The Ichimoku Cloud Signals for a Short in FirstMerit Corporation (FMER)

FirstMerit Corporation (FMER) operates as a bank holding company for FirstMerit Bank, N.A. that provides various banking services to its customers.  We run a proprietary scan of all stocks that break the Ichimoku Cloud to the upside and downside on the daily chart every single day.  Yesterday, out of 30 stocks this was the best signal we saw.  So, based on the downside break of the cloud I got short FMER.

The Trade: Sell FMER Stock at $20.33
STOP LOSS: $22.33
Target #1: $19.83
Target #2: $19.33
Target #3: $18.83
Target #4: $18.33

A Trader Gets Long Apollo Education Group Inc (APOL) Ahead of Earnings

Apollo Education Group Inc (APOL) is a provider of private education via programs online and on campus. The company’s stock is currently trading around $33.20 in a 52 week range from $16.54-$35.92. The stock has been performing very well this year with shares rising more than 21% year to date. APOL is set to report quarterly earnings on April first and we are seeing some interesting unusual options activity leading into the release. Earlier this morning a trader bought 1,000 of the APOL Apr 4th 34 calls for $1.34. With the options market implying a move of around $3.65 by April 4th expiration it would appear that this trader is getting long the stock expecting a big move higher on earnings. We believe that this order flow is strong enough to signal for a long position in APOL.

Trade: I bought the APOL Apr 4th 34 Calls for $1.46
Risk: $146 per 1 lot
Reward: Unlimited
Breakeven: $35.46

A Trader Makes a $634,500 Bullish Bet in AOL Inc, (AOL)

AOL Inc, (AOL) is a global content and site management company with many different offerings and a worldwide audience. The company’s stock is currently trading around $45.20 in a 52 week range of $32.19-$53.28. The stock has been underperforming the market this year with shares falling around 3.2% year to date. Despite this weakness options traders are painting the tape with some very bullish orders in today’s trading session. Earlier this morning a trader bought 4,700 AOL May 50 Calls for $1.35. This is a very bullish trade that requires this trader to invest $634,500 in capital. Over 5,300 co0ntracts have now traded on that line along with opening activity on the 49 and 48 lines as well. Although shares of AOL are trading below the Ichimoku Cloud they are making a strong move higher today and with bullish unusual options activity hitting the tape we believe that AOL could set up well for a long position.

Bearish Activity in Linn Energy, LLC (LINE)

Linn Energy, LLC (LINE) acquires and develops energy assets in the U.S. The company’s stock is currently trading around $27.75 in a 52 week range of $20.35-$39.47. The stock has been very weak this year with shares falling 9.75% year to date. Options traders are expecting this trend downward to continue as we have seen some very bearish action in LINE today. A trader bought 24,277 LINE Apr 26 puts for $0.60. This is a very bearish trade that requires this trader to lay out nearly $1.5 million in premium. With shares of LINE trading well below the Ichimoku Cloud this bearish options order flow provides a signal for a short position in LINE.

Trade: Buying the LINE Apr 26 Puts for $0.60
Risk: $60 per 1 lot
Breakeven: $25.40

Trader Expects More Downside in Nokia Corporation (NOK)

Nokia Corporation (NOK) is a company based in Finland who manufactures mobile devices such as smartphones and lower priced entry level phones. The company’s stock is currently trading around $7.14 in a 52 week range of $3.02-$8.20. The stock has been massively underperforming the market this year with shares falling just under 12% year to date. Options traders are looking for further downside in NOK as we have seen some very bearish orders hitting the tape during today’s trading session. Earlier this morning a trader bought 19,847 NOK Jul 6 puts for $0.28. This is a very large block and also represents volume over 2.2 times the average daily option volume in NOK. With technical weakness in the stock we believe that order flow this unusual provides a signal for a great short opportunity in NOK.

My Trade: Buying the NOK Jul 6 Puts for $0.30
Risk: $30 per 1 lot
Reward: $570 per 1 lot (if stock goes to 0)
Breakeven: $5.70.

