hhgregg, Inc (HGG) is a consumer electronic retailer operating 208 stores in states across the country. The company’s stock is currently trading around $8.45 in a 52 week range of $7.23-$20.75. The stock has underperformed the market over the past year with shares down 13% in the past 12 months. Options action in today’s trading session would however suggest that traders believe the stock will rally through April expiration. Early in the session a trader sold 3,000 HGG Apr 6 puts to buy 3,000 Apr 9 calls for a net debit of $0.55. This bullish risk reversal carries a high level of risk and suggests that this trader’s level of conviction is relatively high. This block also represents volume over 3 times the average daily option volume in HGG. Although the stock is trading below the Ichimoku Cloud it has rallied hard off of its 52 week lows in over the past week. We believe that order flow this strong and the strength in very recent price action is justification for a long position in HGG.

My Trade: I bought the HGG Apr 9 Calls for $0.55
Risk: $55 per 1 lot
Reward: Unlimited
Breakeven: $9.55

Angie’s List, Inc. (ANGI) is an internet services company operating a reviews website for local professionals for needs such as home and healthcare services. The company’s stock is currently trading around $17.20 in a 52 week range of $11.88-$28.32. The stock has performed relatively well over the past 12 months with shares rallying over 31% during that time. Options action in today’s trading session would indicate that traders believe this trend will continue. Early in the session a trader bought 4,630 ANGI Feb 20-22.5 call spreads for $0.40. This is a bullish trade that represents volume nearly 3 times the average daily option volume in ANGI. The stock is also trading above the Ichimoku Cloud indicating it is in bullish territory. We believe that this order flow is strong enough to justify a long in ANGI.

My trade: Buying the ANGI Feb 20 Calls for $0.60
Risk: $60 per 1 lot
Reward: Unlimited
Breakeven: $20.60

IMAX Corporation (IMAX) is an entertainment company who specializes in theater systems for customers who operate commercial theaters and theaters in museums and science centers. The company’s stock is currently trading around $26.55 in a 52 week range of $23.50-$31.23. The stock has underperformed the market over the past 12 months having only added 5.87% to share prices over that time. Despite this relatively weak performance options action in IMAX in recent weeks has been decidedly bullish. Early in today’s trading session a trader bought 1,215 IMAX Feb 27 calls for $0.90 and sold 1,215 IMAX Mar 23 puts for $0.20. Volume on the Feb 27 call line has now reached 3,200 contracts and will add to open interest of 1,711 on that line. This also adds to the persistent call buying we have seen over the past week. Although the chart of IMAX is relatively weak we believe that all of this bullish order flow is a signal to get long IMAX. We will remain long through earnings on the 20th

Trade: Buying the IMAX Feb 27 Calls for $0.90
Risk: $90 per 1 lot
Reward: Unlimited
Breakeven: $27.90

Toll Brothers, Inc (TOL) is a homebuilder who designs and builds homes in residential communities. The company’s stock is currently trading at $36.75 in a 52 week range of $26.64-$39.25. The stock underperformed the market last year as shares only rallied 1.63% over the past 12 months. However, options action TOL in today’s trading session suggests that traders believe the stock will rally through September expiration. Earlier in today’s trading session a trader bought 16,000 TOL Sep 37 calls for $3.95. Over 20,000 contracts have now traded on that line and today’s option volume in TOL is now nearly 8 times the average daily option volume in the name. With stock trading well above the Ichimoku Cloud and the future cloud sloping upward we believe that TOL is setting up well for a long position.

Trade: Buying the TOL Sep 37 Calls for $3.95
Risk: $395 per 1 lot
Reward: Unlimited
Breakeven: $40.95

The January unemployment number was announced this morning showing slower than expected job growth in January. Analysts were expecting around 180,000 jobs to be added while the actual number came in at 113,000. The unemployment rate also down ticked from 6.7% to 6.6%. Markets traded lower initially then swung wildly from lows to highs and E-mini S&P 500 futures are now trading 14 points higher on the day trading in a 27.75 point range. LNKD reported quarterly earnings this morning announcing better than expected earnings but lowering guidance. TWTR and FB are both higher this morning with TWTR rallying nearly 4%. Looking to next week we see few catalysts and could expect relatively muted moves in the broader market. We have been seeing some bullish activity in retailers like JWN, TJX, and LB which could represent speculative bets ahead of next week’s retail sales number on Thursday. We will likely revisit potential long set ups in those names ahead of the number.

