Macy’s Inc (M) is a retailer operating stores and websites under the Macy’s and Bloomingdale’s brands in the United States, Guam and Puerto Rico. The company’s stock is currently trading around $46.80 in a 52 week range of $36.30-$50.77. The stock has been performing well this year adding nearly 20% to share prices year to date. Macy’s is set to report their most recent quarterly earnings tomorrow before the market open. The stock has been a mixed performer on earnings day over the past 8 quarters. In the past 8 quarters the stock has rallied 4 times and sold off 4 times on earnings day moving 3.1% on average. On a chart shares of M are once again trading in bullish territory for the first time since mid-August. The future cloud is also beginning to slope upward suggesting there could be strength in M through the end of the year. We believe that the technical picture coupled with historical performance sets up well for a long ahead of earnings. With the options market currently implying a move of around $3.45 by November expiration we can calculate an upside target and set up a trade. (more…)

A trader bought 1,000 RDWR Jun 16 Calls for $1.35 (2.8 times usual volume) with stock at $15.65
A trader bought 2,275 TIBX Nov 23 Calls for $1.00 (2.8 times usual volume) with stock at $23.95
A trader bought 3,395 CHKP Jan 65 Calls for $1.25 (6.6 times usual volume) with stock at $61.81
A trader bought 1,100 HP Jan 62.5 Calls for $15.40 (2.4 times usual volume) with stock at $77.73
A trader bought 750 FMC Nov 65 calls for $8.00 (12.9 times usual volume) with stock at $72.67

A trader bought 1,100 JNY Dec 13 Puts for $0.60 (4 times usual volume) with stock at $13.63
A trader bought 2,900 AU Jan 2016 Puts for $2.10 (3.1 times usual volume) with stock at $15.29
A trader bought 3,000 JNS Mar 10 Puts for $0.65 (9.6 times usual volume) with stock at $10.46
A trader bought 600 AMED Nov 14 Puts for $0.40 (7.7 times usual volume) with stock at $14.05

A trader bought 3,000 JNS Mar 10 Puts for $0.65 (9.6 times usual volume) with stock at $10.46
A trader bought 600 AMED Nov 14 Puts for $0.40 (7.7 times usual volume) with stock at $14.05
A trader bought 1,100 HP Jan 62.5 Calls for $15.40 (2.4 times usual volume) with stock at $77.73
A trader bought 750 FMC Nov 65 calls for $8.00 (12.9 times usual volume) with stock at $72.67
A trader bought 3,395 CHKP Jan 65 Calls for $1.25 (6.6 times usual volume) with stock at $61.81

iShares MSCI Turkey ETF (TUR) is an ETF that seeks to track the return of the MSCI Turkey Investable Market Index. This index measures the performance of equity markets in Turkey. Shares of TUR are currently trading at $52.35 in a 52 week range of $47.36-$77.38. The fund has been underperforming the U.S. equity market this year with shares falling nearly 22% year to date. Despite this weakness options traders made some very bullish bets on TUR in yesterday’s trading session. Early in the session a traders sold 2,575 TUR Dec 49 puts for $0.80. This is a very bullish bet that involves a large amount of risk meaning this trader’s conviction is relatively high. With this position a trader is indicating a strong belief that price will be above $49.00 on December expiration. We believe that this order is a great signal for an opportunity for a covered call in TUR. (more…)

AAR CORP (AIR) provides products and services to commercial aviation and defense markets. The company’s stock is currently trading around $30.30 in a 52 week range of $13.27-$30.81. The stock has been massively outperforming the market this year adding more than 62% to share prices year to date. Options action in yesterday’s session would indicate that traders believe this run will continue through February of next year. Early in the session a trader bought 3,500 AIR Feb 35 calls for $0.55. This is an extremely bullish bet with an aggressive upside target. The stock is also trading very well on a chart with shares trading well above the Ichimoku Cloud. The future cloud is also strongly upward sloping suggesting the stock could continue higher. With stock trading just off of its 52 week highs and strong technical we believe that this order serves as confirmation of an opportunity to profit in AIR to the long side. (more…)