Daily Freebies

October 22nd, 2014

Boeing (BA) weak response to earnings reversing from up more than 2% to down 3%, price-action that may be indicating we are at a peak for jet demand, and seeing buyers active for 2,800 Feb. 2015 $120 puts today.

Monsanto (MON) bearish spread with shares well off recent lows, the November $115 puts bought 6,000X at $2.62 and the Jan. 2015 $115 calls sold 4,000X at $3.26.

NPS Pharma (NPSP) buyers of 1,225 February 2015 $36 OTM calls $2.10, speculative plays looking for Shire (SHPG) buyout

Hill-Rom (HRC) unusual opening buy of 1,400 December $45 calls at $1.55 with shares set to report on 11/5, already trading up near 2014 highs. The $2.45B provider of hospital equipment trades 16.57X Earnings, 1.49X Sales and 2.95X Book with a 1.43% yield. Care Fusion (CFN) was recently acquired in a $12.2B deal by Becton Dickinson (BDX), so HRC may be another name someone is looking at for ana cquisition.

October 21st, 2014

International Paper (IP) with buyers of 2,400 ITM December $48 calls at $2.41 this morning, and also seeing 10,000 Jan. 2015 $45 short puts rolled up to the $49 strike, which were part of bull risk reversals with the $49 calls back in early September.

Colgate (CL) reports 10/24 before the open and a spread today trades 2,750 each of November $65 calls ($1.43) and May 2015 $65 calls ($3.38), both legs trade mid-market, potential calendar spread. CL has closed lower its last 4 reports.

Wells Fargo (WFC) trading 12,000 November $50 calls with buyers at $0.78, accumulation of 20,000 already in OI from the past week. WFC shares were down sharply into earnings and now with housing strength shares are recovering.

Coca Cola (KO) big buyers step in for 7,500 October 31st (W) $40 calls to open $1.08 offer

October 20th, 2014

Clovis Oncology (CLVS) buyer of 3,000 November $50/$70 call spreads at $4.20

Deckers Outdoor (DECK) buyer of 1,500 November $90/$100 call spreads ahead of 10/23 earnings

Rice Energy (RICE) Jan. 2015 $25 calls bought 12,500X at $2.20, looks to close 15,030 of the $30 calls

Linn Energy (LINE) has bounced around 20% off recent lows but buyers come in here for 3,500 April 2015 $23 puts at $2.65/$2.70 offers

October 17th, 2014

PennyMac (PMT) large buyer 3,000 November $20 calls $1.25/$1.30, trading 150X daily call volume with the trade. The $1.53B mortgage investment Co. trades 7.55X Earnings and 0.97X Book with an 11.8% yield. PMT may be getting a lift from the falling mortgage rates. On 10-10 Piper started shares Neutral with a $23 target.

Mylan (MYL) is trading 2X daily calls early with 2,000 each of the November $52.50 and $55 calls bought, shares rebounding strong this week and in early October upped its outlook, earnings on 10/30. There also has been some talk that TEVA could take a look at MYL for a game-changer acquisition.

Dow Chemical (DOW) trades 10,000 November $49/$43 bull risk reversals at $0.15 debit, and after recent accumulation of over 25,000 November $45 calls

US Steel (X) big buyer of 3,000 November 7th (W) $33 calls at $3.05 offer, reports on 10/28

October 16th, 2014

Visteon (VC) buyer of 2,500 Jan. 2015 $90 calls at $4.70, looks to be closing out some Dec. $110 and Jan. $105 calls. The $3.72B auto parts Co. trades 0.52X Sales, 2.98X Book and 7X trailing earnings.

Dish Network (DISH) November $60 calls hot with buyers at $2.80 to $2.95, a day after 6,000 of these calls bought to open. DISH remains a prospective M&A name and now testing its low from April providing a nice entry.

Assured Guaranty (AGO) trades 3,200 April 2015 $23/$18 bull risk reversals at $0.33 debit

October 14th, 2014

Express (EXPR) buyer pays $1.30 for 4,000 Jan. 2015 $15 calls, stock trying to double bottom with the $14 low and was reported to be in the sights for Private Equity.

