Fifth Third Bancorp (FITB) is a financial service company with over 1,300 banking centers and around $117 billion in assets. The company’s stock is currently trading around $20.20 in a 52 week range of $14.05-$20.98. The stock has been performing very well this year adding nearly 33% to share prices this year.  Action in the options market this morning suggests that traders believe the run in FITB can continue through the beginning of next year. Early in today’s trading session a trader sold 15,000 of the January 20 puts for $0.42. This is a very bullish trade that represents this trader’s high level of conviction in FITB. This block also represents volume 4.7 times greater than the average daily option volume in FITB.  The stock is also trading very well on a chart. Shares of FITB are trading well above the Ichimoku Cloud and the future cloud is upward sloping indicating there could be bullish action in the future. We believe that this order flow and the strong chart provide us with a signal and opportunity for a long setup in FITB. Since this trader is expressing a strong view on the stock being above $20.00 we will look to set up a strategy that profits anywhere above $20.00. (more…)

CarMax, Inc (KMX) is a company engaged in the retailing of used cars and as a wholesaler of used vehicles. The company’s stock is currently trading around $51.50 in a 52 week range of $34.21-$52.47. The stock has had a great year with shares gaining over 37% year to date. Options action in KMX during today’s session is suggesting that traders believe the stock will continue its run through the end of the year.  Earlier in today’s trading session a trader bought 4,441 KMX Jan 52.5 calls for $1.65, a block that represents volume 9.3 times the average daily option volume in KMX. The stock is also trading well on a chart. Shares of KMX are well above the Ichimoku Cloud and have seen a nice rally over the past 2 weeks. The company is also set to report earnings near the end of December and the stock has been strong on earnings over the past 4 quarters.  Given all of these factors we believe the unusual order flow in KMX provides us with a signal for a long stock swing trade in KMX. (more…)

Fluor Corporation (FLR) is a company providing engineering, construction, project management and procurement for industries worldwide. Shares of the company’s stock are currently trading around $78.30 in a 52 week range of $52.79-$79.95. FLR has been outperforming the market adding over 33% to share prices year to date. Options activity in FLR during today’s trading session indicates trader’s believe there could be more upside in store for FLR. Early in the session a trader sold 2,000 Jan 72.5 puts for $0.70. This is a very bullish order that represents this trader’s strong belief that shares of FLR will close above $72.50 on January expiration.  The high amount of risk attached to this trade tells us that this trader has relatively high bullish conviction in FLR. On a chart the stock looks good as well. Shares of FLR are trading well above the Ichimoku Cloud and the future cloud is upward sloping indicating there could be more upside in store for FLR.  We believe that all of these factors are lining up well for a covered call trade in FLR. (more…)

A trader bought 3,000 NXPI Jan 45 Puts for $3.68 (2.1 times usual volume) with stock at $42.25
A trader bought 1,000 VAR Dec 70 Puts for $0.15 (3 times usual volume) with stock at $79.15
A trader bought 5,000 CHMT Dec 25 Puts for $0.25 (6.4 times usual volume) with stock at $26.65
A trader bought 1,000 LFC Jul 50 Puts for $5.16 (3.3 times usual volume) with stock at $49.40
A trader sold 500 PLXS Jun 45 Calls to buy Jun 30 Puts for $1.00 credit (27.3 times usual volume) with stock at $40.54

A trader bought 1,300 GPK Jun 10 Calls for $0.50 (150 times usual volume) with stock at $8.96
A trader bought 1,000 SEE Jan 30-32 Call Spreads for $1.45 (2.6 times usual volume) with stock at $32.08
A trader bought 2,500 FTNT Mar 19 Calls for $0.90 (2 times usual volume) with stock at $16.58
A trader bought 500 BABY Jan 25 Calls for $0.65 (5.3 times usual volume) with stock at $22.78

A trader bought 2,500 FTNT Mar 19 Calls for $0.90 (2 times usual volume) with stock at $16.58
A trader bought 3,000 NXPI Jan 45 Puts for $3.68 (2.1 times usual volume) with stock at $42.25
A trader bought 1,300 GPK Jun 10 Calls for $0.50 (150 times usual volume) with stock at $8.96
A trader bought 1,000 SEE Jan 30-32 Call Spreads for $1.45 (2.6 times usual volume) with stock at $32.08
A trader bought 1,000 VAR Dec 70 Puts for $0.15 (3 times usual volume) with stock at $79.15

Bank of Montreal (BMO) is a financial services provider that provides retail banking, investment banking and wealth management in the U.S. and Canada.  The company’s stock is currently trading around $69.40 per share in a 52 week range of $55.61-$71.26. The stock has been strong this year but is lagging the market some having added only 13.25% to share prices this year.  BMO is set to report their most recent quarterly earnings tomorrow before the market open. BMO has been a strong stock on earnings day over the past 8 quarters. On earnings day the stock has rallied 6 times of the past 8 releases. The stock is also trading very well on a chart. Shares of BMO are trading well above the Ichimoku Cloud and are just off of their 52 week highs.  The future cloud is also upward sloping indicating there could be more upside in store for BMO. We believe that the strong historical performance in BMO and the bullish chart set up present a good opportunity to get long ahead of earnings.  With December options implying a mo0ve of $2.00 by expiration we will look to set up a trade with an upside target around $72.00. (more…)

A trader sold 1,500 COTY May 17.5 Calls for $0.60 (6.1 times usual volume) with stock at $16.55
A trader bought 4,500 TJX Dec 65 Calls for $0.55 (3.2 times usual volume) with stock at $63.45
A trader bought 2,100 LTD Dec 65 Calls for $1.90 (3 times usual volume) with stock at $65.76
A trader bought 800 THO Dec 55 Puts for $2.90 (7.8 times usual volume) with stock at $54.08
A trader bought 600 PTIE Dec 5 Calls for $0.15 (6 times usual volume) with stock at $4.79

Radware Ltd. (RDWR) develops and markets networking solutions to enterprises. The company’s stock is currently trading around $16.90 in a 52 week range of $13.42-$19.33. The stock has been underperforming the market most of the year having only added 2.6% to share prices year to date. Recent action in RDWR has been much more positive however with the stock rallying nearly 20% in the past month.  Options action in RDWR during today’s session indicates that traders believe this near term trend will continue.  Early this morning a trader sold 1,324 Jun 17 puts for $1.50, a block that represents over 2.5 times the average daily option volume in RDWR. This is an extremely bullish trade that indicates this trader’s strong belief that the stock will close above $17.00 on June expiration. The stock looks good on a chart as well. Shares are trading well above the Ichimoku Cloud and the future cloud is upward sloping suggesting there could be more upside in RDWR to come. With stock trading just below the strike we believe this unusual option activity provides a great signal for a covered call trade in RDWR. (more…)

A trader bought 1,700 GREK Dec 24 Calls for $0.20 (3.3 times usual volume) with stock at $22.20
A trader bought 2,700 IVZ Jan 35 Calls for $1.05 (3.2 times usual volume) with stock at $34.76
A trader bought 1,500 AUQ  Jan 2015 Calls for $1.00 (4.2 times usual volume) with stock at $3.62
A trader bought 1,000 SEE Jan 30-32 Call Spreads for $1.45 (2.6 times usual volume) with stock at $32.29
A trader bought 3,500 IMGN Dec 15 Calls for $0.425 (4.2 times usual volume) with stock at $14.07