September $34/$38 call spreads bought at $0.87
June 15th, 2012
Celanese (CE) bullish 3 way spread as the September $42.50/$47.50 call spread bought 2,000X at $1.15 and the $30 puts sold at $1.
Kodiak Oil & Gas (KOG) roll of 5,000 June $7.50 calls to 5,000 July $7 calls, paying another $0.85 debit per roll, staying bullish the small Oil & Gas name that has held up fairly well
Accenture (ACN) bullish flow with 900 next week expiration $57.50 calls bought to open on $1.55 offers, breaking out intraday, and likely playing Oracle (ORCL) and Red Hat (RHT) earnings next week as a sympathy play.
Time Warner (TWX) large bullish trade in October as well with Media stocks options active today, a sale of 2,000 $31 puts at $0.79 to buy the $37/$41 call spread 4,400X at $1.23. TWX trades less than 10X forward earnings and yields 2.95%
June 14th, 2012
Gold Fields (GFI) seeing bearish put flow as 5,000 July $15 puts are bought to open today, ITM puts and Net Delta at -190K, shares could breakdown on a move below the 20/50 EMA xross at $13.25.
Cable Vision (CVC) unusual action with 5,000 July $13 calls bought to open on $0.20 offers, speculative OTM plays in a beaten down name that has had some M&A talk
Cimarex Energy (XEC), tied to Natural Gas, sees 1,000 July $50 calls bought $1.90 to open, trading 6X daily calls
Ralph Lauren (RL) seeing 1,300 combo spreads in January 2013 options with the $115 puts sold at $7.27 and the $145/$165 call spreads bought at $7.96. Shares are attempting to hold support near $140, also long term uptrend support and is oversold on the weekly.
Melco Crown (MPEL) shares have been under pressure with the rest of the casino names and Macquarie was out cautious on Macau this morning, but a trader rolls 6,500 June $11 calls to 8,000 July $11 calls today, staying bullish the name and expecting a recovery.
June 13th, 2012
Facebook (FB) with massive put action as 20,000 January $22 and 28,000 $20 puts have been bought today, more than $9.4M in put premium purchased
NIke (NKE) early action in July $105/$97.50 put spreads 1,450X at $2.05 with earnings due on 6/28/12
Disney (DIS) shares have been immune to market weakness but today one large trade positioning for a pullback with the October $44/$39 ratio put spread bought 2,000X4,000 on the CBOE at a debit of just $0.08, a nice trade for a small debit especially for a trader willing to be long the 400,000 shares at $39, a level where shares would be a great value. DIS shares have been riding its 20/50 day moving averages higher, but is showing bearish RSI divergence on the recent move to new highs. At 13.4X earnings, 2X sales and 22.7X cash flow with just a 1.29% yield valuation could come into question especially in a time that the economy is slowing. Caris & Co. downgraded to Above Average from Buy on 6-11-12.
Goodyear Tires (GT) January $12.50 calls seeing bullish flow here with 6,000 bought at $0.90 offers
Weatherford (WFT) willing buyer of a lot of stock, sells 10,000 January $10 puts to open at $0.93 bid at the ISE
June 12th, 2012
Netease.com (NTES) very small pullback off last weeks new highs and buyers active in September $65 OTM calls for 950 contracts at $4.70 offers, more than $300K call premium bought first 20 minutes of trading.
First Solar (FSLR) seeing early bullish flow 25 minutes into the session as front month IV spikes with 3,500 June $13 calls bought at $0.45, more than $85K call premium bought and Net Delta +60K. Shares are nearing a multi-month trend break here, and the 40.5% short float could see a squeeze on a move past $13, shares now trading 1.6X cash value and 0.33X book.
Tiffanys (TIF) August $60/$50 strangle bought 3,000X on the AMEX at $2.66, expecting volatility in the name.
Gold Miners (GDX) massive trade in September, appears the 3 way spread with short September $45 puts 15,000X and 12,500 September $47/$51 call spreads closed, and 12,500 September $46/$54 call spreads bought to open along with 30,000 September $43 puts sold to open, a bullish position in the GDX as the pullback holds support and a substantial bottom is in.
Cummins (CMI) large put sale of 1,260 September 80s at $3.60 bid this morning
June 11th, 2012
Fluor (FLR) trading below long term trend support and put volume 4X average, a spread active on the ISE with the July $42.50/$37.50 put spreads bought 2,000X while the July $52.50 calls are sold 1,000X in 3 way spreads. The next breakdown would be below the $45 level. The $8.2B construction Co. trades 11X earnings, 0.33X sales and 2.3X book. Fluor has backlogs of $41.5B, a reason Citi likes the name and has a $79 target.
Dunkin Brands (DNKN) one of the stronger charts in the market breaking out of consolidation after riding its 50 day EMA higher, and trading 2.5X daily call volume with a block of 2,000 September $35 calls bought to open at $1.725.
Celgene (CELG) July $65/$70 call spread bought 2,500X at $1.66 today, expecting EU approval of Revlimid by the end of the month.
Starwood Hotels (HOT) trading 5X daily put volume as 3,900 June $55 puts are rolled to 6,400 August $50 puts, staying bearish in a name with one of the weaker charts that indicates a potential move back to $45.
Treasury (TLT) opening bearish strategy with the September $122/$115/$108 butterfly put spread 3,000X6,000X3,000 in the CBOE at $1.35 debit, expecting a pullback
June 7th, 2012
AK Steel (AKS) on lows and seeing bearish options flow with 4X daily put volume, 8000 puts and 85% offer for $149K put premium, the July $5 puts most active with 4,000 bought. The steel name looks like it could be in some trouble, similar to the smaller coal names, and we could see some of these names unable to survive a commodity collapse.
Veeco Instruments (VECO) buyers of 1,080 ITM June $31 calls for next week, and shares did bounce at major support this morning with its rising 50 day EMA supporting a move higher
Unisys (UIS) rising to day highs and trading 20X daily call volume as 5,000 July $17 calls bought to open, also 1,000 of the $16 and $18 calls with IV jumping late in the day. More than $150K call premium bought, +85K Net Delta with the bullish call flow. Shares are looking to double bottom with the 2011 lows. The $667M IT Co. trades real cheap at 4.7X earnings, 0.17X sales and 3.6X cash flow, and with $15/share in cash on the books, yet 15% of the float is short. RayJay initiated Outperform on 5-8-12 with a $23 target. Speculators are active in calls likely seeing the beaten down value name as attractive for an acquisition.
Trius Therapeutics (TSRX) bounced off support and 2,000 July $5 puts sold to open at $0.25 today, trader willing to be long 200,000 shares at $4.75 basis. The trading is unusual for a normally quiet options chain. RW Baird initiated shares with Outperform and a $13 target last December, and TSRX trades 2X cash value with no debt. TSRX is in the late stage clinical development of tedizolid, a treatment for MRSA infections. TSRX looks to be a longer term name with upside potential, but the put sale showing limited downside anticipated in the near term.
Celgene (CELG) diagonal spread with 2,000 June $65 calls sold and 2,000 July $67.50 calls bought, $0.76 debit
June 6th, 2012
Arch Coal (ACI) bearish options flow may signal similar issues that Patriot Coal (PCX) faced, more than 16,000 puts trading today with $465K put premium, Net Delta -280K. Large buyers in October $5 puts with 5,500 trading around $0.65, and the July $5 puts with 7,300 trading in the $0.32/$0.33 range. Despite the decline the $1.3B coal Co. still is rich on valuation and has a lot of debt, and could easily see a move back below $5
McDonalds (MCD) is set to report May sales tomorrow and seeing a bullish bias in the options action for the second straight day, the weekly June $90 calls active with 3,445 trading against OI 3,397 and 65% of call action on the offer today. Similar action seen in the weekly calls yesterday. Shares are putting together a weak volume bounce to its 20 day EMA and have seen a series of disappointing reports the past two months. Janney cut estimates ahead of the report this morning.
Human Genome Sciences (HGSI) front month IV rising since 11:30am with notable action in June $13 puts as 10,000 trade. Glaxos (GSK) unsolicited $2.6B acquisition offer expires today, and HGSI has rejected and adopted a poison pill plan to fend of GSK, leaving the risk that GSK walks away and likely the reasoning behind this put activity.
Van Heusen (PVH) with another bearish 3 way spread in December, a sale of 2,000 $92.50 calls with the $77.5/$65 put spread bought 2,000X
Pharmacyclics (PCYC) has been popular for put sales since the stock was $7.50, and today with it making new highs a trader sells 3,000 November $25 puts to open at $0.60, and Brean Murray initiated this morning with an $80 target
June 5th, 2012
Hewlett Packard (HPQ) buyer of 7,500 November $25 calls $1.04 today, bullishness from yesterday continues, more than $660K call premium and +230K Delta
BMC Software (BMC) with a buyer of 1,450 July $45/$50 call spreads at $1.20 today, M&A still a potential outcome in this name and it has held up very well
Credit Suisse (CS) may finally be basing and 5,000 July $22 calls trade here at $0.475 to open, tied to stock
Oracle (ORCL) large trade ahead of 6-21-12 earnings with a sale of 4,000 July $28/$27 strangles at $1.94 on the PHLX
June 5th, 2012
Baxter International (BAX) trading 2X daily call volume with 1,700 July/August $50 calendar call spreads at $0.48. Baxter shares have major support down at $47.50, and the $27.56B medical device Co. trades 10.2X earnings, 1.97X sales, and 24.2X cash flow. Standpoint upgraded to Buy 6-1-12 with a $58 target.
Philip Morris (PM) seeing a few large spreads that are an interesting way to play for a rebound, around 800 September/December $85 call calendar spreads trading at $1.19 debits. PM is a name that broke its sharp uptrend back in early May and has high exposure to Europe, but also considered a fairly recession resistance Co. A re-test of the breakout at $79 that is also near the rising 200 day EMA looks like a better spot to step in. PM trades 14X earnings, 1.6 PEG, and 34X cash flow, fairly rich on valuation, but with a 3.76% yield. BofA reiterated a Buy and $99 target on 5-7-12.
Nova Gold (NG) seeing big buys in July $6 calls with 4,900 trading, 90% offer side action with $260K call premium and Net Delta +360K, recent takeover talks surrounded the name as well.
Authentec (AUTH) a breakout highlighted at $4.10 and been running on strong volume, today trading 25X daily call volume
Motorola Solutions (MSI) roll of 3,100 June $46 puts to July $45 puts, buying some time with MSI recently breaking key support and its 200 day EMA
June 4th, 2012
Starbucks (SBUX) trading 11,900 calls with 60% offer side, bullish flow with the weekly $52.50 and $55 calls active as 2,000 and 2,600 trade, shares and IV jumping with news SBUX will make a 4:30pm announcement to further strengthen core US retail business. Last time we saw this GMCR was crushed after hours.
Ariad Pharma (ARIA) moving off lows with the sell the news reaction despite presenting strong data, and shares holding its 100 day EMA it has bounced at previously. A trader opens 2,500 November $16/$14 bullish risk reversals at $0.65 debit, Net Delta +172K in the name, strong bullish bias seeing a favorable upside/downside ratio.
International Gaming Tech (IGT) trading 4X daily call volume as 5,000 October $15 calls bought to open at $0.65/$0.70 offers for $325K call premium, Net Delta +148K, bullish action continues from Fridays buyer of 4,000 June $14 calls and 5,000 June $14 straddles also traded. The action comes ahead of SHFL earnings after the close.
June 1st, 2012
Steris (STE) seeing unusual call buying and IV30 jumping sharply, the July $30 calls 767 and July $35 calls 1068 with shares at $29. Call volume is more than 50X average with $67K call premium bought, OTM speculative action. The longer term chart shows shares consolidating on the 200 week EMA. The $1.72B medical device Co. trades 12.9X earnings, 1.22X sales and 2.1X book. The action is very odd and looks to be speculating potentially on M&A interest.
JDS Uniphase (JDSU) hanging strong in weak tape and defending this $9.75 level all week, and the Ciena (CIEN) report yesterday a positive view for the industry. A trader puts on 5,000 December $11/$9 bull risk reversals at $0.04 debit, willing to be long at $9 and wanting upside exposure for a rebound.
New Oriental Education (EDU) January $22.50 OTM puts unusual action with 2,800 bought $2.05 to $2.20 offers, more than $590K put premium and put volume running nearly 20X average.
Time Warner (TWX) seeing bullish flow in October $34 calls with 1,600 bought, more than $360K call premium, Net Delta +105K today. Buyers also active for 1,050 January $34 calls. The $33.1B Co. has been reporting solid numbers and trades 9.5X earnings, 1.13X sales and 1.11X book with a 3% yield.
A large Institution that has been rolling these puts down and out for awhile now (last on 4-23) is sticking bearish through July in commodities:
Materials (XLB) June $34 puts 35,000X look closed and rolled to 20,000 July $32 puts.
Industrials (XLI) June $34 puts 60,000X look closed and rolled to 45,000+ July $33 puts.
Oil Exploration (XOP) June $48 puts 20,000X look closed and rolled to 10,000 July $44 puts.
July 26th, 2012
Marvell Tech (MRVL) large bullish trade early for 10,000 January 2013 $12.50/$7.50 bull risk reversals at $0.72 debit, upgraded at JMP this morning after a strong Western Digital report, a major customer, and also a name Greenlights Einhorn likes long term.
Xilinx (XLNX) trading higher back to a level with plenty of resistance and active buyers in September $31 puts for 3,900 contracts, more than $280K put premium purchased and put volume 2X daily just 40 minutes into the day.
Hornbeck Offshore (HOS) shares have been strong and now back near 2012 high resistance, but with earnings due out 8/2/12 it is trading 30X daily options volume as 1,500 August $42/$39 bear risk reversals were opened on the ARCA.
July 25th, 2012
Amazon.com (AMZN) reports earnings tomorrow after the close, and a large sale of 500 August $185 puts at $1.45 one of todays early trades, but just before 11am there was a surge in action with the July weekly calls, the $230/$240/$250 butterfly call spread traded at least 1,100X2,200 contracts at around $1.30 debits. AMZN shares have been trapped in this $205/$230 range since last quarters post-earnings surge, and $246.70 is all-time high resistance, so a nice approach for a bullish biased strategy.
Spectrum Pharma (SPPI) shares have pulled back after surging early on positive Fusilev sales indications, earnings early August. Calls trading 12,600X today with 2,400 August $16 calls rolled up to the $18 strike, although still more than 10,000 $16s in Open Interest. Also, traders are buying 5,000 November $17 calls to open at $1.95, longer term bulls. SPPI shares are bull flagging below the $17.50 level and measures a move to $23.50 on a breakout. The $930M Biotech trades just 7.35X earnings and 10.8X cash flow, a growth Biotech at value levels and 45.6% of the float is short, fuel for a strong squeeze higher.
Beacon Roofing (BECN) trading 40X daily put volume, one big buyer of 1,750 September $25 puts at $1.75 to open resulting in most of the volume. Earnings are 8/7 and BECN has closed lower 4 of its last 5 reports.
July 24th, 2012
Netflix (NFLX) July (Weekly) $90/$100/$110 Call Fly Bought 800X1,600 at $1.30 into earnings after the close.
Cabot Oil & Gas (COG) opening buyers of 3,000 September $40 calls at $2.90 to $3.05 here for $380K call premium ahead of earnings after the close. Shares have closed higher on earnings 3 of its last 4 reports and averaging 8% closing moves. Shares remain in a bullish flag pattern and we saw bullish action in the options last week as well.
Solar Winds (SWI) down 1.7% on session lows and reports tomorrow morning. SWI was a big winner last quarter and seeing around 550 August $42.50/$37.50 bull risk reversals trade today at $1.20 debits.
July 23rd, 2012
Gap (GPS) with 5,000 August $30 calls bought, first block at $0.66 and then from $0.73 to $0.83, shares forming a cup and handle and have seen a lot of August call buying for the back to school shopping trade.
Amazon.com (AMZN) had a buyer of 1,700 July weekly $240 calls at $3.60 offer this morning, earnings coming 7/26 after the close.
Trip Advisor (TRIP) trading 2X daily calls with earnings tomorrow after the close, and appears 1,550 September $35 calls booking some profits and rolling out and up to 1,550 December $50 calls
Apple (AAPL) pre-earnings trade with 700 July (W) $625 calls sold at $4.35 to buyer the July (W) $590/$560 ratio put spread 700X1,400 at $4.45, net $0.10 debit for the bearish 3 way spread, although one that could be protective on long stock combining a ratio put spread and covered call.
Boeing (BA) weekly $72.50 calls active with 2,500 trading the first 30 minutes, earnings due 7/25/12 and Boeing has been seeing strong order wins.
Baidu (BIDU) the headline report tonight and today trading 43,000 calls and 40,000 puts, much of which is centered in the weekly options pricing in a move of 6.25% on earnings, well above the 6 quarter average closing move of around 3%, and max move of 4.5%. Largest trade today remains the 1,000 July $115/$95 bull risk reversals at $0.28 (traded versus 40,000 shares short), while a 500 combo spread with Aug. 120 calls and 90 puts sold and July (W) 105 puts bought also traded. Overall the bias today is bearish with Net Delta -138K, more than $1.2M put premium bought. The $100 level will be watched closely for key support, while trend resistance at $112.50, a break above re-tests the $115 breakdown.
July 20th, 2012
eBay (EBAY) roll of 16,180 July $42 calls to 32,360 August $45 calls
Kodiak Oil & Gas (KOG) block of 4,500 August $8 calls bought at $1.10 to open, rolled from July 8 calls
NetSuite (N) trading 15X daily puts with 2,000 August $45 puts bought to open, earnings 7/26
Universal Display (PANL) with 2,000 August $37 puts bought to open, bearish early flow
Zynga (ZNGA) large 3 way spread in January 2013 with the $5/$7 call spread bought 10,000X and the $3.50 puts sold 10,000X, net debit $0.18 for the spread.
Netflix (NFLX) combo spread into earnings on 7/24/12 with the August $70/$65 put spread sold 1,000X at $1.08 and the August $90/$100 call spread bought 1,000X at $2.25, net $1.17 debit in the bullish spread.
July 19th, 2012
Guess (GES) seeing some longer term bullish flow with 3,000 September $30 calls bought to open today in the $1.35/$1.45 range, more than $280K call premium, although a name with some bearish Open Interest in August strike and highly exposed to weak European retail sales.
Continental Resources (CLR) buyer of 5,000 far OTM August $85 calls at $0.65 to open as shares breakout of an inverse H&S at $72.50 that measures to an $82.50 target. The $13B Oil & Gas Co. saw its CEO buy 100,000 shares at $71.68 in May and owns 123,000 shares.
Eaton (ETN) bullish positioning with 2,000 January 2013 $45/$32.50 bull risk reversals at $0.10 credits, makes sense in a name that is a great value here, let alone at $32.50.
eBay (EBAY) with some of those speculators in the 40,000 July $42 calls yesterday rolling out and up to August $45 calls today, staying bullish a top value/growth name in Tech.
July 18th, 2012
Amazon (AMZN) shares remaining weak in recent days strong tapes, a negative sign with 7/26 earnings fast approaching. Shares are struggling at the $218 Fibonacci level on a closing basis and starting to form a daily bear flag, a potential test of trend support near $205 could come ahead of results. A trader today buys 2,000 August $225 calls at $6.31 on the CBOE with 80,000 shares short $217.25, a synthetic put position.
Research in Motion (RIMM) seeing bullish flow with opening buyers of 5,000 October $8 calls at $0.62, while August $7 puts being sold on bids for 9,000 contracts, a Net Delta today of +445K one of the most bullish.
Marathon Oil (MRO) bullish buyers in August $25 calls today for 5,200 contracts, coming after the 4,000 August $26 calls bought recently. Shares are breaking out of a 3 point range today with an upside target of $29.
Rio Tinto (RIO) block of 4,500 August $47.50 calls bought on $1.10 offer at the PHLX
July 17th, 2012
PNC Financial (PNC) large trade before earnings are reported tomorrow morning as 5,000 August $57.50 puts sold at $0.64, potential closing, while 10,000 July $60 puts are bought to open at $0.43.
ARM Holdings (ARMH) now trading 12,000 puts which is 8X daily and mostly short term July $22 puts at $0.20 for $280K put premium, positioning ahead of a bunch of Semiconductor earnings reports, including Intel tonight. Shares are breaking recent lows and may look to re-test the $20 breakout level from 2011.
VanceInfo Tech (VIT) shaping up to be the next China SEC Investigation based on trading 50X daily put volume today, the Aug. 10 puts bought 2,000X today and IV30 jumping 44%.
Green Mountain Coffee (GMCR) bear raid continues with 3,500 July $17 puts being rolled down and out to August $15 puts, setting up for the next earnings report.
National Oilwell Varco (NOV) roll of 5,500 August $62.50 short puts to November $62.50 short puts, a credit of $2.08 on the spread.
July 15th, 2012
Fortinet (FTNT) trading 4,000 front month July $22 calls on $0.25/$0.30 offers, cheap tickets for a push higher this week, earnings not until 7/25, but possibly seeking a sympathy move with EMC, VMW, and some other Tech reports this week.
Duke Energy (DUK) a wild spread with 10,000 October $70 / January $75 call spreads bought at $0.25 debits positioning for a move higher, but limited to $75. Call volume is 7X daily as I continue to see bullish positioning in Utility names.
International Gaming (IGT) jumps sharply as 15,000 October $15 puts are sold to open on the $0.95 bid at the PHLX, a large willing buyer of stock at a $14.05 cost-basis, and a name that could be a major beneficiary if online gambling legislation goes its way.
Cliffs Natural (CLF) traded 3,050 November $35 puts tied to a block of 54,000 shares of stock bought on weakness, a synthetic long call position with shares holding triple bottom support.
July 13th, 2012
Safeway (SWY) earnings next week on 7/19 and today a sale of 3,000 September $16 straddles at $2.05 expecting shares to maintain near its current level, additional sellers active in the $16 puts with 8,435 trading.
Rock-Tenn (RKT) showed up on Tuesday and Wednesday as unusual action with 2,000 July $55 calls bought Tuesday, and 2,600 August $60 calls on Wednesday in a name that averages 139 calls a day.
Mosaic (MOS) September $62.50 call buyers from earlier this week active again as 5,000 are bought at around $0.77 to $0.82 for $400K call premium, and earnings due out on 7/17.
Eaton (ETN) very unusual action from yesterday continuing today after 6,000 far OTM July $40 calls were bought ar $0.05 yesterday, the same contracts are trading 8,000X today at $0.10 to $0.15 with buyers. Shares held key long term trend support yesterday and bounced, but with earnings not until 7/23 traders are looking for quite a move next week without any seen catalysts.
July 12th, 2012
Under Armour (UA) buyer of 5,600 August $42.50 puts at $1.65 offer tied to 173,550 shares of stock long $45.60, synthetic call position. Shares touched lows today on its 200 day EMA and looking to put in a large reversal candle.
Schlumberger (SLB) very active weekly $65 calls with 3,600 trading, buyers into weakness as day lows are a key Fibonacci support level, paying $0.40 for the contracts.
Junior Gold Miners (GDXJ) trader sticking with a bullish call and rolls 7,250 July $18 calls to August $17.63 calls, paying another $0.80 per spread.
Owens Corning (OC) trading 3X daily puts with 2,000 August $27/$24 put spreads bought at $0.79
July 11th, 2012
JP Morgan (JPM) September $36/$40 call spreads bought 5,000X 2 days ahead of earnings at $1.01, bullish action with $550K call premium bought the first 20 minutes of trading.
Magic Jack (CALL) roll of 1,000 December $12.50 calls to 1,500 December $20 calls, staying bullish the name that recently boosted guidance and is heavily shorted.
Spectrum Pharma (SPPI) roll up of 2,000 August $14 calls to 2,000 August $17 calls
Medivation (MDVN) roll of 1,800 July $85 calls to 1,800 August $90/$100 call spreads
July 10th, 2012
Advanced Auto (AAP) recent rally off lows seen as a spot to get short for some traders as 1,000 August $70 puts bought to open at $3.30 today, $100K put premium, earnings due on 8/8
Western Digital (WDC) July 3 way spread with the $30/$33 call spread and short $25 puts closed 14,500X. The August $33/$36 call spread bought to open at $1.04 for 14,500X, so trader stays bullish into 7/25 earnings despite recent STX warning.
Diamond Foods (DMND) trading 3X daily calls as 3,000 January 2013 $25/$30 call spreads bought to open at $0.65 on the PHLX.
July 9th, 2012
KLA Tencor (KLAC) trading 3,700 calls and 3,000 puts with the July $45 straddle actively bought today and the $46/$45 strangle. KLAC presents at SEMICON West tomorrow and also tends to be a big sympathy mover on Intels (INTC) report which comes next week. KLACs IV30 jumping 10% today and July IV up around 15% as trader prepare for a volatile next two weeks.
Alpha Natural (ANR) with 4,800 August $7 puts bought to open at $0.41
NXP Semi (NXPI) small bullish action with 1,300 August $22.50 calls bought at $1.40 offers, more than $145K call premium, earnings set for 7/24. Shares are close to filling a recent gap and have support with the rising 20 day EMA near $21.50.
Altera (ALTR) on lows and near major break of recent support and 3,500 July $31 puts bought to open at $0.45 offer, earnings not until 7/24/12 but will move in sympathy with XLNX earnings on 7/18/12
July 6th, 2012
Vivus (VVUS) July $30/$35 call spread bought 2,000X today and the July 26/29/34 Call Fly traded 700X1000X700
Aeropostale (ARO) closing of 2,000+ August $16 calls, shares jumping to $19 from $16 from when the unusual call action began, and now opening buys of August $20 calls for more than 5,000 contracts, trading 8X daily call volume.
Fortinet (FTNT) puts action now at 4,400 contracts, 2X daily with 92% offer side for 3,000 July $22s and 1,200 July $23s, all front-month action although earnings are likely to fall in August OpEx, more than $290K put premium bought. Shares could be vulnerable with upcoming earnings by its peers and todays warnings from APKT/INFA are a negative signal.
Monster (MWW) August $10 calls with 3,400 bought at $0.30/$0.35 offers, trading 1.5X daily call volume in the first 20 minutes of trading, bullish flow into a name that was seeking a potential buyout.
July 5th, 2012
Apple (AAPL) traded a large spread with 10 minutes left until the close in October that is an adjustment of a bullish spread. The closing spread involved buying back 6,000 October $450 short puts and selling 10,800 October $725 calls to close. The new opening trade saw 11,000 October $475 puts sold to open at $4, October $615 calls bought 4,400X at $36, and October $710 calls bought 24,100X at $7.65. The trader is clearly positioning for further upside in Apple after making large profits on an opening bullish risk reversal that traded a couple days ahead of the May 18th lows that marked a bottom before an $80 run in shares.
Accretive Health (AH) seeing action in September $12.50 calls for 1,335X, reports this morning it may be near a 5 year deal with Ascension Health, and that could drive shares higher. Call volume running 4X daily in an hour of trading.
Linked-In (LNKD) roll of 1,500 July $110 calls to 1,000 August $115 calls, staying bullish with shares grinding higher out of this breakout
Research in Motion (RIMM) buyer of 48,000 January $11/$14 call spreads, looks to be rolling back the long call strike of the large risk reversal that includes the 48,000 short $8 puts, and still looking for a positive outcome for RIMM. This also aligns with the bullish positioning in RIMM March options seen last week.
Cognizant Tech (CTSH) trades 3,400 3 way spreads with the August $65 calls sold to buy the $57.50/$52.50 put spread, same spread that traded 1,700X on Tuesday.
July 3rd, 2012
Crocs (CROX) opening buys of 2,000 August $16 calls at $0.95 to $1.05 offers, more than $155K call premium as shares hold support once again today.
Oil Services (OIH) July $38 calls sold 10,000X and August $37 calls bought 10,000X at $1.05 debit
Dow Jones (DIA) August $133 calls active today with 4,300 bought at $0.55/$0.56 offers to open
Ford (F) trades 10,000 January 2013 $11/$7.50 bull risk reversals at $0.11 debit
July 2nd, 2012
Research in Motion (RIMM) March 2013 action, appears 10,000 of the $11 calls sold and rolled back to 6,000 of the $9 calls bought at $1.08 offer to open.
Lululemon (LULU) July $60 weekly puts very active with 2,300 trading first 45 minutes, offer side buys and $220K put premium bought.
Forest Oil (FST) trading 7,130 calls and mostly offer side with 4,000 August $9 calls and 1,500 July $8 calls, speculative buyers paying $0.15 offers
Manpower (MAN) July $35 puts with 1,500 bought today, 7X daily put volume, earnings expected in July OpEx week
August 31st, 2012
Deutsche Bank (DB) continues to generate bullish call action with 2,000 September $37 calls bought today to open at $1.10 as European banks strengthen on expectations of an ECB bond buying program to be announced next week. Back on 8-17-12 traders positioned in 4,000 September $35/$30 bull risk reversals at $0.15, now pricing $1.70.
Corning (GLW) outperforming today with the OpCo upgrade and 2,900 February $13 calls bought to open at $0.64 offers in the first hour, more than $140,000 call premium.
Louisiana Pacific (LPX) November $13 puts bought to open 2,280X at $1 offers, more than $220K put premium with shares possibly forming a top after a stellar run.
DR Horton (DHI) set-up below this $19.25 level and seeing 3,000 Sep. 20 calls bought today
August 30th, 2012
First Solar (FSLR) with an opening buyer of 5,000 October $20/$13 put spreads at $2.23, and continues the trend of put spread buying since shares hit the 38.2% Fibonacci Retracement at $26.20.
NPS Pharma (NPSP) trading 3,050 puts on the day, 30X average with October $7 puts bought to open 3,000X in the Biotech. The action comes with the FDA set to review its Gattex drug for adult short bowel syndrome with the AdCom Meeting on 10-16-12 and PDUFA 12-30-12. Forest Labs (FRX) and Ironwood (IRWD) had approval today of a bowel syndrome drug but traders appear more skeptical in NPSP.
Cliffs (CLF) roll down of 4,000 Aug. weekly $38 puts to the weekly $37 strike 4,400X, continues to press for more profits.
Facebook (FB) saw a surge in next weeks expiring $18 calls with 3,500 bought to open at the $1.35 offer.
August 29th, 2012
Phillips 66 (PSX) daily event with call buying and today 2,500 Jan. 2014 $50 calls at $3.25 and also 1,500+ February $48 calls at $1.50, more than $200K call premium purchased.
JC Penneys (JCP) September $25 calls closed 5,800X and rolled up to 5,800 September $27/$29 call spreads, and the same trade done 1,150X earlier. The weekly $25 calls bought in the last 10 minutes of trade yesterday have tripled.
Sealed Air (SEE) unusual early action with 3,000 October $15 calls bought $0.35/$0.40 offers, nearly $100K in call premium and 5X daily calls.
August 28th, 2012
TJX Co. (TJX) buyers coming in for October $47.50 calls with 81% offer at $0.70, more than 2,000 trade the first 3 minutes of the session and ahead of same store sales on Thursday.
Freescale Semi (FSL) bearish action with 3,170 December $10 puts bought to open at $1.15 to $1.20, more than 30X daily put volume for $165,000 in premium purchased. Shares are breaking multi-week lows today and major support is way down at $8.50. The $2.6B Semi trades 12X earnings, 0.63X sales and 22.15X cash flow.
Citi (C) trades 10,000 September/October $30 calendar call spreads at $0.63 debit
August 27th, 2012
SAIC (SAI) will report earnings 8/30/12 and 4,050 September $12 calls bought here in the $0.35 to $0.40 range, already 4,332 in Open Interest.
Red Hat (RHT) today with 1,500 September $60 puts sold to close at $3.80 and small buys of 300 October $65 calls at $1.30. RHT will report earnings around 9/19 and shares pulled back to test its prior breakout and 20 day EMA and bounced today, a healthy looking set-up for a move higher.
Cirrus Logic (CRUS) now seeing most of the September $43 calls rolled up to the $45 strike as 7,200 trade
Arch Coal (ACI) move off the day lows coincided with heavy buying in September $7 calls with 6,200 trading now, Net Delta +118K.
Best Buy (BBY) shares are trading higher by 3.4% but faded well off the morning highs. News this morning that founder Richard Schulze received the green light to make an offer sent shares higher, but still needs to put together a real deal. Citi was out cautious seeing only a 20% probability of a takeout. However, option traders look more optimistic today and recently, more than 61,500 calls and 27,000 puts traded today with $2.2M in call premium bought and a Net Delta +400K. Traders are positioning in 12,000 of the Jan. 2013 $19/$23 call spreads at $1.28 while there also were large sales of more than 9,000 Jan. 2013 $15 puts today. Short Interest has come down to 37M shares from 54.5M in May. Based on the options positioning and with shares trading 6.2X FCF Best Buy looks to have limited downside and also the allure of upside with a deal price expected in the $22-$24 range.
August 24th, 2012
Cliffs (CLF) has risen back but earlier today a trader rolled 1,000 weekly $41 puts to 2,100 of next weeks $40 puts expecting downside to continue.
Target (TGT) ITM Oct. 60 calls bought 3,075X at $4.30 offers today, more than $300,000 call premium and Net Delta +275K. Shares filled the earnings gap and the results were great so TGT likely heads higher to the $70 target from the $58.50 breakout.
WR Grace (GRA) bullish 3 way spread with 3,000 December $50 puts sold and 3,000 December $60/$70 call spreads bought, net $1.70 debit for the spread.
