The Goodyear Tire & Rubber Company (GT) is a manufacturer of tires. The stock is currently trading around $23.85 in a 52 week range of $12.95-$28.48. The stock is basically unchanged this year with shares gaining less than 0.50% on the year. Options traders seem to be expecting some upside in GT as some bullish orders have been hitting the tape today. Earlier this morning a trader bought 3,017 GT May 23^rd weekly 24 calls for $0.64. This is a very bullish trade with a short time until expiration. Although shares of GT are trading below the Ichimoku Cloud its possible this institutional trader is looking for a quick pop in GT. This trader is risking $193,000 on this trade with only 8 days to expiration. Bets this large are worth paying attention to as they can lead moves in the stock, an aggressive trader may find opportunity for a long in GT here.

Block trade: Trader bought the GT May 23^rd Weekly 24 Calls for $0.64
Risk: $64 per 1 lot
Reward: Unlimited
Breakeven: $24.64

Cisco Systems, (CSCO) is a communications and information technology company that deals in the design, manufacturing, and sale of internet connectivity devices. (CSCO) is currently trading at $22.92 and is in a fifty two week range between $20.22-26.49. Cisco systems is up 2.05% YTD and is only slightly under performing the broader market. If we look at Cisco using the Ichimoku cloud on the daily chart, Cisco has been trading in or below the cloud this year during the first quarter. Cisco has only broken the cloud to the upside for brief periods of time before selling off back into or below the cloud. Cisco is currently trading above the cloud; however the chart is very weak and does not give any bullish signals.If we take a look at Cisco’s past earnings performance it has sold off the last three quarters on earnings announcements. In the third and fourth quarter last year Cisco sold off -7.2% and -11% respectively. Last quarter the stock only sold off -2.5%. The average move over the past two years on Cisco earnings has been a 7.4% move. I believe Cisco is setting up for a short on earnings. The stock has been weak this year trading below the cloud and it has not been able to provide a positive earnings announcement in recent quarters.

Trade: Sell May 23 24 bear call spread for .45 cents
Risk: 55
Reward: 45
Breakeven: 23.45

Sangamo BioSciences, Inc (SGMO) is a biopharmaceutical company that is developing drugs for the treatment of HIV and AIDS. The company’s stock is currently trading around $13.60 in a 52 week range of $6.86-$24.69. The stock has been underperforming the market this year with shares falling just over 2% year to date. Options traders seem to think this trend will reverse as order flow has been decidedly bullish during today’s session. Earlier this morning a trader bought 4,170 SGMO Jun 15 calls for $0.70. This is a very bullish order and this block represents volume over 4 times the average daily volume in SGMO. Although the stock is below the cloud recent price action in SGMO has been relatively bullish in the past few sessions. With order flow this strong SGMO may be setting up well for a long position.

Block Trade: Trader Bought the SGMO Jun 15 Calls for $0.70
Risk: $70 per 1 lot
Reward: Unlimited
Breakeven: $15.70

General Dynamics Corporation (GD) is an aerospace and defense company that offers a wide array of services and products related to aviation, weapons systems and communication technology. The company’s stock is currently trading around $115.30 in a 52 week range of $75.32-$115.96. The stock has been massively outperforming the market with shares rallying more than 20% year to date. Options traders are looking for even more upside in GD as orders hitting the tape during today’s session have been very bullish. Earlier this morning a trader bought 1,882 GD Jun 120 calls for $0.70 and another 1,970 for $0.89. This is a very bullish trade and these blocks represent volume nearly 6 times the average daily option volume in GD. With stock trading above the Ichimoku Cloud and just off of its 52 week highs order flow like this could be signaling for a long opportunity in GD.

My Trade: I bought the GD Jun 120 Calls for $0.90
Risk: $90 per 1 lot
Reward: Unlimited
Breakeven: $120.90

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

Activision, Inc. (ATVI) is a publisher of entertainment products for a number of different devices and platforms. The company’s stock is currently trading around $20.60 in a 52 week range of $13.27-$21.50. The stock has been doing very well this year with shares rallying more than 15% year to date. Options traders seem to think this trend will continue as block orders hitting the tape during today’s session have been decidedly bullish. Earlier today a trader bought 2,850 ATVI Jun 21 Calls for $0.47. This is a very bullish trade and with shares of ATVI above the Ichimoku Cloud it seems unlikely this is a hedge against a short stock position. With strong order flow and a bullish chart set up it appears ATVI could be setting up well for a long position.

Block Trade: A trader bought 2,850 ATVI Jun 21 Calls for $0.47
Risk: $47 per 1 lot
Reward: Unlimited
Breakeven: $21.47

Tesaro (TSRO) is another biotech that is on fire this morning! Tesaro is up 16.83% this morning 5/12/14. Tesaro has been trading in a 52 week range of $22.15-51.95. Tesaro is currently trading below the ichimoku cloud at $27.67 up $3.66 today. Despite a weak chart, Tesaro is making headlines today with positive phase three Rolapitant results. Rolapitant is a new drug used to treat the side effects from chemotherapy. As I write this article (TSRO) continues to rip higher as another bull market biotech darling.

Twitter (TWTR) social media giant has bottomed near 52 week lows after it’s first two earnings misses. The stock is currently trading in a 52 week range of $29.51-74.53. Twitter looks bearish on the Ichimoku Cloud as it trades way below the cloud at $33.09. After last weeks IPO lockup period ended share plummeted more than 18%. The charts for (TWTR) are weak and fifty two week lows usually go lower. With that said, we could be near the bottom in Twitter, as the new quarter begins and all the negative news has passed. Twitter is up about a dollar today as the stock tries to climb up from the bottom.

Vector Group Ltd (VGR) is a tobacco company. The company’s stock is currently trading around $21.50 in a 52 week range of $14.61-$21.85. The stock has been doing relatively well this year with shares of VGR rallying more than 31% year to date. Options traders seem to think this trend will continue as orders hitting the tape in today’s trading session have been decidedly bullish. Earlier this morning a trader bought 1,000 VGR Aug 22.5 calls for $0.55. This may not seem lie a large order but this block is the largest to trade on a day where VGR is seeing option volume nearly 15 times its average daily volume. With stock trading above the cloud and just off of its 52 week highs it seems likely that this trader is getting long VGR rather than hedging a short stock position.  With a strong technical case and bullish order flow VGR could be setting up well for a long here.

My Trade: I bought the VGR Aun 22.5 Calls for $0.55
Risk: $55 per 1 lot
Reward: Unlimited
Breakeven: $23.05