Morgan Stanley (MS) is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals.  MS is currently trading around $33 in a 52 week range of $28.13 – 36.44. The company’s stock has been underperforming the market this year with shares decreasing 5.82% year to date. Shares have decreased nearly 5.82% so far since Monday, but are around $3 below their 52-week high of $36.44.

Morgan Stanley is scheduled to report Q3 2014 earnings before the opening bell tomorrow. The results are scheduled for release at approximately 7:15 a.m. EST, with a conference call to follow at 10:00 AM EDT. The earnings release is the last of the banks this quarter. Analysts have rated the stock with 9 Buys, 9 Holds, and 1 Sell rating. Morgan Stanley’s quarterly profit more than doubled in the second quarter as stronger performances by its investment banking and wealth management businesses more than made up for a fall in revenue from bond trading. The Manhattan-based company is expected to report a profit of 54 cents a share on revenue of $8.17 billion, compared with EPS of 50 cents on revenue of $8.2 billion.

Looking at the company’s earnings history, MS has rallied 5 of the last 8 quarters. On average, the stock has moved about 2.5% in the last 8 quarters as a result of earnings releases. This earnings season, market makers are implying about a +- 3% move in the stock for the October 17 weekly option chain. MS has been trading above the Ichimoku Cloud on the daily chart for the past 5 months, falling under the cloud in the last few days.

The Goldman Sachs Group, Inc. (GS), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. GS is currently trading around $171.90 in a 52 week range of $151.65 – 189.50. The company’s stock has been underperforming the market this year with shares decreasing 2.96% year to date.

GS is expected to report a fiscal third-quarter loss of 9 cents per share, excluding items, on revenue of $21.36 billion, compared with a profit of 20 cents per share on revenue of $21.53 billion a year earlier. Goldman is projected to issue a profit of $3.21 per share on revenue of $7.85 billion, compared with earnings per share of $2.88 on revenue of $6.72 during the same period a year ago. Looking at the company’s earnings history, GS has rallied 3 of the last 8 quarters. On average, the stock has moved about 1.8% in the last 8 quarters. This earnings season, market makers are implying about a +- 3.6% move in the stock for the October 17 weekly option chain. GS is trading above the Ichimoku Cloud on the daily chart, but it is difficult to determine how investors will react to the earnings release. The company will announce earnings tomorrow morning at 9:30 EDT.

Bank of America Corporation (BAC) is a bank holding company, and a financial holding company. BAC is currently trading around $16.53 in a 52 week range of $13.80 – 18.03. The company’s stock has been outperforming the market this year with shares increasing 6.16% year to date. Shares have gained nearly 5.5% so far in 2014 through Monday, but are 9% below their 52-week high of $18.03.

The second-biggest U.S. bank is expected to report a third-quarter loss of 9 cents a share, compared to a profit of 20 cents a share in the same quarter the year before, according to analysts surveyed by FactSet. The loss includes an expected 43 cents charge tied to the bank’s $16 billion mortgage settlement with the government in August. BAC is also expected to report a decline in revenue. The consensus estimate is for revenue of $21.34 billion for the quarter, compared to $21.53 billion a year ago. BAC will report tomorrow before the bell, with a conference call following at 8:30AM EDT.

Looking at the company’s earnings history, BAC has rallied 3 of the last 8 quarters, for the 3 quarters in succession spanning from July 2013 through January 2014. On average, the stock has moved about 2.5% in the last 8 quarters. This earnings season, market makers are implying about a +- 3.6% move in the stock for the October 17 weekly option chain. BAC is trading above the Ichimoku Cloud on the daily chart, but it is difficult to determine how investors will react to the earnings release. Shares have sold off from the beginning of October, where the stock was trading about $.70 off its 52 week high at $17.29.

Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. The Company provides other financial services through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. WFC is currently trading around $50.84 in a 52 week range of $40.30 – 53.80. The company’s stock has been outperforming the market this year with shares increasing 11.88% year to date.

WFC is reporting earnings tomorrow before the be.. The company conference call is scheduled for 10AM EST. Wall Street analysts forecasted that Wells Fargo & Co will be able to deliver $1.02 in earnings per share on $21.2 billion in revenue for the third quarter. The current estimates were higher compared with its $0.99 in earnings per share and $20.7 billion in revenue recorded in the same period last year. Analysts covering the bank’s stock have an average price target of $55 per share. 17 analysts have a Buy rating, 16 have a Hold rating, and 2 have a Sell recommendation for the company shares.

WFC is trading neutral according to the Ichimoku Cloud chart. Shares have been oscillating in a range of about $50-53.80, with the upper end being the stock’s 52 week high. Market makers are implying about a +- 3% move in the stock for the October 17 weekly option chain.

Arrowhead Research Corporation (ARWR) is a biopharmaceutical company developing targeted RNAi therapeutics. The Company is leveraging its drug delivery technologies to develop drugs based on the RNA interference mechanism that silences disease-causing genes.  ARWR is currently trading around $6.09 in a 52 week range of $5.47 – 27.63. The company’s stock has been underperforming the market this year with shares decreasing 43.22% year to date.