First Solar (FSLR) October $25/$23 put spread traded 4,000X today, looks to be a roll-up in strikes from $23 to $25.
August 23rd, 2012
UPS seeing bullish longer dated spreads with 2,500 April $80/$67.50 bullish risk reversals at $0.11 credits on the spread, more than $390,000 call premium purchased today and $225,000 put premium sold with Net Delta +88K. UPS is coming off a terrible earnings report, but the strategy is fairly low risk, willing to own shares at $67.50, a name that currently has a 3% yield and trades 14.6X earnings. UPS trend support off the 2009 and 2011 lows comes into play near $72.5, while $72.50 would also re-test a key breakout from 2012.
A change in sentiment with airlines today as Oil expected to continue to gain on rising supply concerns and monetary easing potential. Delta (DAL) with 10,500 December $8 puts bought to open at $0.48, more than $530,000 put premium bought. UAL Corp (UAL) with 6,500 December $16 puts bought to open at $0.85, more than $325,000 put premium bought to open.
Jos. A Bank (JOSB) a candidate for the next retail earnings disaster next week when it reports. JOSB puts are trading 2,448 today which is around 15X daily average as the September $40 puts are bought at $1.15 to open 2,430X. Shares have formed a bear flag on the weekly that measures to $26 on a break of $40.
Intel (INTC) puts jumping again with 5,000 of this weeks $26 puts being rolled to 10,000 of next weeks $25 puts. Another trader bought 5,000 January 2013 $24/$19 put spreads at $0.91.
August 22nd, 2012
Las Vegas Sands (LVS) large trade out in December with 7,500 December $43 calls sold and 7,500 December $45 calls bought, looks to be a roll up in strikes after the recent strong performance in shares since noting the December call buying recently.
Arena Pharma (ARNA) trading 8,990 calls with August $8 and $9 weekly calls very active with buyers, Net Delta +140K today. Shares are up 6.7% today and starting to breakout past a recent range.
Ariad Pharma (ARIA) looking to breakout past $20 to new highs and 1,850 of the OTM September $21 calls bought today, also some action in $19 and $20 calls. The $3.2B Biotech has been a strong performer all of 2012.
Accenture (ACN) IV on the rise as shares try and take out $62 resistance and seeing increased options action with 2,840 September $60 calls and 3,840 September $60 puts, mixed order flow but overall Net Delta +58K is bullish. Options volume running 4X daily and shares could attempt the $65 resistance on a break of $62 after putting in a 4 point bottom and breaking out at $60. Accenture is at CloudCon 2012 on 8-27 and earnings late September, also an Analyst Meeting 11-11-12, but the September options action looks to be positioning for CloudCon.
August 21st, 2012
Home Depot (HD) IV in September plunged as large sized lots of September $55 puts were sold to open and more than 20,000 trading. Traders are willing to be long HD stock on a pullback and looking for the post-earnings strength to potentially continue and take shares through the $57 all time high from 1999.
Whirlpool (WHR) bullish action with 1,075 October $72.50 calls bought to open at $3.90 as $365,000 call premium bought.
SanDisk (SNDK) with 7,000 September $45 calls bought the first 15 minutes of trading for $225,000 in call premium, Net Delta +70K and exceeding the OI with opening buys. SanDisk has seen bullish options flow the last few days and breaking out this morning past recent resistance.
August 20th, 2012
TJX Co. (TJX) put sellers active again with 15,000 September $45 puts sold to open, traders really willing to buy this name on the shallowest of pullbacks. We already have 13,450 September $42.50 short puts in open interest.
Lowes (LOW) buyer of 8,200 October $25 puts at $0.67 with 270,600 shares of stock, a synthetic long call with shares at day lows after earnings, now off 6%.
Align Tech (ALGN) puts unusually active with 1,250 September $33 puts bought to open at $1.15 offers, more than $50K put premium as shares break the 20 day EMA.
Packaging Corp (PKG) trades 1,000 October $35/$27.50 bull risk reversals for a 5 cent credit
August 17th, 2012
Las Vegas Sands (LVS) beginning to fade after trader buys 5,000 September $40/$37 put spreads at $0.68 on the PHLX. The gaming stocks have rallied but without much reason as Macau is slowing and Las Vegas remains weak.
Freeport McMoran (FCX) recently acting healthy and starting to form a handle on the charts with potential to breakout and seek a move to $38.50. One trader bought a block of 1,850 November $39 calls at $0.82 a few minutes ago.
Texas Roadhouse (TXRH) trading 20X daily call volume with 1,000 September $17.50 calls bought to open.
Southwestern Energy (SWN) with a buyer of 5,000 September $35 calls at $0.46 that sells 4,000 September $29 puts at $0.36 to open, bullish risk reversal in the Natural Gas name.
Stec (STEC) September $8 calls hot with buyers today for 2,000 at $0.14, and IBM reportedly looking for more storage acquisitions, so could be something to this, although cheap lotto tickets.
August 16th, 2012
P&G (PG) nearing a breakout and hot since Ackman involvement. A trader bought 10,000 January $67.50 calls at $2 at 12:27pm, and already know about the January positioning in calls. I was hoping for P&G to pullback to $64.50 and remain positive on it based on the size positioning.
Equinix (EQIX) with 650 September $180 calls bought at $9.60 offers today on wide bid-ask, bullish action for $480,000 call premium with shares breaking out of tight consolidation.
TransOcean (RIG) been a quiet name lately but looks near a breakout for a run to $51 and 1,000 November $47.50 calls bought at $4.40 to $4.50 offers today for nearly $200,000 call premium.
Ulta Salon (ULTA) with call volume 2X daily in the first hour of trading and 77% offer side, mostly in September for 9/6 earnings with $320,000 in call premium purchased. Shares have based for weeks and remains one of the top same store sales growth names in retail, and recently seeing strong numbers out of its peers.
August 15th, 2012
Starbucks (SBUX) trading 11,000 calls the first half of the day and Net Delta +150K and $430,000 call premium bought, most active the September $41 ITM calls bought 1,900X today and recent September call buying as well. SBUX was added to CSFBs US Focus List today and is nearing an entry into its earnings gap.
Las Vegas Sands (LVS) with $450,000 call premium bought early and Net Delta +120K with December calls hot again, more than 1,250 Dec. 41 calls and 5,000 Dec. 43 calls, similar to what was seen last week. Shares are consolidating in a tight pattern and above $40 can make a run.
VeriFone (PAY) with 1,000 September $33 calls bought to open at $2.85 today, traders positioning for upside with earnings on 9-5 and an article today in the WSJ concerning mobile payment expansion.
August 14th, 2012
Anadarko (APC) trades the November $72.50/$80/$87.50 call fly at $1.24 for 4,000X8,000 contracts.
Best Buy (BBY) trades 10,000 January 2013 $21/$17 bullish risk reversals at a 1 cent credit, nice reward/risk set-up for a name that has an offer on the table from its founder in the mid-$20s. The trader is willing to be long back at the lows, and owns upside exposure for a potential buyout.
TIBCO Software (TIBX) longer term bullish view with 1,060 February $32/$37 call spreads bought at $1.30 to open on the CBOE, shares started Neutral at Goldman this morning.
A123 Systems (AONE) Sep. 1 puts being bought at $0.60 for 3,500 contracts, and IV30 jumping 23.5% today, looks to be Bankruptcy bets
August 13th, 2012
Gap (GPS) bull looks to be rolling 12,000 September $25 calls out to the $31 strike, taking some profits off the table before 8/16 earnings
Corning (GLW) with very cheap options seeing September $12 calls bought 4,800X this morning at $0.19 offers for $78K call premium. A break above $11.75 can see a move to $12.25.
Treasury 20+ Year (TLT) with a roll of 15,000 Aug. 127 puts sold $1.13 to 20,000 Sep. 125 puts at $1.90. Aug. puts bought on 8-2 at $0.60.
Home Depot (HD) August $52.50/$48 ratio put spread traded 1,475X2,950 at $0.58 into earnings
Medivation (MDVN) with 1,000 August $90/$100 call spreads sold to close and 1,000 September $90/$115 call spreads opened. Shares shook off a weak earnings report last week and continue a sideways consolidation pattern.
August 10th, 2012
Celanese (CE) with an opening buyer of 3,000 September $40/$37.50 strangles at $2.80 on the ISE. There was unusual August put buying in CE yesterday, and traders look to be positioning for a big move.
Medtronic (MDT) September $40 straddle bought 1,500X at $2.28 and reports earnings 8/21/12. MDT shares recently broke out of a large descending triangle on the weekly chart, and a first measured move target of $48. Shares have only averaged 6 quarter max moves on earnings of less than 4%, so interesting to see the long volatility strategy.
Ann Taylor (ANN) selling off and reports next Friday and 2,500 Aug. 30 calls sold to open while 2,500 August $27 puts bought to open, bearish positioning with Net Delta -135K early on in trading.
Range Resources (RRC) another Natural Gas name with bearish trading as shares fail to break past trend resistance in this large triangle. A trader buys 4,000 September $72.50 calls at $0.90, but sells short 76,000 shares at $64.67, a long synthetic put.
August 9th, 2012
Arch Coal (ACI) among bullish leaders in options flow today with 5,000 January 2014 $10 calls bought at $1.54 to $1.58 offers, and a total of $970,000 in call premium bought today with +375K Net Delta. Coal names seeing a revival this week and ACI setting up for a breakout above $7.50.
Adobe (ADBE) large block of January $34 calls trades $1.93 offer and 5,000 of those contracts trading today, but options tied to short stock for 158,700 shares on the $32.70 bid, a synthetic long put position. Adobe shares look extended on both valuation and on the chart as shares hit the upper acceleration band.
Emerging Markets (EEM) September $42/$43.50/$45 call fly trades 40,000X80,000 at $0.22, interesting play looking for move higher in a defined range.
Logitech (LOGI) trading 6,975 calls first 5 minutes with 96% offer side for $188K call premium, including 4,000 August $8 near term calls bought to open.
August 8th, 2012
Staples (SPLS) front month IV jumping as 8,500 August $14 calls bought at $0.20/$0.25 offers for nearly $400,000 call premium, and earnings due out on 8/15. Call volume running 3X daily and shares breaking out with 4 straight days of strength.
SeaGate (STX) large buyer of September $33 puts on initial spike lower at $2.25 with Toshiba hiking hard drive production, and 5,500 of those puts trading, opening buys as nearly $1M put premium is purchased. Shares could end up putting in an ugly shooting star top today.
Sprint (S) bulls sticking with it as 10,000 August $4 calls being rolled to 15,000 November $5 calls today, been seeing very bullish positioning since shares were at $2.50 and trend is strong.
Pepsi (PEP) with $470K put premium bought as traders active for 1,650 Jan. $72.50 puts at $3.05 offers
Tyson (TSN) now up 8% and trading 14,700 calls with 72% offer side, more than 5,000 September $16 calls bought to open a day after noting 3,000 September $15 calls bought to open.
August 7th, 2012
American Eagle (AEO) with 4,000 November $22 calls bought at $1.30 offer, looks like around 2,000 Aug. 21 calls sold to close, adjusting positions
Marathon Petro (MPC) another refiner breaking out and trading 2,150 September $52.50 calls with 90% of calls bought offer side today.
Express Scripts (ESRX) pre-earnings spreads active with 3,000 September $62.50 calls sold and 3,000 August $55 puts bought. There have been two blocks of 25,000 shares and one block of 50,000 today, so positions may be collaring long stock into earnings.
C-Trip.com (CTRP) with a surge in call buying late in the day ahead of Priceline.com (PCLN) earnings as 3,650 September $15 calls bought to open at $0.40, expecting the beaten down name to put together a rally over the next two months. Shares held $12.50 five straight days on tests recently, a good sign of a bottom being in for shares.
August 6th, 2012
VIX seeing a massive spread trade more than 100,000 contracts today with October $19 puts bought at $1.75 and November $25 calls traded at the bid $2.95, but were rolled from September, a spread that would be looking for volatility to remain contained. In another spread the September/October $30 calendar call spread traded 20,000X at $0.69.
Google (GOOG) trading bullish combo spreads with September $595 puts sold to buy September $670/$705 call spreads 1,500X
Manitowoc (MTW) roll up of 5,000 August $11 calls to 7,500 August $12 calls ahead of earnings after the close, taking some profits off the table, but staying very bullish
Citi (C) September $30 calls hot early with 5,000 bought first 10 minutes, nearly $200K call premium with shares looking to breakout past Fridays high.
August 3rd, 2012
Lexmark (LXK) trades 4,000 September $18/$17 bull risk reversals at zero cost, a very large bullish spread in a beaten down name. Shares trade 0.85X book and 1.33X cash with a 7% dividend yield, so although a bad industry to be in, there is value at this level.
Royal Caribbean (RCL) with an opening buy of 8,700 September $26 calls on the $1.08 offer at the PHLX. The $5.3B Co. trades 9.3X earnings and 0.62X book and shares near a break of a key trend resistance level.
August 2nd, 2012
Anadarko Petro (APC) traders active again in spreads with November 60 puts sold to buy November 70/80 call spreads, and 7,500 of those spreads traded. APC saw a +311K Net Delta in the day’s trading, very bullish action continues in the name longer term.
Lululemon (LULU) shares held up in a weak tape and shares bounced right off trend support this week, and today 12,000 calls traded with $300,000 call premium bought, the September $60/$70 bull call spreads the most active in size as 1,600 of those spreads traded.
Och-Ziff Capital (OZM) early in the session saw 5,000 September $7.50 calls bought to open, and shares have put in a nice double bottom.
E-Trade (ETFC) traded 6X daily call volume with 89% offer side, strong size buyers in September $8 calls for $0.28 with 12,000 of those contracts bought to open, often considered a takeover target.
Dell (DELL) traded 52,000 puts on the day with 84% offer side as more than $850,000 in put premium was purchased. Dell will report earnings 8/21 and the focus was the September $10 IOTM puts with shares at $11.50, more than 30,000 bought to open around $0.24. Shares are near a breakdown and the PC markers remain a favorite short of famed short sellers.
August 1st, 2012
Alpha Natural (ANR) saw bullish positioning, although will want to confirm the OI change, as 15,000 January 2013 $8/$4 bullish risk reversals traded at $0.79. The strategy comes ahead of 8/8 earnings in the beaten down coal name, willing to be long stock at a $6.79 basis and wanting upside exposure, possibly seeing industry consolidation in the near future.
Gold (GLD) large buyer of 12,500 November $70 calls today and the November $185/$215 call spread was bought 25,000X on the day. Also, the November $180/$210 call spread bought 25,000X today at $0.92.
Verizon (VZ) had a buyer of 4,000 September $46 puts at $0.97. Bears continue to position in VZ and now a potential double top in play, one to look at from short side with easy $46.50 stop to trade against. Earnings recently were under whelming and valuation pricey now despite the high yield.
Masco (MAS) put volume hit 15X daily as 11,000+ September $12 puts were sold to open at $0.75/$0.80 bids, traders willing to be long the name sold $760,000 in put premium. MAS can be traded long against 11.50.
September 28th, 2012
Level 3 (LVLT) with 2,750 December $22 calls bought to open at $2.55 offers, more than $430K call premium bought today and Net Delta +160K with shares putting in a nice reversal candle today after recent selling pressure. Goldman Sachs started shares at Buy back on 8-10-12 with a $30 target.
GameStop (GME) trades 4,250 January 2013 / January 2014 $25 call calendar spreads at $1.56, possibly a roll out. The $25 level is longer term trend resistance and shares remain very cheap on valuation by the numbers although the business fundamentals continue to weaken.
Schlumberger (SLB) November $67.50 puts are being sold on bids today for more than $500,000 in put premium, may be closing long puts, or selling to open, OI will confirm on Monday. Shares have been under pressure and the Oil Services group reported quality earnings last quarter, so a bounce at this key level is likely.
September 27th, 2012
Deckers Outdoor (DECK) trades a block of 9,000 January 2013 $50 calls at the $1.10 offer but tied to 180,000 shares at $35.64 short, so a bearish synthetic long put position
C-Trip.com (CTRP) shares have been trading in a narrow sideways range but today the options action is heating up again with 3,000 November $17 calls bought to open, also a few of the Nov. 17 straddles traded. More than $240K call premium and +100K Net Delta on the day.
Williams (WMB) with a buyer of 5,000 February 2013 $40 calls at $0.52 offer, bullish action continues in size for WMB
September 26th, 2012
Alpha Natural (ANR) one of those metals names turning around and now up on the day with 3,370 September weekly $6.50 calls bought to open around $0.13, and overall $230K call premium and +265K Net Delta with bullish options flow including a block of 2,000 March 2013 $10 calls at $0.40.
Silver Wheaton (SLW) pulled back to its recent breakout and seeing elevated action in weekly $36 calls with buyers at $0.88 to $0.98 as 3,780 contracts trade today, traders positioning for a snapback rally in Silver.
Dillards (DDS) with the October $72.50/$67.50 ratio put spread bought 2,000X4,000 at $0.85 debit.
Gilead (GILD) trades a bullish 1,575 contract spread with the October $67.50 calls bought at $1.28 and the November $62.50 puts sold at $1.45
September 25th, 2012
Kinder Morgan Energy (KMP) with 10,000 March 2013 $90 calls bought to open today with shares at $83.15, buyers paying $0.44 for the OTM contracts. Shares are set up with a nice consolidation pattern and above $83.40 can break out. The $28.8B Co. with a 5.9% dividend yield trades 3.87X book. Barclays is Overweight rated with a $90 target.
Thomson Creek (TC) recent run may be coming to an end with put volume 6X daily today as 5,000 March 2013 $3 OTM puts are bought to open at the $0.50 offers for $259,000 in put premium. The $542M molybdenum miner trades 1.09X sales and 0.29X book value.
Anadarko Petro (APC) trades 5,000 November / January 2013 $82.50 calendar call spreads at $1.05. APC already has a lot of size positioned for upside in November calls. The recent breakout past $72 ran to $76 and quickly retraced but building support above $70. APC is also considered a prime large cap takeover target due to its lucrative assets.
NY Times (NYT) front month IV spiking early with 2,130 calls trading and 85% offer side for $37K call premium, buyers of the $9 calls 1,150X at $0.95 and 850 of the $10 calls. Shares cleared long term resistance on the breakout past $8 earlier this year and $10.50 looks to be next resistance
September 24th, 2012
Yahoo (YHOO) sees a sudden surge in September weekly $16 calls at $0.07 offers for more than 10,000 contracts and earlier a sizable October $16/$15 strangle bought 2,000X at $0.41. The action comes in ahead of tomorrows unveiling by CEO Marissa Mayer of a turnaround strategy. Yahoo has been in a sideways trading range of $14.50 to $16.50 for months, so news could cause a nice move tomorrow.
Ocwen Financial (OCN) with 5,180 calls trading and 66% offer side for $320,000 call premium, mainly in longer dated January and April 2013 calls. Nationstar Mortgage (NSM) trading 2,385 calls with 74% offer side for $300,000 call premium in various months and strikes. Both names are closely tied to Housing as Financials and have seen bullish action since May, but traders continue to see more upside in these two names.
Met Life (MET) with 50,000 Dec. 35/40 call spread with $30 short puts spread is closed and rolled to March 2013 strikes with the $35/$42 call spread and $30 puts sold, staying bullish but looking longer term.
Fact Set (FDS) trading 25X daily put volume into earnings tomorrow morning with a buyer of 1,200 Oct. 100 puts at $2.85 and 600 Oct. 95 puts being bought at $1.40. Shares were hit hard last quarter on a bad report, and are now back near the level pre-earnings.
September 21st, 2012
Alexion Pharma (ALXN) remains a top performer in Biotech and buyers fairly active in October $115 and $120 calls today, only 1,430 calls trading buy 60% offer for $240,000 call premium.
Mellanox (MLNX) second straight day of bullish call buying as $550,000 in call premium bought and Net Delta +85K as shares recover from a scare and are bought by those that missed the big rally after the strongest earnings blowout report and guidance of any company last quarter. The October $110 calls near $7 seeing the most buyers for 900+ contracts.
Salesforce (CRM) IV dropped sharply as 1,300 November $155 puts were sold to open at $8.80 bids across multiple exchanges in a sweep, traders willing to be long the stock in size at a $146.20 cost basis.
Keryx Bio (KERX) breaking out into a large gap and a seller of 5,000 December $3 puts comes in at $0.675 to open, a bullish signal. KERX shares need to reach $4.50 to fills its large gap. The $178M Biotech trades 6.6X cash value with no debt and 15.2% of the float short.
Research in Motion (RIMM) reports next week on the 27th and action today fully bullish concentrated in the October $7 calls with 23,700 bought for nearly $900,000 call premium and Net Delta +848K. The action comes as shares tested the recent lows after outage reports earlier.
September 20th, 2012
Medivation (MDVN) trader closes 1,500 September $100 calls at $3.51 and opens a December spread selling 1,500 of the $85 puts and buying the $105/$125 call spread.
Seagate Technology (STX) is trading 27,975 calls today and 14,400 puts with a Net Delta of +360K. The September $30 calls expiring tomorrow are most active with 13,000 bought today and many rolled back from the $30.50 strike with front month IV gaining all day unusually. The September options are loaded with Open Interest and could provide guidance tomorrow at its Analyst Event. Shares have pulled back recently and basing above $29, so potential to find buyers and make a run. The $11.55B Co. with a 4.35% yield remains a compelling value at 4.4X earnings, 0.77X sales, 3.34X book and 5.15X cash flow. Argus downgraded to Hold with a $34 target on 9-10. Western Digital recent cut guidance although STX did not react much, and there has been LBO Chatter in STX lately.
United Rentals (URI) with a large buyer of 3,500 October $34 puts at $1.45 to open, but tied to long stock, so a synthetic long call, and a bullish position. Shares are forming an inverse H&S bottom and can breakout over $38.
NII Holdings (NIHD) spiking and 6,000 of the October $7 calls bought at $0.70 to $0.80, more bullish action in this name, and $285K call premium bought, Net Delta +255K. NII Holdings (NIHD) with another trade as 7,000 December $6 puts sold to open at $0.35 along with 5,000 of the $11 calls at $0.25, and the $9 calls bought 5,000X at $0.85 to $0.90
Fed-Ex (FDX) trades 1,500 October $87.50/$85 bull risk reversals at a $0.74 credit as shares near long term trend support at $85.
September 19th, 2012
Yelp (YELP) continues to consolidate tightly below $26.50 and today seeing 1,500 November $23 calls bought, more than $185K call premium today with bullish flow.
TJX Co. (TJX) large holders of September $45 short puts closing at $0.37 and rolling to October with 25,000 $45 puts sold to open at $1.10, and traders still feel this name will hold up despite recent weak chart action, a name that has been reporting excellent sales numbers each month.
Pioneer Natural (PXD) sale of 24,750 December $110 calls to close and buys 24,750 December $130 calls at $1.70 to open while the 24,750 short $140 calls remain in OI, adjusting the spread and taking off a big profit.
McGraw Hill (MHP) with 2,000 October $55 calls bought at $0.75 offers to open
September 18th, 2012
USG Corp (USG) shares lower by 1.9% this morning after a recent strong run and puts trading 2X daily with 4,000 of the October $23 puts bought to open in the $1.70 to $1.79 range, more than $390,000 put premium purchased. Shares may look to re-test the $21 breakout level.
Freeport McMoran (FCX) large buyer of 6,500 January 2014 $50 calls at the $3.50 offer to open at the ISE, a $2.275M bullish position. FCX has seen strong buyers in February 2013 calls recently and broke out above $37, and remains a value with Copper climbing.
Melco Crown (MPEL) with a large ratio call spread, the January $14/$16 1X2 bought at $0.20 for 7,600X15,200. MPEL shares broke out at 12.50 and that measures to around $16, so the spread is utilizing that measured move for optimal profits.
National Oilwell Varco (NOV) is a name with large bullish positions remaining in November options and today saw bulls target January 2013 options as the $82.50/$92.50 ratio call spread was bought 4,000X7,000 and 6,000 of the $70 puts were sold to open. Shares have recently stalled near the February 2012 highs. The $35.7B Oil Services Co. trades 12.25X earnings and 1.9X book and remains a tough executor in the space.
September 17th, 2012
Deere (DE) falling to day lows with 1,000 October $80 puts bought at $1.47 for $260K put premium, potentially topping out at the July 2012 highs and weakness in Corn tends to see a correlating move in Deere shares.
MarkWest Energy (MWE) roll of 1,750 September $52.50 calls to October $55 calls with shares near a breakout above $54.50. The trade results in 5X daily call volume in the 5.93% yielder
Home Depot (HD) put sellers believe in the move and looking for continuation higher with 11,500 October $57.50 puts sold today, more than $500K put premium.
September 14th, 2012
Yum! Brands (YUM) looks to be failing at resistance and 4,500 October $65 puts bought today for more than $220K put premium with earnings due out on 10/9/12. There was heavy September $65 put action earlier this week, so could see potential preliminary guidance.
EMC seeing bullish flow as shares breakout past $28 and 5,000 January 2013 $28 calls bought at $1.77 offers, more than $585,000 call premium and Net Delta +380K with $30 looking to be the next target.
PACCAR (PCAR) seeing unusual call buying for the second day this week with 6X daily as 3,800 February $45 calls are bought to open and a block of 4,600 January 2014 $46.30 calls at $4.80, large bullish action with shares breaking out past $42 this week despite lowering its outlook.
HCA Corp (HCA) sales of 3,000 September $29 calls today as shares breakout while 6,000 November $32 calls are bought at $1.70 to open, staying very bullish with $1M in call premium bought and call volume 4X daily average.
Medivation (MDVN) retraced its move on FDA approval but finding support this week at $100 and a buyer today of 1,000 Sep. 100 calls at the $3.30 offer on the ISE to open, a large bullish play, so look for this to be an area for shares to build a higher base and move to new highs.
September 13th, 2012
BMC Software (BMC) shares coiled nicely and frequently seen as a takeover target with activist investors involved, and today a buyer of 3,000 January 2013 $45/$50 call spreads at $1.50 to open on the ISE.
Chesapeake Energy (CHK) lower today with the WSJ cautious on its recent asset sales and the January 2013 $20/$15 ratio put spread trades 8,500X17,000 at $1.02 debit on the PHLX today.
Hertz (HTZ) October $15 calls bought 3,750X on this dip at $0.50 offers for $120,000 call premium
September 12th, 2012
Regeneron Pharma (REGN) re-tested near its prior breakout and a buyer comes in for 450 September $140 calls at the $5.80 offer, a large buy valued at $260,000. REGN has been a consistent winner in Biotech with excellent results and has 9-21 PDUFA for Eylea for Retinal Vein Occlusion.
Sina Corp (SINA) with 10,000 December $80/$90 call spreads bought to open at $1.10 on the ISE as large bullish vertical spreads continue to trade in large size for December, seeing more upside in SINA. The weekly $60 calls also oddly active this morning with 4,000 trading. Shares broke long term trend resistance at $58 and $67.65 and $82.85 are the next two upside targets.
Ultra Petro (UPL) seller of 2,500 October $20 puts to open, buyers in October $23 calls 5500X
Linked-In (LNKD) 3 way spread sells 1,000 November $105 puts at $4 to buy 1,000 November $130/$150 call spreads at $4, net cost $0.00.
September 11th, 2012
Take Two (TTWO) September $10 calls that were bought when shares were slammed in early August are being closed today 7000X with October $12 calls opened 8,000X, keeping some long exposure.
Microsoft (MSFT) trades 24,000 December $33/$28 bullish risk reversals at $0.01 debit, willing to be long at $28 but wanting upside exposure as well with the upcoming Windows 8 launch.
Legg Mason (LM) breaking out as a CEO change was announced and trading 9X daily calls with 1,700 January 2013 $25 ITM calls bought to open in the $2.60 to $2.70 range for $245,000 call premium, expecting shares to continue higher.
AMC Networks (AMCX) buyer of 74,100 shares of stock and sells 2,000 December $45 calls in a buy-write, as 20X daily call trade.
September 10th, 2012
Whirlpool (WHR) breaking out past 2012 highs and 3,000 October $75 calls being rolled up to the $80 strike where more than 4,000 have been bought to open today for $325,000 call premium and trading 4X daily call volume. WHR was a great set-up on the move past $75 and continuing its strength, while the Oct. $75 calls were highlighted back on 8/27 when they were opened after rolling out of September long call positions.
EOG Resources (EOG) another strong Oil & Gas name and flagging intraday while call volume of 17,800 runs 6X daily with 5,000 September $115 calls sold to close at $2.06 and also appears 5,000 October $115 calls sold to close while 6,000 of the October $125 OTM calls are bought to open at $1.13. EOG has large long term bulls including the 10,000 Jan. 2013 $120 calls in OI.
Hess (HES) with $1.2M in call premium bought today, a large roll of 5,600 September $52.50 calls to 7,300 October $57.50 calls while November $50 calls are bought 9,600X on the day. Shares face long term resistance at $55.
Allegheny Tech (ATI) sale of 1,000 September $32.50 calls and buys 1,000 October $35 calls with 500 October $30 puts sold. ATI is a metals name that has lagged but trades fairly cheap on valuation and could make a move to $37 resistance after spending months forming a strong base.
September 7th, 2012
Moodys (MCO) looks to be a trade adjustment after the strong run and ahead of the 9-12 Analyst Day with 5,000 September $39 calls sold, likely closing, and 5,000 September $41 calls bought at $0.96 to open.
Cheniere Energy (LNG) trading nearly 20,000 calls the first 2.5 hours with 61% offer side, large buyers of September $15 and $16 calls for $200,000 call premium and Net Delta at +410K, while the 10,000 October $16 calls bought are still holding positions.
Freeport (FCX) roll-up of 4,000 November $36 calls to the $41 strike
JDS Uniphase (JDSU) buyers of 5,000 October $13 calls, same calls recently bought 10,000X
September 6th, 2012
Research in Motion (RIMM) seeing 10,000 October $7 calls bought at $0.57 to $0.59 offers with $500,000 call premium bought and Net Delta +635K near the most bullish today in the market. Shares made new lows to start the session but have now bounced and turned green.
Dun & Bradstreet (DNB) a name that is up for sale and 3,000 November $90/$95 call spreads opened today
Stec (STEC) still moving to highs up 2.2% while IV30 jumps 22.5% with call volume at 11,600 and 75% bought on the offer as September $8/$9 calls are very active, as well as October $8 calls, and were actively bought last week as well, a potential takeover target, and reports it may have cancelled out of a Citi Conference.
Endo Pharma (ENDP) April $35/$30 bullish risk reversals trading 1,500X at $0.50 debits, bullish positioning with shares recently putting in a major base above $29.
September 5th, 2012
EV Energy (EVEP) shares have rallied sharply since seeing unusual call buying back in June/July and today those winning trades adjusting with 1,000 September $65 and $70 calls sold and 2,000 October $70 calls bought to open as call volume hits 8X daily average.
Monster Worldwide (MWW) shares up 9.6% today and trading 16,700 calls with 68% offer side for $359,000 call premium and Net Delta +260K. There was vague reports that takeover chatter was back around, but did not see a source, and seemed more as a guess as to why it was strong. The call action today is bullish with 5,000 September $8 calls leading the action and also active October $8, $9, and $10 call buys. IV30 continues to rise and is higher by 35.6% today, a signal there may be more to this and a Company that has been seeking a sale. Many remain skeptical MWW will find a buyer, but at 0.85X sales and 0.72X book value shares could find a strategic buyer.
Green Mountain Coffee (GMCR) 3 way spread in December for 3,000 contracts with $36 calls sold and $23/$18 put spreads bought, net $1.32 debit on the spread.
UPS April $80/$67.5 bull risk reversal trades 2,320X at $1.76 credit with shares weak on the Fed-Ex warnings, and a trade that I have seen in recent weeks with OI accumulating
September 4th, 2012
Kraft (KFT) continues to see bullish positioning, large size out in December and January options recently and today 4,900 October $42 calls bought and 10,000 September $43 calls, more than $520,000 call premium purchased today with call volume 3X the norm.
First Solar (FSLR) roll down of 5,000 October $20 puts to the October $18 puts, same trader was adjusting lower all last week and been making a great call on this one.
Mercado Libre (MELI) with opening sales of more than 3,000 October $75 puts, trading 5X daily put volume, traders willing to be long around a $72.50 cost basis. Shares are basing along its 50 day EMA and above its earnings gap currently.
Oil Services (OIH) spread traded Friday with 5,000 January 2013 $45 calls sold and 5,000 October $40/$36 put spreads bought, net $0.17 debit on the spread. The OIH does look to have put in a large rounded top with support at the 34 EMA at $39.75 and 50 day SMA at $38.40.
October 31st, 2012
Rockwell Automation (ROK) trading 6X daily calls with 2,150 of the November $70 calls bought to open at $2.10 to $2.30 for nearly $400,000 call premium, and ahead of earnings on 11/5/12. ROK shares have closed lower on 5 of its last 6 reports. Shares have been trading in a very narrow channel down pattern for the last 12 weeks and could see a rally to the $75 level or a fall back to $66.50. ROK will also host an investor meeting on 11/8. Deutsche Bank initiated shares Buy with an $82 target on 10-12-12. The $9.8B Industrial trades 12.7X earnings, 0.95 PEG, 1.57X sales and 5.1X book with a 2.71% yield.
TJX Co. (TJX) with bullish buyers of 3,980 November $42.50 calls at $0.55 offers, and comes ahead of tomorrows same store sales report. TJX shares have finally showed some weakness in recent weeks and on positive news could once again find buyers.