BE Aerospace (BEAV) large spread in Jan. 2015 sold 5,000 of the $65 puts at $2.66 and bought 5,000 of the $85/$95 call spreads at $1.56, net credit on the spread.

Air Gas (ARG) with another 1,000 Jan. 2015 $115 calls bought $1.25 to open

Home Depot (HD) well off its lows after a downgrade this morning and 4,500 October $91 calls bought just before Noon at $0.64 offers in large lots, expecting a three day bounce, likely housing data this week a catalyst.

October 13th, 2014

Sumitomo Mitsui Financial (SMFG) trading unusual options action today as 13,500 April 2015 $7.50 puts are sold to open at $0.50. The $54.1B Japanese Bank trades 8.37X Earnings and 0.77X Book with a 6.24% dividend yield. SMFG recently sought to raise its stake in Bank of East Asia and is considered a top bidder for Citi's Diners Club card business in Japan.

Petrobras (PBR) earlier with 10,000 November $21/$24 call spreads bought at $0.76, and now a large buy of 15,000 December $18 calls spread vs. a sale of November $12 puts at $0.39.

Citi (C) green and going for day highs ahead of earnings tomorrow, and a block of 7,500 Jan. 2015 $50 calls bought at $3, also 4,000 December $50 calls bought today

Shutter Stock (SSTK) trading 35X daily calls as a trader bought 1,000 November $70/$85 call spreads at $2.65

October 10th, 2014

MasterCard (MA) spread sold 3,350 Jan. 2016 $62 puts and bought 3,350 Jan. 2016 $72/$82 call spreads, net cost of $0.00 for the spread, and in this case was rolled from Jan. 2015. The $83.2B Co. trades 20X Earnings, 9.35X Sales and 26.7X FCF with 15%+ EPS growth.

Golar LNG (GLNG) trades 5,000 Jan. 2016 $60/$40 bull risk reversals at $3.30 debit

Morgan Stanley (MS) with opening buys of more than 15,000 Jan. 2015 $37 calls at $0.60 to $0.62 as shares test the 20 week EMA and trend support off April and August bottoms, earnings on 10/17, and has seen substantial call buying recently.

Conoco Phillips (COP) buyer of 5,000 November $67.50 puts $1.15 offer, more than $540K put premium bought, and aligns with the Chevron (CVX) put buying.

October 9th, 2014

Energy Transfer (ETE) buyer of 2,500 October $57.50 calls $1.40 offer and Energy Transfer Partner (ETP) buyers of 3,500 October $67.50 calls $0.40, both names have seen large longer term calls accumulated and could set up for a Kinder Morgan type deal.

Actavis (ACT) buyer of 500 November $250 calls $11 offer, also trades 480 Dec. $255/$235 bull risk reversals, bullish trades piling up in this name as shares flag tightly.

Aruba Networks (ARUN) opening buy of 2,000 November $22 calls at $1.15 to $1.20, and a recent large roll to 5,000 April 2015 $24 calls.

Perrigo (PRGO) with 815 Jan. 2015 $160 calls bought $5.20, a name not to be forgotten as a likely M&A name, whether as the acquirer or the acquired

October 8th, 2014

Signet (SIG) with 1,350 November $115 calls bought to open at $2.40, a name that has not shown much weakness. The $9.1B jewelry store Co. trades 17.1X Earnings, 1.98X Sales and 3.39X Book.

Outer Wall (OUTR) trading 2X daily puts with 3,000 November $50 puts bought to open $1.70/$1.75, bearish action with shares taking out the July lows.

NXP Semi (NXPI) buyer of the November $67.5/$72.5 call ratio spread 2,500X5,000 at $0.50 debit, earnings on 10/22

Dow Chemical (DOW) buyer of 4,000 November $50 calls $1.25 and large action comes in buying as more than 14,000 trade

October 7th, 2014

Salix (SLXP) spread sold 1,000 Nov. $130 puts $3.50, bought the Nov. $155/$175 call ratio spread 1,000X2,000 at $4.30, pro-trade, likely seeing potential for a deal at $175.

Applied Materials (AMAT) more bullish action as 4,000 April 2015 $22 calls buy to open $1.38 offer, more than $600K call premium bought in it this morning.

