Valeant Pharmaceuticals International, Inc. develops, manufactures, and markets pharmaceuticals, over-the-counter (OTC) products, and medical devices in the areas of eye health, dermatology, and neurology therapeutic classes worldwide. Every single day I watch Unusual Options Activity and talk to my subscribers about the trades at www.keeneonthemarket.com I watch over 1,500 trades daily and yesterday I saw a trade that was so unusual that I thought it was worth mentioning. A trader bought 2,000 FURX June 105 Calls for $3.90. Lets breakdown their trade:

Institutional Order: Trader bought 1,804 VRX June 135 Calls for $5.90
Cash Outlay: $1,064,360
Potential Profit: Unlimited

Overnight the Stock gapped higher and these Calls have moved in value from $5.90 to $7.90, so lets breakdown their profits:

1804 * 2.00 * 100= $360,000 Profits

Furiex Pharmaceuticals, Inc. operates as a drug development company that is involved in compound development and collaboration activities primarily in the United States. Every single day I watch Unusual Options Activity and talk to my subscribers about the trades at www.keeneonthemarket.com I watch over 1,500 trades daily and yesterday I saw a trade that was so unusual that I thought it was worth mentioning. A trader bought 2,000 FURX June 105 Calls for $3.90. Lets breakdown their trade:

Institutional Order: Trader bought 2,000 FURX June 105 Calls for $3.90
Cash Outlay: $780,000
Potential Profit: Unlimited

Overnight the Stock gapped higher and these Calls have moved in value from $3.90 to $5.30, so lets breakdown their profits:

2,000 * 1.4 * 100= $280,000 Profits

Caesars Entertainment Corporation owns, operates, or manages casino entertainment facilities. Its casino entertainment facilities include land-based casinos, riverboat or dockside casinos, and managed casinos, as well as casinos combined with a thoroughbred racetrack and a harness racetrack. Today we saw a trader bought 1,403 CZR 5.2.2014 18 Calls for $1.05 debit per a lot. This is bullish trade where a trader thinks the stock can move higher and maybe it is due to the catalyst event next week. Lets breakdown the trade:

The Trade: Trader bought 1,403 CZR 5.3.2014 18 Calls for $1.05
Their Risk: $147,315 Cash Outlay
Their Reward: Unlimited
Their Breakeven: $19.05

I am long these Calls for $1.10

Calpine Corporation, a wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. Today a trader bought over 2,500 CPN May 22 Calls for $.60 debit. This trader has the right, but not obligation to buy 250,000 shares at $22 between now and expiration. I got into this trade a little too late, but I think CPN can move higher as the options activity that we saw was 30 times the usual volume it trades in a day. I think that CPN can trade north of $23, so I bought the CPN May 22 Calls for $.80 debit. Lets break down this trade.

The Trade: I bought the CPN May 22 Calls for $.80
Risk: $80 per 1 lot
Targets: $.95, $1.10, and $1.25

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Long: Vega

Cheniere Energy (LNG) is an energy company engaged in the liquefied natural gas  related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Today a trader bought 8300 LNG Jan 2015 65-80 Bull Call Spreads and sold the 45 Puts for $.40 credit. This trader will get LONG LNG at two different levels, $45 and $65. This is a bullish bet and the trader will make money as long as LNG stays above $44.60 by Jan 2015 expiration.

My Trade: Buying the Jan 2015 65 Calls for $4.55
Risk: $455 per 1 lot
Reward: Unlimited
Targets: 5, $5.00 and up every $.40

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long