Wabco (WBC) breaking out of a nice base and reports 11/2 before the open, buyers of 1,000 November $60 calls this morning and also a sale of 1,000 December $50 puts.
October 24th, 2012
PNC Financial (PNC) shares have been hit hard, down from a double top at $66.50 and with a big buyer of 1,500 January 2013 $60 calls at $1.85 here a positive signal for a potential turnaround in shares. The $31B Bank now trades 8.77X earnings and 0.8X book value.
Xilinx (XLNX) nearing a breakdown and 2,500 December $33 puts bought in the $1.52 to $1.56 range for $290,000 put premium, major support down at $31.50.
Time Warner Cable (TWC) has been a great stock and has seen a lot of large longer term call buying and now with shares pulling back to the rising 20 day EMA it is seeing more bullish action in the form of opening put sales at the January 2013 $87.50 strike for 10,000 contracts at $0.90/$0.95 bids.
Williams Co. (WMB) with 25,000 November $32 puts sold to open at $0.41 to $0.44 bids as IV drops, earnings 10/30 and a name with massive bullish call OI, held 50 day EMA yesterday.
October 23rd, 2012
Gold (GLD) has pulled back sharply the last 3 weeks off the $174 highs and filling some gaps along the way, but now very oversold. A large trade today is looking for a strong close to the year with the December $180/$190/$200 call fly 11,000X22,000 at $0.30 debit.
Ralph Lauren (RL) on lows and 1,000 April 2013 $145 puts bought, and 1,100 were bought to open on 10-4-12 as well. Shares starting to roll-over and its foreign exposure likely to hurt results on 10/31.
ADT Corp (ADT) trades another 3,500 January $42/$36 bull risk reversals at a $0.10 credit
Infinity Pharma (INFI) with a size buyer to open of 1,250 December $22.50 calls at $3 as shares test its 50 day EMA
October 22nd, 2012
United Technologies (UTX) with a large spread into earnings as the November $75/$72.50/$70 butterfly put spread trades 12,000X24,000 at $0.26 debit, trader expecting downside on earnings and shares re-revisit support down at $72.
Ocwen Financial (OCN) with 1,850 November $40 calls bought and then trades 3,000 November $42.50/$30 bull risk reversals at a $0.40 debit, another bullish position with $430K call premium bought today and shares flagging tightly, potential to break to new highs and in the hot mortgage servicing industry
Nike (NKE) calls active this morning with Under Armour (UA) reporting later this week. A popular spread today is selling the weekly $95 calls and buying the November $97.50 calls at net $0.06 credit, seeing limited upside the rest of the week with major support near $93, and the potential to own free November calls if the weeklys expire worthless, the trade done 2,000X
Oncothyreon (ONTY) traded 50X daily put volume as the December/May 2013 $5 put calendar spread traded 5,000X at $1.50 debit, nearly $750,000 premium bought on the trade. The $295M Biotech trades 3.46X book and 3.87X cash with 16% of its float short. ONTYs lead product is Stimuvax, a cancer vaccine, being evaluated in two Phase 3 trials for treatment in NSCLC. Primary efficacy data will be reported in 2013, so this spread is positioning for IV in the May options to jump into results and for shares to remain near this $5 level for awhile.
October 19th, 2012
Emerging Market ETF (VWO) opening buys of 7,950 November $42 calls at $0.825 and IV jumping, buying calls at the bottom of the recent range with the rising 50 day EMA supporting the bullish move with a likely $45 target.
eBay (EBAY) seeing some bearish spreads with 5,000 November $55 calls sold to buy 5,000 November $45 puts, but most likely collaring long stock positions as that trade makes sense after the strong move to new highs yesterday to offer some protection.
BP Plc (BP) bullish traders remaining long and strong as 5,000 October $40 calls are sold to close at $3.37 and 5,000 January 2013 $42 calls are bought to open at $2.65.
Chicago Bridge (CBI) trading more than daily average calls with 6,000 October $34 calls rolled out and up to January $36 calls, report son 10/23. Shares are right on major trend support and held $37.50 as a double bottom recently. The $3.8B Co. trades 11.15X earnings, 0.76 PEG, 0.76X sales, and 9.6X cash flow, a great value, one of the best value/growth plays in Industrials.
October 18th, 2012
Pioneer Natural (PXD) with 2,500 January $115 calls bought to open at $5.20 after some adjustments with 1,250 January $130 calls sold at $1.60.
Lamar Advertising (LAMR) , a name converting to a REIT, with a big trade as 24,492 October $32 calls closed at $7, and January 2013 $35 calls opened at $5 for 24,492 contracts, and also 12,246 of the January 2013 $28 puts sold to open, staying bullish.
Medivation (MDVN) has pulled back to a former breakout level and now oversold, a buyer of 1000 December $52.50 calls at $3.30 looking for a recovery, and already 3,063 of those calls in Open Interest
Forest Labs (FRX) springing off the $35 level and buyers active in November $36 calls at $0.85 to $0.90 for 2,500 contracts, and a name with large size in January call OI
October 17th, 2012
International Paper (IP) January 2013 options active as the $35 calls see profit taking with 18,000 sold, while the $39/$43 call spreads are bought to open 30,000X at $1.22.
Dow Chemical (DOW) another 10,000 December $32 calls bought after 20,000 bought yesterday, and also 6,780 January 2013 $31 calls bought today, a potential beneficiary of new IRS ruling for becoming a MLP.
Focus Media (FMCN) with 10,000 January 2013 $21/$16 put spreads bought at $1.10 to open. The April 2013 $20 / Jan. 2015 $15 put ratio spreads bought 10,000X20,000 in the past week as well.
Ralph Lauren (RL) opening buyer of 1,060 November $160/$145 put spreads at $3.35
October 16th, 2012
IBM Corp (IBM) with a large trade ahead of earnings as 4,000 November $210 calls are sold to open at $4.60 and 2,000 January 2013 $210 calls bought at $7.20. The spread clearly sees limited upside near term, but likes IBM longer term.
Sand Ridge Energy (SD) large spread in March 2013 options with 15,000 of the $8 calls bought at $0.60 and 10,000 of the $7 puts sold at $0.69, bullish action continues to surface in this small cap
Humana (HUM) with a large trade as shares consolidate at the $75 level and likely impacted by the elections. The November $82.50/$70 bull risk reversal traded 7,500X at a credit of $0.30, so the trader willing to be long at $70 but wanting upside exposure for a move higher.
Euro (FXE) another currency ETF with unusual options action as 5,320 March 2013 $130 puts are bought to open at $3.44, and looks to be a roll out from 2,750 contract lots of Oct. 131 puts and Dec. 130 puts that also traded, seeing further issues for Europe into 2013.
October 15th, 2012
Regions Financial (RF) bouncing off lows, also channel up support, and 7,500 November $7 calls bought at $0.51 offers for $100K+ call premium and already 29,000+ in Open Interest
Amarin (AMRN) with 3,320 of the November $10 ITM calls bought to open, and also seeing buys in November $13 and $14 calls, tends to be a big mover and IV30 jumping 8.5%
Zimmer (ZMH) with 1,300 October $60 calls bought to open in the $2.60/$2.70 range, likely playing the sympathy move for Strykers (SYK) 10/17 report
Urban Outfitters (URBN) IV jumping as 2,500 October $37 calls were bought to open in the $0.70 to $0.95 range for $94K call premium. URBN not scheduled to report until mid-November but often releases filings with monthly sales numbers.
October 12th, 2012
Aegerion Pharma (AEGR) trading 11% higher ahead of the 10-17 FDA event for Lomitapide in Homozygous Familial Hypercholesterolemia. JP Morgan initiated shares at Overweight with a $22 target on 10-3-12. A large trade today sees the October $12.5 calls bought 2,950X at $5.60 and 2,950 of the December $25 calls sold at $0.50, a trade looking for upside, while the October $12.5/$10 put spread traded 5,450X at $0.80 as well, but may be a slight adjustment in strikes with 8932 Oct. 12.5 puts already in OI.
Rackspace Hosting (RAX) opening buy of 1,7000 December $70 ITM puts at $6.10 offer, more than $650,000 in put premium purchased on the trade
TJX Co. (TJX) roll out of 25,000 short October $45 puts to November $45 puts sold to open 25,000X at $2.16. TJX has sold off and broken major moving averages but continues to post strong numbers on same store sales.
October 11th, 2012
Herbalife (HLF) with a 3 way spread in January 2014 options as 1,500 of the $50/$60 call spreads bought at $5.70 and 1,500 of the $42.50 puts sold to open at $6.20, willing to be long stock on a move back down, but wanting that upside exposure.
Citi (C) with an opening buy of 6,000 January $39 calls at the $1.22 offer and continues to see strong bullish options flow ahead of earnings on 10/15 and with shares breaking out past long term trend resistance today with $37.50 and $45 next target moves.
Allergan (AGN) front month IV jumping here with nearly 2,000 October $92.50 calls bought in the $0.90/$0.95 range
Clearwire (CLWR) buyers were active all day in November $2.50 calls at $0.05 to $0.15 as 55,000 contracts traded, due to canceling out of a conference and the potential Sprint (S) buyout.
October 10th, 2012
Ericsson (ERIC) seeing bearish flow with 9,000 of the November $8 puts bought to open at $0.25 today, trading 20X daily puts for $155,000 put premium bought.
Rackspace (RAX) buyer of 2,000 November $65 puts at $2.25, but tied to a buy of 64,000 shares at $68.75, so a synthetic long call position, and the Tech name continues to trade strong and hold up as peers fall.
EMC January 2013 $25/$28 call spread bought 10,000X on weakness at $1.37
Citi (C) buyer of 5,000 December $37 calls and sells 5,000 each of the December $38 and $40 calls, net credit of $0.09 per spread
October 9th, 2012
Celsion (CLSN) opening buy of 5,000 OTM February 2013 $2 puts at $0.60 with shares at $5.50 and follows 3,000 February 2013 $3 puts bought to open at $0.90 yesterday. Celsion has a strong chart trending higher with the 20 day EMA support and a move above $6 would break shares out, also strong buy volume to sell volume ratio in recent weeks. The $195M Biotech plans on completing ThermoDox HCC studies in December 2012, and likely see results soon after.
Anadarko Petro (APC) spreads selling 29,000 November $70 calls and buying 20,000 January 2013 $75 calls
MetLife (MET) with 5,000 March $35 calls bought today, already 50,000 of the $35/$42 call spreads with short $30 puts spreads in Open Interest.
Polaris (PII) opening buyer of 3,000 October $80 puts at $1.65 to $1.75 and reports earnings on 10/18, bearish action. Citi reiterated a Buy on shares this morning.
October 8th, 2012
Jabil Circuit (JBL) even more oversold today with RSI (14) now below 6 and traders looking to play for an oversold bounce with 1,650 November $17 calls bought to open around $1.05. The $3.7B Co. has been trading lower since missing on earnings and lowering its outlook, but now at 6.2X forward earnings, 0.22X sales, and 1.76X book shares are very cheap. UBS cut estimates in late September, but still Buy rated and a $25 target.
Nu-Skin (NUS) roll of 3,000 October $40 calls out to 3,000 November $45 calls, staying bullish after a recent strong rally off the lows, and possibly staying long through earnings around 10/23.
Freeport-McMoran (FCX) with a sudden surge in buying as 4,000 November $42 calls are bought at $1.24 to $1.27, more than $600,000 call premium with shares near day highs and recently consolidated nicely along its 20 day EMA, and longer term bulls positioned in size with February 2013 calls.
October 5th, 2012
BMC Software (BMC) has been surrounded by a lot of strong takeover chatter and today a buyer of 10,000 January 2013 $45/$50 call spreads at $1.65 debit
Phillips 66 (PSX) large spread traded with 2,000 January 2013 $50 calls sold and 10,000 January 2014 $60 calls bought to open, more than $2.3M in call premium purchased today with Net Delta +260K. Phillips 66 (PSX) also with a buy of 5,000 February $55 calls to open at the $1.05 offer now, major long term bullish activity continues to build in this name
Whirlpool (WHR) bull that has been rolling calls out and up for a few months closes 3,500 October $80 calls today and buys 2,500 November $87.50 calls, staying bullish with shares breaking out to 2012 highs today. WHR lacks much resistance until $96.50 and remains a cheap value on the housing recovery.
Ultra Petroleum (UPL) longer term bulls with 1,650 January 2014 $23 calls bought at $3.90 to $4 offers for more than $575,000 call premium in the first 10 minutes of trading.
October 4th, 2012
Alliance Data Systems (ADS) with an opening sale of 2,500 March 2013 $135 puts at the $5.40 bid, selling $1.3M in put premium and willing to be long stock at a $129.60 cost basis, the trade done when shares were at $142.67. Shares are currently forming a bullish flag above its 20 day EMA and near all-time highs and look headed for $150. The $7.14B Co. that provides marketing and customer loyalty programs trades 14.6X earnings, 2.07X sales and 7.7X cash flow with 55% EPS growth in FY12 and 14.35% seen for next year. ADS also has 20% of its short float, 18.4 days to cover. ADS will next report results on 10/18/12. Citi initiated at Neutral on 8-30 with a $146 target and most of the Street is neutral-rated and has been missing this story.
Gold Miners (GDX) with a consolidation pattern and look headed higher with Gold likely making a run to $2,000/oz. A bullish strategy today sold 10,000 January 2013 $54 puts to open and bought 10,000 March 2013 $62 calls to open.
Metals (XME) active November call buying with 8,400 of the $47 calls today and trading 2.5X daily calls, $500K call premium bought, Net Delta +348K, and metal names strong today and many forming higher lows and a good spot to look for some bounces.
Health Net (HNT) with 3,975 November $32.50 calls bought $0.40 offer and 2,000 November $20 puts sold $0.40 bid in an opening spread, and HNT seen as the next potential M&A target in a consolidating industry.
October 3rd, 2012
Limited (LTD) with 1,400 October $50 calls bought to open ahead of same store sales at $1.05 offers for nearly $100,000 call premium and 2X daily call volume. Shares have pulled back below resistance after a breakout took shares to new highs at $52.
Kohls (KSS) day highs and bullish options action all week into sales, now today with 5,000 October $52.50 calls bought at $0.90 offers in a sudden surge at 10:26am
Goodrich Petro (GDP) IV heating up with 2,550 November $15 calls being bought at $0.45/$0.50 offers to open, trading 4X daily calls with $95K call premium bought
Blackstone (BX) pulled back to prior breakout and sets up for a bounce and traders buy 1,400 March 2013 $14 calls at $1.26 offers, more than $140K call premium
October 2nd, 2012
Aegerion Pharma (AEGR) trading very unusual size in the options with 6,250 October $17.50 calls and 3,150 October $12.50 puts and IV jumping. The positions are trading as spreads with the initial action buying the puts and calls trading near the mark, mostly appears to be long volatility strategies. Shares of AEGR are trading right at long term trend resistance and above $16 can make a run. AEGR has an October 17th PDUFA for its NDA Lomitapide for treatment of adults with Homozygous Familial Hypercholesterolemia (HoFH). The $378M Co. trades 4.4X book and 3.76X cash.
Kohls (KSS) rebounding early and large bullish buyers active in November $52.50 calls at $1.30 to $1.45 for 2,600 contracts, more than $265,000 call premium, and ahead of same store sales Thursday
Williams (WMB) call buys active every day it seems, today the November $38 calls again with 5,000 bought, more than $500,000 call premium purchased.
Abercrombie (ANF) trading 2,300 November $35/$27 bull risk reversals in the first 10 minutes of trading, bullish positioning. Shares have pulled back from $39 to $33.35 despite recent takeover chatter
October 1st, 2012
McDermott (MDR) saw bearish trading with 6,980 of the October $12 puts bought to open with a block of 3,000 at $0.35 and another block of 3,000 at $0.45, net $255,000 put premium and 5X daily put volume. MDR will present at the Johnson & Rice Energy Conf. Tuesday at 9am. Shares were started Buy at Global Hunter on 9-12 with a $16 target, but the puts are cheap for a name that lacks much support until $11.
Holly Frontier (HFC) a bullish 2,000 contract spread with the $39 puts sold at $1.20 and the $42/$45 call spread bought at $1.15
Dollar General (DG) traded 3,207 calls on the day, 3.5X daily average and 70% offer side for nearly $100,000 of premium. One trader late in the day bought 1,500 of the October $50 calls to open at $2.10 and the move comes ahead of Family Dollar (FDO) earnings 10/3/12 before the open, looking for a positive sympathy reaction. DG recently announced a 36M share secondary at $51.75/share. Piper initiated Overweight on 9-12 with a $61 price target. DGs weekly chart makes the movement since June look like a large bull flag in a strong uptrend and a move past $53 breaks shares out for a strong run to $60. The $17.22B Co. trades 15.5X forward earnings, PEG of 1.1, 1.1X sales, and 3.58X book with 15.6% EPS growth seen for FY13.
November 30th, 2012
Ingredion (INGR) a name that broke out earlier this week and today trading 25X daily options with 775 April $70/$60 bull risk reversals at $0.40 credits. The $5B packaged goods Co. trades 11.1X earnings, 0.77X sales and 2.04X book, still undervalued despite the move to all time highs.
Illumina (ILMN) broke out today and Dec. 52.5/55 calls seeing some interest, frequent M&A chatter name after recent deal broke down, IV30 jumping 17.5% today
Deckers (DECK) large call blocks trade, looks to be rolling out 15,000 January 2013 $40 calls to March 2013 $40 calls
Patterson (PTEN) strong breakout play and 2,300 December $18 calls bought today at $0.75/$0.80 offers for nearly $100K call premium and 2.5X daily call volume.
November 29th, 2012
Qualcomm (QCOM) with bullish options flow today as $400K call premium bought and Net Delta +184K, most of the action buying January 2013 $65 calls at $0.88 to $1.07 with 12,000 of those trading, although already more than 40,000 in Open Interest. QCOM recently delivered another strong quarter and remains a leader in Semis due to its exposure to mobile Tech. Shares are nearing a run-in with trend resistance off the prior tops at $64, and above there can look to $65 and $68. At 13.15X earnings shares are still fairly cheap on valuation. Nomura raised its target to $75 on 11-13, Buy rated.
Sarepta Therapeutics (SRPT) with unusual action as 1,000 May 2013 $36 OTM calls are bought to open at $7.10 with shares at $30
Lowes (LOW) bull continues to roll up in strikes with 10,000 Dec. 34 to Dec. 36 today, an Analyst Meeting early in December the next catalyst
Cheniere Energy (LNG) large buyers of 8,000 December $17 calls at $0.40, and a name already with a lot of OI in December calls, shares on the move higher.
November 28th, 2012
Kroger (KR) bullish chart into earnings tomorrow morning and seeing 78% of the 7,950 calls trading halfway through the day on the offer, including 3,770 January 2013 $25 calls at $0.85, more than $390K call premium bought and Net Delta +287K. Shares have closed higher on earnings 2 of its last 3 reports. The December $25 calls also hot today with 3,200 bought. The $13.1B grocer trades 9.6X earnings, 0.14X sales and 3.45X book. Jefferies reiterated a Buy and $30 target on 11-23.
Halcon Resources (HK) opening buyers of ITM December $5 calls for 5,000 contracts and December IV jumping, a name that recently saw large buyers of January 2013 $5 calls.
Eastman Chemical (EMN) trades 7,000 March $62.50/$52.50 bull risk reversals at $0.40 and note the 12,697 March $60 calls already in Open Interest from large bullish buying weeks ago.
Avago Tech (AVGO) reports tomorrow after the close and 1,175 December $35 calls bought today at $1, trading 6X daily call volume with bullish action. The $8.35B Semi trades 12.25X earnings, 3.53X sales and 3.65X book and has components in many of the top-selling Smartphones.
November 27th, 2012
DR Horton (DHI) with 2,500 May 2013 $20 calls bought to open at $1.92 offers today for $460K call premium, Net Delta +120K, bullish action in the homebuilder that bounced off its 200 day EMA and housing data remains strong with more to come later this week.
Texas Instruments (TXN) has held up well in the Semiconductor group lately and will present at the CSFB Conf. today at 12:30pm. TXN is seeing unusual action today with 3,000 of the weekly $30 calls bought to open at $0.12/$0.13 offers, just $40K of call premium, but interesting into the event, while the mid-quarter update is not until 12-10. Shares have formed a cup and handle and above $30 can breakout to $31. The $33.2B Semi trades 16X earnings, 2.5X sales, and 2.9X book with a 2.83% yield.
Broadcom (BRCM) continues to see bullish options positioning, recent accumulation in December calls, and today 4,600 of the January $31 calls bought to open around $2.13, more than $320K call premium and +177K Net Delta, BRCM presents at the CSFB Tech Conf. today at 2:30pm and hosts an Analyst Day on 12-6.
November 26th, 2012
Informatica (INFA) moving off day lows with 2,350 March 2013 $27.50 calls bought to open, and after 6,000 March 2013 $25 calls bought to open last week.
United Therapeutics (UTHR) IV falling with 5,700 May 2013 $57.50/$47.50 strangles sold to open at $4.90 credits, large premium sales expecting shares to remain in a range for a few months. UTHR recently posted impressive earnings, but has limited near-term catalysts for shares.
Exelon (EXC) an oversold Utility with call volume 2X daily, more than $140K call premium with the January $30 calls bought 2,300X at $0.65. Also, the Utility (XLU) ETF is seeing sizable call buying today. Deutsche Bank upgraded Exelon to Buy this morning with a $34 target, and notes it a value opportunity with dividend cut fears hitting shares down 34% TYD.
November 21st, 2012
Nvidia (NVDA) moving to day highs and shares hit new lows last week despite two consecutive fairly strong quarters reported. The $7.12B chip Co. now trades 11.85X earnings, 1.7X sales and 1.5X book with a lot of cash and no debt, so valuation attractive and one trader willing to be long a lot of stock sells 18,000 January 2013 $11 puts at the $0.36 bid to open.
Occidental Petro (OXY) bottom players buying 1,500 ITM January 2013 $72.50 calls at $3.90 offers for $200K call premium, Net Delta +88K. OXY last week had an opening sale of 15,000 February $70 puts as well as traders see an end to the declines.
OReilly Auto (ORLY) more bullish positioning yesterday with a sale of 3,300 February 2013 $80 puts and the February 2013 $90/$100 ratio call spread bought 2,200X3,300.
SuperValu (SVU) December volatility spiked with 15,000 December $3 calls bought at $0.15. Shares have retraced the big move from October and starting to find support. The WSJ reported in October that Cerberus is interested in acquiring SVU at $5B, with $800/$900M in equity and current market cap $540M.
November 20th, 2012
Ultra Petroleum (UPL) shares jump as 2,000 January 2013 $21 calls are bought to open at $1.90/$1.95 offers for $200K+ in call premium, Net Delta +147K with shares in a narrow multi-month range.
Kohls (KSS) January $50 puts seeing action here for 3000 contracts at $1.25, more than $245K put premium. Shares were recently hit on earnings and could see a weak Holiday season, and eventually face similar issues to JCP.
Archer Daniels (ADM) on a 3 day run after making new lows and upgraded today. The January 2013 $28 calls active with buyers in the $0.24 to $0.27 range for 10,600 contracts.
November 19th, 2012
JP Morgan (JPM) is trading 79,000 calls in the first 2 hours which is above a full days average. The largest trades are 15,000 January 2014 $55 calls at $0.67 offer, 10,000 of the January 2014 $45 calls at $2.64, and 7,500 December/January $42 call calendar spreads at $0.45. The weekly $40.50 calls are very active as well with 15,000 trading.
Acadia Pharma (ACAD) December calls active, trading 5080 calls today, 4X daily with the $3.50 calls most active at $0.47, OTM buyers speculating in the Biotech. Acadia will release Phase 3 data on Pimavanserin in Parkinsons disease patients with psychosis, expected next week.
VeriFone (PAY) 2.3% higher after Bloomberg M&A had a piece out on Google potentially buying the Company, but option traders not believing it as 2,300 December $30 puts are bought to open at $1.80 offers, more than $265K put premium, and also have earnings 12/13 as a catalyst for shares.
Yelp (YELP) rounding out a bottom and buyers active for 1,200 December $16 calls at $2.35
Procter & Gamble (PG) large trade with 16,000 January $67.50 calls sold at $1.43 and 16,000 April 2013 $67.50 calls bought at $2.43, likely rolling out for an extra $1 and buying more time. This is the first real movement seen in these PG calls since I highlighted the bullish buying ahead of the Ackman stake news back in July with shares below $60, but looking to stay bullish. Traders also rolling out 10,000 of the calls in the $65 strike and 20,000 in the $60 strike.
November 16th, 2012
SanDisk (SNDK) seeing even more bullish call buying today for $450K call premium with 4,500 of the January 2013 $39 calls bought in the $2.52 to $2.69 range, offer side action with shares testing down near gap support.
Brookdale Senior Living (BKD) trading 2,900 calls today, 9X daily with 2,200 December $25 calls bought to open around $0.80 and IV30 jumping 5% today. Shares are trading 9% higher on heavy volume and clear accumulation in shares the past few months. Shares are up today on speculation the Company could look to switch to a REIT, a positive catalyst.
Onyx Pharma (ONXX) looks to have put in a bottom yesterday and a name with some sizable bullish positions in February 2013 options. Traders today buying 1,500 December $75/$85 call spreads at $2.60 debits, more than $260K call premium.
Cobalt Energy (CIE) has done a great job of holding $20 support and roll outs today with 2,000 December $17.50 calls bought to open and 1,000 of the December $20 calls.
November 15th, 2012
Pulte Homes (PHM) trader buys back 6,500 November $17 short puts and sells 13,000 December $15 puts to open at $1.04, confidence that the homebuilder recovers higher into year end
Health Net (HNT) shares rising with 3,050 January $27.50 calls bought against 1,550 April $20 puts sold in bullish risk reversal spreads, and a name that is a potential buyout target in an industry seeing a lot of M&A.
Riverbed Tech (RVBD) trades 1,000 March 2013 $18/$15 bull risk reversals at $0.65 debits, bullish positions with shares trying to hold gap support and signs of the industry stabilizing with the Cisco (CSCO) earnings earlier this week.
Morgan Stanley (MS) seeing large put sales in April 2013 with 10,000 of the $16s at $1.64 and 5,000 of the $14s at $0.88, more than $2M in put premium sold to open on the day.
November 14th, 2012
Vodafone (VOD) back near $25 support and down sharply the last few days after reporting earnings, but now yields 5.78% and calll buyers stepping in today for the December $25 calls 5,000X to open at $0.67/$0.70.
Sina Corp (SINA) trades the November $57.5/$60/$62.50 Butterfly Call Spread at $0.25 for 3,273X6,546 contracts into 11/15 earnings.
Verizon (VZ) roll of 10,000 November $44 puts to December $44 puts
Coach (COH) traders starting to move out of November $55 put positions and roll to December $52.50 puts with more than 6,000 trading in each, staying bearish and put volume nearing 3X daily average today. Shares are barely hanging onto support near $53 the past week weeks.
November 13th, 2012
Fortinet (FTNT) with 1,400 March 2013 $17 ITM calls bought to open at $2.40, traders attempting to call a bottom in the beaten up Tech name that may become a M&A target.
Tiffanys (TIF) with 1,500 December $62.50/$67.50 call spreads bought today at $1.68 to open, earnings to be announced on 11/29
Sigma Aldrich (SIAL) with a large opening sale of 5,000 January 2013 $65 puts at $0.75 bid, a willing long of 500,000 shares and a name that has 21,450 April 2013 $80 calls in OI that accumulated in recent weeks.
Amazon.com (AMZN) seeing notable buying in December $220 calls for 1,470 contracts, nearly $800,000 call premium bought. Amazon shares are showing good support neat $225 and trying to hold the gap support from July earnings.
November 12th, 2012
Linked-In (LNKD) sees a sudden surge in December $110 far OTM calls with 1,800 bought at the $1.45 offers and $375,000 call premium bought on the day. Shares are down around 15% from post-earnings highs, and after reporting another fantastic quarter, so if Tech can rally it is a name that will likely recoup a lot of these losses and fast.
Marathon Oil (MRO) trade adjustment with 41,500 November $30 short puts bought back at $0.26 and 41,500 December $29 puts sold to open at $0.56, a name with bullish action since shares were at $24, and now willing longs at the $29 level.
Eli Lilly (LLY) trading 32,500 calls in the first 80 minutes, nearly 2X daily with a 5,000 block of November $48 calls and January $52.50/$55 call spreads trading 10,000X, potential roll backs in strikes for a higher Delta with shares having pulled back and trying to base. Lilly will present Phase II data in rheumatoid arthritis (RA) for two of its investigational autoimmune medicines at the annual meeting of the American College of Rheumatology (ACR), which takes place Nov. 10-14, 2012, in Washington, D.C. and is partnered with Incyte (INCY).
November 9th, 2012
Fossil (FOSL) with bullish buyers of 825 January 2013 $80 calls at $6.70 offers, nearly $400,000 call premium bought and shares bouncing at the $80 level today after dipping into its gap. FOSL now trades 13.35X earnings, 0.95 PEG and 25.4X cash flow into what should be a strong Holiday shopping season considering Consumer Confidence data and expected Holiday spending.
Childrens Place (PLCE) with 1,200 November $57.50 calls bought $1.55 offers, more than $160K call premium, bullish into November 15th earnings
Norfolk Southern (NSC) looking very oversold and hints of bottoming today with 1,000 December $60 calls bought at $1.30 offers to open today.
Humana (HUM) shares looking to hold the gap-down lows after earnings and bounce and trading 9,740 calls and 5,700 puts on the day with Net Delta +269K as $725,000 call premium is bought, size buyers of 4,000 November $70 calls that expire in a week and 1,700 of the December $70 calls at $2/$2.20. Front month IV is also jumping and IV Skew showing a demand for OTM calls. On 11-6 a trader added 10,000 November $80 calls to open interest and overall HUM has call OI of 123,531 and Put OI of 56,868. The $11.18B Medicare Co. trades 8.8X earnings, 0.89 PEG, 0.29X sales and 3.1X cash flow and the industry has seen a ton of M&A recently including Humanas buy of Metropolitan Health to start this week. Wedbush reiterated Outperform and a $102 target on 11-7.
November 8th, 2012
Pioneer Natural Resources (PXD) roll of 25,000 December $130 calls to 25,000 March 2013 $135/$150 call spreads.
Valero (VLO) shares holding up this week in a weak tape and shares re-tested $28 and based. Today the November $30 calls are active with 6,000 trading with buyers leading the action, more than $175K call premium and IV Skew seeing a bullish smile for November.
Dell (DELL) working on basing above $9 and a large long term play today with 6,500 January 2015 $12 calls bought to open at $1.02. DELL will report earnings on 11/15 after the close and concerns remain with the weak PC market with shares not far from 5 year lows. The $15.9B Co. trades 5.2X earnings, 0.26X sales and 1.34X cash value and could see some major changes in 2013 to unlock shareholder value.
UPS with 1,500 more April $75 calls bought today, $250K call premium, and Open Interest in these contracts has risen to 32,500 from 5,000 since 10/26
November 7th, 2012
Fortinet (FTNT) did not take out its lows and now size buyers for 2,300 November $20 calls at $0.25 offers, already more than 4,000 in OI, a name that could be a buyout target and looks to be bottoming at $19.
Continental Resources (CLR) off 4.6% and reports after the close. Implied Volatility starting to rise with 2,950 of the December $85 far OTM calls bought to open today and still 6,000+ in Open Interest in the Dec. $90 calls. CLR has 70.5% Insider Ownership, so often seen as a potential going private Co.
Wyndham (WYN) bear flag formed and 2,150 November $50 puts bought to open at $0.50 offers, trading 12X daily put volume and a break of the $50 level can target a move to $45.
November 6th, 2012
Holly Frontier (HFC) trading higher with the rest of the refiners but 3,700 November $40 puts bought today with opening trades for $430,000 put premium ahead of earnings tomorrow morning, and HFC has closed lower 5 straight earnings reports.
Las Vegas Sands (LVS) moving off lows and good sized buying of January 2013 $40 ITM calls today at $5.30 for 3,000 contracts, more than $360,000 call premium, and a name with a lot of bullish Open Interest in December OTM calls.
Valero (VLO) strong with the rest of the refiners today and 5,000 January 2014 $30 calls bought at $4.40 offers today for $2.1M in call premium and Net Delta +248K.
Energy (XLE) massive trade earlier today as 30,000 June 2013 $80 calls sold to open at $1.86 and 30,000 June 2013 $70/$66 put spreads bought at $1.55, net credit trade and tied to 340,000 shares, likely utilizing the spread to hedge a long position.
November 5th, 2012
Movado (MOV) sees a spike in shares as 1,500 November $35 calls trade. Shares have pulled back to support and based at $31 and will not report until 11/29, but should move on the Fossil (FOSL) report this week. The $792.5M watch-maker has been reporting fantastic earnings and trades 18.2X earnings, 1.63X sales and 16.75X cash flow, still a solid value name. A move past $33 could start a rally back to $35+.
Centene (CNC) setting up with a bull flag and 1,000 March $42.50/$50 call spreads bought today at $1.95, a name seen as a likely buyout target, and we had another M&A deal in Managed Care today with Humana (HUM) acquiring Metropolitan Health.
Eastman Chemical (EMN) call buyers active again with 2,050 of the December $60 calls bought at $1.85/$1.90, already a lot of large bullish positions in EMN December and march 2013 calls.
