March 7th, 2014
Insmed (INSM) buyer of 2,000 April $20/$35 call spreads at $2.98 and sells 2,000 April $12.50 puts $1.98, net $1 debit for the upside play in this Biotech
Sinclair Broadcasting (SBGI) trades 3X daily calls as 2,700 June $30 calls bought to open $1.85 to $1.95 as the broadcasters starting to come back into favor for option traders
eBay (EBAY) shares flagging on the daily and calls active again today, the July $65 calls bought 6,500X today $1.76 to $1.80, and also interesting opening action for 5,900+ April 25th (W) $59 calls at $2.53 to $2.79 in large lots.
Heidrick and Struggles (HSII) very unusual opening sales of 2,000 October $20 puts at $2.25 to $2.40 with shares trading $19 to $19.50. HSII shares are looking to clear this $16/$20 range and seeing multiple high volume up days the past few months. The $344.3M Executive search Co. for staffing trades 22.6X earnings, 0.77X sales, 1.39X book and 11.1X FCF with a 2.73% yield and double digit EPS growth.
March 6th, 2014
Medivation (MDVN) still weak and not helped by the weakness in Biotech today, but seeing upside positioning still, a large opening buy of 2,500 April $70 calls at $2.56 offer this afternoon.
Dean Foods (DF) trading 10X daily puts with 6,880 April $14 puts bought to open at $0.30 to $0.40 offers this morning, 30 day IV jumping 16%. Morgan Stanley cut its target on DF to $15 on 2-12.
International Gaming Tech (IGT) trading 19,640 calls with 80% offer side and 30 day IV climbing 28.5%, extremely hot action in the April calls after highlighting a buyer of 8,000 July $17 calls at $0.65 yesterday. The April $16 calls are most active with 6,000 bought, buyers at $0.65 to $0.70 in size.
Citrix Systems (CTXS) April $60 calls bought 2,800X to open at $3.50 offers, more than $550K call premium, and follows action in the April $62.50 calls earlier this week
March 5th, 2014
WR Grace (GRA) breaking near highs today with chemical stocks hot and a large spread today sold 2,070 September $85 puts to open $2.05 and bought 2,070 September $105/$115 call spreads at $3.75. The $7.85B Co. trades 18.5X earnings, 2.56X sales and 21.8X FCF with 10-15% forward EPS growth.
Horizon Pharma (HZNP) August $14 calls bought 1,500X to open $2.50 to $3 offers, stock on the move
Edward's (EW) April $77.50 calls bought 2,000X at $0.65 to $0.70 with this long term trend breakout
Assured Guaranty (AGO) trades 5,500 January 2015 $30/$20 bull risk reversals at a $0.65 debit, a name with sizable bullish OI in July and January 2015 already
March 4th, 2014
First Solar (FSLR) consolidating below recent highs, impressive rebound from poor earnings and the large March and June call positions remain in OI into an upcoming Analyst Meeting. Traders today are buying April $70 calls 5,000X to open at $1.11 offers with Solar stocks very hot.
Sprint (S) April $9 calls bought to open 25,000X at $0.80 offer, rolled from March $9's closed $0.55, and follows the 10,000 Jan. 2015 $10/$15 call spreads bought late yesterday, so bullish action looking for a potential tie-up with T-Mobile (TMUS)
Occidental Petro (OXY) bullish action continues with 5,000 May $95 ITM calls bought today $4.10 to $4.20 with shares starting to break out of consolidation
E-Trade (ETFC) April $24 calls bought 4,000X to open $0.53 to $0.56 with shares breaking out
March 3rd, 2014
Hewlett Packard (HPQ) shares back near 50 day EMA support and coming off a very strong earnings report, a $28/$30.50 range looking to breakout to the topside, early bullish flow with 5,000 weekly $29.50 calls opened, and buyers of 2,000 April $28 ITM calls to open.
Questcor Pharma (QCOR) bullish engulfing today and 2,500 January 2015 $75/$50 bull risk reversals open at an $0.80 debit, and the last time QCOR traded size bull r/r's on weakness shares rallied significantly the weeks that followed.
Texas Instruments (TXN) bearish flow today as 5,000 July $45 puts are bought to open $2.47 to $2.57, ITM put buys with shares hitting highs on Friday and pulling back with the market today. TXN has been impressively resilient but the $48.83B Semi with limited growth trades 18.7X earnings, 4X sales and 4.5X book with a 2.67% yield, historically rich.
Twitter (TWTR) weak after breaking below Friday's low and a -410K Net Delta today, the May $62.5/$50 bear risk reversals traded 3,500X and also 2,500 deep ITM April $60 puts bought to open at $8.50 offers, overall bearish flow.