Options Traders Calling a Bottom in CareFusion Corporation (CFN)

CareFusion Corporation (CFN) is a medical technology company with operations around the world. The company’s stock is currently trading around $39.45 in a 52 week range of $32.48-$41.98. The stock has had a relatively sideways year with shares falling 0.85%. Despite this relative underperformance options traders seem to think shares of CFN will rally through June expiration. Earlier today a trader bought 2,190 CFN Jun 41 Calls for $1.52. This is a very bullish trade and represents some very unusual volume in CFN. More than 24.4 times the average daily option volume has now traded in CFN. Although shares of CFN are breaking through the Ichimoku Cloud to the downside we believe that order flow like this signals for a long opportunity in CFN.

Trade: Buying the CFN Jun 41 Calls for $1.60
Risk: $160 per 1 lot
Reward: Unlimited
Breakeven: $42.60

Options Traders Bet on a Cameco Corporation (CCJ) Reversal

Cameco Corporation (CCJ) is a company that mines, refines and develops uranium for use in nuclear power facilities in Canada. The company’s stock is currently trading around $24.00 in a 52 week range of $17.27-$25.84. The stock has been relatively strong this year with shares rallying 15.5% year to date. Options traders seem to think this trend is over as orders hitting the tape today are very bearish. Earlier today a trader bought 2,896 CCJ Apr 23 puts for $0.45. This is an aggressive trade as the stock has just made a new 52 week high. We believe that this order flow in CCJ could set up well for an aggressive short position via options.

Trade: I bought the CCJ Apr 23 Puts for $0.50
Risk: $50 per 1 lot
Breakeven: $22.50

Delphi Automotive PLC (DLPH) Sees Call Buyers on a 52-Week High

Delphi Automotive PLC (DLPH) is a manufacturer of vehicle components for worldwide automotive markets. The company’s stock is currently trading around $67.35 in a 52 week range of $40.78-$68.14. The stock has been very strong this year with shares rallying nearly 12% year to date. It appears that options traders expect this trend to continue as the order flow in URA during today’s session has been decidedly bullish. Earlier today a trader bought 1,530 DLPH Aug 72.5 calls for $2.15. This is a bullish trade being placed as the stock touches off of new 52 week highs. This block also represents the biggest order to hit the tape in DLPH on a day when more than 9.5 the average daily option volume has traded in DLPH. With shares just off of their 52 week highs we believe that this bullish order flow serves as a signal for a long position in DLPH.

My trade: I bought the DLPH Aug 72.5 Calls for $1.55
Risk: $155 per 1 lot
Reward: Unlimited
Breakeven: $74.05

Trader Makes a $750,000 Bet in HCA Holdings, Inc. (HCA)

HCA Holdings, Inc. (HCA) is a holding company that owns and operates healthcare facilities. The company’s stock is currently trading around $50.25 in a 52 week range of $35.20-$52.49. The stock has been performing well this year with shares rallying 5.4% year to date. Options action during today’s trading session suggests that traders believe this trend will continue through April expiration. Earlier in the session a trader bought 4,700 HCA Apr 50 calls for $1.60. This is a very bullish trade that requires this trader to lay out over $750,000 in capital. Shares of HCA are also trading above the Ichimoku Cloud, indicating the stock is in bullish territory. With a strong technical setup and bullish order flow we believe that HCA is setting up well for a long position.

My Trade: Buying the HCA Apr 50 Calls for $1.60
Risk: $160 per 1 lot
Reward: Unlimited
Breakeven: $51.60

Aggressive Call Buyers in Western Refining, Inc. (WNR)

Western Refining, Inc. (WNR) is an oil refiner and operator of service stations and convenience stores. The company’s stock is currently trading around $41.70 in a 52 week range of $25.62-$43.00. The stock has been underperforming the market this year and shares have fallen around 1.65% year to date. Despite this relative underperformance options traders have taken a decisively bullish stance on WNR today as we have seen some very bullish orders hitting the tape. Earlier in today’s session a trader bought 2,000 WNR Mar 41 calls for $0.40. This is a very aggressive trade because these options will expire tomorrow. This block also represents volume nearly 5.2 times the average daily option volume in WNR. We believe that order flow this strong justifies a long in WNR.

My Trade: Buying the WNR Apr 41 Calls for $0.45
Risk: $45 per 1 lot
Reward: Unlimited
Breakeven: $41.45