Rockwell Collins (COL) with 1,300 January 2013 $55 calls bought to open at $1.70 to $1.80 today, bullish and the Aerospace group has been hot lately.
November 2nd, 2012
I was out Friday, but this is an example of a typical complete Analysis:
Guess (GES) shares were slammed Friday closing 5.8% lower after announcing the departure of two Executives and hit the lowest level since July of 2009. Option traders were bullish on the pullback and a block of 3,980 March 2013 $26 calls paid the $1.50 offer to open and more than 6,900 bought on the day at that strike. Guess will report earnings on 11/28 after the close. Shares are in a2.5 year falling channel pattern and $23 is support of the bottom trend line, resistance now up at $30. Morgan Stanley initiated coverage in October with an Underweight rating and $21 target. Guess remains a leading brand and we have seen a lot of M&A in the apparel sector, and the $2.08B Co. now trades just 9.7X earnings, 0.83 PEG, 0.79X sales and 1.98X book, so a change in Mgmt. could be a positive and mark the start of a turnaround for shares.
November 1st, 2012
Devon Energy (DVN) seeing bullish action holding above $58 the last few days and the December $60 calls bought to open today 1,450X at $1.55 to $1.60 for $185,000 call premium. DVN will report earnings on 11/7 before the open and has lagged many of its Natural Gas peers in terms of price performance. At less than 10X trailing earnings and 1.06X book its is a fairly good value as well.
Sysco (SYY) November $31 puts seeing action with 5,000 bought ahead of 11/5 earnings, cheap puts at $0.35 for a name trading near its 2012 highs and has made some 5%+ moves the past 8 quarters.
CBS Corp (CBS) reports on 11/7 and the stock has pulled back sharply the last few weeks. Option traders actively buying December $33 calls at $1.40 for 2,500 contracts this morning, more than $220,000 call premium.
December 21st, 2012
Kimberly Clark (KMB) attracting some bearish action with shares breaking $84.50 support today, the April 2013 $85 puts bought to open 2,075X at $3.40 offers, more than $650K put premium purchased.
Pinnacle (PNK) shares up 18% after an $869M deal to buy Ameristar Casinos (ASCA), but one trader thinks the move is overdone and buys 3,000 March 2013 $15 puts to $0.80/$0.85 to open, very unusual for a name averaging 9 puts trading per day.
Shutterfly (SFLY) trading 6X daily calls as 2,750 March $27.50 calls rolled up to 3,500 March $30 calls at $2.80, staying bullish and taking off some profits, shares performing very well since the $27.50 calls were purchased.
Denbury Resources (DNR) bullish trade as 5,000 January 2013 $15 puts sold to open at $0.50
December 20th, 2012
Williams (WMB) putting in a nice W-Bottom at trend support and the January $34/$36 call spread bought 5,000X at $0.28, looks to be roll back in strikes.
Dish Network (DISH) sales of 4,000 Jan. 37 calls and 6,000 Jan. 38 calls, and opening buy of 5,000 March 2013 $37 calls at $2.80.
Xilinx (XLNX) seeing June $35 call buying today at $3/$3.05 offers for 1,500 contracts, and comes after 3,000 were bought at $2.65 on 12-13.
NetApp (NTAP) with a buyer of 3,570 June $32 puts at $2.75 offer
December 19th, 2012
UAL Corp (UAL) big spread trades January 2014 options with 12,000 of the $17 puts sold at $1.45 and 12,000 of the $27/$35 call spreads bought at $2, net debit of $0.55 for the bullish covered risk reversal. Airlines have been notably strong the last two weeks.
Ralph Lauren (RL) with $630K call premium purchased today, second day this week of bullish action, the April 2013 $175 OTM calls being bought 1,800X at $3.30 offers
Achillion Pharma (ACHN) trader sells out of 4,000 March 2013 $12.50 calls at $0.35 and opens 4,000 January 2013 $10 calls at $0.35 to open. This trader has been rolling out and up in calls since it was below $5.50 and been very right, but now rolling back and down, still expecting upside, possibly via M&A.
Level 3 (LVLT) buys of 2,200 January $22 calls $1.35 to $1.45 offers for $190K call premium on this small pullback after yesterdays surge and large call buying.
December 18th, 2012
Johnson Controls (JCI) most active contract yesterday the December $29 calls with 3,200 bought, cheap shots at $0.20, but already 7,432 December $27 calls in OI, and ahead of the 2013 outlook tomorrow at 8:30am. JCI broke out at $27.50 and now sits above its 200 day EMA, a bullish trend starting. Bullish call buying is continuing today in December calls.
Panera (PNRA) with a great breakout past the 50 day EMA and out of a falling wedge and 675 January $170 calls bought at $2.40 offers, more than $200K call premium in early trading.
Aegerion Pharma (AEGR) opening buyer of 3,000 January $25/$30 call spreads at $1.20 with shares forming a large bull flag and nearing a break to new highs. The $570M Biotech trades 6X cash value, and yesterday 1,250 January $25/$30 call spreads bought at $0.95. AEGR has a PDUFA Date of 12-29-12 for its only drug, Lomitapide, an oral microsomal triglyceride transfer protein (MTP) inhibitor for the once-a-day treatment of homozygous familial hypercholesterolemia (HoFH).
December 17th, 2012
Royal Caribbean (RCL) buyers of 3,000 December $35 calls at $0.28 to $0.34, look to be playing a sympathy move for Carnival (CCL) earnings on 12/20 before the open.
Cisco (CSCO) December $20 calls being sold 15,000X and January $20 calls being bought 15,000X as shares make a run near recent highs, in the news looking to sell its Linksys unit, and has acted very well since its last earnings report.
Caterpillar (CAT) block of 540,000 shares trade $89.15, above the $89.03 offer, while 11,945 January $95/$85 collars trade with the shares.
Shutterfly (SFLY) with more than $100K call premium and +65K Net Delta in the first 4 minutes, buyers on the offer in January $25 and $27.50 calls, and a name that recently traded some sizable bull risk reversals
December 14th, 2012
First Solar (FSLR) turning lower intraday and buyers active in January 2013 $33 puts at $3.55 while selling the $30 puts at $2, looks to be rolling of strikes for higher Delta bearish play, and 5,000 contracts trading so far.
Salesforce.com (CRM) sizable bearish bet with 900 January 2015 $190 puts bought at $51.60, utilizing deep ITM options for a $4.6M short position.
SanDisk (SNDK) rebounding sharply off morning lows and the January $39 calls continue to see interest, more than 2,650 bought in the first 20 minutes today for $200K call premium and +169K Net Delta
December 13th, 2012
Cheniere Energy Partners (CQP) breaking down today and trading 15X daily puts as 3,250 March 2013 $20 short puts bought back and 3,250 June 2013 $20 puts sold to open at $2.10. The $3.58B Oil & Gas pipeline Co. is seeing a vote of confidence with this trade and offers an attractive 8.29% dividend yield. Barclays upgraded to Overweight on 11-16 with a $25 target.
CIGNA (CI) trading 30X daily put volume with a large trade adjustment. The trader closed 11,300 July 2013 $50/$40 put spreads at $1.82 and opened 11,300 April 2013 $52.5/$40 put spreads at $2.15
General Motors (GM) trades 7,500 January 2014 $30/$22 bull risk reversals at a $0.20 credit per spread, nice looking trade in a value name that should be a top winner in 2013.
December 12th, 2012
Nordstrom (JWN) with 1,850 December $52.50 calls bought to open at $0.63 to $0.68, bullish buying of $100K call premium with shares putting in a hammer bottom at long term trend support.
PPG Industries (PPG) breaking out to new highs and earlier the January $130 calls with opening buys at $1.75 offer for 1,325 contracts and then a block of 2,500 January $125 calls trades to open. PPG is expected to be in the news soon with a potential spin-off announcement of Newco.
DR Horton (DHI) with a double bottom above its 200 day EMA and a buyer here for 3,000 February 2013 $20 calls at the $0.80 offer at the ISE to open.
Cobalt Energy (CIE) rebounding from opening gap lower and 2,650 of the January $27.50 calls bought at $0.75 offers for $150K call premium, expecting shares to rebound. Cobalt Energy (CIE) also a sale to open of 2,500 March 2013 $22.50 puts at $1.35, continues to draw bullish put selling and call buying.
December 11th, 2012
Arena Pharma (ARNA) sale of 3,250 January 2013 $5.50 ITM calls at $3.35 and rolls to July 2013 $6 calls at $3.35, no cost for the roll out and up, and staying bullish the weight-loss drug Co.
Cirrus Logic (CRUS) with 2,000 January $28 ITM calls bought to open at $2.30 offers, nearly $300K call premium bought and Net Delta +109K with a sudden surge in action.
Medivation (MDVN) roll of 2,750 December $52.50 calls sold at $3.30 to 2,750 January 2013 $55/$65 call spreads bought at $3.30
Western Digital (WDC) roll of 2,000 January 2013 $37 calls to 5,000 January 2013 $40 calls
December 10th, 2012
Treasury (TLT) January 2013 $124 straddle bought 8,750X at $4.10. The TLT has been in a tight range for weeks, Bollinger Bands are at the tightest levels in a year, and ATR (14) also at a 1 year low, so the play on volatility makes sense with a big potential move from Fiscal Cliff outcome and/or a US credit downgrade.
Baidu (BIDU) running strong and 3,200 of the December $90 calls trading in the first 30 minutes, more than $500K call premium bought, Net Delta +185K leading bullish options flow to start the day
Natural Gas (UNG) slammed the past two weeks, but buyers stepping in near 19.50 with the January 2013 $22 calls at $0.24 with 5,900 trading.
December 7th, 2012
Source Fire (FIRE) seeing 800 January 2013 $45 calls bought to open at $3.20 to $3.50 for $170K call premium, a name that would definitely make sense as an acquisition target for Cisco who is looking to get into services/security. FIRE shares have been trading week since a major double top at $57.50 and the chart suggests a potential breakdown back to $35. The $1.37B Co. trades 45.4X earnings, 6.55X sales and 41.77X cash flow, rich on valuation, but one of the few Tech names delivering 20%+ EPS growth.
Polaris (PII) seeing some bearish action with 1,400 December $80 puts bought to open at $1.85 to $2.15 offers for nearly $200K put premium. Shares are forming a head and shoulders top with the neckline near $79.
JDS Uniphase (JDSU) turning higher and 3500 Jan. 12.5 calls bought around $0.60, further bullish action to all the recent March 2013 call buying. Ciena (CIEN) reports next week in this group.
December 6th, 2012
NetApp (NTAP) block of 4,400 January $33 calls bought at $1.38 offer to open, tied to 220,000 shares sold short at $32.81, a synthetic long put position. NTAP shares have held up well and climbed since its earnings report, but nearing major resistance in the $33/$33.50 zone and still concerns heading into 2013 with Tech spending.
Michael Kors (KORS) strong rally with IV jumping as 2,440 January 2013 $55 calls are bought at $1.45 and now buyers paying $1.70
Whirlpool (WHR) weak the last few days and on the lows today, but trades 1,000 December $100/$92.5 bull risk reversals at $0.60 debits.
F-5 Networks (FFIV) seeing bearish flow with nearly 2,000 January 2013 $90 puts bought in the first 35 minutes of trading, more than $575,000 put premium. Shares recently filled the earnings gap and look to be ready to roll back over.
December 5th, 2012
Freeport (FCX) May 2013 $35/$42 call spread bought 10,000X at $1.61 to open
Stone Energy (SGY) with unusual bullish action as 1,200 January 2013 $21 calls bought to open $1.30/$1.35 for 6X daily calls and interesting with the name near lows on a day we have seen Oil & Gas M&A
Symantec (SYMC) with further bullish buying in 2013 options, the April $20 calls 10,000 bought at $0.95 to $0.97, and bullish call buys continue to accumulate in Open Interest
Acadia Pharma (ACAD) roll out of 7500 December $2.50 calls to January 2014 $4 calls at a $0.30 credit, but sticking with the name that the trader made a nice profit getting long calls well ahead of the positive drug data.
December 4th, 2012
Salesforce.com (CRM) large opening buy of 2,000 January 2014 $155 calls at $26.10, more than $6M in call premium bought today with the trade. CRM shares are forming a bullish consolidation below $162.50 resistance, and are still fairly cheap on valuation when looking at company specific metrics, so a move to $200+ is not out of the question.
Noble Corp (NE) early bullish call buying with 1,000 March 2013 $35 calls and January and March $34 calls action as well, nearly $100K call premium and a name with 12,600 Jan. 41 calls in OI from bullish buying.
Kohls (KSS) bullish action with 2,000 January $45 calls bought to open at $1.30 to 41.40 for $400K call premium and +117K Net Delta after shares were hammered last week on same store sales, nice against the grain options action.
December 3rd, 2012
Mellanox Tech (MLNX) has been hit lately on competitive threat concerns, but the high growth name seeing some bullish action today has 750 March 2013 $75/$62.50 bull risk reversals trade at $1.20 debits per spread, willing longs down at $62.50 and wanting upside exposure.
Met Life (MET) running to session highs and multi-week highs as 10,000 December/January $35 call calendar spreads trade at $0.40
Wynn Resorts (WYNN) large trade today sold 3,000 June 2013 $102.50 puts at $6.05, but tied to 90,000 shares below bid, so could be a fresh short position willing to cover at the $102.50 level., a covered put position.
Advanced Micro (AMD) with 11,500 April $3.50 calls bought to open at $0.14 to $0.16, trading 1.5X daily call volume in just 30 minutes of trading with $220K call premium bought, and already substantial Open Interest in January 2013 calls.
Akamai (AKAM) trading 4,487 puts, 71% on offer, with Aug. and Nov. $30 put buyers active
Ariba (ARBA) is trading 10X daily put volume as the July $35/$30 put spread is bought 1,000X, potentially a roll of a position to have the higher Delta trade.
SanDisk (SNDK) near major breakdown and more than 4,000 Aug. 39 puts trading, and total put volume of 10,250 running more than daily average less than half way through the session. Shares are lower after a terrible report from Micron (MU) last night. There are also buyers in July $41 and $40 puts, each more than 1,000 trading. Shares are nearing a break of major support from March and November, which measures a move to $30. SanDisk trades with DRAM as a commodity, and pricing remains weak. Shares trade as a value at 8.7X earnings, 0.64 PEG, 2X sales and 7.33X cash flow, and also with strong growth. Shares are also loved on Wall Street with $60+ targets at shops like Morgan Stanley, UBS and Stifel. Although tablets and Smartphones are strong, the growth is not as fast, and PC weakness will continue to hurt demand for DRAM and NAND memory.
Pandora (P) options newly listed and volatility buyers for 2,650 July $16 straddles, a bearish bias
Cummins (CMI) traded 3,000 January $85 puts at $7.50, tied to 93,000 shares of stock, Delta Neutral
Avon Products (AVP) nearing a breakdown and 2,800 July $26 puts bought on the offer to open, follows up some recent put buying in the name also.
Coach (COH) implied volatility rockets with the IV30 up 10% as more than 6,000 July $57.50 puts are bought to open at $0.80 on the offer, puts trading more than 3X daily average. Shares have held strong above the $58 prior breakout, forming a new base, but the recent weak push is rolling over and the momentum trends are bearish, so we could see shares roll over and head back near $55 near term. The hot apparel Co. with a $17.8B market cap trades 21X trailing earnings, 4.4X sales and 24.8X cash flow, rich considering weak retail spending starting to hit overseas where it does much of its business. The recent Prada IPO was not well received, another sign of caution. Barclays raised its target to $70 on June 9th.
Fastenal (FAST) ripping intraday and trading 4,850 calls, 5X daily average with buyers in July and August $35s. Earnings are expected in July expiration and shares are breaking out today to new highs. Fastenal has 8.5% of the float short, 13.2 days to cover, closely tied to the construction industry.
Tyson Foods (TSN) with 7,500 August $20 calls bought to open at $0.35, trading 4X daily call volume
CVS Corp (CVS) with a sale of 3,400 January 2012 $30 puts that looks to then have been rolled to 5,000 January $39/$34 bull risk reversals
Norfolk Southern (NSC) multi-exchange sweep for more than 3,000 July $75 calls at $0.80 to open, as Rail stocks are all trading near new highs, remaining strong on a hopeful recovery in housing, and strong demand for Coal. Norfolk Southern is still housing some bullish open interest in September calls, and shares defended its 50 EMA and gap recently, now near a break to new highs. Shares are near a break of a bull flag on the weekly, and a very bullish ADX trend. Shares of the $25.85B rail trade 13X earnings, 2.6X sales and 2.44X book, coming off a record quarter. Rail Traffic recently rebounded to the highest level in 10 weeks. A June 9th note from Deutsche Bank reiterated a Buy and $79 target, citing managements strong outlook for growth prospects, and productivity and pricing benefits.
Limited (LTD) July $38 calls with more than 2,500 bought to open on a WSJ Blog saying that Victoria Secret could attract LBO Interest
Chevron (CVX) September collars active, the $110/$90 traded 3,500X and the $115/$90 traded 2,500X, both tied to stock buys
Lyondell (LYB) trading 3X daily call volume as 6,500 September $40 calls are rolled back to $39 strike
Tempur Pedic (TPX) seeing unusual action today with put volume 4X average as the August $75 deep ITM puts are bought for 3,196 contracts, traders paying $11.30 to $11.60 on the puts. On June 16th a trader rolled 5,000 December $70 puts down and back to the September $60 puts, while on May 5th there was a purchase of 5,000 September $65 puts. Tempur Pedic shares touched near all time highs today, although bearish divergence with MACD and RSI not making highs. At 26X trailing earnings, 3.7X sales and 22.25X cash flow, shares of the bedding maker appear rich on valuation, although impressive 28.5% Q/Q sales growth. In early April Stifel raised its target to $66, Longbow to $65, and Barclays to $60, so shares have already exceeded most Analyst targets.
Hansen Natural (HANS) near break to new highs and December $80, $85, and $90 calls even seeing buyers, call volume 2X daily in first 10 minutes, and 80% on offer
Adobe (ADBE) with 5,900 July $32 puts bought into earnings on June 21
Under Armour (UA) great push through 70 and a buyer comes in for 500 October $72.50 calls at $6.40, high $ trade
Union Pacific (UNP) put volume is above 9,000 which is nearly 3X daily average, with the July $105/$100 put spreads bought 4,000X today, potential roll to the higher strike for a better Delta bearish trade. A few of the rails like CSX Corp (CSX) and Kansas City Southern (KSU) are starting to form bullish charts, but Union Pacific looks to have topped out with a head and shoulders top, the neckline at $98.50 which is also the prior breakout level. The recent bounce looks to be nothing more than a relief rally with RSI and MACD now running back into a downtrend resistance. A move back towards $95 could be in the cards for the Company, with rails yet to see the weakness that commodities have, and generally closely tied to commodities, and also a weak housing market and struggling consumer. Union Pacific shares trade 17.2X earnings, 2.8X sales and 2.7X book value. Bernstein initiated rails in late May with Union Pacific as its top pick, noting the best pricing and productivity story. However, Union Pacific generally moves in the direction of Coal (KOL) and with shares barely off all time highs, shares have room to pullback.
Veeco (VECO) falling with 2,100 July $52.50 puts bought to open
Flextronic (FLEX) opening buyer of 5,000 October $7 calls at $0.30, shares filling last Octobers gap today
Q-Logic (QLGC) January $17.50 calls with a block of 10,000 traded at $0.80, shares near new lows today
United Tech (UTX) is trading 13,000 calls on the day which is 2X average with 4,698 July $85 calls and 3,600 July $87.50 calls, 30 day volatility up 7% and $308,000 in net call premium purchased, bullish action. United tech filled its prior earnings gap and based at $82.50, and now is trending higher on strong volume with bullish RSI and MACD. Defense stocks have been acting well the last few days, one of the groups outperforming. Shares of the $77B Company trade 13.7X earnings, 1.4X sales and 3.5X book with a 2.3% dividend. UBS reiterated Buy on May 11th and raised its target to $101. On Thursday the Company noted it sees no slowdown in China and has seen strong Q2 orders. Deutsche Bank reiterated Buy with a 95 target this morning, noting strong business across all groups.
Qualcomm (QCOM) large October $57.50/$45 collar for 15,000X trades on a massive block of shares
Cisco (CSCO) January 2013 $20/$10 bull risk reversal trades 10,000X at $0.23, long term view, but fairly low risk, willing to be long 1M shares at $9.77 cost basis, which would make Cisco incredibly cheap
Medivation (MDVN) monthly call roll, this time the 19,800 June 7s rolled to July 13s
Research in Motion (RIMM) is trading 120,000 calls and 130,000 puts into much anticipated earnings after the close, mixed between bid and offer on both sides, but a negative 337K Net Delta and $512,000 in put premium bought, while $86,000 in call premium sold, so a bearish bias in both indicators. Large trades on the day include a buyer of 5,000 June $30 puts at $0.32, a buyer of 4,500 June $37.50/$32.50 strangles at $1.35, the January $45/$30 bull risk reversal at a $0.60 credit for 2,000X, and a buyer of 1,200 July $32.50/$30 put spreads at $0.65. The IV skew has a fairly normal pattern, not much of a bullish bias. June IV at 188.3% compares to July at 66% and options pricing in nearly a 10% move for shares on earnings. Shares are sitting on major support into earnings at $35, and a move below would likely target $30. Shares are now trading 5.3X earnings, 0.54 PEG, 0.93X sales and 7.65X cash flow, very cheap, and the Company has already slashed estimates over the past few weeks, so it does appear volatility may be over-priced as the report should offer few surprises. Avian raised shares to Positive ahead of the report today, and JPM cut its target to $40.50 yesterday. The smart money in this name with massive put positions have recently been rolling to lower strikes, maintaining a bearish bias, seeing the name as a value trap unlikely to find a buyer unless things really worsen.
Hartford Financial (HIG) July $26 / September $28 diagonal call spread trades 5,000X at $0.20
Coach (COH) November $52.50/$57.50 put back-spreads trading 7,000X3,500, shares still holding its breakout and 50 EMA with $58 key support
Yahoo (YHOO) has seen 22,500 January $16/$20 call spreads bought on the day
Weyerhauser (WY) opening sale of 12,000 July $19 puts at $0.35, seeing limited downside, and Plum Creek Timber (PCL) seller of 6,000 July $37 puts at $0.47 to open, traders look to be calling a bottom in lumber. Lumber prices are at the lowest level since October 2010 and is highly correlated with the housing market, which has been posting weak data. Weyerhauser trades 10.85X trailing earnings, 1.65X sales and 2.36X book with a 2.9% yield. Plum Creek trades 38.6X earnings, 5.5X sales and 4.7X book with a 4.3% yield.
Visa (V) July $82.50/$85 call spread bought 10,000X
Elan (ELN) making new highs on a daily basis, and 2,600 July $10 calls trading with buyers here
Crocs (CROX) is trading 6,320 calls which is 3X daily and IV30 up 1% with strong buying in July $22 calls where more than 5,000 have been bought to open, shares breaking out of a consolidation base this morning, and strong a day after a large acquisition of Timberland in the shoe industry. Crocs has a measured move to $25 from its breakout at $20 back in April and has held strong with a weak market lately. Shares trade 16.1X earnings, 2.3X sales and 44X cash flow, also a 12.5% short float, and the $1.95B market cap could make it an eventual takeover candidate. Stifel recently reiterated a Buy and raised its target to $26, while Piper called it a top pick with seasonal strong sales for Q2.
CH Robinson (CHRW) roll of 10,378 Aug. 75 short calls to Jan. $80 short calls, likely tied to exiting stock position
Ann Taylor (ANN) buyer of 4,000 July $24 puts at $0.50
Tyson Foods (TSN) is trading 5,660 calls early, 3X daily average, with the ITM July $16 calls seeing all the action, large buyers pushing IV higher, opening trades ahead of Smithfield (SFD) earnings later this week. There are a lot of concerns with the rising corn prices for the meta producers, but they have managed well thus far. Tyson has filled its February gap and is trying to find support. On valuation, the Company looks way too cheap, a $6.5B market cap, and trading 8.65X earnings, 0.2X sales and 1.15X book value. KeyBanc raised to Buy with a $23 target on May 20th.
Trina Solar (TSL) trading 5,000 June $18 puts, June IV higher, mainly buyers
Masco (MAS) July $13 puts now with 6,200 trading as shares breakdown, potentially heading toward $10.50
UltraShort Euro (EUO) call volume running 2X daily with 85% offer, including 2,000 January $20 calls at $0.85 and buyers of the August $17 calls at $0.95
Fossil (FOSL) put volume running at 4,710 which is 7X daily average with a block of 3,282 December $80 puts opened at $3.10 where the bid was $2.40 and offer at $3.20, aggressive buyer. The September $80 puts also with an offer side buyer of 980 at $1.30. With much of the market correcting, shares hit new highs today but have reversed, and may start to look for a gap fill down to $95 as consumer spending slows and its global growth is called into question. Fossil is now trading 25X trailing earnings, 3.1X sales and 42.7X cash flow, at a premium to other apparel names that have already seen 15%+ corrections. Barclays raised its target to $105 on May 11th, and although Analysts are bullish, Fossil looks to have overshot. The Company has a June 22nd Jefferies Conference. ISI Group started with a Buy earlier this week and Piper reiterated Overweight on improving margins due to eCommerce. However, a block of 49,200 shares looks to be tied to the December puts.
Xilinx (XLNX) seeing bullish action with September $34 calls with a big buyer of 2,000 at the $1.73 offer, multi-exchange sweep
Bank of America (BAC) August $11/$14 call spread bought 25,000X at $0.44, along with 25,000 August $9 puts
Textron (TXT) traded 13,592 calls on the day which is 8X daily average and mainly offer side buys as IV jumped in June, July and September from 1pm on. Larger buys included 2,000 July $23 calls, which traded 4,120X, and 2,250 July $21 ITM calls at $1.175 which traded 2,870X. The June $22 calls also traded 4,000 contracts looking for a short term bounce. Shares are very oversold and have been falling since March when shares double topped at $28.50, now 25% off highs and trying to base in an area where a range was found in October 2010. There is bullish divergence in RSI and MACD with shares making lows, so a bounce appears likely. The $5.87B conglomerate has 5 business segments and I think it could unlock a lot of value with asset sales or a separation plan. Shares trade 11.6X earnings, 0.9 PEG, and 7.4X cash flow, cheap on all metrics and with 7.6% of the float short. On May 11th Deutsche Bank reiterated a Hold and $28 target, noting its Cessna operations should see a recovery with the business jet market later this year. Goldman revised estimates lower yesterday but raised its price target up to $33 from $31, Buy rated.
Anadarko Petro (APC) bullish spreads seeing action in January 2012 with the $60 puts being sold at $3.20 and the $80/$100 call spreads being bought at $5, net $1.80 debit and the 3 way spread done for 3,000 contracts.
Visa (V) still climbing back and a buyer comes in for 5,000 July $80/$85 call spreads at $1.20
Altera (ALTR) now trading 15,000 puts on the day, more than 9,000 June $48s while fresh action in the July $46s with more than 4,000 trading, offer side buys at $2.40, a day after the calls were active.
Cabot Oil & Gas (COG) has been an outstanding performer, touching near 2.5 year highs today as energy stocks rally. A trader just put on a large bullish bet for the future, selling 10,000 January 2012 $45 puts at $2 to buy 5,000 January 2012 $70 calls at $3.65, net credit of $0.35 on the ratio risk reversal, so protected as long as shares remain above $45, but counting on further upside to really make a profit. The $5.85B Natural Gas Co. trades 28.4X earnings, 3.1X book value and 7X sales. Canaccord raised shares to Buy today and boosted its target to $85 from $58, a major bullish call. The Analyst noted Cabots Marcellus Shale 200,000 acres if the most capital productive gas asset in North America. I would also note that its market cap makes it a very attractive buyout target.
YUM Brands (YUM) opening buyer of 1,600 January 2012 $60 calls at $1.59 offer on the PHLX
AMD trades 7,500 October $10/$7 bull risk reversals for a $0.26 credit, but appears tied to 500,000 shares sold at $7.75
Baidu (BIDU) shares are breaking down and a trader puts on the July $125/$110 ratio put spread for 1,500X3,000 at $2.62, profit zone down to $97.62, potentially tied to 10,500 shares of stock as a hedging strategy
Take Two (TTWO) call volume is running 2X daily with the Company at E-3 launching new games. The January 2012 $15 calls are seeing the action with 3,770 trading against OI of 366, buyers paying $2.70 to open positions, $312,000 in call premium purchased in the first hour of trading today. Shares have been in the $15 to $17 range for months and earnings have been coming in strong. The $1.38B software Co. remains a likely buyout target and trades 6.6X forward earnings, 1.2X sales and 11X cash flow, a great value with a 12.5% short float. Brean Murray started shares a Hold on June 3, while BofA recently reiterated a Buy and raised its target to $23, substantial upside from here.
Macys (M) filling its earnings gap and bullish trading in options today with more than 2,300 July $26 calls bought on the offer
Monsanto (MON) bullish spreads with 2,000 October $72.50/$80 call spreads bought to open at $1.99
Dow Chemical (DOW) call volume jumps to 22,000 which is more than 2X daily with shares at a major support level with the January, February, and March lows and also the 200 day EMA here as selling subsides. Shares are making a bullish MACD crossover and RSI is trending higher, so a bounce looks likely. The September $38/$42 ratio call spread has traded 7,000X14,000 at $0.52 to open, looking for a move back to $42 highs for max profits. The $41.4B Co. is in the hottest industry, chemicals, and trades 9.7X earnings, 0.75X sales and 1.8X book with a 2.85% dividend yield, attractive on valuation. Argus raised shares to Buy on May 5th with a $49 target, while UBS recommended buying call spreads in DOW on June 3rd.
Chubb (CB) trading 10X daily call volume, buyer of 4,500 October $70 calls at $0.66 offer on PHLX to open just now
Apartment Invest (AIV) trading 5,000 calls compared to the average of 15, as the September/December $30 call spread trades 2,500 contracts.
Clorox (CLX) rebounding and an opening buyer of 2,000 Oct. 70 calls at $1.70 trades on the PHLX
Covidien (COV) shares are turning higher after reaching 1 month lows and re-testing the April earnings breakout level. More than 2,300 June $55 calls bought to open at $0.50 to $0.60 and IV really jumping. Shares are very oversold here on %R and RSI. Covidien is a Company that has done everything right with strong earnings, buybacks, etc. Shares of the $27.2B medical device Co. are a safe-haven and trade just 13X earnings, 2.5X sales and 18.5X cash flow. The Company will present at the Goldman Conf. on June 8th and call volume is now running 4X daily with 4,000 of the June $55 calls trading. Deutsche Bank and Goldman both have reiterated Buy ratings in the past month.
Boeing (BA) with $955,000 in put premium paid today, more than 2,500 August $75 puts bought at $3.15 offer, bearish action in the name today.
Pengrowth Energy Trust (PGH) trading 5X daily call volume with 2,000 January $13 calls bought to open today at $0.85
Marathon Oil (MRO) sale of 2,500 January $45 puts to buy the $55/$65 call spread, a $0.07 net debit
Home Depot (HD) shares have fallen down to the 200 day EMA and bounced around $34.50, also a level shares broke out last December. More than 18,000 calls trading today which is 2X daily average, concentrated in August with 6,000+ of the $36 and $38 calls trading, mostly roll backs to the $36 strike for a higher Delta bullish position. The $56.57B Home Improvement Retailer is positioned for a Summer where homeowners may look to make improvements with home values at lows. Shares trade 13.2X earnings, 0.83X sales and 29.1X cash flow with a 2.8% dividend yield, a fairly good value. JP Morgan noted Memorial Weekend is one of the strongest for Home Depot and channel checks in the East were Good, but weak in the Midwest. Deutsche Bank recently reiterated a Hold with a raised target to $39 and noting it is a better play than Lowes (LOW)
Euro (FXE) with a large buyer of 7,000 July $136 puts to open
Kohls (KSS) puts active into same store sales with around 4,500 June $55 puts rolled to July $52.50 puts.
Pulte (PHM) January $10 calls with active offer side buying again as 4,000+ trade
Interpublic Group (IPG) opening trade with 2,000 January $13 calls sold to open, tied to 114,000 shares in a buy-write
PetroHawk (HK) roll of 17,000 January $22.50 calls to January 2013 $30 calls
AutoDesk (ADSK) July $42/$38 put stupid bought at $1
Newmont Mining (NEM) is seeing massive action with 19,600 June $57.50 calls trading against OI of 10,623, June IV up, and call volume running above daily average with $461,000 in call premium paid already in 1 hour of trading. Shares have climbed back recently and Gold is holding firm above $1530. The $27B gold miner trades 12.3X earnings, 2.85X sales and 16.65X cash flow. RBC reiterated Underperform back in late April, but raised its target to $67. Shares bounced at the 10/20 EMA bullish cross this morning and are starting to move intraday.
Herbalife (HLF) climbing back and 4,000 August $57.50/$60 call spreads bought today, call volume 6X daily, likely roll backs in strikes from the calls bought earlier this week, expecting blowout earnings Monday night
Human Genome Sciences (HGSI) large bullish engulfing hammer candle today, up 4%. A trader bought the January $21/$29 1X3 ratio call spread for 2,500X7,500 at around $0.48 debit
Finisar (FNSR) trader continues to roll down, 6,000 Aug. 18 puts to 7,000 Aug. 16 puts
CVR Energy (CVI) with a large bullish spread for 4X daily options volume with shares rallying off lows and now positive into August 3rd earnings, a hot refining stock. A trader sold 1,750 December $25 puts to open at $2.70 and bought 3,500 September $30 calls at $0.80, net $1.10 credit spread, so a willing long that wants upside exposure for a rally. CVR Energy has been immune to the markets sell-off and is looking strong, best positioned among refiners to take advantage of the current spreads. Shares trade 9.35X earnings, 0.5X sales and 3X book, still cheap with 10.5% of the float short. Dahlman Rose started a Buy with a $30 target in May.