Limited Brands (LB) bearish action with 2,000 Oct. $65 puts bought $0.65 to $0.85 ahead of same store sales

Interxion Holdings (INXN) buyer of 5,000 Jan. 2015 430 calls at $1.65/$1.70 as the October $30 calls close at $0.15, buying more time.

October 6th, 2014

Universal Display (OLED) trading 7X daily puts with 5,000 November $30 puts bought to open $1.45 to $1.55. OLED will next report earnings in early November. The $1.53B flat-panel display Co. trades 20.6X Earnings, 3.4X Book and 31.2X FCF with no debt. OLED has 9.13M shares short, 26.8% of the float, and the timing of the puts today is interesting considering another display Co. filed for bankruptcy, also one often rumored to be in Apple products.

Southwestern Energy (SWN) trades 3,000 Jan. 2016 $40/$30 bull risk reversals to open. SWN saw a lot of November call buying last week as well. Range Resources (RRC), another natural gas play, also trading 3,000 Jan. 2016 $75/$57.50 bull risk reversals. Natural Gas is near support and could be the seasonal trade if weather turns cold faster than anticipated.

Constellium (CSTM) shares hammered since announcing a $1.4B deal for Wise Metals and today longer term action attracting over 2,000 February 2015 $21 calls bought to open $1.85. The $2.3B metals Co. trades 9.6X Earnings, 0.53X Sales and 24.7X FCF.
 

October 3rd, 2014

YUM Brands (YUM) traded 2,500 November $70/$65 bull put spreads yesterday ahead of 10/7 earnings, and also opened another 2,500 April 2015 $72.5/$65 bull risk reversals. YUM shares have been flat for weeks and the China issues are well known at this point, and potential for it to spin-off its China assets to unlock shareholder value, so overall seeing bullish positioning into earnings next week.

Receptos (RCPT) with a large bullish spread for a Biotech already trading near highs, the December $50 puts sold to open 1,000X at $2.94 and the December $70/$85 call spread bought 1,000X at $5.94

Integrated Devices (IDTI) buyer of 4,000 March 2015 $16 puts at $1.72, closes out 4,000 of the November $14 puts at $0.32. IDTI Nov. $16 puts are bought 10,000X to open here as well at $1.10

EMC opening buy of 5,000 October 24th (W) $30 calls at $0.42. HPQ holds an Analyst Day on 10-8 and could combine about the merger it reportedly attempted with EMC. EMC Corp (EMC) now with an opening buy of 30,000 April 2015 $31 calls at $1.125, looks to be closing 30,000 Jan. 2015 $31 calls

October 2nd, 2014

Darling International (DAR) trading 12X daily calls as 4,000 October $19 calls buy to open at $0.30 offer and 30 day IV jumps over 25%. DAR shares are moving strong today up 2.5%, and the $3B Co. trades 14.75X Earnings and 1.48X Book.

Actavis (ACT) spread bought 1,000 May 2015 $250/$300 call spreads at $16 and sold 1,000 May 2015 $215 puts at $12.20

Vulcan Materials (VMC) with an opening buy of 5,000 November $60 calls at $2.15 offer, nearly $1M call premium purchased. VMC shares are re-testing the prior breakout from late 2013 and looking to possibly form a base around this $58 level.

North-Star Asset Mgmt. (NSAM) buyer of 2,500 December $20 calls $0.45/$0.50 offers with shares putting in a reversal hammer today off familiar support.

October 1st, 2014

American Air (AAL) fighting back and 10,000 October $35.50 calls buy to open

Texas Roadhouse (TXRH) bounces after more than 2,400 December $30 calls are bought at $0.50, a recent breakout name in the hot restaurant space.

Borg Warner (BWA) buyer of 1,800 Oct. $55 calls $0.40 offer. BWA a $12B auto parts Co. at 13.26X Earnings, 1.5X Sales, 3.1X Book with 0.99% yield and 15%+ EPS growth, shares down 15% in a month

Finisar (FNSR) bullish action as 2,350 November $17 calls are bought to open at $0.85. FNSR shares are -30% YTD and trade 11.3X Earnings, 1.36X Sales and 1.56X Book with a strong balance sheet.