The Charles Schwab Corporation, through its subsidiaries, provides securities brokerage, banking, money management, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. SCHW is currently trading around $27.67 in a 52 week range of $20.44-$29.13. The company’s stock has been outperforming the market this year with shares rising 6.5% year to date. Options traders seem to think that this trend will reverse as order flow in SCHW has been decidedly bullish during today’s trading session. Today a trader bought over 6000ish SCHW August 28 Calls for $.25. This is an extremely bullish order and involves this trader laying out $150,000 in total premium. The stock looks strong today with rumors that Goldman Sachs might be interested in purchasing them.

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 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long. Visit our partners, – leaders in fashionable footwear!

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 SCHW August 28 Calls for $.30
Risk: $30 per 1 lot
Targets: Sell 25% at $.35, Sell 25% at $.40, Sell 25% at $.50, Sell 25% at $.60

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

(Full disclosure: I long SCHW Calls)

Marriott International, Inc. operates, franchises, and licenses hotels and timeshare properties worldwide. The company operates through four segments: North American Full-Service, North American Limited-Service, International, and Luxury. MAR is currently trading around $64.79 in a 52 week range of $39.58-$67.12. The company’s stock has been outperforming the market this year with shares rallying 30% year to date. Options traders seem to think that this trend will reverse as order flow in MAR has been decidedly bearish during today’s trading session. Today a trader bought over 8600 MAR Sep 62.50 Puts for $1.20. This is an extremely bearish order and involves this trader laying out $1,032,00 in total premium. The stock looks weak today, and I think the stock can break through $62.5 on its way to $55.

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

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 MAR Sep 55 Puts for $1.20 debit
Risk: $120 per 1 lot
Targets: Sell 25% at $1.40, Sell 25% at $1.60, Sell 25% at $1.80, Sell 25% at $2.00

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

(Full disclosure: I have no position on in this stock)

Synergy Resources Corporation acquires, explores, develops, produces, and exploits crude oil and natural gas properties primarily located in the Wattenberg field in Denver-Julesburg Basin in northeast Colorado. SYRG is currently trading around $12.19 in a 52 week range of $7.12-$14.11. The company’s stock has been outperforming the market this year with shares rallying 29.50% year to date. Options traders seem to think that this trend will continue as order flow in SYRG has been decidedly bullish during today’s trading session. Today a trader bought over 2500 SYRG Aug 12.5 Calls for $.55. This is an extremely bullish order and involves this trader laying out $137,500 in total premium. The stock looks strong today, and I think the stock can break through $12.80 on its way to $15.

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

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 SYRG Aug 12.5 Calls for $.55 debit
Risk: $.55 per 1 lot
Targets: Sell 25% at $.65, Sell 25% at $.80, Sell 25% at $1.00, Sell 25% at $1.20

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

(Full disclosure: I am long 200 if these Calls for on average $.60)

SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. SUNE is currently trading around $19.76 in a 52 week range of $6.24-$24.35. The company’s stock has been outperforming the market this year with shares rallying 51.80% year to date. Options traders seem to think that this trend will reverse as order flow in SUNE has been decidedly bullish during today’s trading session. Within the last week a trades have been buying SUNE Calls in October and January 2015. This is an extremely bullish order. The stock looks weak in the last couple of days, but it looks like the short term low could be in at $19.50. With this order flow and this chart set up I believe SUNE is setting up well for a longer-term play.

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

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 SUNE Jan 2015 20-25 Bull Call Spread for $1.50 debit
Risk: $1.50 per 1 lot
Targets: Sell 50% at $3.00, hold balance until expiration
Breakeven on Expiration: $21.50

