Paper buys 808 ITT Oct 30 Calls for $1.70 (71.6 usual volume) with stock at $30.28
Paper buys 800 SIRI Jun 3.5 Calls $0.14 (2.4 times usual volume) with stock at $3.53
Paper buys 9,975 MNKD Jan 5 Calls for $1.35 (3.9 times usual volume) with stock at $5.06
Paper buys 4,069 WM Oct 42 Calls for $1.30 (2.7 times usual volume) with stock at $41.59
Paper buys 460 PBF Dec 40 Calls for $1.25 (2.4 times usual volume) with stock at $30.93

Paper buys 2,000 DE Jun 85 Puts for $0.68 (4.3 times usual volume) with stock at $90.18
Paper buys 8,719 LYV Jun 13 Puts for $0.425 (41.1 times usual volume) with stock at $13.98
Paper buys 1,369 SNTA Jun 7.5 Puts for $1.30 (2.1 times usual volume) with stock at $8.05
Paper buys 2,000 CTAS Jun 45 Puts for $0.90 (6.6 times usual volume) with stock at $42.50

DE reaffirmed EPS guidance, but lowered its estimates for equipment sales growth from 6% to 5%.  Despite the bearish outlook, the company did put up very impressive YoY numbers…revenues were up 9% YoY for example.

Further breaking down the outlook into different regions, the company was overall rather bullish of China. They indicated that China’s subsidies are expected to help DE, but, on the other hand, the Avian flu seems to be having an adverse effect on feed demand. The company expects the Indian tractor market to remain soft, but they also indicated that the recent efforts from the central bank were bullish.

The company is expecting $3.4 B in cash flow from operations this year. Additionally, the company is expecting Q3 2013 to have net sales up 3% YoY and for net sales of fiscal 2013 to be up 5% compared to 2012.

The options market was expecting a $3.00 move yesterday according to the ATM May straddle. These options only have this week left to trade, so they were an organic indicator to derive market expectations from. The actual move was just above this implied move.

From the prospective of technical analysis, DE has imminent support from its 100 DMA at $89 along with prior high support.

salerno.mark.a@gmail.com