Parker Hannifin (PH) put volume 6X average with 1,200 Aug/Sep. 80 put spreads
Valeant Pharma (VRX) with 1,000 September $57.50 calls bought at $2.40 offer to open here
Veeco (VECO) opening buy of 4,575 August $38 puts at $1.30 into earnings
Ancestry.com (ACOM) IV30 up 10% with options volume above 10,000 half way through the day, 9X average with earnings after hours. Earlier a trader sold 2,000 August $45 calls at $1.60 to buy the $40/$35 put spread at $1.85, a $0.25 debit for the bearish 3 way spread. Also seeing some small speculative buys in September 40 puts. Shares are at $40.90, recently a double top at $45 and major support all the way down at $35. Ancestry.com falls into the high valuation names at 29X earnings, PEG 2.6, 5.85X sales and 20X cash flow. There is a 13% short float. After visiting the site recently I can not see how they will keep growing, as I just can imagine paying for that service. This names like an Internet Bubble type stock, and tonight could start the fall. Morgan Keegan recently noted more than 55,000 net adds would satisfy investors. Continued content strength is needed for shares to trade higher and stable churn.
Tyco (TYC) broke down hard and August $45/$42 put spreads being bought at $0.85 for 2,000 contracts, put volume 3X average
Warner Chilcott (WCRX) trading 4X daily put volume as 3,000 August $22 puts bought to open on this major breakdown
Forest Labs (FRX) January $37.50/$30 bull risk reversal trades 4,000X at $2.40 debit
II-VI (IIVI) down 7.3% today and put volume running 40X average with 1,400 August $27.50 puts bought at $2.50, earnings on 8-2
Riverbed Tech (RVBD) trades 5,000 January 2013 $45/$20 bull risk reversals at a $0.40 debit, playing a long road recovery for the shares that were knocked down more than 25% in the past week. Shares are moving off lows today and above its 100 week EMA, also the 2007 highs were $26.40, so a potential re-test bounce. There is a gap from October from $22.50 to just above $25, so that is also likely support. The strategy is a good one, a willing long of 500,000 shares if it continues lower, willing to get in at $20, at which point its an obvious value. Shares are now 27X earnings, 7.34X sales and 8.85X cash, still fairly rich. Analysts have missed the boat and most have $40 targets for shares. With a sub $5B market cap, Riverbed becomes a viable buyout play, which in that case this spread would pay off in a big way.
EOG Resources (EOG) August IV dives as 5,500 August $100 puts trade at $1.73, sold ahead of 8-4 earnings
Cavium (CAVM) put volume 4X daily into 8-2 earnings, roll down of near 2K Aug. 42 puts to 3,000 Aug. 37 puts at $1.90
Cheniere Energy (LNG) with 2,500 way OTM Aug. 15 calls bought, while 2,500 September $15 calls also bought at $0.35
Corning (GLW) is an interesting name into earnings tomorrow before the open, shares near 1 year lows and bear flagging into its 20 day EMA resistance. However, shares have surged its last two earnings reports and its Gorilla Glass should be seeing strong demand from all the new tablets and smart phones. A trader bought 2,000 August $17/$18 call spreads for $0.37 this morning, and call volume of 31,000 compares to less than 5,000 puts with August IV Skew very bullish. More than 7,000 Aug. $17s, 9,000 Aug. $18s and 8,680 Aug. $19s trading today, and notable Open Interest including 85,000+ in the $19 strike. On June 30th 40,000 August $19 calls were bought at $0.33 to open. At 7.6X earnings, 0.65 PEG, 1.3X book and 4.25X cash, Corning remains one of the most compelling large cap values in the market. Barclays reiterated a $28 target in late June and BofA reiterated Buy with a $28 target on July 6th. Option traders are leaning bullish into earnings, learning from the last two reports.
Range Resources (RRC) nearing new highs and a trader buys 1,000 March 75/90 call spreads at $2.95, looking long term, potentially a buyout following in Petrohawks footsteps
Fortune (FO) September $60/$65 call spread bought 2,500X at $2.90
McKesson (MCK) with more than 2,000 September $77.50 puts sold to open at $1.05 bid ahead of 7-28 earnings, seeing limited downside as shares re-test former breakout, now major support.
UPS shares are flagging under major resistance at $75, looking to trade as well as FedEx (FDX) did after earnings, UPS reports tomorrow before the open. A trader just bought 10,000 September $80 calls at $0.18 on the PHLX to open, while selling 10,000 September $65 puts at $0.30, a net $0.12 credit on the risk reversal, or potentially collaring short stock, although not a new stock position seen today. The target would be $80 on a breakout past 75 for the measured channel move. The $73B freight Co. trades 14.8X earnings, 1.45X sales and 9X book, a $90+ target at HSBC, Deutsche Bank, RBC, and Barclays. Its results may also give clues to Amazon (AMZN) which reports later tomorrow night. Costs are still likely to weigh, and although a risk reversal is risky, the trader is basically a willing long near $65, which seems unlikely shares reach that low, so the upside/downside ratio is strong.
Noble Energy (NBL) buyer of 1,000 September $95/$87.50 put spreads at $2.20
Juniper (JNPR) could dive a bit here as 5,000 August $29 puts are bought to open at $0.65
International Flavors (IFF) trades 1,500 August $65/$60 bear risk reversals into 8-9 earnings at zero cost
Express Scripts (ESRX) trading 10X daily all volume and 6X daily put volume, up another 2.4% after yesterday announcing a massive deal for MedCo Health (MHS), and upgraded to Buy at Maxim this morning. Traders are active in August $52.50 calls with 6,000 trading and September $60 calls with a buyer of 1,000 at $0.53 this morning. A huge spread just traded in January 2013 options, a sale of 5,000 $42.50/$40 put spreads for $0.50 to buy 9,000 $60/$70 call spreads at $3.50, a $3 net debit, massive bullish spread. Shares are still 10% off $61 highs and if the deal goes through it would be the dominant PBM play. Shares trade 14.4X earnings, 0.65X sales and 19.6X cash flow, a $69 target from Maxim this morning.
Yahoo (YHOO) October $16/$18 call spread bought 13,100X at $0.22
PharmaCyclics (PCYC) with a sale of 5,000 September $12 puts to open
Hansen Natural (HANS) September $90/$75 bull risk reversals seeing 2,000 trade, $0.30 credits on spreads, willing longs down near $75, but with upside potential in the calls, fairly good looking trades
SM Energy (SM) call volume jumps to 20X daily with 5,000 August/November $90 calendar call spreads trading at $1.65, a bullish position targeting a move to $90 by August options expiration, earnings confirmed for August 1. Shares recently broke to all time highs after the Petrohawk (HK) buyout, seen as another potential buyout target. The recent breakout measures to $92.50. SM Energy is a $4.59B Oil & Gas Co trading 21.3X earnings, 4.4X sales, 3.8X book and 11.77 EV/EBITDA. Jefferies has a $73 target, while Canaccord set a Buy and $101 target in June. 66% of revenues are from Oil, while 65% of proved reserves are in Gas (640 Bcf). Its focus is in the Eagle Ford Shale, Bakken, and Granite Wash. It sees 20%+ production growth in 2011.
Cree (CREE) block of 10,000 January 2013 $60 calls bought at $1.75
Lululemon (LULU), a hot name, but one that rarely sees Institutional options interest, trades a block of 3,500 September $75 calls on the ISE at the $1.25 mark
Alpha Natural (ANR) with 5,000 September $46 puts bought
Diamond Offshore (DO) is trading 26,000 options into earnings, 8X daily average with 5,590 August $75 calls, 4,898 August $80 calls and 6,485 August $70 puts. August IV is up 20% and IV30 up 31.6%, big surge in volatility into results. 60% of the calls and 63% of the puts bought on the offer, equal amounts of premium bought with around $520,000 on each side, so looking to be mainly volatility bets. The IV Skew is normal and no large trades in shares today. Shares surged yesterday, breaking out of a large falling wedge, and MACD and ADX with bullish crossovers, strength of the momentum really building. Shares of the $10B Oil Services name trade 13.24X earnings, 0.6 PEG, 2.5X book and there is a 7.85% short float, looking like a top value for growth names among the offshore drillers. FBR raised shares to Outperform with an $85 target on June 24th. Shares have jumped the last two reports, but quickly lost momentum. Duncan Williams was early on the call, raising to Buy with a $86.75 target in May, while Wells Fargo was two days ahead of FBR with an upgrade to Outperform.
Electronic Arts (ERTS) block of 25,000 Dec. 26 calls trades at $1.50, tied to 1.05M shares below bid, volatility play, Delta Neutral
PharmaCyclics (PCYC) had 4,500 August $11 calls rolled to November $11 calls
Aflac (AFL) opening buyer of 2,500 September $41 puts at $0.95, shares nearing a break of $44 support
Boeing (BA) trading to day highs, bouncing at long term support, and 10,000 August $72.50 calls trading for second straight day, buyers leading action with 65% on the offer, earnings July 27th. Shares are below its 200 day EMA, but a strong bounce at the trend support from the 2010 lows today and RSI curling higher from oversold conditions. Shares are trading 13.3X earnings, 0.8X sales and 1.43 PEG, and all indications of strong orders in Aerospace. The WSJ article today noted that AMR is leaning towards AirBus for a large order, a potential negative for Boeing, but the blue chip is seeing plenty of foreign orders and the Dreamliner 787 is finally close to arrival. The arrival of the new plan could put a much more bullish tone on the outlook of this upcoming earnings call.
WebMD (WBMD), with shares off 30% sees a buyer of 5,000 September $35/$40 call spreads at $1.35 to open, betting on a recovery in shares
Green Mountain Coffee (GMCR) far OTM September $100 calls with 2,000 bought on the day
ARM Holdings (ARMH) buyer of 2,500 August $28/$26 put spreads at $0.99 with earnings on July 26th
Solar Winds (SWI) August $22.50 puts trading more than 5,000 contracts today, put volume 15X daily average, after 3,000 traded Friday and in this case as well it is opening put sales. Traders are collecting $0.60 on the sales today, seeing limited downside with shares that have come 10% off recent highs after months of trading strong. The $1.7B software Company focusing on network management has not been reporting great quarters, but its market cap may make it an easy buyout target with shares trading 23.15X earnings, 1.75 PEG and 26.5X cash flow. SolarWinds is seeing 25% Q/Q sales growth and 29% EPS growth and will next report on August 3rd. Collins Stewart started shares Neutral with a $27 target on July 5th.
Electronic Arts (ERTS) seeing bullish 3 way spreads in January 2013, sellers of $17.50 puts to buy the $25/$30 call spreads, 5,000X
Oceaneering (OII) opening buyer of 2,000 October $47.50 far OTM calls at $1.40, been seeing quite a bit of bullish action in this name, a $4.65B oil services Co. that could be on M&A watch
Deere (DE) is trading nearly 10,000 puts today and only 4,000 calls with 3,400 August $82.50 puts bought today, buyers paying $4.15 for the ITM puts, and $437,000 in put premium purchased today. Shares have underperformed Caterpillar (CAT) recently and CAT reports earnings in a week. Corn prices have rallied recently but Deere has seemed to unwind the correlation. Shares are under its 200 day EMA, and struggling to find buyers. Deere is trading 11.1X earnings, 1.18X sales and 4.6X book value, cheap considering it tends to beat expectations. July 12th data showed a 10% decrease in row-crop tractors and 25.8% fall in 4-wheel drive tractors, which is likely weighing on shares, and could result in a miss this quarter. BofA recently reiterated a Buy and $110 target after an Analyst Day. However, the Fed Bank of KC says loan volume for farm machinery are down 36% Y/Y in Q2, a bad sign.
Nike (NKE) October $92.50 calls with bullish flow as 1,300 trade, buyers paying $4.80 as shares near new highs
Russia (RSX) Aug. 37/35 put ratio spread traded 10,000X30,000 at a $0.20 credit
Sunoco (SUN) trades 6,000 August $44/$48 call spreads with shares at $41, holding its 50 day EMA for three days now, and this is a spread that has been popular the last week, traded for $0.50 on the PHLX today. The fact that shares are holding the same level for three days shows sellers fatigue and could be setting up to rally with a move to $45 possible. The refiner trades 17.25X earnings, 0.12X sales and 1.7X book, one of the more richly valued names in the group. Barclays has a $55 target on shares. Earnings are August 4th.
Nordstrom (JWN) seeing bullish flow with buyers of the August $49 calls for 2,800 contracts, more than $360,000 in call premium as shares hold a bullish consolidation following a big breakout on volume when it reported same store sales, a classic bullish chart set-up. However, most of the large stock trades today are below bid, so these may be hedging a short position in stock. The $10.8B apparel Co. trades 14.1X earnings, 1.09X sales and 18.7X cash flow, fairly attractive on a valuation basis. Caris & Co. started a Buy with a $52 target in June, and at this level, it appears shares have limited upside based on Analyst targets. Same store sales were up 7.6% in June, and earnings are to come in mid-August. Credit Agricole also started a Buy in late June.
Tiffanys (TIF) leading put premium with $1.4M in puts bought so far today, 2,600 of the February 2012 $75 puts trading, longer term
Jabil Circuit (JBL) with 4,000+ September $22 calls bought today, buyers at $0.60 and trading 2.5X daily call volume, already more than 4,000 in OI, but looks to be some fresh buying.
Phillips Van Heusen (PVH) looking to breakout and 1000 August $65 high value calls bought to open
DirecTV (DTV) is trading 9,250 calls on the day, 3X daily average a day after more than 3,000 December $52.50 calls were bought to open. Today, more than 6,000 of those same calls have been bought, mainly on the NYSE, and 1,840 of the August $52.50 calls, with those traders seeing strength continuing in the near term. Shares are near all time highs today with a small consolidation after a strong run, basing on its 100 EMA at $47, and busting through highs without issue. Although shares are at new highs, valuation remains attractive at 12.4X earnings, 0.97 PEG, and 1.6X sales, and expectations for a NFL deal by July 21st could prove to be a near term catalyst, as its Sunday Ticket Package is a major selling point. Brean Murray started shares a Buy with a $62 target on July 11th. Earnings will come on August 4th and the Company has been reporting strong subscriber growth, also at other satellite provider Dish Network (DISH), also breaking out today. It has long been rumored as a buyout target for AT&T, although that now seems unlikely with its $40B market cap. Also, its new movie offering will allow it to compete with Netflix (NFLX) (I used the feature the other night), and could result in multiple expansion.
Cheniere Energy (LNG) with 8,850 December $12 calls bought at $0.95, while more than 2,000 September $11 calls are bought at $0.55, shares on the move intraday. Call volume is running well above daily average and shares are holding in an uptrend, tending to make big moves. The $517.6M Co. is seen as the major beneficiary of recent allowance for LNG exports.
Celgene (CELG) buyer of 1500 Jan. 62.50 calls at $4.25
Lyondell (LYB) trades 3,100 September $40/$36 bull risk reversals for $0.40, bullish trade with shares pulling back in recent days, good value in Chemicals with a ton of OI in calls from previous buying
Plains Exploration (PXP) call volume jumps with 16,000 January 2012 $40 calls as shares re-test its triangle breakout and bounces sharply. Shares still have a measured move to $42 and have maintained an uptrend. The $5.2B natural gas producer, known for its California offshore drilling efforts, trades 12.5X earnings, 3.3X sales and 1.5X book value. Plains Exploration is one of the better production growth plays in Oil & Gas. Its Gulf of Mexico assets are relatively untapped, leaving room for further growth. Goldman raised its target to $52 on June 10th. 32,000 January $30 puts traded with the calls, likely a collar for an equity holder that owns a lot of stock.
Altera (ALTR) nearing day lows with another 2,500 of the August $46 puts bought, after 3,200 traded Friday
AdTran (ADTN) dips hard here as 2,000 July $39 puts bought, earnings July 12th
PetroHawk Energy (HK) January $25/$21 bull risk reversal trades 5,000X, same trade as Friday for 5,000X
VMware (VMW) remains contained in the $100/$105 range and some traders betting on a breakout with 1,000 August $110 calls just bought to open on the offer at $2.80, multi-exchange sweep. The trading puts call premium at $314,000 on the day, one of the most bullish in the market today in a weak tape, also notable with shares only off 2.6% with much of Tech getting hit harder. VMware has been consistently great, and is trending strong, current uptrend support comes in at $95, also the 50 day EMA. A block of 32,000 shares traded below the bid at the same time the calls traded, so a Delta Neutral spread with the Aug. 110 calls having a 32 Delta. The trader is looking for increased volatility as we near earnings on July 19th, and VMW a notable mover on earnings. At 45X earnings and 14.4X sales, VMW better report a strong quarter, or it could get hit hard.
PetroHawk (HK) January $25/$21 bull risk reversal trades 5,000X at $1.20
Atmel (ATML) drops off a bit here and 4,800 August $15 puts trade, bought at $1.30 offer
Urban Outfitters (URBN), which jumped recently on a Morgan Stanley upgrade, sees a trader put on the August $31/$35 ratio call spread for 2,000X4,000 contracts at $1.15 to open. The spread will profit with shares in the $32.15 to $37.85 range. Shares showed strong buying volume on the 2 day surge, now consolidating and could looks to enter the earnings gap. Shares of the retailer trade 17.15X earnings, 2.25X sales and 25X cash flow, a bit rich, but the 17% short float may seek to cover as lower oil prices increase retail sales. UBS also recently reiterated a Buy and $39 target
Royal Caribbean (RCL) trading bearish flow today with put volume 1.5X average, more than 3,000 August $38 puts bought to open around $2.10.
Bed Bath (BBBY) trade sees limited movement for shares, selling 3,000 Aug. 60 straddles at $3.55 to open
Apple (AAPL) August $340/$335/$330 butterfly put spread trades 7,250X14,500 at $0.17
Onyx Pharma (ONXX) trading 5X daily options volume with a sale of 2,000 February 2012 $32 puts, while the February $40 calls were bought 2,000X and the February $50 calls sold 1,000X in a bullish spread. Shares have based and held the 200 day EMA, and starting to breakout. The $2.25B Biotech trades 3.4X book and 4.2X cash, a potential M&A play. Maxim started shares a Buy with a $42 target in April. Carfilzomib is its premiere drug and Phase 2B data was recently announced so Phase 3 should be announced by February, and a NDA should be filed by August. Lazard recently reiterated a Buy rating.
EMC Corp (EMC) roll of 20,000 August $25 puts to 20,000 October $26 puts
Qualcomm (QCOM) breaking out here and a block of 7,845 August $60 calls trades
Nektar Therapeutics (NKTR) is trading near 2 year lows and trying to base and 5,000 February $9 OTM calls trade at $0.725, marked spread, so could see a block of stock trade to make it a volatility trade. At 1.6X cash value and with lots of drugs in the pipeline, Nektar looks fairly low-risk at this level
Lowes (LOW) October $25/$21 bull risk reversals trading more than 5,000 contracts for net credit around 7 cents per spread, seeing limited downside and willing to be long around the November lows, and looking for a move higher. Lowes has seen some notable size positioning in longer term options lately as well. The Discover Spending Report this morning was the weakest since July 2009, but reading it over I noticed that home improvement is one positive with consumers looking to spend more on their homes this year. The chart is not pretty, but potentially a higher low at $22 made. The $30.57B Co. trades just 12.4X earnings, 0.63X sales and 19.2X cash flow with a 2.4% dividend yield. JP Morgan cut shares to Neutral on June 6th on Weather and Macro concerns. However, Deutsche Bank said to Buy with a $30 target after the earnings miss because it was only weather related.
VMware (VMW) moving to lows of day, failed breakout, 10,000 July $90 puts rolled to 5,000 October $90 puts
DR Horton (DHI) August IV jumps as 4,900 $12 calls are bought on the offer around $0.95, a homebuilder managing to hold up fairly well
TeraData (TDC) July $60 calls with 2 blocks of 2,000 sold, while a block of 11,000 August $65 calls just took the $1.15 offer
Biogen (BIIB) shares are consolidating, off slightly today with a bullish pattern forming and an interesting trade in August looking for a move higher, the $110/$120 ratio call spread bought 1,500X3,000 at $2 to open. The breakout past $80 was huge on the long term chart and does measure a move to $120, shares hanging under $110 right now but looking to break out any day now. The $26B Biotech trades 17.5X earnings, 5.45X sales and 19.23X cash flow, a major winner lately on positive news. Deutsche Bank raised to Buy on June 21st with a $129 target and CSFB raised to Outperform with a $126 target the following day. Biogen is awaiting the new EU opinion on Fampyra, Acordas MS Drug, which Biogen appealed. Also, Biogen is waiting Phase 3 data this Fall from BG-12, likely the catalyst to take shares higher for this trade. The trade is profitable with shares between $112 and $128.
American Tower (AMT) seeing bullish call flow after the AT&T news, and 1,500 January $55 calls bought thus far
Brinker (EAT) seeing volatility ramp higher and September $22.50 calls and puts each with 2,500 bought
Rock-Tenn (RKT) opening buyer of 2,500 January $60/$70 call spreads at $2.20
Adobe (ADBE) put activity is above daily average with 5,000+ October $24 puts trading at $0.90 against OI of 6,632, so need to check the Open Interest tomorrow to confirm opening, but IV movement appears to confirm opening trade. Adobe earnings are on September 20th, falling in October options expiration and with IV30 below 40% the puts could benefit from a rise in volatility into results. Shares broke to 2 year lows in recent weeks, and under $25 support, now re-testing that level. The struggling $12.5B software Co. trades at cheap multiples of 9.85X earnings, 3.07X sales and 10.73X cash flow. RBC cut its price target to $22 with an Underperform on August 12th, although Piper was out this morning noting a positive bias on distributor checks and International business, but lowered its target to $30 from $36. The large trade may be planning ahead for a poor quarter, or just playing for increased volatility.
Game Stop (GME) January 2012 $24/$29 ratio call spreads bought 2,000X4,000 at $0.90 to open
Viacom (VIA.B) opening buyer of 2,500 September $45 calls on the $2.75 offer
Halliburton (HAL) with a large multi-exchange sweep of 6,000 October $44 puts on the $3.90 offer, resulting in $1.7M in put premium purchased on the day. This comes after weeks of bullish options action, and as shares reverse just below its falling 20 day EMA, after bouncing on progressively declining volume. Shares are setting up with a similar pattern to earlier this month when shares rolled over to new lows. Schlumberger (SLB) is also seeing some January put buying today with Oil Services (OIH) also failing at its 20 day EMA, a risk-on trade. HAL is a top value at 9.4X earnings, 0.67 PEG and 3.4X book with a strong International footprint, and $65+ targets at multiple Tier 1 firms. We have recently seen major demand destruction in Oil, which is sure to way on these companies, and stocks.
Lennar (LEN) September $15/$13 bull risk reversal trades 10,750 contracts at $0.05 credit
KB Homes (KBH) trading 8,500 calls which is more than 2X daily average with 4,900 October $8 calls bought to open at $0.19.
F-5 Networks (FFIV) opening buyer of 2,000 January $85/$100 call spreads at $4.60
Altera (ALTR) with $450,000 in call premium purchased as 5,000 September $39 calls are bought on the offer, call volume today more than 2X daily average. Shares of the Semi broke out past trend resistance and its 20 day EMA today, similar to the market, and the Semi (SMH) ETF broke out of a falling wedge today, the group that was first to see pain seeing some end of month buying on valuation calls. Altera is a $11.7B Co. trading 13.2X earnings, 0.95 PEG, 14.1X cash flow and raised to Overweight at Barclays on August 11th with a $45 target. Altera is set to report mid-quarter update on September 7th, and Citi recently said to buy shares on weakness.
Peabody Energy (BTU) on of the few names with bearish action as 2,900 September $49 ITM puts bought to open on the day, put volume above average and 62% on the offer with a total of $320K in put premium purchased. Shares have climbed back to near its 20 day EMA, and although a double bottom near $42, longer term support at $35 could be in its future with demand/pricing starting to weaken across the coal industry, and Peabody closely tied to China, where growth is cooling. Shares of the $12.76B Coal Co. trade 8X earnings, 0.6 PEG, 1.7X sales and 30X cash flow, but coming off of a lousy earnings report and forecast. Peabody recently combined with Arcelor for a bid for Macarthur Coal, and we have seen how poorly Alpha Natural (ANR) shares have traded after its coal acquisition of Massey Energy.
EBay (EBAY) trader with a big vote of confidence, opening sale of 5,000 January 2012 $29 puts with shares trading just above $29, a willing long for 500,000 shares of stock. Shares are holding major support and could break-out on a move past $30. Shares remain in a $27/$35 horizontal channel and recently reported strong results, PayPal still driving growth and a move into mobile payments also improving the outlook. Shares could break trend resistance above $30 and head to the upper end of the channel. EBAY is one of the cheapest ways to play consistent growth in Tech, shares at 12.7X earnings, 3.8X sales and 16.3X cash flow.
Baidu (BIDU) block of 3,000 December $105 puts sold to open on $7 bid
Schwab (SCHW) October $13/$11 bull risk reversal trades 2,200X
PharmaCyclics (PCYC) opening seller of 3,500 September $11 puts with shares basically at $11, another bullish put sale in this one
Pfizer (PFE) sees 26,000 September $18 weekly calls expiring next week opened at $0.36, and this comes ahead of August 28th Phase 3 Eliquis data. Goldmans Analyst sees the drug as best in class and adding annual sales of $3-$4B. Longer dated calls would capture September 17th PDUFA date for Crizotinib that treats several forms of cancer. Also expected this year are US/EU submission for Apixaban, Prevnar 13 FDA Panel meeting, Tofacitinib Phase 3 data, and US/EU filing for Bosutinib approval. Pfizer shares recently pulled back to a prior breakout level and bounced sharply, now trading 8X earnings, 2.1X sales and 9X cash flow with a 4.35% dividend yield. Argus raised to Buy with a $21 target on August 10th.
Shaw Group (SHAW) trading 19,800 calls on the day which is 20X daily average and IV30 jumping 23%, most all of the action in September with volatility increasing 25% in the front month as 11,440 $25 calls trade and 2,800 $23 calls with shares at $21.60. Shares have been beaten down since the Japanese Nuclear disaster that put pressure on Nuclear Energy build outs around the Globe. Shares trade 9.55X earnings, 0.26X sales and 2.2X cash value. Trades may be eying SHAW as a Hurricane Irene sympathy play as the Company provides services to Nuclear Plants, as well as other construction services.
Micron (MU) September $6 calls very active with 12,400 trading against OI 8,300, a few days of big call buying, at Analyst Meeting today.
Fossil (FOSL) September $80 puts active with 5,000 sold to open, willing buyers
Temple Inland (TIN) bouncing back and 3,500 November $25/$30 call spreads bought, some still seeing the International Paper (IP) deal as a possibility
CF Industries (CF) put volume running above daily average with $430,000 in put premium, more than 4,000 September $150 far OTM puts opened today around $2.56. CF shares have disregarded the slide in markets and making highs each day, though now overbought and volume did not really surge on the latest breakout. Shares could put in a reversing candle today as well with a weak close. Shares have been strong as the purest play on Nitrogen with grains hot. The $12.85B Companys shares are still fairly cheap at 9.8X earnings, 2.5X sales and 7.2X cash flow, and Ticonderoga raised its target to $200 earlier in August, but $180 is also a key target at many firms, the highs touched today before the reversal.
Marriott (MAR) October $27 calls trading 5,000 with opening sales on the bid, IV falling and more than $800,000 in call premium sold to open
Barclays (BCS) trader closes 12,500 September $11 puts and buys 22,500 September $8 puts
Altera (ALTR) with nearly $1M in put premium purchased in first 5 minutes as 2,500 January $34 puts are bought at the $3.70 offer
Freeport McMoran (FCX) put volume ran above daily average yesterday with 10,000 January $38/$29 put spreads bought to open in the $2.50 to $2.60 range throughout the session as more than $3.8M in put premium was purchased. Shares of Freeport have formed a bearish flag with a breakdown level at $41 for a move below $35 projected, and Copper has been holding at $4 but the Industrial metal is likely to give way if economic data continues to come in poorly. Shares trade 6.8X earnings, 10.35X cash flow and 1.77X sales, and the fact it is also a Gold miner is often forgotten as Gold reaches $1900/oz, as it is seen as the easiest way to play the outlook in Copper.
Symantec (SYMC) buyer of 10,000 January 2013 $20 calls at $1.50 offer, accumulation continues with 38,000 already in OI
BMC Software (BMC) with $340,000 in put premium as 2,370 January $35 puts are bought on the offer
Chicago Bride & Iron (CBI) buyer to open of 1,000 October $25/$35 call spreads at $5.70, call volume 3X daily
Open Table (OPEN) seller of 2,500 January 2013 $45 puts to buy 2,500 of the $60/$85 call spreads
US Steel (X) making new lows here and 10,000 January $30 puts trade, $900,000 in put premium now trading, and open interest is above 18,000 in that strike. On August 15th more than 10,000 January $30 puts were bought as well, and will need to confirm additional buying tomorrow in the open interest report. Shares hit lows near $16.50 in 2009 and really lack any type of support here, a possible Fibonacci extension near $21. The $3.8B Steel Co. has been weak along with pricing and lack of demand, the Japan rebuild not having the desired impact, and construction markets at a halt. UBS started shares a Buy with a $38 target on August 11th. Shares trade 5.75X earnings, 0.2X sales and 0.9X book value, also a 14.66% short float has accumulated. US Steel raised prices recently as rising costs continue to eat into margins. World Crude Steel production rose 11% in July, and continues to result in over-supply.
Range Resources (RRC) buyer of 2,000 December $75 far OTM calls, a name high on the likely buyout list following the PetroHawk deal.
Goldman Sachs (GS) buyer of 1,500 October $100 puts at $4.65 earlier today
Forest Labs (FRX) with 5,000 January 2013 $25 puts sold to open
Deutsche Bank (DB) put volume reaches 20,800 or 10X average with 10,000 October $35/$25 put spreads bought to open at $2, a potential terrible sign for markets as the trade is looking for the European Financial Crisis to worsen and send the Bank stocks much lower. Germany has been responsible for supporting the weaker EU members and its recent GDP showed that it can withstand all the pressure. Shares still have a measured move to $30 from the breakdown at $50. The $38B bank trades 5.6X earnings, 0.64 PEG, 1.3X cash and 0.8X sales, but its exposure to potential defaults across Europe would hit shares hard.
Cisco (CSCO) close of 15,000 September $16 calls and buys 15,000 January $17.50/$20 call spreads
Amgen (AMGN) with 1,000 September $52.50 calls bought at $1.10 offer with shares bucking the markets downtrend
American Express (AXP) trading 11,000 calls which is above daily average and 75% on the offer, more than 2,090 October $45 calls the most active, spread out among other strikes in August/September as well. More than $1.1M in call premium purchased today, bullish bias in the name. American Express has major support at $42, and then at $37.50. It is one of the healthiest Companies and has been reporting strong numbers, trading 11X earnings, 1.75X sales and 7.6X cash flow. Barclays raised its target to $60 in July.
Sears (SHLD) pre-earnings trade with the August $57.50/$52.50 ratio put spread 1,000X2,000 at $0.75
Biogen (BIIB) 3 way trade with 1,250 October $80 puts sold to buy the $95/$105 call spread
Kraft (KFT) trades 8,000 September $35/$34 bull risk reversals for $0.05, a bullish play with shares recently reporting strong results and announcing plans to split into independent companies, its North American operations and European and Developing Markets operations. After investors were not pleased with its $19B purchase of Cadbury last year, this move looks to be unlocking value and Kraft has big time investors behind it. Kraft is trading 13.5X earnings, 1.16X sales and with a 3.36% dividend yield. Shares are not far off all time highs, and this trade is making a leveraged play on a move higher.
Anglo Gold (AU) with $2.2M in put premium bought as 6,000 January $44 puts trade at the $3.60 offer, put volume at 9X daily average. Shares neared a breakout today but a weak close could mark a topping candle. With Gold back up near $1,800 it could see a short term double top and reverse for a mini-correction. The $17.34B gold miner focuses on Africa, so if we see government instability it could again halt mining operations and shares would get hit. Shares trade 12.5X earnings, 4.07X book and 3.06X sales.
McDonalds (MCD) continues its stellar outperformance in all market environments, and a trader buys 2,500 January 2013 $80/$100 call spreads for $8.49, looking for a double
Teradyne (TER) opening sale of 15,000 January 2013 $10 puts at $1.55, a willing long of 1.5M shares, likely a valuation call
Caterpillar (CAT) with a long term ratio call spread, bullish on direction and seeing volatility calming, buying the February 2012 $95/$105 ratio call spread 4,000X8,000 at a $0.40 net credit. As a credit trade the trader will keep that if shares fall or do not reach the $95 level by expiration. The spread makes maximum profits with shares at $105 come February, while also profitable up to $115.40, and if shares overshoot that level losses can accelerate. The $105 level is a key pivot point for shares and $115 are the highs for 2011, and all-time. Shares recently found support at $80, a key re-test and are looking to regain its footing, selling off on concerns of a slowdown in China, its growth engine. The $59B machinery giant trades 10X earnings, 0.7 PEG, and 26.8X cash flow with a 2% yield, and one of the more consistent earnings out there. BofA reiterated a $128 target and Neutral rating after earnings, seeing margin constrictions.
