Paper bought 4,637 WLP Sep 80 Calls for $2.50 (7.4 times usual volume) with stock at $76.81
Paper bought 1,600 GME Jun 34 Calls for $1.60 (2.6 times usual volume) with stock at $32.93
Paper bought 3,000 MTL Jan 10 Calls for $0.10 (4.1 times usual volume) with stock at $3.54
Paper bought 376 JIVE Jul 20 Calls for $0.45 (4.2 times usual volume) with stock at $16.36

Their pretax earnings rose to $.20 per share ($100 million), up from $.11 per share last year and beating analysts’ projections by $.05 per share. However, FIG’s current stock price is nearly two thirds lower than it was during the company’s IPO in 2007 when shares were selling for $18.50. While much of this drop can be attributed to the financial crisis of 2008, it is difficult to see FIG reaching those highs again. That being said, the company’s recent performance over the past year has been encouraging. Though their holdings have decreased by 20% since last quarter, Bill Miller’s Legg Mason Capital Management is currently the largest holder of Fortress Investment Group stock with a volume of nearly 2.5 million shares for a total value upwards of $10 million. Diamond Hill Capital is the second leading hedge fund in FIG holdings with a total value of $8.3 million, up 657% from last quarter and comprising about .1% of their total portfolio. Following Legg Mason and Diamond Hill is Leon Cooperman’s Omega Advisors who control just over a million shares of FIG stock, up by 148% from last quarter and worth $4.8 million.

My trade: Buy the Sept 6 Calls for $1.30
Risk: $130 Per 1 Lot
Reward: Theoretically Unlimited
Break-even: $7.30

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

Paper bought 1,775 CVA Jul 22.5 Calls for $0.10 (10.9 times usual volume) with stock at $20.19
Paper bought 1,500 KRE Jun 34 Calls for $0.14 (3 times usual volume) with stock at $32.47
Paper bought 4,500 HALO Jul 10 Calls for $0.40 (7.9 times usual volume) with stock at $6.96
Paper bought 488 CRUS Jun 17 Calls for $2.25 (3.6 times usual volume) with stock at $18.73
Paper 9,287 P Jun 21 Calls for $0.45 (2.6 times usual volume) with stock at $16.43

The Vortex Indicator is a lower study that plots two lines against each other. These two plots are VI+ (green) and VI- (red). The values of the two plots come from current high and previous low, and current low and previous high. VI+ is the absolute value of current high minus previous low. The VI- is absolute value of current low minus the previous high. Each are then divided by the sum of the true ranges over the period of observation.

The greater positive distance (amount) between the low of one candle and the next candle’s high, the greater the ascending or positive Vortex movement (VI+). Contrarily, the greater the negative distance between the candle’s high and the next candle’s low, the greater the descent or negative Vortex movement (VI-).

The Vortex Indicator is displayed in the graph below. Away from congestion areas, where choppy action skews the study, the VI+ moving and staying over the VI- is bullish and the opposite for the bears.

This indicator can be another great tool traders can look at in order to determine if a breakout or breakdown is in the process or on the horizon.

salerno.mark.a@gmail.com