April 16th, 2014
Endo Pharma (ENDP) 3 way spread in January 2015 sells 3,000 of the $45 puts $3.30 and buys 3,000 of the $60/$70 call spreads at $3.80, a net $0.50 debit for the covered bull risk reversal
Freescale Semi (FSL) June $25 puts bought 5,000X at $2./25 to $2.30 offers, more than $735K put premium, trade is 10X daily puts
Disney (DIS) buyers of 2,000 June $82.50 calls ahead of tomorrow's Analyst Meeting and earnings 5/6
Family Dollar (FDO) opening buy 3,000 July $62.50 calls at $1.45, earlier 6,030 of the $67.50 calls sold to close $0.50
April 15th, 2014
Northrop Grumman (NOC) trading 4X daily calls as 1,700 May $120 calls are bought to open at $2.30 to $2.45, earnings on 4/23 and shares have closed higher the last 4 reports. The $25.47B Defense Co. trades 12.1X earnings, 1.03X Sales, and 16.2X FCF with a 2.07% yield. On 4-9 Citi boosted its target on NOC to $158 from $135.
Norfolk Southern (NSC) buyers of 2,800 April $95 calls $0.60 offer looking for the CSX read-through tonight on Coal shipments
Reynolds American (RAI) buyers of 4,500 May $55 calls at $1.88 as April $55 call positions are rolled out, shares consolidating well since all of the M&A talk
NXP Semi (NXPI) May $57.50 calls bought 1,500X at $2.75 offers, earnings 4/23 and a name seeing a lot of call activity lately
April 14th, 2014
Tempur Pedic (TPX) buyer of 3,000 June $48 calls at $3.65 after 1,250 bought on Friday to open at $3.40, trading 4X daily calls today and comes with Select Comfort (SCSS) also seeing unusual call buying in May $18 calls today. TPX shares have formed a symmetrical triangle with support found at the rising 50 week EMA in February and last week. TPX will report earnings in early May and the $2.9B Co. trades 14.1X earnings, 1.18X Sales and 49.5X FCF with 15%+ EPS growth, also 10% of its float short.
Aruba (ARUN) buyers of 1,000 May $19 calls, been a resilient Tech name with some call action previously
Halcon (HK) very strong at +13% and trading 15,230 calls the first hour with 71% offer side, opening buyers of 6,000 July $6 calls at $0.25 to $0.30 offers
Liberty Global (LBTYA) opening buy of 2,500 January 2016 $42.50 calls at $4.30 to $4.40, long term outlook
April 11th, 2014
Interactive Corp (IACI) with a large buy of 4,000 January 2015 $100 calls at the $1.95 offer with shares trading $70.50, higher today after buying an additional 10% of Tinder for $500M. IACI is sure to see some positive catalysts in 2014 with its plans for a major realignment, and likely will see some spin-offs. IACI shares are putting in a weekly reversal candle above its 20 week EMA. The $5.62B Co. trades 14.88X earnings, 1.86X Sales, 3.36X Book and 22.5X FCF with a 1.4% yield and 13-15% forward EPS growth. On 3-12 Topeka raised its target on IACI to $98.
Lennar (LEN) attracting bullish action with 4,000 April $38 calls bought to open $1.05 with expiration in less than a week, but there is some housing data expected out next week. Ryland (RYL) is another homebuilder with April call buying, more than 3,400 of the $38 calls to open, so a small theme developing into next week.
Hillshire Brands (HSH) trades 1,100 October $38/$32 bull risk reversals to open $0.10 to $0.15
Freescale Semi (FSL) has avoided the sell-off but trades 40X daily puts as 7,380 May $24 puts are bought to open at $1.25 to $1.30, bearish action ahead of 4/24 earnings.
April 10th, 2014
Well Point (WLP) trading 4X daily calls as 5,750 May $100 calls are bought to open at $1.40, a coiled chart that has pulled back after a big run in March, next reports earnings 4/30.
Qihoo 360 (QIHU) opening buys of 7,000 December $130 calls at $8.10 offers as the $150 calls are sold to close at $4.70, originally bought on 3-20 at $10.60 (spread vs. the $180 calls)
Vodafone (VOD) spread bought 3,500 July $37/$41 call spreads and sold 3,500 July $34 puts to open, net credit on the spread
Service Now (NOW) roll of 6,230 April $60 puts to May $60 puts bought to open $8.60, bad sign for these revenue growth high valuation names
April 9th, 2014
Cognizant Tech (CTSH) bearish action with 6,500 May $47.50 puts bought to open at $1.40 to 41.50, trading 4X daily puts with $1M put premium bought in the first 30 minutes of trading. CTSH will report earnings in early May, and shares are trying to hold the 20 week EMA.
AutoDesk (ADSK) with buyers of 1,475 May $46 calls today after 3,000 were bought to open yesterday at $2.80 to $3, ITM calls. ADSK shares have pulled back in orderly fashion and looking for the 38.2% Fibonacci at $48.85 to act as support.
Rackspace (RAX) with an opening buy of 3,500 September $35 puts at $5.60, large bearish position looking for the $31 double bottom to break into earnings in May with RAX facing a lot of competitive pressures impacting pricing/margins.
NextEra Energy (NEE) opening buys of 6,650 May $97.50 calls at $2.05 to $2.10 as the April $97.50 calls sell to close at $0.85 for 7,000X
April 8th, 2014
Endo Pharma (ENDP) looking to put in a hammer reversal and 2,250 May $60 calls are bought to open at $4.40 to $4.70 offers, more than $985K call premium bought.