Moodys (MCO) put volume running 2X average with $2M in put premium purchased as 4,500 January $31 puts are bought at the $3.80 offer, bearish action as shares fall 4.5% and trading near day lows. Shares recently re-tested its breakdown and 200 day EMA and is now starting to roll-over. The $7.5B credit rating agency has come under fire, although not the one that downgraded US Debt, and shares trade 12.3X earnings, 3.3X sales and 12.3X cash flow. Moodys lowered its 2012 economic outlook through 2012 Friday citing political wrangling and the European debt crisis impact. Shares could pull back to longer term support near $25 with a bear flag formed.
Mako Surgical (MAKO) roll of 2,300 August $30 calls to September $30, short calls being rolled, potentially against long stock
Commercial Metals (CMC) December $14 calls surge here with 3,000 bought on $0.55 offer, a name Icahn recently got involved with
Occidental Petro (OXY) September $95 calls trading 5,600 against OI 1,788 with offer side buying in size at $1.48, a net of over $1.1M in call premium purchased, and hearing that Blue Horseshoe , a newsletter, is out positive on the stock. Shares recently based at its 78.6% Fibonacci, and now has moved strongly off lows with a bullish MACD crossover and RSI trending positive. Shares broke down at $95 and the measured move was to near $75, which just about happened. Occidental is a $70B Oil & Gas Company, arguably the cheapest with the most correlation the fluctuations in Oil prices. Shares trade 8.95X earnings, 0.86 PEG, and 1.97X book with some of the greatest production assets in the World. Howard Weil reiterated Outperform in late July with a $128 target. Societe Generale raised to Buy on August 3rd, and if market conditions improve, a lot of money will be put back to work in Oil & Gas E&P as cheap valuation with growth and yield.
Lowes (LOW) reports Monday before the bell, a name we have seen some longer term bullish options trading. Largest trade today a buyer of 1,500 January 2012 $20/$25 call spreads at $1.23. The August $20 calls are trading 3,950 against OI of 831, but volatility coming down indicating opening sales, although at around 5% out of the money, not all that rich.
Fortune Brands (FO) with the September $55/$60 ratio call spread bought 2,525X5,040 for $1.45 to open, bullish view on the consumer name. Fortune had been in takeover discussions and shares now well off their highs. The $8.5B Co.s shares trade 15X earnings, 1.3X sales and 41X cash flow.
Alexion Pharma (ALXN) call volume 7X average as 1,600 August $50 calls rolled to September $55 calls, staying bullish
Intuit (INTU) options volume jumps past 16,000 in the first 15 minutes which is 10X daily average as 4,000 January 2012 $50/40 bull risk reversals are closed and 4,000 January 2012 $46/$37.50 bullish risk reversals are opened, this ahead of earnings on August 18th. Shares are down 25% from highs, a former growth momentum name that recently broke down, but now is making a base near $40. The measured move of the head and shoulders breakdown was to $41. The $12.8B Software Co. with a focus on tax software trades 14.9X earnings, 3.37X sales and 4.5X book. UBS raised to Buy on July 25th with a $57 target, and shares are very oversold but momentum indicators beginning to trend higher. It is also a name I think would make a great acquisition target for Microsoft (MSFT).
Home Depot (HD) sees 30,000 September $32 puts closed, could see this as slightly bullish as the mega-bear is leaving
The Limited (LTD) bullish 3 way trade as 2,500 January 2013 $25 puts sold to open and 2,500 of the $35/$45 call spreads bought to open, net $0.55 debit with a potential $10 pay-off, earnings August 17th.
Applied Materials (AMAT) with 10,000 January 2013 $10 calls bought, seeing a lot of Jan. 2013 action lately
IBM September $170 calls with a buyer of 2100 at $3.80 to open, large bullish trade and 3,600 of those now trading, more than $1.3M in call premium which is near the bullish lead today. IBM has finally pulled back with the rest of the market and Tech, although a great quarter recently reported and clear visibility for 5 years out. Shares are back at the June lows, a re-test of the breakout from April. IBM is back to trading 11X earnings, 1.8X sales and with a 1.85% dividend, also $10B+ in cash to make deals. BofA lowered its target to $190 this morning and there are concerns with public spending, but Citi raised its target to $205 after earnings, Buy rated, and the recent 20 point pullback is looking like a longer term gift.
Disney (DIS) off 12% and trading 2X daily call volume in just 30 minutes, leading call premium with $800,000 worth bought today. The largest trade just came with a buyer of 2,500 January $30/$40 call spreads at $2.85. August $32 calls are also seeing a lot of action with 3,500 trading already, looking for a snap back within 7 trading days. Shares now trade 11.6X earnings, 1.66X sales and the numbers came in above expectations, but concerns remain around the economys impact on its theme park business.
Citi (C) had a buyer of 20,000 January 2012 $30 puts at $5.70 offer
AK Steel (AKS) climbing and 5,000 December $9 calls bought at $1.47, shares putting in a 3 day bottom. The $931M Steel Co. trades 6X earnings and 1.4X book, very beaten up, and potentially a M&A target. Another trader came in for 5,000 at $1.61 on the PHLX 38 minutes later. There is a 15.7% short float in the name, and yesterday 6,000 December 15 puts traded, opening sales against stock. AK Steel announced increased pricing today and the CEO recently bought $200,000 worth of stock near $8. Shares are down 50% in a couple of weeks, and the Dec. 9 call buyers see high probability in a recovery to at least $11 in the coming months.
Travelers (TRV) buyer of 4,000 January $60 calls
Fed-Ex (FDX) roll of 2,000 August 87.5 puts to September 87.5 puts
Omnicare (OCR) jumping and 5,000 contract block of December $30 calls bought to open at $1.30, call volume 15X average daily. The $2.9B drug Co. trades 10.65X earnings, 0.47X sales and 0.77X book.
Blackstone (BX) Institutional trader adjusting a massive position in January 2013 calls with 70,000 $20 calls rolled back to 30,000 $15 calls. Shares have fallen 33% in 2 weeks and are attempting to find support at $12. Call volume of 105,000 is 20X daily average. The trader likely sees this as a bottom or is adjusting a position tied to stock. Shares trade 5.8X earnings, 3.14X sales and 1.25X book, a $23 target at Barclays. Blackstone has been actively making deals, and it faces risks if the economy goes into another recession, but appears one large trader is betting that is not likely.
Coca Cola (KO) buyer of 10,000 January $67.50 calls at $2.50 offer on the PHLX, a strike with 35,000 already in Open Interest and today $2.3M in call premium purchased, near the most bullish in the first hour. Coca Cola shares have not broken like the rest of the market, holding May 2011 support and its rising 200 day EMA. Barclays recently raised its target to $77 for shares. Coca Cola trades 12X trailing earnings, 3.55X sales and has a 2.9% dividend yield, considered a safety play, and some growth prospects in emerging markets.
VALE SA (VALE) roll of 12,000 January $22.50 calls to January 2013 $20 calls, high Delta trade, sticking with the value name in size. Also the Aug. 25/29 call spreads with around 1,500 bought today.
Rovi Corp (ROVI) trading 7X put volume as 1,000 August $40 puts bought at $0.75 and 1,000 September $50 puts sold at $6 in a spread, earnings August 9th, potentially rolling to August for a bearish trade and taking a lot off the table
Computer Sciences (CSC) buyer of 4,000 August $32.50/$30 put spreads into 8-10 earnings, highly exposed to government spending, so likely to disappoint
Owens Illinois (OI) February $25 long term calls with 1,500 bought
20 Year Treasury (TLT) buyer of 13,000 October $109/$114 call spreads, and 6,600 November $109/$114 call spreads, paying $1.20 for the October spreads and $1.50 for the November, not a good sign for markets as the Treasury trade continues to soar with a flight from risk. Call volume is running 2X daily in the TLT today. The TLT broke out on the weekly and past 105 can really get moving, huge volume on the move last week confirms the breakout. The yields are falling as prices rise with the downgrade of US Debt by the S&P and with the situation continuing to call for uncertainty, the trend is likely to continue. Investors worried about liquidity and safety default to the Treasury market and the asset allocation trade is in full effect.
US Dollar Bullish (UUP) leads early action with 4,800 January $22 calls bought, already 165,000 in Open Interest, looking for USD to finally keep a rally going
Sunoco (SUN) crushed today and a trader sold 4,900 January 2013 $45/$55 call spreads to buy 4,900 of the $25 puts.
General Electric (GE) buyer of 20,000 November $15/$12 put spreads at $0.57 to open. It looks to be a straight bearish bet, and if so, likely a bet we head back into a recession to get GE shares that low. GE is trading 10X earnings, 0.9 PEG, 1.28X cash value and has a 3.65% dividend yield, so another 25% downside in shares seems unlikely, but it looked that way before stocks kept heading lower back during the crisis as well and GE Capital problems could come back around. Barclays and OpCo have Overweight and $25 targets.
Whiting Petro (WLL) seeing bullish action with 600 deep ITM August $50 calls bought, and 3,700 January $60 calls, while January 2013 $70/$45 collars trade
OmniVision Tech (OVTI) roll of 7,500 September $29 puts to 10,000 September $26 puts
Lululemon (LULU) could be the last to fall, more than 2,000 Dec. 60 puts bought today, size buyer, $1.4M in put premium
United Rentals (URI) bulls stepping in for 3,680 August $20 OTM calls to open, after 2,000 September $22 calls were bought yesterday. Call volume is 4X average with $100,000 in call premium bought, traders paying $0.55/$0.60 for the calls. Shares rose on its latest earnings report, but have since made new lows and off big. The equipment rental Co. trades 7.7X earnings, 0.53X sales and has a 19.6% short float, just a $1.25B market cap. KeyBanc started a Buy with a $42 target back in March, more than double its current price. The Company will present at the Jefferies Conf. on August 11th.
International Paper (IP) block of 10,000 August $27 puts bought to open at $0.56 here, shares sitting on the 200 day EMA
Perrigo (PRGO) call volume jumps to 20X average with 1,500 August $85/$95 call spreads bought at $2.35
Amgen (AMGN) longer term views after a great earnings report and dividend initiation seeing January $52.50 calls bought 2,500X at $3.55, more than $115,000 in call premium. Amgen shares are locked in a $50 to $62 channel and now near the low end, option traders looking for a recovery later this year. The $50B Biotech giant is cheap at 9.5X earnings, 3.2X sales and 2X book, also great cash flow growth. UBS raised its target to $58 earlier this week.
Acme Packet (APKT) puts active, appears 3,500 Aug. $62.50 puts rolled down to $57.50 strike today, staying bearish
Schnitzer Steel (SCHN) trading 4,000 calls, 20X average with nearly 2,000 January $55/$60 bear call spreads trading for $1.50 credits
ARM Holdings (ARMH) also with a buyer of 3,000 September $27 puts at $1.45, total put volume now 2X daily after 3,000 August $28 puts were bought at $1.30 earlier. Bearish action continues to accumulate in the high valuation Semiconductor with a focus on mobile chips. The August $30, $29, and $28 puts have Open Interest of more than 9,000, 6,000, and 8,000 respectively, large bears holding strong for more downside. Shares lost uptrend support and look headed to a test of $26, followed by a potential breakdown to $23.50. ARM shares trade 58X earnings, 5.4 PEG and 8.15X book, one of the most over-valued mid-caps of all stocks. Increased competition and a saturated market could hurt growth potential moving forward.
Heckmann Corp (HEK) call volume 20X average as 5,000 December $5 calls rolled to March $5 calls
Garmin (GRMN) with 2,000 August $34 puts bought to open, shares falling, earnings 8-3, buyers at $2.45 on the offer
Juniper (JNPR) sees a trader step in here for 5,500 September $24 calls to open at $1.09, buying the weakness as shares have followed through lower since being crushed on earnings. With shares at $23.15, major support is $22.50, the Summer 2010 lows and Summer 2009, and the seasonal chart would show that Juniper rallies from August through year-end. Juniper is now trading 14.2X earnings, 1.25 PEG, 2.8X sales and 3.6X cash value, a market cap under $12.5B now. Stifel and Needham reiterated Buys after earnings with $37/$34 targets respectively, while OpCo and MKM downgraded. Cisco (CSCO) earnings August 10th could save the beaten down group, and one trader put in a large buy to look for shares to bounce from extreme oversold conditions.
Atmel (ATML) making new lows, but a big tablet play in chips and 600 January $10 calls bought here at $0.65 offer, a strike with over 10,000 in open interest from September 6th when 10,000 January $10/$12.50 call spreads bought for $0.50. Atmel trades 9.35X earnings, 0.24 PEG, and 2.1X sales, great value for the growth.
Walter Industries (WLT) long term view with a bullish spread looking for that takeover, selling 1,500 January 2013 $35 puts at $5.30 and buying 2,000 January 2013 $80/$105 call spreads at $7.15.
Stamps.com (STMP) unusual buying in February $20 calls for 1,250X today
Big Lots (BIG) re-tested its triangle breakout and bounced, and trading 4,100 calls on the day, more than 7X average with 2,000 November $40 far OTM calls bought and a big buyer of 1,125 January $40 calls at $1.05 as well, IV rising. Big Lots looks like a solid acquisition target following the buyout of BJs Wholesale (BJ) recently, BIG trading just 10.3X earnings, 0.46X sales and 2.84X book. Nelson Peltz may set his sights on Big Lots if he can close the deal on Family Dollar (FDO).
Aruba Networks (ARUN) seller of 2,000 October $18 puts at $0.60 to open, and buyer of 2,000 November $23 calls to open, shares recently pulled back to 20 day EMA support on light volume after a strong showing earlier this week.
Marathon Petro (MPC) breaking new lows, yet calls are active at 3X daily with more than 2,000 November $30 calls bought to open today. The recently spun off refiner is getting extremely cheap at 3.8X forward earnings, 0.14X sales and 1.15X book value, started a Buy with a $55 target at Dahlman Rose in July. A trader sold 5,000 January $40/$30 strangles at $3.70 to open on September 19th. Shares are oversold at new lows
International Paper (IP) seller of 5,000 January 2013 $23 puts at $5 bid to open this morning and now more than 3,500 November $28/$21 bull risk reversals trading at a $0.31 net credit. International Paper is acquiring Temple Inland (TIN) in a strong deal for the Company, and shares remain in a large triangle pattern, touching its lower band and oversold conditions this morning, but starting to bounce. The put seller has long term faith in the name, and with all these Consumer stocks (PG, KMB, CL) running to new highs, the packaging stocks should follow. IP trades 7.5X earnings, 0.4X sales and 13.7X cash flow, and with a 4.3% dividend yield it is a compelling value. Earnings are scheduled for October 27th.
Suncor (SU) bearish action with the March $31/$26 bear risk reversal traded 3,250X at $0.87
Joy Global (JOYG) trades 1,000 April 75/55 bull put spreads at $9.37 credit
Cliffs Natural (CLF) January $65/$45 put spread trades 1,000X at $9.10
First Solar (FSLR) trading 12,400 puts in the first hour, above daily average already and just 3700 calls. The December $70/$55 put spreads bought 2,000X at $6.80 the most noticeable trade this morning and October 60/50 put spreads also seeing some flow. Shares experienced an oversold bounce the last few days, but now back on the trend lower. Shares have a measured move down to $25 based on the breakdown at $25, and one Analyst was recently out with a $35 target for shares. More than $1.3M in put premium bought this morning, leading bearish options flow. Shares trade 12.3X trailing earnings, 0.6 PEG, and 1.7X book with a 29% short float, and many orders in question with governments cutting back on budgets, while pricing is also extremely weak.
Cummins (CMI) late bearish flow into October $92.50 puts with 2,650 bought, offer side buys at $4.90 to open, over $1.2M in put premium now trading today.
VMware (VMW) April 130 calls with unusual action today, more than 1,600 bought at $2.35 offer, over $500,000 in call premium for calls that require shares more than 45% higher. EMC owns a large stake and potentially could acquire the remaining.
MetLife (MET) opening buy of 2,500 January 2012 $35 calls at $1.07
SAP AG (SAP) with over $475,000 in call premium purchased with over 2,000 October $50 calls bought on $3.20 to $3.30 offers, call volume running 3X daily as the German market improves. These contracts had bullish flow just over a week ago as well, and actually was planning on jumping on these with shares at $48, but missed it. Shares are near a break of the descending trend line, made major support at $48 and now above the 20 EMA, next target the 50 day EMA at $53. Oracle recently reported strong results, and all indications that SAP AG should be very strong as well, 10-26 earnings. SAP AG also rumored as a potential takeover target, a $61.3B Co. trading 16X earnings, 3.4X sales and 10X cash, rumored with IBM the acquirer, which would be a massive deal.
Freeport McMoran (FCX) trading 10,000 January $38/$29 put spreads at $5.25
Symantec (SYMC) with 13,475 January 2013 $20 calls bought at $1.74 offer. The buyer closed this position last week and now re-opening.
Cisco (CSCO) January $17.50/$12.50 bull risk reversal trades for $0.22 on 7,500 contracts, covered spread with $20 calls sold as well
El Paso (EP) with a 10,000 contract November $18/$15 bull risk reversal for $0.29 to open. El Paso shares are trading at its lower acceleration band, oversold and due for a bounce, also near key support that has held 3 times in 2011. The $13.2B Natural Gas Co. trades 13.5X earnings, 3X sales and 2.44X book, and has a ton of open interest in longer term options, potentially seen as an acquisition target. Third Point, who has been active lately, raised its stake in EP during Q2. Traders may be positioning ahead of its planned E&P spin-off.
Accenture (ACN) October $44 puts with 4,900 bought to open at $1 into next weeks earnings on the 27th, over $240,000 in put premium, far OTM, but a name that tends to react big on earnings. The puts look tied to a block of 80,000 shares.
JP Morgan (JPM) sale of 7,000 March $29 puts at $4.20 to open
Tyson (TSN) with 2,400 April $20 calls bought to open on the $0.70 offer, a name seeing bullish options flow all week
JP Morgan (JPM) November $33/$23 bull risk reversal trades 12,500X at $0.22; Citi (C) also trades 13,800 November $29/$20 bull risk reversals
Jet Blue (JBLU) seeing bullish call flow for the second day, more than 4,500 January $6 calls bought on the offer yesterday, and today more than 5,500 with 8X daily call volume and 65% on the offer. Another trade bought 125,000 shares of stock tied to 2,300 January 2013 $5 calls sold at $0.70 in a buy-write that could pay a solid 49% return. Shares are basing above $4, similar to June 2009 levels that served as a bottom, and Airlines been holding up well with weak Oil, resilient demand, and a bullish outlook for the industry from the IATA. Jet Blue has a $1.22B market cap, and could be of M&A interest in a consolidating industry needing to save on costs. Shares trade 8.4X earnings, 0.3X sales, 0.7X book and 1.04X cash value. There is a 15% short float, 6.9 days to cover. JP Morgan reiterated Overweight earlier this week, and made a bullish call on the entire group.
Arcelor (MT) January $14 calls bought 6,000X at $2.73 and 5,000 January $18 calls sold at $1.11, those appear to be closed. Also, a buyer of 5,000 January 2012 $15 calls at the $2.21 offer. Call volume is 3X daily just 15 minutes into trading, shares of the Steel giant now lower than the 2008/2009 crisis lows and way oversold. There was a sale of 15,000 December $14 puts to open in yesterdays trading action. Arcelors market cap now down to $23.66B and trades 3.8X earnings, 0.29 PEG, 0.27X sales, and 0.38X book value. Although Steel demand is weak due to a global slowdown, value buyers are likely to step into this name soon, especially with a 4.95% dividend yield.
Gannett (GCI) leading early put action with 5,000 January $12.50 puts trading as shares hit new lows
Freeport McMoran (FCX) with around 15,000 October $40 puts rolled down to the $33 strike
Yahoo (YHOO) April $16/$12 bull risk reversal trades 7,500X at $0.27
Arcelor (MT) sale of 15,500 Dec. 14 puts at $1.52, a willing long calling valuation bottom
Schlumberger (SLB) trading 20,600 calls in the first 90 minutes with 60% on the offer including big 1,000 contract lots of October $67.50 calls with more than 5,500 trading already, over $1.7M in call premium purchased. Shares have over-reached to the downside past our $65 target, hitting lows of $61.60 this morning. The $87.9B Oil and Gas Equipment Co. trades 12X earnings, 2.46X sales and 2.76X book with $110+ targets at most Street firms. Traders are actively buying calls, looking for a bounce from oversold conditions.
Freeport (FCX) roll down of 5,000 November $47 puts to the $42 strike, taking some off the table
ARIAD Pharma (ARIA) with opening sales of 6,000 January $6 puts at $0.30
Union Pacific (UNP) seeing combo spreads, selling January $75 puts to buy the $87.50/$95 call spreads.
Dish Network (DISH) trades a large bullish risk reversal in December, the $30/$25 at a $0.15 net credit, a willing long at $24.85 basis looking to participate in a potential upside move. Shares have been trending higher and now above all major EMAs, pulling back from overbought conditions today. On September 1st a trader bought 10,000 January 2013 $40 calls at $0.95 on the CBOE. Dish trades 9.4X earnings, 0.9X sales, 2.64X cash, and 9.3X cash flow with a $12B market cap, and noting that AT&T (T) may be looking at an acquisition in Satellite TV if the T-Mobile deal is squashed. Brean Murray reiterated a Buy this morning with an increased target to $38, nice upside from current levels. Dish is transforming Blockbuster into a streaming video service to compete with Netflix (NFLX). The launch of the new service expected in Q4, the catalyst for this risk reversal to reap profits as Dish becomes more attractive.
Fastenal (FAST) on the rise to new highs and 2,470 October $40 calls trading against OI 592
Alcoa (AA) sees some bearish flow into ITM puts with 5,000 October $16 puts
GameStop (GME) traders with ITM January $24 calls bought 3,000X at $2.55
SeaGate (STX) opening sale of 5,000 December $11 puts at $1.03 on the ISE at 12:50pm, a willing long, and bullish call Open Interest remains in December $11 calls with 10,148 in OI
Tesla (TSLA) buyer of December $26 calls paid $3.10 for 1,250 contracts. Call volume running 1.5X daily average, and shares broke out last week of a trend down at $24.50 and now breaking above all major EMAs. Tesla is a $2.7B play on electric vehicles, and with 37% of its float short, 18.5 days to cover. Tesla tends to bounce when it announces distribution deals, but could be seen as a takeover target for a auto maker looking to integrate the electric vehicles. Pac Crest reiterated an Outperform on August 22nd with a $38 target, noting that it expects the Model S to emerge as leader in luxury autos. The Model S is expected to be unveiled on October 1st, so that could be a catalyst for shares.
Express Scripts (ESRX) January 2012 $47.50/$35 bull risk reversals trading at $0.50 credit for 3,000 contracts
Lowes (LOW) April $24 calls with 5,000 bought on the offer
General Motors (GM) seeing bullish call buyers ITM with December $20 calls at $3,80, more than 5,000 contracts with $740,000 in call premium purchased today, also a big stock buyer earlier for 3.34M shares at $22.62. Shares are near new post-IPO lows, trouble with a break above its 20 EMA, currently at $23. The $35B auto manufacturer trades real cheap at 4.9X earnings, 0.4 PEG, 0.24X sales, 0.83X book and 1.08X cash value, almost too cheap with debt now also under control. GM recently reached a deal with the UAW that could pressure Ford and Chrysler according to the WSJ. Ticonderoga raised shares to Buy with a $42 target back on August 15th.
Pepsi (PEP) shares weak on the day and have faded since reports last week the Company could break-up. Put volume running above daily average today with the November $60/$55 ratio put spread bought 2,500X5,000 at $0.47 debit to open, a trade that may be hedging long stock exposure, or just looking for a short volatility and price trade. The 200 Week EMA sits at $59.75 and has held on weakness, and if that breaks $55 would be a suitable target move. The $98B Food and Beverage Co. trades 15.8X trailing earnings, 1.57X sales and 4.1X book with a 3.3% dividend yield. Pepsi has severely under-performed Coca Cola (KO) and separating its Food and Beverage businesses would likely create shareholder value.
Tyson (TSN) January $20 calls being actively bought with 5,000 trading against high OI
UltraShort Euro (EUO) bouncing and Jan. 17 calls coming back on the radar with 5,800 bought this morning
YUM Brands (YUM) January 2012 $55/$45 bull risk reversal trades 15,000X at $1.68, a very bullish trade
Medivation (MDVN) big buyer of 200,000 shares of stock that sells 2,000 December $30 calls at $1.55 and buys the $19/$13 put spread 2,000X at $3, protecting the stock position and willing to let shares go at a $30 price tag. Shares are breaking out as I write intraday and on the daily chart, traders looking to October where IV is at 227% as results from Phase 3 of MDVN301, its prostate cancer drug, are expected shortly. Morgan Joseph started shares with a Buy and $30 target this month, also one of the main players in Alzheimers, although a recent set-back, shares have recovered from $9.
Blackstone (BX) rising fast and 8,550 Jan. 2013 $15 calls bought at $2.53 offer, similar to yesterdays action
Hansen Natural (HANS) interesting action with 2,000 March 2012 $110 calls bought today
Universal Display (PANL) block of 300,000 shares trades along with 3,000 January 2013 $55 synthetic short positions at $2.10, volatility trade
Anadarko Petro (APC) with a large bullish trade, the February $80/$90 call spread bought 4,500X to open at $3.12. Anadarko shares are in a clean ascending triangle with $75 a major breakout level. The $35.9B Oil & Gas Co. trades 17.6X earnings, 2.95X sales, and 1.67X book value. Ticonderoga was out positive recently, raising to Buy with a $90 target. Anadarko was considered a buyout target, but the $35.9B market cap would make it a big deal. Howard Weil raised to Outperform with a $108 target on September 6th, and UBS named it a top E&P play on 9-9 with a $96 target, citing valuation and exploration upside. Upcoming catalysts include 2011 production growth guidance, Macondo settlement talks with BP, a settlement with Sonatrach in Algeria worth $5/share, and active exploration updates.
NetApp (NTAP) with a buyer of 1,500 December $40 calls at $2.42 on the ISE; NetApp (NTAP) also trades 5,000 March $35 puts on the bid with 185,000 shares of stock above offer
Opko Health (OPK) breaks out and unusual October $5 call action with 2,500 trading
Ralph Lauren (RL) with an opening sale of 9,075 October $155 calls at $1.70 bid, shares failing to break out today at the same $140 level it has failed the last few months. Call volume is running 7X average with $1.6M in call premium sold, not tied to stock today, but potentially a large stock holder writing calls against his/her position. Ralph Lauren has formed an ascending triangle, and a name that has held strong. At 21.5X trailing earnings, 2.12X sales and 30X cash flow shares are fairly rich considering the weak Retail Sales report this morning, and its exposure to the EuroZone. Goldman raised estimates in August, but maintains Neutral and a $145 target.
Pfizer (PFE) January 2012 $20/$15 bull risk reversals trading 5,000X
Citi (C) leading put premium with October $27/$20 puts seeing a few size buyers, positions rolled from September 27 puts.
Murphy Oil (MUR) with a bullish risk reversal for 4,000 contracts, January $55 calls bought and January $45 puts sold for net $0.30 debit, a willing long at a $45.30 cost basis, wanting to participate in a move higher, shares at $50.70, and forming a nice basing pattern after completing the measured move of the breakdown at $62. There was some action in October calls last week with buyers, and a name seen as a potential buyout or break-up name in Energy. Murphy trades cheap at 7.2X earnings, 0.75 PEG, 0.34X sales and 1.1X book, raised to Outperform with a $74 target at Howard Weil last month. A trader bought 3,000 October $55 calls last Friday. Murphy is an E&P Co. and has a refining unit, and it could look to sell off one of its units.
Green Mountain Coffee (GMCR) seeing bearish options action for the first time in awhile with 1,100 October $100 puts, nearly $500,000 in put premium today.
Coach (COH) September IV jumps as more than 3,300 September $55 calls are bought to open at $1.10 to $1.15 on the offers. The trades amount to call volume 1.5X daily average. Shares are in a short term trend higher with it holding support on the lows today. Shares face the 50 day EMA resistance near $56.60. Coach trades 13.7X earnings, 3.7X sales and 21.9X cash flow. We saw November put buying in the name late last week, but was tied to long stock.
Dollar Tree (DLTR) seeing bullish offer side action with 1,834 October $72.50 calls trading against OI 1,705, call volume 2X daily average and $50,000 in call premium purchased. Shares are not far from all time highs, and after breaking out have now pulled back for a re-test and are flagging in a bullish manner, likely to start another breakout if $71.30 Friday and Today highs are taken out. With the economy deteriorating, the dollar stores tend to outperform as consumers trade down. Dollar Tree trades 15.5X earnings, 1.37X sales and 20.7X cash flow, still a fair value. M&A has also been very active in the group with 99 Cent Stores (NDN) and Family Dollar (FDO). Piper has an Overweight rating and an $87 target, seeing 20% growth next year.
Conoco (COP) block of 7,500 January $72.50/$60 collars trade, likely to see a big block of stock, similar to the action in other Oil related names yesterday
Analog Devices (ADI) block of 3,000 December $31 puts hit the $2 bid to open on the PHLX
SanDisk (SNDK) October $37/$31 ratio put spread trades 6,000X8,000. Shares are up 4.35% in a weak tape with memory prices gaining traction as supply goes off line, also a bunch of new products coming out with flash memory. However, this trade is looking to fade the recent 4 day surge of more than 15% in shares, now near the 100 day EMA and Upper Acceleration Band as resistance. SanDisk is loved by Analysts with quite a few positive calls out recently, including Avian raising shares to Positive yesterday. Shares trade 8.2X earnings, 0.56 PEG, 1.76X sales and 7.2X cash flow.
Mead Johnson (MJN) broke to new highs today and continues to see bullish strategies, the January $75/$55 bull risk reversal traded 1,700X at $2.75 today on the CBOE
TransDigm (TDG) put volume jumps to 12,650 as the February $85/$80 ratio put spread trades 5,000X7,500
Hertz (HTZ) buyer of 2,500 January 11/14 call spreads at $1
Hansen Natural (HANS) trade yesterday was actually an opening sale of 4,000 September $90 calls and bought 3,500 March $100 calls in diagonal spread, not a roll of a position with OI in September $90 calls jumping to above 10,000 now, a bullish trade but seeing $90 upside through September expiration.
Ensco (ESV) trading 5,300 puts which is more than 2X daily put average and leading bearish action with $1.6M in put premium as 3,600+ December $49 puts are bought to open at the $4.10 offer. Shares of the Oil Services name have rallied strong in recent weeks and back to the $50 level, major resistance as the prior breakdown and the 100/200 day EMAs. The $11.3B offshore services Co. trades 8.4X earnings, 6.4X sales and 1.07X book value, a good value name in the group with a 2.85% dividend yield. It appears that these puts are more protective, a block of 25,000 shares bought and some other large share buys earlier today. Global Hunter raised to Buy with a $62 target in August.
Lululemon (LULU) options active with earnings this Friday as 10,000 calls and 10,000 puts trade. The spread from last week active again for 3,500X with December $65 calls sold to buy the December $57.5/$46.25 put spreads
QUALCOMM (QCOM) trading with bullish call flow, $465,000 in call premium with September and October $52.50 calls actively bought, needing to break above $52 where the 50 EMA is near a death cross of the 200 EMA, alert set.
Polycom (PLCM) trading 2,800 calls with $310,000 in call premium in the first 45 minutes with the October $21.25 calls hot as 2,000 are bought, and continuing bullish call buying seen in recent days, definitely a potential acquisition candidate. Shares are nearing the end of a falling wedge pattern and could look to breakout soon for a big move. Polycom has consistently reported strong earnings and trades 14.2X earnings, 2.8X sales and 26X cash flow, fairly cheap for the 38.5% EPS growth seen in FY12. There are risks to its Government exposure, but as the World becomes more Tech focused and less need for travel, its conferencing telecom equipment should continue to see strong demand.
Yahoo (YHOO) January $12.50/$10 bull risk reversal trades 8,800X
Lexmark (LXK) shares jump to day highs and IV pops with 4,400 September $30 calls bought at the $0.85 offer on a multi-exchange sweep
Finisar (FNSR) put volume at 3X daily as 5,000 September $20 puts rolled to 5,000 October $19 puts, staying bearish the optical name that jumped on earnings last week, but has quickly given up those gains. Shares have quickly become overbought on RSI and look likely to roll back towards $15 and then create a potential large inverse head and shoulders reversal pattern. Finisar is trading 13.75X forward earnings, 0.96 PEG, 1.9X sales and 2.55X book, fairly good value for the strong growth, but industry demand issues will slow that and there is an 11% short float. B. Riley was out saying the worse was over for optical stocks, citing favorable China CapEx data and seeing improving margins at Finisar. CSFB does not see the growth outlook at robust and keeps a $16 target, while Citi sees a trough in revenues and raised its target to $23 from $17.