Today, a trader bought 1000 ARWR Oct14 11.0 Puts for $0.55. This order involves this trader laying out $55,000 in total premium. While this is not necessarily an unusually large bet, shares of ARWR fell 40% right after these puts were purchased. The company announced today that data from the ongoing Phase 2a study of ARC-520, its candidate for the treatment of chronic hepatitis B (HBV) infection, was disappointing, leading shares to tumble as investors pulled out of the biotech name. These contracts have increased over 10X in value in just a few hours, reaching as high as $5.40 as the stock continues to sell off in today’s session.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trade:
Buying the ARWR Oct14 11.0 Puts for $0.55

Risk: $55 for every 1 lot

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

Patterson-UTI Energy, Inc. (PTEN) owns and operates fleets of land-based drilling rigs in the United States. The company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian Basin. PTEN is currently trading around $30.13 in a 52 week range of $21.29 – 38.43. The company’s stock has been outperforming the market this year with shares increasing 18.87% year to date, however, oil stocks have been under pressure lately, since demand has been lower while crude supply has increased.

Today, a trader bought around 4200 PTEN Nov14 34.0 Calls at $0.80. This order involves this trader laying out over $336,000 in total premium. Shares have seen a drastic reversal in the last few days, as stock came off of last months highs. The underlying is trading underneath the Ichimoku cloud, indicating bearish momentum, and this trade might be a hedge against more downside movement for PTEN, as oil markets are seeing increased volatility in the near term.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trades:
Buying the PTEN Nov14 34.0 Calls for $0.80

Risk: $80 for every 1 lot

Greeks of these Trades:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

The Home Depot, Inc. (HD) is a home improvement retailer. The Company operates The Home Depot stores, which are full-service, warehouse-style stores. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. HD is currently trading around $91.32 in a 52 week range of $73.74 – 93.75. The company’s stock has been outperforming the market this year with shares increasing 10.84% year to date. Today, a trader bought 13057 HD Oct14 91.0 Puts for $1.06. This order involves this trader laying out over $1.3 million in total premium.

Markets have been weak this past week, yet HD has held strong, surviving weak home sales numbers and a credit card data breach earlier this month. Also, Home Depot is trading above the Ichimoku Cloud on the daily chart, indicating that price momentum is still bullish. The stock is also trading about $2 off its 52 week high. This trader might be looking to hedge a stock position with this massive bet, in case the market continues to sell of and head lower.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trades:
Buying the HD Oct14 91.0 Puts $1.06

Risk: $106 for every 1 lot

Greeks of these Trades:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long

Occidental Petroleum Corporation (OXY) conducts its operations through various subsidiaries and affiliates. The Company operates in three segments: oil and gas segment; chemical segment, and midstream, marketing and other segment. OXY is currently trading around $95.83 in a 52 week range of $85.90 – 105.64. The company’s stock has been underperforming the market this year with shares increasing .86% year to date. Today, a trader bought 2,967 OXY Oct14 100 Calls at $0.70, and, 2,964 OXY Oct14 100 Calls at $0.50. This order involves this trader laying out over $350,000 in total premium. OXY traded 2.2x the average daily option volume today, and these calls are fairly far out-of-the money and are front-month contracts with very little time value left, which might indicate this trader is most likely very bullish on the name. Oil stocks have been selling off in the recent past, yet crude oil rallied today from its deepest sell off since 2012, helped by a combination of encouraging Chinese factory data and sliding crude inventories in the United States.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trades:
Buying the 2,964 OXY Oct14 100 Calls for $0.50

Buying the 2,967 OXY Oct14 100 Calls for $0.70

Risk: $50 for every 1 lot, $70 for every 1 lot

Greeks of these Trades:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

Delta Air Lines, Inc. (DAL) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company’s route network gives it a presence in every domestic and international market.  DAL is currently trading around $36.18 in a 52 week range of $22.71 – 42.66. The company’s stock has been outperforming the market this year with shares increasing 31.92% year to date. Today, a trader bought 20000 DAL Dec14 40.0 Calls for $0.90. This order involves this trader laying out $1.8 million in total premium.

While this huge bet looks bullish on the surface, it is possible that a trader is hedging a short stock position in DAL. The stock traded 7.2 million shares today, and this order controls 2 million shares. While this is a very large order, it is not necessarily ‘unusual’. DAL crossed below the 200 day moving average of $35.50, changing hands as low as $35.18 per share. Also, if we look at the Ichimoku chart using the 5-minute bar, we see that DAL is trading below the Cloud, indicating downward momentum building in the stock. Therefore, this order could indicate bearish sentiment on the stock, which is confirmed by the Ichimoku Cloud, or could indicate that a trader is rolling a bullish position out to December.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trade:
Buying the DAL Dec14 40.0 Calls for $0.90
Risk: $90 for every 1 lot

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

GoPro, Inc. (GPRO) develops hardware and software solutions for capturing, managing, sharing and enjoying engaging content. The company’s mountable and wearable cameras and accessories, which are referred to as capture devices, enable professional-quality capture and exceptional versatility. GPRO is currently trading around $88.82, hitting an all-time high today as investors gear up excitement in light of rumors that the company is building a more affordable, budget camera.

Leaked information indicates that the new camera, which unlike their flagship model,  will have no WiFi or Bluetooth connectivity, no 4K video mode, and no touch display. The device will reportedly have a one-touch QuikCapture button, high quality 1080p 30fps and 720p 60fps video, 5-megapixel camera with 5-frame-per-second burst photo mode, and a microSD card slot for up to 32GB storage. GoPro’s affordable camera will come with a non-removable, rugged waterproof case, 2.5 hours of battery life, and a built-in microphone.

The price point for the new device has yet to be determined, however, investors are viewing the new information favorably for the wearable device company. GoPro is currently trading at a lofty forward price to earnings multiple of 93x, and forward price to sales multiple of 7.5x. Meanwhile, short interest in the stock has increased rapidly, as the possibility of $100 share price might be in the not-too-distant future.

Shares continue to trade higher in today’s session, maintaining momentum above the Ichimoku cloud and trading at above average volume.