C-Trip (CTRP) rallying to day highs, strong action in one of the few China names that has not broken down hard, and reports of Baidu (BIDU) interest sparking shares this week. CTRP has large bullish OI in June and today the June $60 calls buy to open 6,500X at $4.11 as 4,100 of the June $50 calls are sold to close.
Valero (VLO) down hard for 3rd straight day after trying to breakout and today May $55 calls bought 7,500X to open at $1.08, roll-back from $57.50 strike
eBay (EBAY) buyer of 10,000 May $55/$60 call spreads at $1.18, earnings 4/29, and may be a strike roll-back. EBAY March Same Store Sales reported this morning by Channel Advisor.
April 7th, 2014
Google Class A (GOOGL) buyer of 1,000 January 2015 $560/$610 call spreads at $18.40 with the sale of 1,000 $460 puts at $13.70
Host Hotels (HST) now trading 12,000 of the April $21 calls $0.20 to $0.30 offers, already 26,000 April $20 calls in OI, and May $21 calls also seeing action with 1,380 bought and OI at 4,010, trading 12X daily calls the first hour of trading. The action may be related to the upcoming IPO of La Quinta.
Vipshop (VIPS) opening buys of 890 August $170 calls at $10.30 to $11 offers, more than $1M call premium bought as shares test $130 support once again. On 3-31 Goldman upgraded VIPS to Buy with a $185 target.
Barnes and Noble (BKS) pulling back the last 3 days but today the October $20/$15 bull risk reversal trades 5,000X to open at $0.32 debit. On 4/3 a 2,000 contract spread bought 2,000 October $20/$25 call spreads and sold 2,000 October $14 puts to open, though on 4-4 October $16 puts were bought 4,000X to open. BKS has sold off since news that Liberty Media has cut its stake in the Co. BKS' Board of Directors is still considering buybacks, otheralternatives, and spinning off units, so this remains an event play. The 41.08B Co. trades 1.54X Book and 5.65X FCF.
April 4th, 2014
Chesapeake Energy (CHK) spread buys 2,580 October $31 calls at $0.75 and sells 5,160 October $23 puts to open at $0.79, a willing buyer of the stock on weakness, but wanting to participate in a move higher as well.
HR Block (HRB) buyer of 5,000 July $29 puts after 4,000 of these were recently bought, and April puts bought in size yesterday. The May $31 puts are also bought 3,000X to open today, bearish action.
United Health (UNH) bull flag and 7,000 of next week's $83 calls bought to open today at $0.59 to $0.61
Linked-In (LNKD) seller of 2,000 January 2015 $135 puts at $9.80 to $10 buying the $180/$220 call spreads at $12.45
April 3rd, 2014
Schlumberger (SLB) trader closes 2,000 Jan. 2015 $92.50 calls and buys 4,000 Jan. 2015 $110 calls $2.60
Baker Hughes (BHI) trader closes 3,000 January 2015 $60 calls and buys 5,000 January 2015 $75 calls at $2.29
Service Corp (SCI) unusual buys of 2,000 September $20 calls $1.25 to $1.30, trading 80X daily calls. SCI shares are hitting 5 year highs today after it sold $53.8M worth of funeral homes, cemeteries and crematories. The $4.22B Co. trades 16.7X earnings, 2.98X Book and 19.7X FCF with a 1.6% yield and 10-12% EPS growth.
Akamai (AKAM) large spread trades with earnings due out on 5/1. A trader sold 3,405 May $67.5/$52.5 strangles at $2.46 and bought 4,540 May $60 calls at $2.71, a bullish position, willing to buy stock at $52.50, but looking for a move beyond $67.50.
April 2nd, 2014
Intuit (INTU) pulled back to the 50 day EMA and based, trading 5X daily calls today with 1,950 July $75 ITM calls bought to open at $5.80
Caterpillar (CAT) buyer of 2,000 May 2nd (W) $102 puts to open at $3.05 with shares extended, earnings set for 4/24
VMware (VMW) opening buys of 1,450 May $120 calls at $2.40 offers, though shares failed a breakout attempt this morning, earnings expected in a couple weeks
Endo Pharma (ENDP) trades 3,500 June $80/$60 bear risk reversals at a $0.60 debit, possible collaring a long stock holding
April 1st, 2014
Qualcomm (QCOM) nearing new highs and large call buying in June $85 contracts with 12,000 bought at $0.68 to $0.73
Gogo Inc (GOGO) trades 3,500 August $20 calls at the $3.80 offer to open, large call buying with $1.1M call premium bought in the first hour today
Linked-In (LNKD) opening buys of 2,000 May $185 calls at $12.30 to $14.25, sizable bullish plays that the recent hammer reversal holds as a bottom.
VF Corp (VFC) bearish opening buys of 1,350 May $62.50 puts at $1.90 offer
Frontier (FTR) trading 6,100 calls with 60% offer side, opening buys of 2,700 November $6 calls at $0.20 offers and also 2,500 January 2015 $5.50 calls bought $0.45 offer, unusual call buying in this name the past two weeks. The $5.7B Telecom Co. trades 22.5X earnings, 1.2X Sales and 1.4X Book with a 7% yield and 20.9% of its float short, and with M&A heating up in the industry, one of the smaller players that could be a target.