TeraData (TDC) trades 1,000 November $65/$60 bear risk reversals at $1.45,
Sothebys (BID) put action running 9X daily average with the January $35/$30 1X2 put spread traded 2,000X4,000, but appears to be a roll up to a higher strike for a higher Delta in a bearish view
American Axle (AXL) showing a lot of intraday power and trading 2,850 calls with 98% on the offer, 2,500 of the OTM November $11 calls bought to open with shares below $10. A bunch more action heating up with 6,400 calls now trading, 6X daily average and front month IV climbing steadily. On October 20th there were buyers of January $9 and $10 calls for 6,000 contracts, and an opening buyer of 2,000 November $10 calls at $0.65 on 10-27. Shares broke out at $9.50, a measured move now to $12 with the $7 double bottom. The $728M auto part supplier trades 4.65X earnings, 0.28X sales and 6.36X cash value, also a 15.77% short float. BofA has a Buy rating and $15.50 target, and this options activity comes ahead of motor vehicle sales reports tomorrow, a potential positive catalyst for shares.
Shaw Group (SHAW) trading 4,150 calls which is 4X daily average and IV rising with 81% offer side buys, over $170,000 in call premium, and this coming ahead of Monday morning earnings, the November $24 OTM calls actively bought at $0.35 and December $22, $23, and $24 calls. Shares are trading at multi-year lows, struggling due to bad press for Nuclear Plants. The $1.6B construction Co. trades 9.87X earnings, 0.26X sales and 1.58X book.
Pepsi (PEP) April $62.50 puts seeing opening buyers on the $3.35 offer, more than 4,000 bought, over $1.1M in put premium
MarkWest Energy (MWE) breaking out and trading 2,000 January $55 calls bought mostly at $0.65, and then another 2,000 at the $0.80 offer as shares rally intraday, now trading 5X daily call volume with IV rising. Shares are looking to close the week near new highs, breaking out of a consolidation pattern its been in since May. The $4.2B Natural Gas transportation and processing Co. trades 23.65X earnings and 3.35X book, but most attractive for its 5.95% dividend yield, also an industry likely to see further M&A. On October 24th 2500 January $50 calls were bought to open as well, so bullish action again today.
Verizon (VZ) near critical breakout level and 19,700 November $38 and 10,800 December $39 calls trading, mainly buyers
Western Refining (WNR) roll of 5,000 December $15 calls to 5,000 March $15 calls, paying another $1.15, bullish with nearly $1M in call premium purchased.
Williams (WMB), considered to be the next acquisition target after the El Paso (EP) deal, trading 89,000 calls ahead of 11-1 earnings with 40,000 January $35/$40 call spreads bought at $0.70, looking to be a roll back in strikes. On Tuesday the December $32/$29 bull risk reversal traded 13,100X at a $0.65 net credit. Shares are breaking out today to multi-month highs and not far from $33 resistance. The $17.58B Oil and Gas Pipeline Co. trades 17.5X earnings, 2.3X book and yields 2.7%.
Covidien (COV) unusually active buying in April $45 puts with 2,050 trading, more than $580,000 in put premium
Crown Castle (CCI) sale of 7,000 November 44/39 strangles at $0.90
Duke Energy (DUK) seeing bearish action as money may start to come out of Utlity stocks after months of outperformance, and earnings are November 3rd. Traders bought over 3,300 April $20 puts today on the $1.10 offer, over $370,000 in put premium,, and running 4X daily put volume. Shares are trading near all-time highs and at 14.3X earnings, 1.85X sales and 1.2X book with a 5% yield, shares are a bit richer than peers, although the yield remains attractive. A sell signal would come on a break of $20 as it has moved along its 20 day EMA since the breakout at $19.
Peabody (BTU) down 7% but off lows and 1,600 January $42 calls bought to open today and 1,000 January $32 puts sold to open.
Oracle (ORCL) December $33/$30 put spread bought 7,000X at $0.97
Amazon (AMZN) set to report earnings tonight and the early read has a very bearish bias with puts outpacing calls 28,430 to 25,950 and $1.7M in put premium purchased, while $150,000 in call premium sold, also a negative 104K Net Delta. The largest trade of the day just hit, and a bearish one, the October weekly $225/$215/$205 butterfly put spread at $1.65. Shares are very weak early, down 3.5% and breaking its 20 day EMA for the first time in awhile. The richly valued name comes into earnings with high expectations, and margins could hurt the outlook, while any signs of sub 40% sales growth would hit shares hard.
Oil and Gas Exploration (XOP) roll of 10,000 December $48 puts to the $52 puts
AutoDesk (ADSK) block of 5,000 April $36 calls trades at $2.72, closer to the bid
Success Factors (SFSF) November 26 calls seeing bullish flow with 3,000 bought offer side first 10 minutes, more than $230,000 in call premium, earnings set for 10-26, and recently boosted guidance although shares pulled back from above $27 all the way back to $23.50 support. The $2B cloud-based software Co. trades 8X sales and 4.8X book, a 16.4% short float. Piper recently raised its target to $29 and Lazard reiterated a Buy.
Biogen (BIIB) opening buyer of 3,000 January 2012 $115 calls at $4.60 on the ISE, tied to 117,000 shares of stock below bid, potentially a stock replacement, position is Delta Neutral
Cisco (CSCO) January 2013 $20/$15 bull risk reversal trades 10,000X at $0.13 credit, long term view, willing to be long stock at $14.87 basis
Abercrombie (ANF) with another 7,500 November 70/60 put spreads bought at $3.25
Semiconductors are in the sights of bearish option traders today with the Semi ETF (SMH) failing at the 200 day EMA and still below August rally highs, divergence with the market. Altera (ALTR)shares are up 10% although the earnings were weak, and trading 13,800 puts with big buys in November $35 and $34 puts for over 3,250 each, and $360,000 in put premium purchased today. Xilinx (XLNX) has seen a lot of put action lately and another 1,600 November $30 puts purchased on the offer today. ASML Corp (ASML) has also been seeing November put accumulation and 1,600 deep ITM November $42.50 puts bought to open today at $3.20 offers. All of the names are overbought and back near resistance levels, and while valuation is fairly cheap on a historical based, the outlooks are poor with weakening demand.
Philip Morris (PM) November 65/60 put spreads sold to open 3,000X at $0.50 Credit, Bull Put Spreads
Comcast (CMCSA) large buy write, buyer of 945,000 shares sells 9,450 November 25 calls at $0.42, earnings 11/2
Tempur Pedic (TPX) is trading 9,720 puts into earnings after the close, nearly 10X daily average with the October $65/$60 put spreads trading size at $1.38. These are opening spreads, while the $55 strike has over 6,000 puts in Open Interest. Shares had set up a head and shoulder stop with the neckline near $50, but the recent rally has taken shares right back to the right shoulder, $65 resistance, shares overbought and with bearish divergence into earnings. On October 10th more than 5,000 October $50 puts were bought to open at $0.85 and the following day 2,800 of the $55 puts. Select Comfort (SCSS) reported a fantastic quarter last night, a competitors, so potential market share concerns. Standpoint raised TPX to Buy with a $65 target on 9-22, and shares have traded an average of 8% higher the past 3 reports. Shares trade 22.4X earnings, 3.3X sales and 21.1X cash flow, rich on valuation in my view, and there is a 12.9% short float in shares.
Reynolds American (RAI) had a buyers of 4,750 January $37.50 calls at $2.85 and $2.70 offers late in the day Monday, just seeing it now, but shares forming a great bullish flag near all time highs, and a stock trading 13.88X earnings and yielding a 5.4% dividend.
Dish Network (DISH) December $26/$32 ratio call spreads trading 2,500X5,000 at $1.55 to open
Netflix (NFLX) leading early put premium with $1.2M, more than 2,500 November $90 puts bought, earnings 10/24
Abercrombie and Fitch (ANF) trading 6X daily put volume with more than 8,000 November $70/$60 put spreads bought to open at $3.25, a 2:1+ reward/risk. Shares are consolidating after breaking out of a symmetrical triangle, shares holding a long term trend support level in early October and now flagging, with $77.50 overhead a double top. Abercrombie earnings are scheduled for mid-November. The $6B apparel Co. has been rumored as a buyout play and trades 15X forward earnings, 1.6X sales and 45.5X cash flow, UBs recently reiterating a Neutral rating with a $68 target. We have yet to see a real slowdown in retail sales, but traders are betting against Abercrombie or at least buying protection.
Intuitive Surgical (ISRG) is trading 4,960 calls in the first 40 minutes, after shares gain 9% on earnings, seeing buyers that really liked the report and 55% on the offer, including buyers of April $500 and $510 calls and January $490 and $500 calls. Call volume is 3X average and $1.6M in call premium already purchased. Shares are breaking to all time highs today and the momentum continued for this growth medical device Co. The $15B Co. now trades 28.5X earnings, 9.7X sales and 35.6X cash flow, rich on valuation, but the best story in its sector. Collins Stewart put a $475 target on shares this morning. Its market cap is approaching a level that would make it a tough acquisition target, but the Company may look for a stock split to attract new investors.
Aruba Networks (ARUN) sees 3,000 January $22.50 puts bought on the $2.80 offer
Macys (M) breaking out today and trading 5,500 calls, 75% on the offer with January $30 and $31 calls seeing the most action.
Merck (MRK) roll of 10,000 October $35 synthetic long positions to 10,000 November $32 synthetic long positions. Shares have been in the $30.50 to $33.15 range for weeks. Merck has lagged many of the Pharma names and trades 8.4X earnings, 2.1X sales and 23X cash flow with a healthy 4.7% dividend yield, earnings set for 10-28. Barclays reiterated Overweight with a $38 target last month. BofA reiterated a Buy and $41 target yesterday with an earnings preview, noting currency tailwinds and stronger than expected Victrelis sales.
Biogen (BIIB) November 110/115 call spreads bought 1,500X at $1.67, solid reward/risk trade
Agribusiness (MOO) buyer of 11,600 February $40 OTM puts at $1.75 to open, $2M in put premium purchased
Oil States International (OIS) unusual action with 1,200 December $75 calls bought offer side int he $1.65 to $1.75 range, 7X daily call volume. The $3.3B Oil Services Co. trades 9.45X earnings, 1.16X sales and 1.8X book, potentially an attractive takeover target with this suspicious bullish action.
Select Comfort (SCSS) trading 2,800 calls on the day, which is 20X daily average with 2,200 October $17.50 calls and 400 November $17.50 calls. The action is opening buying and 30 day IV jumping 12% today, a name that has gapped up on earnings in the past, including 30%, 14%, and 20% gains the 3 quarters before last. Shares put in a bottom at $12 and a gap fill, and now $16.50 is major resistance for a breakout move to $20. Select Comfort shares trade 14X earnings, 1.37X sales and 14.9X cash flow, strong results lately and a growth play, $908M maker of the Sleep Number bed. There is a 10.6% short float, 5.6 days to cover.
Idenix Pharma (IDIX) with a seller for around 7,500 November $5 puts to buy 7,500 January $7.50 calls, the same trade we saw last week for 2,000X. The bullish risk reversal comes after Anadys Pharma (ANDS) was bought out by Roche for a 270% premium, as large companies look to step into the fight against Hepatitis C. This trade today is 160X average daily options volume. The spread traded last week for a net credit, but today going for a $0.30 debit, very bullish, and trader willing to be long at $5 level. Shares of this Biotech traded as high as $27.50 back in 2005, and broke a long term downtrend in August of 2010. Shares have since experiences a few sharp sell-offs but have recovered each time, and now looking to spring higher after breaking a short term downtrend with $7 long term resistance. The $487.5M Biotech has 7.44% of its float short, and trades with ugly fundamentals, expected to lose $0.57 per share next year. Idenix was reiterated a Buy with a $9 target at BofA in August, and is one of the main Hepatitis C fighting Biotechs, in a league with Vertex (VRTX) and Pharmasset (VRUS). Idenix is developing a "nucleotide" drug against Hop C known as IDX184, currently on FDA hold due to liver toxicity during a study, but believed to be a result of IDX320. Phase2b studies underway and should be presented in Q4, and if successful will likely lift the FDA hold and could see a major pop in shares to be considered more fairly valued to peers VRUS and VRTX.
Celanese (CE) trades 15X daily call volume with the December $45/$47.50 ratio call spread bought 5000X7,500 for a small debit. The December 30/25 put spread was recently bought here 2,500X. Celanese is one of the best values in Chemicals aty 8.2X earnings, 0.78 PEG, 0.95X sales and 7.4X cash value. Shares today broke a sharp falling wedge pattern.
Qualcomm (QCOM) sweep of around 2,500 November $52.50 calls at $3.65 here on the offer, and then another 4,000 at $3.70
CommVault (CVLT) traded an unusual spread, appears 1,000 November $42 calls closed and rolled to 1,400 November $44 calls, and 900 November $34 puts closed and rolled to 500 November $38 short puts, also with 900 November $46 calls sold to open. Options volume running around 10X daily and overall the spread looks to have a bullish view. Shares put in a strong base at $31 and now above $41, not far from $47 highs. The $1.85B enterprise software Co. is one of the richest in valuation, but trades with a premium because it is likely to be acquired eventually, trading 39X earnings and 5.44X sales, seeing strong growth ahead. Dell would make sense as a potential acquirer. Lazard noted CommVault as a Buy yesterday with multiple catalysts for upside and Pac Crest noted it as a likely acquisition target in a September report. Earnings are 11-1, and shares could potentially form the right shoulder of a head and shoulders pattern if they stall here.
Valero (VLO) 3 way spread in January 2012 with 10,000 of the $16 puts sold and the $24/$30 call spread bought.
Pharmacyclics (PCYC) breaking out and put sellers back in the name, more than 6,000 November $12 puts sold to open, showing confidence in the stock
Google (GOOG) first two hours trading 24,000 calls and 19,000 puts with $2.4M in call premium purchased and $470,000 in put premium sold, a 3 day trend of call premium buying in size and put premium sales, bullish bias. Largest early trades include 255 October 560/580 call spreads and 200 October 560/600 call spreads. IV Skew showing a bullish bend. As of 2:40pm Google shares were holding green and in the 548 to 556 range much of the day. Call volume has jumped to 65,800 with $4.3M in call premium, while put action up to 54,000 with $3.3M in put premium, so put buyers have been active in the afternoon. The largest trade now is 500 October $560/$575 call spreads sold along with 500 October $560/$545 put spreads in the weekly chain, sellers of volatility for around a $13 credit, looking for hardly any movement in shares. October weekly IV now up to 138% and October regular expiration at 63.5%, both elevated today, net buyers of volatility for the most part.
I previewed Google earnings earlier this week and am bullish considering its one of the best values for growth, and stable during economic uncertainty, also actively pushing into new markets that will drive growth, such as Google Flights, Zagats and Google +. Google is also continuing to take market shares in Search and Mobile, and Mobile Search is a growth area. The options market is pricing in a 6.5% move on earnings, a bit cheap to historical moves, and with shares trading at $550 a $600 upside target, and $500 downside target appear appropriate. Major resistance of the long term ascending triangle at $630 and support at $490.
VF Corp (VFC) roll of 6,000 October $115 short puts to 3,000 November $125 short puts
Sunoco (SUN) roll of 3,550 November $34 calls to 3,550 January $38 calls
Darling International (DAR) bear flag and trading 4,500 puts, well above the 70 average, the January $12.50/$10 ratio put spread 1,500X3,000 at $0.375
First Solar (FSLR) shares rebounded after hitting new lows earlier today following a Ticonderoga downgrade to Sell with a $40 target. Put volume is running 2X daily average with the January $50/$30 put spreads bought 6,000X at $5.19 to open. Shares still have a measured move to $25 from the breakdown of $100, while $65 has acted as resistance on rebound moves. Selling has taken place on heavy volume as investors dump the stock that has plenty of uncertainty in the outlook due to Solar subsidy cuts. Shares of the $4.8B Co. now trade 9.5X trailing earnings, 1.3X book and 1.9X sales with 32% of the float now short. Polysilicon prices have been falling due to a lack of demand for Solar modules.
Plains Exploration (PXP) traded a 10,000 contract 3 way spread in November options yesterday, and now 10,000 January $20 puts sold to buy 10,000 January $27/$33 call spreads
PNC Financial (PNC) puts active today, earnings 10-19, the October $47/$38 ratio put spread bought 1,500X3,000 at $0.60 to open.
AutoDesk (ADSK) November $32/$25 bull risk reversal trades 2,000X, note that 5,000 Nov. $32/$24 bullish risk reversals traded late Friday
Chevron (CVX) trading 1.5X daily put volume as a trader buys the March $95/$75 ratio put spread 5,000X10,000 at $2.70 net debit. The debit spread is looking for shares to head lower, with a wide profit range all the way down to near $58, so a great hedging strategy if the trader is long stock, or a bearish bet on price and volatility. Chevron shares have rallied back but on weak volume and bearish divergences, and the $100 level key resistance. Chevron is a $196B Major Oil Co. that is cheap at 7.5X earnings, 0.84X sales and 1.7X book, also a 3.2% dividend yield, but closely tied to the performance of Crude Oil. Shares were raised to Accumulate at Standpoint in August with a $115 target, and to Outperform with a $110 target at OpCo.
Dow Chemical (DOW) January $30 calls traded a block of 6,000, tied to 198,000 shares of stock that traded below bid, Delta Neutral trade
Google (GOOG) leading call premium purchased with $3.3M today and a high Net Delta into Thursday earnings. Largest trade was October 550/600 1X2 call spread 185X370 at $8.80
Japan (EWJ) December to March $10 call roll 30,000X
Weight Watchers (WTW) is trading 7,000 puts on the day, 15X daily average with 5,900 April $50 puts trading, buyers pushing IV higher with shares at $62.70, far OTM bearish bets. Shares looked likely to break down at $55 recently and freefall for a gap fill to $45, but have based and bounced, but appear to be running out of power. Earnings are expected in early November and the $4.37B Co. trades 13.15X earnings, 2.6X sales and 14.25X cash flow and has seen strong momentum with the push for healthy living and it recently targeting Men, although still 10.7% of the float is short. Auriga recently started shares a Buy with a $71 target.
Texas Instruments (TXN) roll of 5,200 October $29 puts to the $30 strike, higher Delta bearish position
Salesforce.com (CRM) at its 20 EMA having trouble, and 1,500 November $110 puts bought today, over $570,000 in put premium purchased
Polycom (PLCM) October $20 puts active with 3,660 trading, a big block just paid $0.90 with a $0.60/$0.95 bid-ask, paying up, and earnings 10-19, a notorious big mover on results.
Eli Lilly (LLY) April 40 calls over 10,000 bought and 20,000 calls today is 5X daily with $694,000 in call premium. Lilly yields 5.26% and near a new highs breakout, with $38.50 key on the weekly chart for a move back to $43.50. Shares held long term support on the pullback and look great for a breakout longer term, and seeing strength across the Pharma names with Merck (MRK), Bristol Myers (BMY), Glaxo (GSK) and Pfizer (PFE). Eli Lilly trades 10X earnings, 1.8X sales and 3X book value, and has underperformed peers. The FDA approved Lillys Cialis for BPH in Men last night. Eli Lilly was a recent outlier as one of the few Pharma names to see no increase in short interest. It currently has 9 Phase 3 candidates.
Inter Public Group (IPG) trading 8,780 calls, 15X daily average with all the action in April $5 calls being bought on the $2.95 offer, ITM calls and $277,000 in call premium net. Shares recently hit multi-year lows and now failing at trend resistance, but light volume today. The $3.7B advertising and marketing Co. trades 10.5X earnings, 0.55X sales and 2X cash value, cheap on valuation and Argus reiterated a Buy with a $14 target back on August 1st. On September 20th more than 7,500 October $7 calls were bought on the $1.30 offer, currently trading $0.75, but still in OI and earnings not until October 28th.
News Corp (NWSA) January $19/$15 bull risk reversal trades 10,000X at $0.65 credit
Veeco (VECO) October $26 puts surge with action here, 2,500 bought on $1.40 offer to open, acting weak all day as well
eBay (EBAY) seeing bullish flow here with more than 3,400 April $35 calls bought on the $2.40 offer, over $250,000 in call premium purchased. The Company will report earnings on October 19th and these traders looking longer term. Shares are in a $27/$35 horizontal channel, now near a cluster of EMA resistance, while a breakout would target $43. Shares are cheap at 13X earnings and 17X cash flow as a major play on mobile payment growth, and Wedbush raised to Outperform with a $48 target recently, as sales trends also remain strong. Volume in those calls jumped to above 8,000 now, potentially also seeking an eventual PayPal spin-off.
Canadian Natural (CNQ) buyer of 1,500 December $29 calls at $2.80 offer, bullish trade
Flotek Industries (FTK) unusual action with March $7.50 calls seeing 3,100 bought on offer, 4X daily call volume, and with shares at $4.8, would require a huge move as traders pay $0.60 on the calls.
Superior Energy (SPN) reversed strong with market yesterday, and more than 3,000 Dec. 20 puts sold to open on the name, willing longs in oversold Energy services name
VMware (VMW) with a bullish 3 way spread for November, 1,800 of the $75 puts sold at $3.30 and 1,800 $87.50/$100 call spreads bought at $4.05, net $0.75 debit for the spread. The trader is willing to be long at $75 and owns a 12.5 point call spread to profit on a mover higher. VMW shares are in a large falling wedge pattern, recently finding support from oversold conditions with a bullish candle, but now running into 20 day EMA resistance. The $75 level is major support from the March lows, likely the reason for that put strike. Shares were started Buy at Jefferies this morning, a $100 target, citing a new stack of enterprise computing, and likes the bold moves by the Company and potential for earnings upside in October based on conservative guidance in Q2. Shares of the $34.44B Co. with EMC a major holder, trade 33.4X earnings, 2.6 PEG and 27X cash flow, and some feel EMC will eventually either spin it off or acquire the remaining shares. Barclays raised to Overweight in October with a $114 target.
US Steel (X) roll back of 20,000 January $35 calls to 10,000 January $25 calls, higher Delta trade, taking another shot at a rebound
Potash (POT) bouncing off early weakness and a buyer of 4,000 January 2012 $51.67 calls on the $1.39 offer at the ISE, bullish purchase of far OTM calls.
McMoran Exploration (MMR) trades 13,000 January $15/$6 bullish risk reversals at a $0.30 credit, shares at new lows today.
General Dynamics (GD) trading 12,000 calls, 8X daily average with 6,000 January 2013 $65/$70 call spreads bought at $1.45, but appears to be rolled back to the $65 strike for a higher Delta trade. Shares have a potential double bottom around $54 with the 2010 lows, needing a move above $59 though to break the downtrend. The $20B Defense Co. trades 7.3X earnings, 0.6X sales and 1.45X book with a 3.38% yield, one of the better values in the industry. Argus raised to Buy with an $86 target earlier this year. General Dynamics recently began its build of the DDG-115 guided-missile destroyers.
General Motors (GM) January 2013 $20 calls trading 9,500X with buyers, over $1.6M in call premium today, many being rolled back from $22.50 and $26 strikes
Small Caps (IWM) October $56/$63/$70 Put Butterfly Spread trades 20,000X40,000
Whole Foods (WFM) with a bullish combo spread as the November 62.5/55 put spread sold to open at $2.05 and 1,500 November $75 calls bought at $1.96, earnings in late October.
Advanced Auto (AAP) calls trading 9,100X, 20X daily with 4,000 short October $60 calls rolled to 5,000 short Dec. 60 calls, likely extension of a buy write
Focus Media (FMCN) intraday bull pennant after raising buyback and reaffirming guidance, shares beaten down hard recently on fraud concerns and its China exposure. A trader rolled a big put position to November last week, but today over $950,000 in call premium purchased, more than 5,200 April $20 calls bought, 1,200 April $19 calls, and now some heat in the November $21 calls. Call volume is 17,000, or 9X daily average, but puts not yet seeing a lot of closing trades. Shares were cut in half over 2 weeks, and very oversold. The Hong Kong Ad Co. trades with a $2.25B market cap at 8.8X earnings, 0.6 PEG, 1.74X book and 12.77X cash flow. SIG was out positive this morning with a $40 target, noting compelling valuation and a belief that business performance remains solid.
Alpha Natural (ANR) put holder that has been right rolls 10,000 December $24 puts to the January $21 strike
MBIA (MBI) shares ripped and now 15,000 January $11 calls trade on the PHLX at $0.75, on adjusted terms, intraday bull flag and IV still climbing as shares break to multi-month highs
Accenture (ACN) seeing bearish action with put volume 2.5X daily as more than 5,000 January $57.50 ITM puts are bought to open around $3.10, more than $445,000 in put premium bought, earnings coming up on 12/15. Shares recently bounced near the 200 day EMA and trend support at $53.50 and now trading above $57. The $39B IT firm trades 13.2X earnings, 1.43X sales and 16.3X cash flow, fairly valued. Barclays cut shares to Equal Weight with a $61 target on 11-1. Accenture earnings could be negatively impacted by the recent economic uncertainty, leading to lower spending by businesses.
VALE SA (VALE) is trading near new lows for the year, and calls are active today with a block of 5,000 December $22 calls bought to open that traded against 305,000 shares of stock, while the January $26/$18 bullish risk reversals are trading 4,000X at 7 cent credits. The $117B miner is trading 5X earnings, 1.45X book and 1.97X sales.
Kodiak Oil (KOG) trading 14,600 calls on the day, 5X average, shares making new highs and traders look to be rolling out December holdings to March $7.50 calls
Lowes (LOW) with a large purchase of 2.73M shares of stock at $23.95 along with a sale of 14,750 January 2013 $30 calls at $1.18 in a buy write. Lowes has been a steady outperformer in November with a strong trend, and looking for a break of $24 resistance for a move to $27 year highs, and then $30 would be the next resistance level. Lowes has a $29.45B market cap and trades 13.2X earnings, 0.6X sales and 1.75X book with a 2.4% dividend yield. Shares have been trading higher in tandem with the housing names, recent data showing some signs of improvement finally. UBS reiterated a Buy and $27 target on 11-15.
Steel Dynamics (STLD) trading 4,000 January $12.50 calls, but the big block was bought against 107,800 shares of stock on the $12.20 bid, potential stock replacement strategy.
Agnico Eagle Mines (AEM) trades 2,000 January $47.50/ February $50 call diagonal spreads at $0.20, potentially eying a move into the gap as shares are basing
Morgan Stanley (MS) April $20 calls active with buyers today, more than 8,800 trading early
Cobalt International Energy (CIE) with an opening buyer of 2,000 April $12.50 calls on the $1.25 offer at the PHLX, paying the offer on a $0.40 wide bid-ask, aggressive bull. Shares have resistance at the 200 day EMA just above $11 where shares failed recently, and an inverse head and shoulders reversal pattern has formed. The $3.5B Gulf of Mexico and West Africa Oil Exploration Co. trades 1.63X book value and 3.66X cash value, expected to lose $0.38/Share next year. There is also 4,000 January $12.50 calls in Open Interest. JP Morgan lowered its price target on 11/2, but the Cameia #1 drilling results due in December offshore Angola, a potential positive catalyst.
Qualcomm (QCOM) with a roll of 7,500 January $52.50 puts to the April $52.50 puts where 7,500 bought at $5.30 offer
Research in Motion (RIMM) large roll of December $17.50 puts to January $15 puts where 21,700 are trading, staying bearish this name for months now
Nabors Industries (NBR) traded 59,000 calls yesterday with 6,250 December $24 calls and 17,570 December $25 calls, also 3,570 January $22.50 calls and 23,760 January $25 calls. Looking at the Open Interest moves the December/January $25 calendar call spread was opened at $0.16 17,500X and the December $24 calls sold to open to buy the January $22.50 calls as well in opening spreads. On the day $434,000 in call premium bought and Net Delta of 199,000, bullish bias. Nabors touched lows of $11 in October and rallied to the 200 day EMA at $21, now pulled back to $17, a 38.2% Fibonacci Retracement. The $5B Oil and Gas land Driller has long been thought of as an acquisition target and valuation is cheap at 7.7X earnings, 0.95 PEG, 0.87X sales and 0.88X book value. Dahlman Rose raised to Buy with a $30 target on 10-31. The SEC is probing the Co. on Executive Perks and the recent ousting of the CEO could open up acquisition opportunities.
Sealed Air (SEE) trading 8,000 calls, 20X daily average with 4,000 January $17.50 calls sold and 4,000 April $17.50 calls bought, likely rolling out to buy more time, though more than 13,000 January $17.50 calls in Open Interest. Sealed Air (SEE) an interesting value name in packaging/containers industry seeing multiple M&A deals this year, trading 8.88X earnings, 0.66X sales and 1X book with a 3.13% yield. With a Debt/Equity ratio of 0.56, it could be a LBO target. The January $17.50 straddle was sold 5,000X on 11-16 at $1.05 credit, expecting a range.
Fluor (FLR) opening sale of 2,000 April $50 puts at $5.40 bid this morning on the ISE, shares potentially forming right shoulder of an inverse head and shoulders pattern, recently reported strong results
Johnson Controls (JCI) April $32/$25 bear risk reversals trading 2,500X at $0.25 to open, shares at cheap valuation with a 2.5% yield, but auto part names are really struggling and shares are breaking down.
Forest Labs (FRX) trading 7,100 calls on chatter, strong action with 4,000 December $30 calls and 1,900 January $31 calls bought to open, IV30 up sharply, 10.5%
PPG Industries (PPG) with a willing long selling 2,500 January $85 puts at $6.20 to open
Arvin Meritor (MTOR) shares have crashed the past week, but buyers step in here for 2,000 January $5 calls at $0.85 offer to open, playing for a bounce as an Insider bought $400,000 in stock last week.
Schlumberger (SLB) trades 10,575 January $77.50/$57.50 collars on long stock
Aruba Networks (ARUN) hit hard today and 2,000 April $21 puts bought on the offer, over $485,000 in put premium
Mylan (MYL) trading 2.5X daily call volume with 3,000 April $20 calls bought in size at $1.15 offers, $310,000 in call premium and shares starting to rally intraday. The action comes after this morning Mylan announced a settlement for its first-to-file generic version of Vivelle-Dot. JP Morgan reiterated Overweight and a $28 target on 11-16 and Paulson added to his holdings on 11/15 filing. Shares could form a right shoulder of an inverse head and shoulders reversal pattern at $17.50 support, breakout level at $20.50 for a move back to $25. The $7.6B generics Co. trades 7.54X earnings, 1.26X sales and 2.2X book.
Euro (FXE) 3 way bearish trade with 5,000 January $141 calls sold to buy 5,000 January $134/$129 put spreads, and in March 2,000 $149 calls sold to buy 2,000 125/118 put spreads, action continues to see Euro heading lower
Tyson (TSN) trades 3,500 April $23 calls at $0.60 ahead of Monday morning earnings
Cooper Companies (COO) shares been bashed this week on news of a recall, and now a bullish trader stepping into the options market, buying 9,000 May $60/$80 call spreads at $5.55 to open, shares at $57.12. This stock has climbed from $11 in 2009 to above $80 recently, and the 200 week EMA at $50.90 support, while the recent panic lows line up with the big breakout level from a year ago. Call volume is 100X average on that trade. The $2.8B medical supplier could become an acquisition target with the recent sell-off, trading 12.3X earnings, 2.2X sales and 15X cash flow. Cooper is expanding the recall of its Avaira contact lenses. On 11-16 JP Morgan lowered its target to $72 due to the recall news.
Acme Packet (APKT) Dec. 40 puts bought 1,500X at $3.40 offer
Allstate (ALL) December $28 short calls rolled to January 29 short calls 10,000X
Louisiana Pacific (LPX) trading 13,900 calls which is 30X daily average and all on the offer with December $7 calls and then 10,000+ December $8 calls. IV is jumping on the buys and shares are breaking out past prior resistance and the 200 day EMA. The $970M Lumber Co. could see a boost from recent improving housing data, and trades 0.7X sales, 0.9X book and 2.7X cash value, also 13.88% of the float short. RBC raised it to Outperform with a reduced $8 target on 10-13. It could become a target for Weyerhauser (WY) at these levels. Shares are breaking a long term trend resistance line with this move today. Lumber prices are strong this morning, gaining 4.3%.
Chevron (CVX) with 2,000 December $100 calls bought on $4.10 offer on weakness, shares back to prior breakout level that can now be support, more than $700,000 in call premium purchased. Shares made a major top under $110 and have been weak with Crude Oil strong with worries of an Oil Spill, but the issue seems to have been contained. Shares trade 7.9X earnings, 0.8X sales and 1.66X book with a strong 3.2% dividend yield. BofA cut to Neutral from Buy in late October, and the spill is likely to face probes, but option traders stepping in with bullish call buys on this move, shares oversold at the lower acceleration band, a typical bounce level.
Ralph Lauren (RL) December options active with volatility sales, the December $140 puts sold 4,860X and the December $170 calls sold 3,650X today, expecting shares to remain range-bound
Green Mountain Coffee (GMCR) large sellers of 10,000 December $40 puts at $1.20, willing longs as shares have recovered from earnings and trade in its gap.
Lockheed Martin (LMT) seeing bullish action with a block of 1,500 and a block of 2,000 December $77.50 calls bought at $1.65 to open today. Lockheed recently reported a very strong quarter and yields over 5%
Omnicom Group (OMC) trading 35X daily put volume as the January $40/$35 put spreads are bought 4,600X at $0.85 to open, a bearish put spread. Shares are currently in a descending triangle, support at $42 and resistance $45. The $12B advertising agency trades 12X earnings, 0.89X sales and 12X cash flow, fairly cheap, although the WSJ recently did a report on a slowdown in Ad spending, and weakness in Europe could also hurt Omnicom. On 11-7 Deutsche Bank reiterated a Buy and $46 target, noting progress in emerging markets.