February 28th, 2014
DineEquity (DIN) unusual opening buy of 1,000 April $85 calls at $2.25, closes 500 March $80 calls. The $85 level is the clear hurdle needed to clear for a breakout, seeing strong volume trade recently. DIN posted In-Line numbers on 2/26 and ousted the President of Applebee's. The $1.58B Co. trades 18.4X earnings, 2.47X sales, and yield 3.57%.
Reynolds (RAI) May $50 calls with 5,000 bought at $1.95 offers as large size continues to position for upside in this name, event-driven strategists
Safeway (SWY) June $35 calls bought to open 4,700X at $3.65, rolled from March $35 calls seeing the deal as taking some time to develop
SanDisk (SNDK) weak today and 3,500 of the March 7th (W) $76 calls bought to open $0.65 to $0.70, and also seeing a lot of bullish flow in Micron (MU) today
February 27th, 2014
Intuitive Surgical (ISRG) rarely attracts large option trades but late day hot action as a trader bought 250 March $450 calls at $6.80 and then 2,000 March $475 calls were bought to open $1.65 to $1.70. ISRG shares are coiled in the handle of a large cup and handle pattern, potential to see $500 on a move through $445.
Safeway (SWY) June $39 calls with 2,500 bought today and June $33 puts being sold to open for 4,500X, some trading as spread, upside bets for an eventual buyout. Safeway (SWY) also with a roll to April $35 calls 5,000X here at $3.40, closes the March $35 calls $2.95
Affymetrix (AFFX) trades 2,500 May $10/$7.50 bull risk reversals at a $0.15 credit, trading 8X daily options volume on that trade, and risk reversals in uncommon names tend to work out very well.
VMware (VMW) March $100 calls bought 2,000X at $1.55 offers, adding to yesterday's buys as shares set up for a potential rip over $100 the next couple of weeks
February 26th, 2014
Cameco (CCJ) calls hot again as Uranium prices break a 3 year downtrend and trading 23,500 calls today, 8X daily average with opening buys of 3,500 April $23 and $24 calls each, while June calls have notable OI, and more importantly the 60,000 January 2015 $25 calls in OI from large buyers that accumulated over weeks of action.
Oracle (ORCL) shares breaking out of a range today and buyers active in April $39 calls for 4,000 contracts at $1.04 to $1.06 offers, more than $430K call premium purchased today and +240K Net Delta, earnings next due out in mid-March.
VMware (VMW) March $100 calls bought 3,750X to open, bullish action with buyers paying $1.75, and aligns with the bullish EMC options action
Home Depot (HD) May $85 calls bought 7,500X to open $1.19 as the March $82.50 calls are closed out $1.07, extending a bullish position
February 25th, 2014
Urban Outfitters (URBN) buyers of 5,000 March $36 calls at $1.30 to $1.45 offers ahead of 3/10 earnings, already more than 5,000 in OI, but with the IV jump these look to be adding to OI, and will confirm tomorrow. Retailers are starting to trade healthier and URBN with a $5.34B market cap at 17.2X earnings and 1.76X sales with 13-15% forward EPS growth is one of the more attractive growth names in the industry. URBN April $36 calls are bought to open 3,000X at $2 to $2.10 as well.
MDC Holdings (MDC) now trading 3,500 March $30 calls to open $0.65 to $0.75 with 30 day IV jumping, trading 6X daily calls. The $1.42B residential construction Co. trades 12X earnings, 0.84X sales and 1.17X book with a 3.42% yield, a value name with 25% EPS growth.
Chevron (CVX) January 2015 $120/$130/$140 call fly trades 3,000X6,000 at $1.60 debit, a very nice looking strategy to position for upside in CVX within a suitable range for the large cap
Infinity Pharma (INFI) starting to give that bullish signal in small Biotechs, the March $12 puts sold to open 3,500X at $0.22 yesterday, and today 4,000 March $14 puts sold to open at $0.50
February 24th, 2014
Sun Edison (SUNE) April $16 calls close 25,000X at $1.94 and roll up, the April $18 calls bought to open 35,890X at $1.08 offer ahead of Analyst Meeting
Dow Chemical (DOW) opening buy of 5,000 March $47 puts at $0.96 looking for shares to pull back after reaching new highs
Pepsi (PEP) active today with 8,400 calls trading and nearly 60% offer side, the April $80 calls notable with more than 5,000 bought as Peltz pushes the break-up plan
Penn Virginia (PVA) January 2016 $20/$10 bull risk reversal opens 5,000X at $1.12 debit, nice chart that has been making new highs daily, and already some large longer dated risk reversals in OI
Rovi Corp (ROVI) continues to make new highs with recent call buying, The April $25 calls opened 3,000X since 2/18 and another 2,200 bought at $1.55 to $1.60 offers today, aggressive buys for $350K call premium. The $2.37B Co. trades 12.7X earnings, 4X sales and 1.65X book with a lot of cash and could be a M&A target.