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

AT&T (T) telecommunication giant has just agreed to buy DirecTV for a massive $48.5 billion dollars! AT&T’s website discusses some of the benefits of the deal. AT&T looks to become content creator and distributor across platforms. The company says it will host a conference call Monday May 19, 2014 at 8:30 am, to further discuss details of the acquisition. AT&T has been trading in a fifty two week range of 31.74-37.44, and is currently near its fifty two week highs at 36.74. AT&T has agreed to buy DirecTV for $95 per share. The deal will comprise of $28.50 per share in cash and 66.50 per share in AT&T stock. DirecTV shareholders will receive 1.905 shares of AT&T if the stock is below 34.50 and shareholders will receive 1.724 share if the stock closes 38.58 or above. Regardless DirecTV shareholders should receive a $66.50 in value of shares in AT&T. DirecTV has been trading in a fifty two week range between $57.05-89.46, the stock closed on Friday at $86.18. The deal seems to be a fair deal to DirecTV shareholders. With this big of a deal on the table expect both stocks to be choppy as weary investors make sense of the deal. There is also still the issue of how regulators will react to the proposed acquisition. The Time Warner Cable (TWC) and Comcast (CMCSA) deal announced earlier this year is still in regulators hands; so don’t expect this deal to pass through overnight without some hurdles to overcome. These deals and others proposed in the telecommunication and TV network industries suggest a bigger trend than individual stocks and companies. There have been three major and very similar mergers and acquisitions proposed this year in this industry. These deals each suggesting that the industries want to merge and reshape the entire telecommunication and TV network industry.

Shares of World Wrestling Entertainment (WWE) plummeted (-43%) today! The stock is currently down $-8.67 and has been trading in a fifty two week range of $8.96-$31.98. Year to date the stock has underperformed the market. World Wrestling Entertainment dropping after failing to secure another TV network deal. After launching its WWE network subscription service it essentially cannibalized the company’s current business model. World Wrestling Entertainment’s new business model is similar to that of a Netflix (NFLX), with a library of wrestling matches and pay-per-view type matches. Investors are unhappy about the new business model and the company’s inability to generate new and consistent subscriber growth. If we look at (WWE) on the Ichimoku Cloud, the stock has been trading in a very bearish channel. The stock is currently trading below the cloud.

The headlines today are filled with mostly bearish stories and grim reminders of when “the sky fell” in the 2008 market free fall. Today we saw soft predictions of a market top. After all analyst would hate to be wrong yet again about another market correction. Those who sold the so called “top” last year, missed out on so much of this raging bull market. As a trader it doesn’t matter who’s right; it doesn’t matter who gets the gold star for predicting the top. It doesn’t matter if the market is bullish or bearish; the only thing that matters is that your moving with the market. All of this bearish talk today and uncertainty about the market creates volatility. Volatility creates opportunity as a trader. Remember the market takes the stairs up and the elevator down in a bearish market. Don’t be afraid of the bear, some of the best days as a trader are created by uncertainty in the market, volatility, and bearish turns in the market. Today the markets are a little bit choppy but for the most part unchanged overall as investors look to pick which side of the market they want to be on.

MBIA (MBI) financial services company that is currently trading at $12.23. MBIA is trading in in a fifty two week range of $11.96-12.78. The stock has been slightly under performing the market with shares rallying 2.57%. Options traders seem to think the stock will stay above $12. We saw 1800 June 12 puts being sold for .33 cents. By selling puts, this trader is obligated to buy the stock if it is at or below the $12 strike before expatriation. If the stock stays at $12 or above, the trader will keep the $59,400 in premium. As long as the stock stays above $11.65 by June expiration, this trader will make money off the premium sold. A trader believes that (MBI) is setting up to stay above $12 strike before June.

Yahoo (YHOO) internet search giant and major shareholder of Alibaba, is currently trading at $34.53. Yahoo (YHOO) is currently trading in a $23.82-41.72 fifty two week range. Yahoo has been under performing the market as shares have fallen 14.74% year to date. This year Yahoo has generated poor earnings performance from its core internet business. However Yahoo’s 24% stake in the up and coming Alibaba has given a boost to yahoo’s quarterly reports and stock. With Alibaba’s upcoming IPO, Options traders have a bullish outlook on Yahoo. Yesterday we saw a trader buy 19,105 YHOO Friday 5/30 weekly calls at the $34.00 strike for $1.37 premium. Yahoo is currently trading below the Ichimoku Cloud; however with the bullish order flow in Yahoo and the hype surrounding the Alibaba IPO, I believe Yahoo is setting up for a long position.

Block Trade: A trader bought 19105 (YHOO) 5/30 Weekly 34 calls.
Risk: $137 per one lot
Reward: Unlimited
Breakeven: $35.37