The Global X Uranium ETF (URA) is an ETF that tracks the Solactive Global Uranium Index which seeks to track the performance of equities involved in the uranium industry. Shares of URA are currently trading at $15.40 in a 52 week range of $13.82-$21.27. URA seriously underperformed the market last year with shares falling by over 27% in the past 12 months. However, despite weak historical performance, options action in today’s trading session has been very bullish and suggests that traders believe URA will be strong through April expiration. Earlier in the session a trader bought 1,000 URA Apr 16 calls for $0.55. Over 4,700 have now traded on that line and today’s option volume in URA is nearly 16 times higher than normal. With URA trading above the Ichimoku Cloud and this extremely bullish order flow we believe that URA sets up well here for a long.

Trade: Buying the URA Apr 16 Calls for $0.60
Risk: $60 per 1 lot
Reward: Unlimited
Breakeven: $16.60

Today saw a choppy session for U.S. equity markets as earnings and economic data sent markets lower in the morning before bring them back to close in positive territory. ADP Employment numbers were released this morning coming in slightly above to in line with most analyst estimates. January ISM non-manufacturing numbers were also released today coming in slightly higher than analyst estimates.  Today after the bell TWTR will make their first ever quarterly earnings announcement, a release that will be highly scrutinized. Markets are likely range bound today in anticipation of earnings releases and economic data tomorrow including jobless claims. As far as earnings we are looking for moves higher in TWTR, GMCR, and YELP. Bullish order flow in BG also led us into a long call position today and profits were taken in several old long positions. Looking to Friday we will continue to be selective about new longs and will likely continue with caution going into the release of the January employment situation.

Bunge Limited (BG) is a worldwide food processing and agribusiness company with operations across the entire agribusiness space. The company’s stock is currently trading around $74.45 in a 52 week range of $65.74-$84.18. The stock has been underperforming the market over the past 12 months with shares falling just under 7% over that time period. However, options action in today’s trading session suggests that traders believe this trend will reverse and that the stock will rally through February expiration. Early this morning a trader bought 3,656 BG Feb 75 calls for $1.30. This is a very bullish trade that exposes this trader to over $475,000 in risk. This block also represents volume over 6.5 times the average daily option volume in BG. Although the chart of BG is very weak we believe that this bullish order flow is a good signal for a long in BG.

Trade: Buying the BG Feb 75 Calls for $1.40
Risk: $140 per 1 lot
Reward: Unlimited
Breakeven: $76.40

U.S. Equities open moderately lower this morning as ADP Employment numbers were released this morning coming in slightly above to in line with most analyst estimates.  The report also saw Decembers numbers revised lower.  Markets did spike higher for a short period after the release of January ISM non-manufacturing numbers which came in slightly higher than expected. E-mini S$P 500 futures then reversed hard and are now trading lower by around 6 points. Last night saw the release of quarterly earnings of Myriad Genetics, Inc. (MYGN) who reported higher than expected earnings of $0.66 per share, beating consensus estimates of $0.46 per share. The company also raised its full year guidance and the stock is currently trading higher by nearly 10%. We were long MYGN Feb 7^th Weekly 28.5-29.5 call spreads going into the release and will net maximum potential profit if the stock closes above $29.50 on expiration. Again we will look for unusual order flow throughout the day as markets continue to slid from the highs.

Markets breathed a small sigh of relief today as E-mini S&P 500 futures closed higher by 16.50 points on the day after one of the worst single day declines in months.  Markets well buoyed in part by the release of January factory orders, which came in above analyst expectations. After the close we will watch earnings from BIDU and a few names reporting tomorrow.  Tomorrow morning will see the release of ADP Employment and ISM Non-Manufacturing numbers. A slew of other earnings releases are on tap for the week along with the release of the Employment Situation on Friday so traders will not lack opportunity this week. For earnings tonight and tomorrow morning we have longs in MYGN and GILD and a short position in BIDU.  We will continue to take profits on broader moves higher and will continue to keep a close eye on earnings in a week filled with catalysts.