February 21st, 2014
Ulta Salon (ULTA) buyers of 3,000 March $87.50/$95 call spreads at $2.75, rolled from February $85 calls being sold to close 4,000X.
GameStop (GME) bearish 3 way spread sells the July $40 calls to open 3,000X at $1.72, and buys the July $34/$26 put spreads 3,000X4,500
Home Depot (HD) roll out of 7,500 February 28th (W) $78 calls to the March $80 calls bought 7,500X at $0.65, ahead of earnings on 2/25. Home Depot (HD) also now with size buyer of 7,500 March $77.50 calls at $1.70 to $1.75
Groupon (GRPN) shares down 15% on earnings after initially jumping 16.5% higher, and with shares back near the December lows and channel support option traders are very bullish as Net Delta at +1M as 50,000 calls trade the first 30 minutes with 51% offer side, notable sized buys in March $8 calls that are trading 5,000+ contracts and a positive signal with the January 2015 $7 ITM calls trading 6,450+ contracts.
February 20th, 2014
Peabody Energy (BTU) buyers of 3,000 September $19 calls at $1.14 offers, more than $500K call premium bought today and a name where calls have been bought in size all week
MannKind (MNKD) trades 3,000 March/May $6 put calendar spreads to open at the AMEX at a $1.73 debit, and also buyers of 3,500 March 28th (W) $6 puts at $0.86 offers today, bearish action.
Wal-Mart (WMT) down 2.4% on its earnings outlook, but buyers active in the first 40 minutes for 6,000+ March $75 calls at $0.36 offers. Later a block of 10,000 April $77.50 calls bought at the $0.34 offer.
Kansas City Southern (KSU) trading another 3,000 March $105/$90 bull risk reversals today as traders see this bottoming.
February 19th, 2014
China (FXI) seeing a lot of options action ahead of tomorrow's PMI data for February. A trader bought the August $36/$42 call ratio spread 15,000X30,000 at $1.21, and the November $36/$42 call ratio spread also trades 15,000X30,000 at $1.05.
Ashland (ASH) March $100 calls bought 10,000X at $1.20 as 5,000 February $95 calls close, likely JANA Partners, an event play here after ASH recently sold its water unit and could take more strategic actions
Constellium (CSTM) May $30 calls bought 1,500X at $1.05, second consecutive day with 1,500 contracts bought as Aluminum is showing strength
TriMas (TRS) very unusual opening buys 1,135 Feb. $35 puts $1.15 into 2/20 earnings
February 18th, 2014
CenterPoint Energy (CNP) bullish positions continue to pile up as the May $25/$22.50 bull risk reversal trades 10,000X15,000 to open
Baidu.com (BIDU) opening spread ahead of 2/26 earnings with the March $175/$195 call ratio spread 4,000X6,000
Ironwood Pharma (IRWD) trading 6X daily options volume as 2,000 August $15/$12.50 bull risk reversals are opened at a $0.83 debit
ServiceNow (NOW) opening buys of 3,500 March $65 puts at $2.45 as the trend continues today with cloud and SaaS names
Rubicon (RBCN) opening buys of 1,500 June $14 calls at $0.60 offer, unusual action ahead of 2/19 earnings
February 14th, 2014
Royal Dutch Shell (RDS.A) trades 10X daily calls late in the day as 5,500 March $72.50 calls buy to open at $0.85, and 2,500 of the March $75 calls at $0.30 to $0.35. RDS.A shares are nearing a break out of a major weekly bottoming pattern that measures to an $80 target. The $240B Oil giant trades 1.33X book. Royal Dutch is planning to significantly accelerate the pace of asset sales this year and reduce spending, so a turnaround play.
Chevron (CVX) March $115 calls active with 6,800 trading against OI of 10,417 with shares finding support recently at $110. Traders are paying $1.09 to $1.10 for these calls. At 10.1X earnings with a 3.56% yield CVX shares have some value here. A nice strategy may be the March $115/$120/$125 call fly at $0.75.
Kronos Worldwide (KRO) unusual buys of 1,280 August $17.50 calls to open at $0.90. KRO shares have pulled back to near its lows and next reports in March. KRO was mentioned as a takeover target in December at Citi after its CEO passed, a target for Tronox (TROX).
Kansas City Southern (KSU) an ugly chart after the post-earnings bounce failed, but traders active today for 8X daily options volume as 2,500 March $105/$90 bull risk reversals are trading at net credits. KSU shares have lagged its rail peers that are mostly trading at highs. The $10.84B Co. trades 18.23X earnings, 4.58X sales and 3.22X book with a 1.14% yield and 15%+ EPS growth. Wolfe Research upgraded KSU to Perform on 1-27.