Yahoo (YHOO) large spread trade, appears 30,000 December 16/20 call spreads sold to close and 30,000 April 16/20 call spreads opened, although just 15,000 April 20s sold thus far, possibly unbalanced
Quicksilver Resources (KWK) March $9/$6 bull risk reversals active again with 10,000 trading
Take Two (TTWO) with another large volatility sale, the January $14 straddle sold 10,000X at $2.35 to open, a $2.35M sale and follows Fridays sale of 7,000 January $15/$14 strangles at $1.90 to open. Shares are trading back at its 200 day EMA at $14, middle of the years $11/$17 range, and traders expecting a sideways trade to continue. The $1.25B video game Co. trades 6X earnings, 1.3X sales and 2.2X book, also 11.9% of the float short. Hillard Lyons rated a Buy and $18 target on 11-11.
Pfizer (PFE) January 2013 $15 calls with a block of 11,000 bought on $5.40 offer to open, and 5,000 earlier, 28,000 in total
Honeywell (HON) buyer of 240,000 shares of stock at $54.78 and sells 5,000 December $55 calls at $1.95, near Delta Neutral
Cheniere Energy (LNG) higher on takeover chatter and options trading with a big bullish bias, IV30 now higher by 15.5%, nearly 15,000 calls trading which is 3X average and $675,000 in call premium purchased. A large bullish risk reversal trades 3,000X at $0.40, the January $13 calls bought and $9 puts sold. Shares are forming a bullish flag intraday and on the daily. The rumor this morning was a $17.50 offer from RDS or Conoco. There is a 22% short float in shares. Shares rallied big in late October with an $8B deal to export LNG, something that could become a theme with these deals.
Coin Star (CSTR) with an opening buyer of 3,500 December $42.50 puts at $1.40 on the ISE, large bearish trade, shares set for another leg lower if $46 breaks, eying $39 support
Akamai (AKAM) among bullish leaders with $439,000 in call premium bought today, notably the February $30 calls bought in size for 1,850 contracts today, shares breaking its 200 day EMA and keeping up post-earnings momentum
Chipotle (CMG) been weak, but bullish bias in todays training, January and March calls with buyers today, over $585,000 in call premium
Exxon Mobil (XOM) with a buyer of 10,000 December $77.50/$70 put spreads at $1.15 to open, over $1.2M in put premium.
Chevron (CVX) also with a buyer of 3,000 December $105/$90 put spreads at $2.55 earlier. Crude Oil is back near $100 and looks that some are taking some bearish bets against the larger E&P Cos. Exxon may have put in a third lower high at $82, so the trend is bearish. Exxon trading 9.35X earnings, 0.8X sales and 2.4X book with a 2.4% yield is still fairly attractive. UBs raised to Buy with a $90 target on 9-8. Chevron (CVX) could put in a triple top here and trades 8.3X earnings, 0.85X sales and 21.9X cash flow with a 3.07% yield, another attractive value name. The put spreads may be hedging buyers of the stock with fund managers putting money back into the market, but opting for safer value plays.
Transocean (RIG) active early with January $50 and $52.50 puts on the offer, more than $1.5M in put premium purchased
Research in Motion (RIMM) roll of 5,000 December $20 puts to 7,000 December $16 puts
Green Mountain Coffee (GMCR) largest trade of the day hits here, the December $48/$52.50 ratio call spread 1,850X3,700 at $0.05 credit
Lululemon (LLU) March $50/$45 put spreads seeing buyers today, more than 1,200 trading
Deckers Outdoor Corp (DECK) trading 3,250 puts on the day which is 1.5X average and among the most bearish reads today with $545,000 in put premium purchased, the December $105 and $100 OTM puts bought for some size. After surging to new highs on earnings, shares have pulled back hard to its 50 day EMA support at $102.50 and also trend support. The rising wedge has now been created, so a break of todays lows could send shares reeling back to $95. The $4.1B shoe and apparel Co. trades rich at 25.6X trailing earnings, 3.4X sales and 5.75X book, and the most recent quarter was not as impressive as the reaction would infer. Barclays raised its target to $125 on 10-28.
Walter Energy (WLT) traders rolling 1,000 December $90 calls to March 2012 $95 calls, buying some more time for potential M&A deal
Jefferies (JEF) opening sale of 4,000 December $7 puts at $0.25, showing some confidence in the stock
Norfolk Southern (NSC) traded put volume at 5X daily average with the January $75/$65 ratio put spread traded 1,500X3,000 at $1.60 debit, a bearish trade looking for a move back to $65 for shares. Shares have rallied sharply to near all time highs seen in July 2011, and starting to top out since gapping higher on earnings. The $25B rail is one of the best names in the group, trading 12.5X earnings, 1 PEG and 2.3X sales. Rail Traffic continues to be strong, a leading economic indicator. Barclays reiterated Overweight with a raised $86 target on 10-31, and Stifel raised its price to $88. Traders often lock in profits on stock and use ratio spreads to hedge, so not necessarily a bearish bet in this case.
Conoco Phillips (COP) with over $3.2M in put premium purchased on the day, a block of 5,000 May $70 puts bought to open at $5.25 offer on the ISE and over 8,000 of those trading. Shares are trading higher with strong Crude Oil, but still the potential to put in a third lower high. The $95B Oil Co. trades 8.6X earnings, 0.39X sales and 1.44X book with a 3.7% dividend yield. Benchmark reiterated a Sell with a $53 target in September. Conoco (COP) now has turned into 20,000+ May $70/$55 put spreads at $3.70
Tesla (TSLA) buyer of the March 2012 $30/$25 ratio put spread 3,500X7,500
Electronic Arts (ERTS) with a buyer of 5,000 January $24 calls at $2.30 offer on the ISE yesterday, confirmed opening this morning, and now more than 16,000 calls in Open Interest at that strike. Traders have been actively selling December calls lately, much of which has been profit taking. Back on July 22nd the January 2012 $27/$20 bullish risk reversal traded 29,800X, and it appears that around 10,000 still in open interest. Another large holder of 25,000 January $22.50 calls at $1.03 back on 3-14 remains in open interest as well. Shares recently pulled back on earnings, but quickly recovered, a recent break past $24.90 in an ascending triangle that would measure a move back to $30, although shares pulled back to $24.50. The RSI and MACD trends are bullish and ADX with a bullish crossover recently, and above the 200 week EMA of $25.25 leaves plenty of room for a move as high as $35 on the chart. Electronic Arts trades 20.75X earnings, 2.1X sales and 3.2X book, and has been making strategic acquisitions to move into Social and Online gaming. The video game industry seems to have finally bottomed, and the upcoming IPO of Zynga could put the sector in focus. Consumer Spending on gaming is rising, and the new opportunities in social and mobile gaming is lower cost development, so profits should continue to grow. EA will launch the new Star Wars game on 12/20, after options expiration, so January is the best month to position long, while selling December volatility also looks to be a good play, potentially a calendar spread. Pre-Orders are looking strong according to Lazards channel checks. Piper recently raised its target to $31.
Pulte Homes (PHM) buyer of 12,000 December $6 calls on the $0.35 offer, 2.5X daily call volume on the big purchase.
Chesapeake Energy (CHK) December $26 puts bought to open 7,000X at $1.48, the January $27 puts sold, likely to close, 4,000X at $2.55
Aflac (AFL) bearish spreads trading, the December $44 / January $37 diagonal put spread 2,600X at $1.04 with opening trades, interesting bearish spread, looking for shares to head lower, but willing to be long at $37, seen as a value area and support on the chart as well. Shares have climbed sharply the last few weeks, but stalling at $47, the 200 day SMA. The big breakout for shares took place near $38, so a re-test may be in order, and also the 50 day SMA. The $21.1B insurer trades 6.85X earnings, 0.98X sales and 1.66X book with a 2.9% yield.
Amazon (AMZN) with $1.4M in call premium bought today, the stand-out trade a buyer of 600 April 2012 $275 calls at the $5.45 offer, more than 1,400 of those trading today.
Range Resources (RRC) January 2013 $95 calls with buyers paying $5.20 for over 1,000 contracts, far OTM for a likely deal stock
Linked In (LNKD) earnings likely to face scrutiny tonight, the high valuation name that is in a highly competitive business set to report results. On the day 7,500 calls and 10,800 puts trading with a major bearish bias, over $770,000 in put premium, only $93,000 in call premium. One large trade was the sale of 500 November $90/85 call spreads to buy the $75 puts at $1.95 net debit, while the November/December $65 put calendar spreads active at $2.75 debits, as are some $70 put calendar spreads. Shares fell on its first earnings report and acting weak lately, although finishing up today near session highs. The $8B Co. trades 1200X earnings and 525X cash flow. Barclays started Overweight with a $93 target on 9-16. Short Interest has been rising in shares with 50% of the free float short and 29.4% of total shares, on the rise since July. On October 24th the November $97.50/$85 bear risk reversals traded around 2,500 contracts at $0.60 credit. The November $85/$65 ratio put spread traded 750X1,500 yesterday as well.
Krispy Kreme Donuts (KKD) trading 4X daily call volume with the February $5 ITM calls bought to open 2,535 contracts today, bullish action, shares up 4.2% on the day. Shares have pulled back recently to fill an earnings gap from earlier this year, but longer term back to the beginning of 2010 shares are in a channel up pattern and held support, next target a move back to $10 highs. A move past $7.50 would be the first objective to break shares out, earnings not until early December. The $466M Co. trades 18.5X earnings, 0.78 PEG, and 1.2X sales, fairly cheap for reigniting growth recently. It could become an acquisition target as well.
Research in Motion (RIMM) put roll-downs continue with 12,050 December $21 puts rolled down to $17.50 strike
Novellus (NVLS) December $37/$31 collar trades 3,000X on 183,000 shares of stock
Apache (APA) reports earnings tomorrow before the open and right now $875,000 in call premium purchased, the April $105 calls with some size buying at $7.90 offer, more than 1,100 of those trading, overall bullish action into results. Energy names have been reporting strong results and Apache pulled back to $95 support near its 20 day EMA, and are bouncing today, still yet to re-test the breakdown from August near $112.50. Apache has a $38.5B market cap and trades very cheap at 7.85X earnings and 1.35X book. Apache fell 7.8% last earnings report.
Homebuilders (XHB) November $14 far OTM calls with more than 10,000 contracts bought on the offer to open
Sysco (SYY) reports earnings 11/7 pre-market and 5,000 of the May $25 puts bought to open this morning, but tied to a block of 118,400 shares of stock around 2:25pm
Baker Hughes (BHI) shares are off more than 10% this morning after reporting earnings that missed expectations slightly, but could hold $52.50 support and form an inverse head and shoulders reversal pattern with a neckline near $62. Call volume running 1.5X average with $880,000 in call premium purchased today, overall bullish options bias despite the sell-off. The largest trade was a buyer of 1,500 April 60/65 call spreads at $1.65, while November $55 calls also active for traders looking for a quick snapback. The $25B Oil Services Co. trades 10X earnings, 0.74 PEG, and 1.7X book with a 1% dividend yield, one of the top values in its industry. Most of the Street has $100+ target for shares. The sell-off is being attributed to weak International margins.
Occidental Petro (OXY) is near the lead for bullish call premium today at $675,000, mainly due to one large buyer of 1,500 January 2012 $95 calls on the $3.95 offer. Shares have held in well with Crude Oil slipping below $90 today, but now rebounding, and OXY shares filling its morning gap lower, also holding the prior breakout level at $87.50. OXY is the best way to play a bullish view on Oil, one of the top operators in the business, trading 11.2X earnings, 3.34X sales and 2.15X book with a 2% yield. Argus reiterated Buy and raised its target to $120 yesterday. CSFB raised shares to Outpeform on 10-28.
December 30th, 2011
EXCO Resources (XCO) trading 4,600 calls with 86% bought on the offer, more than $200,000 in call premium with March $10, February $12, and January $13 calls all seeing sizable buying. 30 day IV is higher by 8% today, and yesterday the February $11/$12 calls were bought 1,500 and 2,500X, also 2,080 March $13 calls. Shares recently made a double bottom at $9.50 and two strong up days now in a quiet tape. EXCO is a $2.2B Oil & Gas shale play with assets in the Permian Basin, shares trading 12.5X earnings, 3.07X sales and 1.26X book, often considered a likely M&A target. WL Ross & Co has been actively buying large blocks of stock with over $8M in stock bought last week. Stifel has a Buy rating and $15 target on shares.
Applied Materials (AMAT) big buyer of 2,000 April $11 calls at $0.67 on a multi-exchange sweep. A move past the 50 day EMA at $11 would target a return to $12.
Apollo Global (APOL) large spread trades ahead of 1/5 earnings with 10,000 January $48 puts sold at $0.62 and 5,000 January $60 calls bought at $0.44, trade tied to 245,000 shares of stock below the bid.
December 29th, 2011
Shaw Group (SHAW) is breaking out of a bullish consolidation and above its 200 day EMA. Call volume is 6X daily average today with more than 2,000 January and February $28 calls trading, opening buyers with 70% offer side and $190,000 in call premium bought. The $1.7B construction Co. trades 10.4X earnings, 0.29X sales and 1.95X cash, still recovering from the sell-off after the nuclear concerns.
Owens Corning (OC) a potential beneficiary of an improving housing market, and trading 3X daily call volume with 500 February $25 calls bought at $4.10, and also 990 of the May $32 OTM calls bought today. The $3.27B Co. trades 10X earnings, 0.6X sales and 0.87X book value, raised to Buy at Stifel in October with a $37 target.
Thomson Creek (TC) trading 16X daily put volume, March $9 short puts being rolled, and 6,000 June $7 puts sold to open around $1.07. The Open Interest in March 8 calls remains above 13,600, so traders continue to see upside in the molybdenum miner trades at a 33% discount to book value.
December 28th, 2011
Vical (VICL) call volume at 10X average as 2,000 February $5 calls bought to open from $0.20 to $0.65 on a major spike in Implied Volatility. Shares forming a bullish consolidation and looking to breakout above $4.75. The $350M Biotech started Buy with $9 target at Global Hunter on 12-1.
ARM Holdings (ARMH) January $28/$26 put spread trade size, appears 5,000 of the $26 strike puts likely rolled to $28 strike for higher Delta. Later in the day more than 2,000 February $27 puts bought at $1.80 offer to open.
Silver Standard Resources (SSRI) a late day surge with 2,500 February $12 calls bought to open on the $1.65 offer in a multi-exchange sweep. Silver (SLV) is off 5.8% today and broke technical support, however SSRI has held up down just 0.6% and holding prior lows. The $1B Silver miner trades 11.11X forward earnings, 1.05X book and 2.65X cash value, started Accumulate at Global Hunter on 12-16 with a $23 target.
December 27th, 2011
Atlas Air Worldwide (AAWW) trading 9X daily call volume with buyers of the January $37.50/$40 call spreads. Shares of the $1B provider of aviation services trade very cheap at 6.9X earnings, 0.88 PEG< 0.75X sales, 0.93X book and 2.4X cash. Maxim started shares Buy with a $51 target on 12-2. Atlas cut itsfull year view back in November, due to fuel expenses and weaker Asian demand. Shares are currently coiled with a strong trend line acting as support, and breaking above its 20/50 day EMAs today.
Nokia (NOK) shares are trading near 12 year lows and 25,120 calls trading today with 61% of the action on the offer, more than $215,000 in call premium purchased, the February $6 calls bought 3,500X at $0.13, and July $7/$8 OTM calls trading 6,690 and 4,700 contracts respectively. Nokias IV30 is higher by 7% today and call volume 3X daily and 9.5X the put volume. A block of 25,000 July $8 calls traded at $0.20 on 12-15, 8,300 April $6 calls bought at $0.24 on 12-19, and 5,900 April 6 calls on 12-21, so the calls have been active for a few days now. Nokia now has an $18.8B market cap and trades 21.4X earnings, 0.35X sales, 1.12X book and 1.29X cash with an 11.6% dividend. Northland started shares Outperform on 10-26 with a $10 target. Nokia will re-enter the US Smartphone market on January 11th, 2012, partnered with Microsoft. Although rumors are flying about RIMM being acquired, Nokia may become a target for Microsoft to really make a splash into this market, and call buyers are loading up in OTM calls for that type of scenario.
Rackspace Hosting (RAX)put volume jumps to 5.5X daily average as 5,000 February $42 puts are bought at $2.55 and 6,000 February $36 puts are sold at $0.80 on the PHLX, bearish spread. Shares recently failed near $45 resistance and has 4 tops near that level, RSI and MACD showing a bearish trend with each attempt at the highs, although shares have outperformed for awhile now compared to peers. The $5.7B cloud computing Co. trades 54X earnings, 6X sales and 90.6X cash flow, one of the most expensive valuations in the market. RAX is often considered a takeover target. Kaufman raised to Buy with a $49 target in November.
December 23rd, 2011
Yahoo (YHOO) buyer of the February $16/$19 ratio call spread 10,000X20,000 at $0.54, playing for a buyout, but one at a minimal premium, a trade that makes a lot of sense.
Ultra Petroleum (UPL) traded 8X normal put volume with 5,500 of the January $34 puts bought against OI of 1,812.
SandRidge Energy (SD) trading 29,000 calls, 3X daily, noticeable large block buys in June $11 calls at $0.91 with more than 8,500 trading, buyers looking for the energy Co. to continue higher.
December 22nd, 2011
Open Table (OPEN) shares have been strong lately and a trader puts on the February $40/$32.50 ratio put spread for 2,000X4,000 at $1.15, potentially buying back the short puts and rolling to a lower strike of short puts, put volume 3X daily average.
NXP Semi (NXPI) bullish action with call volume 3X average in the first two hours with 3,140 February $15 calls bought to open on the offer, paying $1.85 to $1.95 in sizable buys, more than $475,000 in call premium purchased. Semiconductor stocks are starting to show signs of bottoming and NXPI has a bright future in NFC.
Solar Winds (SWI) traded 9X daily put volume, 1,500 January $32.50 puts rolled down to 2,000 $30 puts.
December 21st, 2011
Hyperdynamics (HDY) traded 6X daily call volume, fresh buying in the February $2 calls with 3,400 bought to open around $0.75. The bullish action comes are shares are making new lows.
Whirlpool (WHR) with an opening buyer of 4,500 February $50 calls at $1.80 on the ISE, bullish trade with call volume 4X daily average. The beaten down name trades 0.8X book value and is forming a potential bottom along the $45 level.
Analog Devices (ADI) with a big block buyer as 2,900 February $35 calls were bought to open on the $1.75 offer in a multi-exchange sweep.
Fossil (FOSL) with a large bullish trade in March 2012 options as 3,100 March $95 calls bought at $3.30 and 3,100 $70 puts sold at $3.30 for a zero cost bullish risk reversals with the underlying at 82.19. Shares are clearly showing solid support at $80 and finding buyers. The $5.2B apparel Co. trades 15X forward earnings, 2.13X sales, and 1.07 PEG. Benchmark raised to Buy with a $115 target November 29th, and should begin to get a view of how strong/weak shopping was this Holiday season.
December 20th, 2011
Informatica (INFA) with a buyer of 3,000 February $37.50/$32.50 put spreads for $2.15 even as shares fell more than 10% on Oracle earnings.
Stryker (SYK) January $48 calls were hot with more than 2,500 bought to open., more than $300,000 in call premium.
CoinStar (CSTR) traded 3X daily call volume in a bullish 3 way spread as 2,500 February $35 puts were sold to open at $0.70, and 2,500 February 47.5/52.5 call spreads were bought to open at $1.60, net $0.90 debit for the spread. CoinStar shares are cheap on valuation and have outperformed Netflix recently. On a move past 47.50 shares can break out for a move to 55. Shares are sitting on trend support on the recent pullback and set up well.
Danaher (DHR) with a bullish spread as a trader sold 4,050 March $43 puts at $1.15 and also sold 6,050 March $50 calls at $1.15, and bought 4,050 of the March $46 calls at $3.20, opening 3 way ratio spread. Shares have formed a long channel down flag since November and would break out above $49. The $32.35B conglomerate trades 14.4X earnings, 2.13X sales, and 1.96X book.
Tiffany’s (TIF) August 2012 $55 puts active with opening sales as 2,100 trade, more than $1.1M in put premium sold to open, willing to be long stock, and seeing limited downside remaining in the stock.
December 15th, 2011
Cisco (CSCO) bullish options action continues this week with 7,700 July $20 calls bought today, buyers paying $1 on the offer, shares holding trend and 50 day EMA support.
ARM Holdings (ARMH) trading more than 12,000 puts, 4X daily with around 5,000 January $28 puts being closed and rolled to 6,500 January $26 puts bought to open. The high valuation Semi broke key trend support earlier this week and looks headed back to $23.
First Solar (FSLR) bear adjusting a large position in January $34 puts as 12,000 trade, and look to be rolling to 17,500 of the $30 puts
December 14th, 2011
Rockwood Holding (ROC) shares at multi-month lows and 1,986 February $40 calls trading with buyers. The $2.95B chemicals Co. reports strong earnings consistently and trades 9.1X earnings, 0.8X sales and 2.14X book value.
Linear Tech (LLTC) trading 4X daily options volume with a buyer of 3,500 January 2012 $29 straddles for $2.60 to open on the AMEX. Linear Tech shares are at a key level with $28.50 trend support, while $33 is resistance, and this trade looking for a move with above $31.60 or below $26.40. Linear Tech pays a 3.3% dividend and trades 14.2X earnings, 1 PEG, 4.66X sales and 20.75X cash flow.
Fed-Ex (FDX) seeing buyers of December $80 calls into earnings with 3,080 trading, leading early bullish call flow, shares now down sharply ahead of results and could see at least a run into the close.
Acme Packet (APKT) is trading 6,450 puts on the day, 2X daily with $1.9M in put premium purchased, mostly from a block of 3,500 February $32.50 puts bought on the $4.30 offer while the $37.50 puts also with some buyers at $7.30 offers. Shares continue to fail at its 50 day EMA on bounced and now struggling at the 20 day EMA, potential for a break of $30 and for shares to head to $25. Shares were higher initially this morning on a Morgan Keegan upgrade to Outperform with a $45 target, while Mizuho cut its target to $28 on 12-1. Acme Packet remains rich on valuation at 47.5X earnings, 7.7X sales and 52X cash flow, and a tough market for growth stocks.
December 13th, 2011
Anadarko Petro (APC) trades a block of 5,000 January 2014 $120 short calls and 6,000 of the $50 puts bought at $7.55, net debit $1.15, a protective position as a big block of stock trades.
Pharmacyclics (PCYC) shares have been weak since announcing a distribution deal, but a trader sells 5,000 May 2012 $9 puts to open at $0.40, willing to be long stock at an $8.60 basis
Delta (DAL) buyer of 5,000 January $7.50/$11 calls spreads at $0.98
Elan (ELN) starting to take off after 2,500 January 2013 $15 calls bought on $1.70 offer, a name that has been seeing a lot of longer term bullish call action.
Oracle (ORCL) is seeing bearish action with earnings scheduled for 12-20, the January $32 puts with sizable buyers at $1.62 and $1.64 offers with more than 5,000 trading. In just 1 hour of trading Oracle has seen $425,000 in put premium purchased. After a strong open shares are falling to day lows under some pressure as January IV jumps, and continue to top near $32, while trend support and 200 day EMA support is at $30.50. Oracle has historically traded higher after earnings, but was hit in June on earnings. Oracle trades 11.8X earnings, 4.33X sales and 14.1X cash flow. Deutsche Bank raised its target to $33 on 12-8. European exposure is a concern heading into the quarter and recent weak results from Salesforce.com may be a negative read-through for Oracle.
December 12th, 2011
Targacept (TRGT) call volume at 19,300 is 8X average again with a buyer of 5,000 May 2012 17.5/30 call spreads, and a buyer of 4,000 May 10/17.5 call spreads, option traders looking for a comeback
Cisco (CSC) calls active in February with $19 strike calls being rolled back to the $18 strike, more than 14,000 of each trading. Cisco shares have been quietly outperforming in a strong uptrend since the August lows, and a Golden Cross near $17.30 where the 50 day EMA crossed the 200 day EMA. Shares still have unfinished business with the gap from $19.50 to $21.50 needing to be filled. Cisco shares are trading 16.4X trailing, 9.7X forward earnings, 2.3X sales, 2.15X book and 11.3X cash flow with a 1.27% yield and more than $40B in cash on the books for returning cash to holders or acquisitions, well positioned in any economic environment. Citi and Deutsche Bank upgraded shares to Buy with a $22 target in November after strong earnings.
Weatherford (WFT) option traders remain bullish with 3,600 February $16 calls trading, offer side buyers at $0.77 this morning and now the January $16/$12.50 bullish risk reversals trading 3,000X at a $0.02 credit. Weatherford is a stock with a ton of open interest in January and February calls from large buys in recent weeks/months, and seems to be building into a potential buyout offer. Shares are forming an inverse head and shoulders pattern with a break above $16 needed to clear the neckline trend. The $11.3B Oil Equipment Co. trades 9.9X earnings, 0.83 PEG, 0.93X sales and 1.14X book. Goldman was recently out positive on the group and rated Weatherford a Buy.
December 9th, 2011
Huntsman (HUN) size moving into January $12.50 calls with 4,000 bought, while 2,500 January $12.50 puts sold on $2.55 bid McMoran Exploration (MMR) big size yesterday with around 19,000 January $17.50 calls rolled to February $18 strike, a ton of open interest in this name and trading another 14,500 calls today, longer term a lot of bullish bets on this $2.36B offshore Oil & Gas Co.
Texas Instruments (TXN) buyer of 3,500 January $28/$30 call spreads for $1.07
Halliburton (HAL) starting to trend to day highs and looking to put in a higher bottom, trading 64,000 calls on the day and just 9,300 puts. On the day it is near the lead for bullish action with $2.5M in call premium purchased and Net Delta of 270,000. Shares have been under pressure due to concerns of lawsuits in the Oil Spill with trials set for February, taking blame from BP lately. Shares are very cheap at 8.1X earnings, 1.33X sales and 2.47X book in the Oil Services group. A US Report from the incident is sue next Wednesday. Morgan Stanley defended shares and said to buy the weakness in a call yesterday. In the options today, 20,900 January $40 calls are trading, closing trades, while 16,900 April $34 calls trade and 10,000 April $42 calls, bullish call spreads and some straight rolls to the $34 strike calls.
December 8th, 2011
Jones Apparel Group (JNY) finished the day trading more than 5,000 January $10 calls yesterday, offer side action for 85% at 7X daily call volume, more than $285,000 in call premium purchased and a high Net Delta. Shares remain below its 100, 200, and 50 day EMAs, and the chart looks fairly weak. We have seen quite a few deals in the industry, and Jones trades 7.8X earnings, 0.78X book, and 7.55X cash flow, also with 13.55% of the float short.
Yahoo (YHOO) shares jump higher as 30,000 April $16/$20 call spreads are bought at $1.37 and 30,000 April $14 puts are sold at $1.07 for a net debit of $0.30. Yahoo shares are positive in a red tape, and still awaiting for an official takeover deal, whether part or all of the Company.
VF Corp (VFC) January $140/$130 ratio put spread trades 450X900 at around a $0.90 debit to open
Monsanto (MON) large blocks of calls trade in January 2012 options, the January $70/$82.50 call spread looks to have been closed 12,000X and the January $72.50/$77.50 call ratio spread trades 12,000X20,000.
Kroger (KR) trading 12X daily call volume and although December IV on the decline, January and April rising with 3,600 January $24 calls bought at $0.50, opening offer side buys, and also 2,160 of the $25s trading. Shares put in a long base near $21.50 and have broken above $23.50 resistance, targeting a move back to $25.50 highs. Food costs are coming down which could add to profitability for the grocers with better margins, and the $14.15B Co. trades cheap at 10.8X earnings, 0.16X sales and 2.76X book and a 1.95% dividend yield. Barclays raised its target to $24 on 12-2 and JP Morgan raised its target to $26.
December 7th, 2011
Hertz (HTZ) trades the January $12.50/$17.50 ratio call spread 3,100X6,200, looks to be rolling back to the $12.50 strike, and taking a bullish stance in shares, call volume 3X daily average.
Sony (SNE) trader buys back 2,000 January $21 short puts and rolls out to around 5,000 April $17 short puts, shares strong all session
Joy Global (JOY) puts trading above daily average and $275,000 in put premium purchased this morning with December $87.50 puts seeing a few large buys with 1,800 trading. Earnings were confirmed today for December expiration on the 14th, and front month volatility is rising today. Shares are 1.7% lower today, and apparently changed its ticker from JOYG to JOY. Shares have gained in 6 of the last 7 earnings reports. JOY shares are struggling at $92.50 resistance with a large bull flag set-up, some bearish divergence on RSI and MACD with the October highs. The $9.4B Farm & Construction Machinery Co. should report solid results after CAT and DE were strong, and at 12.5X earnings, 0.99 PEG, and 2.3X sales shares are still attractive on valuation. Morgan Stanley started shares Equal Weight on 11-2. Shares were subject of takeover chatter on 11/23.
December 6th, 2011
Vulcan Materials (VMC) trading 13X daily call volume with the takeover chatter from this morning, but a real buyer just came in at 11:19am on the AMEX for 2,000 January $38 calls on the $1.10 offer
Eli Lilly (LLY) traded 4X daily call volume with the stock breaking out today, a large sale of 2,800 April $35 puts earlier on the $1.04 bid and now a buyer of 3,200 April 41 calls at $0.89.
Elan (ELN) continues to break higher and 2,000 April $11 calls bought to open in the first 30 minutes today, over $330,000 in call premium and call volume already 2X daily, buyers paying the $1.75 offer for those calls. Shares are forming a triangle and a move past $12 leaves a lot of space for upside on the longer term chart. The $6.7B drug Co. trades 10.7X trailing earnings, 5.2X sales and often considered a buyout target. RBC raised its target to $15 in July and coverage has been fairly quiet lately. Elan has ongoing clinical trials for Alzheimers in Phase 2 and Crohns Disease as well.
December 5th, 2011
Nike (NKE) trades 4,400 January $105/$87.50 collars on a blocks of shares ahead of 12-20 earnings
Aflac (AFL) January $45 / February $38 diagonal put spread trades 2,500X at $1.30
Wal-Mart (WMT) roll of 7,000 December 57.50 short puts to June 2012 $57.50 short puts, trader willing to extend the trade, and still willing to be long stock
Union Pacific (UNP) shares are back near all time highs and overbought, also showing some bearish MACD and RSI divergence with the prior top. On the day 10,700 puts trading and 2,865 calls with more than $775,000 in put premium purchased. The January $105 puts seeing the most action with 3,243 trading against Open Interest of 4,841, also 2,100 of the $97.50 puts. Shares could use a healthy re-test of at least the 20 day EMA at $100 near term. The $49.6B rail Co. trades 16.3X trailing earnings, 2.65X sales, and 26.85X cash flow, fairly rich on valuation, and closely tied to retail, housing, and commodities. Rail Traffic indications have remained strong the past few weeks. The rails recently averted a potential strike and have rallied on that news the last few days. Most of the Street has targets in the $110 to $120 range.
December 2nd, 2011
Carbo Ceramics (CRR) trades 10X daily put volume as the March $135/$115 ratio put spread trades 1,236X2,472 at $0.50 debit.
Sand Ridge Energy (SD) sales of 4,900 March 2012 $7 and $8 calls to buy 9,800 January 2013 $10 calls, extending the timeframe of the bullish view, a name with a lot of bullish activity in options in recent weeks.
MBIA (MBI) continuing the mega rally of this week and 8,000 January $14 calls bought to open today, big action all week in the calls
Goldman Sachs (GS) now trading 33,400 calls in the first hour, already above the 27,650 daily average, more than $1.1M in call premium purchased and a large positive Net Delta, continued bullish call action seen across the Bank stocks the past 10 days. A lot of action in the weekly options, and next weeks December 105 calls with 3,300 trading, recent action positioning for a move to $110 it appears. Goldman has put in a strong double bottom near $85, which was the target for shares after losing support at 150. Goldman trades 7X earnings, 1.19X sales and 0.66X book, also 1.05X cash value, and should thrive in the volatile trading environment. UBS reiterated Buy and a $140 target in October. The fact that Banks traded higher after the S&P downgrade is telling, starting to trade higher on bad news always a sign of a bottom.
December 1st, 2011
Jet Blue (JBLU) March 2012 $6 calls active with more than 5,000 trading
Wyndham Worldwide (WYN) seller of 3,500 February $32 puts to open at $1.25, the best value in the Lodging space, and a chart that is looking very strong, initiated Buy with $41 target at Deutsche Bank in September and Jefferies initiated a Buy on 11-23.
CostCo (COST) stalled a bit after reaching new highs, overbought and starting to get a bit overvalued. A trader put on the January $87.50/$82.50 ratio put spread 2,000X4,000 at $0.40, earnings on 12-8.
Medicines Co (MDCO) trading 40X daily call volume with 2,000 December 20 calls rolled to January 20 calls, paying another $0.85 to be bullish, shares consolidating for weeks. Another trade puts on 1,500 January $20/$17 bullish risk reversals at $0.70 to open. Shares could look to break $19.50 resistance for a run to $25 on the charts, recently reporting strong earnings. The $1B drug Co. is one that I have long seen as a takeover target, mainly on valuation at 6X trailing earnings, PEG 0.6, 2.17X sales and 2.14X book. Auriga started shares a Buy on 11-30.