February 13th, 2014
Whole Foods (WFM) bounced right here shares needed to on the long term chart after falling on earnings, and May $50 calls with opening buys today with some sizable lots trading, more than 3,500 trading.
Johnson Controls (JCI) February $49 calls bought 5,000X at $0.50 offer to open here one week from expiration, a Co. that can sell some assets for a catalyst
SAP AG (SAP) a stock that found support at $75 trend line and now breaking out of a bottoming pattern. A trader closes 2,000 February $80 calls but buys 1,500 March $77.50 calls to open at the $2.75 offer at the PHLX.
E-Commerce China (DANG) March $12 calls bought 6,500X to open at $0.50 to $0.55, unusually active at 4X daily volume, and already 7,000+ in March $11 calls OI from a former large buy, earnings on 2/27.
February 12th, 2014
Altera (ALTR) March $36 calls bought 6,500X to open at $0.50 offers, the constant accumulation in calls for this name, expecting we see news before March expiration. Xilinx (XLNX) IV jumping as well, ALTR's closest peer, and March $49 calls bought 2,500X while the March $50 calls with 6,850 trading to open, bullish action in both these names.
Alpha Natural (ANR) trades 20,000 January 2015 $7/$10 call spreads at $0.47, a spread that has been popular in recent days, betting on a coal recovery
Lorillard (LO) off 5.7% on earnings and 4,400 September $60/$45 bull risk reversals open, net credit trades, so willing to be long the high yielder on more weakness, but wanting some upside exposure as well.
E-Trade (ETFC) April $20 calls were bought to open 3,000X at $1.22 on 1-2, rolled from January $18 calls, and today trades 3,000 at $1.77 to $1.88 that look to be additional buys, but will first confirm with OI checks tomorrow.
February 11th, 2014
Kodiak Oil & Gas (KOG) trading 3X daily alls with 86% offer side as 2,000 June $12 calls bought at $0.75 and 2,000 September $13 calls at $0.75
Zoetis (ZTS) opening sale of 5,000 January 2015 $25 puts at $1 at the PHLX should mark a bottom in shares, down 6% on earnings, and this a willing buyer of 500,000 shares. The $15.57B animal health Co. trades 19.26X earnings and 3.47X sales with 15% EPS growth.
Bridgepoint Education (BPI) unusual buy of 1,000 August $20 calls at $1 offer
Jet Blue (JBLU) June $9 calls bought 5,000X at $0.60 offers with shares testing the lower end of its recent range, support near $8.25
February 10th, 2014
GT Advanced Tech (GTAT) one of the strongest charts and trading 5X daily calls today with 8,000 of the January 2015 $10 calls bought at $3.40 to $3.50, bulls expecting its screens in new Apple products later this year.
International Gaming Tech (IGT) March $14 puts being sold to open 19,000X at $0.50 to $0.40, IV falling with traders willing to be long at the recent lows, effectively calling a bottom in shares. The $3.72B Co. trades 11.3X earnings, 3.37X Book and 15.5X FCF with a 3% dividend yield.
AOL Inc (AOL) bulls back in April as 2,000 $52.5/$42 bull risk reversals trade, a name with 18,200 of the April $55 calls already in OI from size buyers
Michael Kors (KORS) shares seen as extended and August $95 puts being bought to open 2,400X at $9.10 offers looking for a pullback after the big earnings move
February 7th, 2014
EarthLink (ELNK) speculators active again as 5,000 April $5 calls were bought at $0.25 to $0.30 offers, earnings on 2/19 and a name with more than 40,000 calls in OI and just 7,800 puts.
Murphy Oil (MUR) attracted unusual call activity as 29,500 calls traded, 30X daily and mostly offer side with OTM calls, the February $62.50 calls traded 8,000X and 4,780 of the March $62.50 calls.
InfoBlox (BLOX) traded 3X daily calls with a focus on July $35 calls that were bought to open 3,050X at $4.60 to $4.80, large sized purchases. BLOX was hit hard last quarter on earnings but starting to form a new channel up pattern and next reports around 2-20, and the $1.75B Co. is involved with preventing malware attacks, a hot area for M&A. Shares trade 54.1X earnings and 7.33X sales. BLOX was started Neutral with a $32 target at Citi on 12-10, while Needham on 11-25 raised its target to $49.
Copa (CPA) traded 20X daily calls as more than 2,000 of the February $140 calls were bought to open $1.10 to $1.25 ahead of earnings 2/12, a beaten up name due to emerging markets, but airliners have been posting very strong results this quarter.
DSW Corp (DSW) March $40 calls bought 1,300X a day after 2,000 were bought to open $0.95 to $1, unusually active options, and DSW coming off a rare weak earnings report will next report in late February. The $3.4B footwear retailer trades 17.7X earnings, 1.42X sales, and 3.47X book with a 1.33% yield and 13-15% EPS growth.