Bearish Activity

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A trader bought 1,100 JNY Dec 13 Puts for $0.60 (4 times usual volume) with stock at $13.63
A trader bought 2,900 AU Jan 2016 Puts for $2.10 (3.1 times usual volume) with stock at $15.29
A trader bought 3,000 JNS Mar 10 Puts for $0.65 (9.6 times usual volume) with stock at $10.46
A trader bought 600 AMED Nov 14 Puts for $0.40 (7.7 times usual volume) with stock at $14.05

Unusual Option Activity

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A trader bought 3,000 JNS Mar 10 Puts for $0.65 (9.6 times usual volume) with stock at $10.46
A trader bought 600 AMED Nov 14 Puts for $0.40 (7.7 times usual volume) with stock at $14.05
A trader bought 1,100 HP Jan 62.5 Calls for $15.40 (2.4 times usual volume) with stock at $77.73
A trader bought 750 FMC Nov 65 calls for $8.00 (12.9 times usual volume) with stock at $72.67
A trader bought 3,395 CHKP Jan 65 Calls for $1.25 (6.6 times usual volume) with stock at $61.81

Covered Call of the Day: TUR

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iShares MSCI Turkey ETF (TUR) is an ETF that seeks to track the return of the MSCI Turkey Investable Market Index. This index measures the performance of equity markets in Turkey. Shares of TUR are currently trading at $52.35 in a 52 week range of $47.36-$77.38. The fund has been underperforming the U.S. equity market this year with shares falling nearly 22% year to date. Despite this weakness options traders made some very bullish bets on TUR in yesterday’s trading session. Early in the session a traders sold 2,575 TUR Dec 49 puts for $0.80. This is a very bullish bet that involves a large amount of risk meaning this trader’s conviction is relatively high. With this position a trader is indicating a strong belief that price will be above $49.00 on December expiration. We believe that this order is a great signal for an opportunity for a covered call in TUR. (more…)

Long Term Trade of the Day: AIR

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AAR CORP (AIR) provides products and services to commercial aviation and defense markets. The company’s stock is currently trading around $30.30 in a 52 week range of $13.27-$30.81. The stock has been massively outperforming the market this year adding more than 62% to share prices year to date. Options action in yesterday’s session would indicate that traders believe this run will continue through February of next year. Early in the session a trader bought 3,500 AIR Feb 35 calls for $0.55. This is an extremely bullish bet with an aggressive upside target. The stock is also trading very well on a chart with shares trading well above the Ichimoku Cloud. The future cloud is also strongly upward sloping suggesting the stock could continue higher. With stock trading just off of its 52 week highs and strong technical we believe that this order serves as confirmation of an opportunity to profit in AIR to the long side. (more…)

Bullish Signals

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A trader bought 2,100 TC Dec 4 Calls for $0.10 (5 times usual volume) with stock at $3.14
A trader bought 1,985 BGC Feb 31 Calls for $1.05 (2.4 times usual volume) with stock at $28.32
A trader bought 2,900 TSM Jan 20 Calls for $0.15 (5 times usual volume) with stock at $17.75
A trader bought 2,200 TIF Dec 80 Calls for $3.20 (3.1 times usual volume) with stock at $80.48
A trader bought 1,800 ONVO Nov 10 Calls for $0.30 (2.5 times usual volume) with stock at $8.77

Bearish Signals

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A trader bought 2,000 HRB Dec 27 Puts for $0.80 (3.8 times usual volume) with stock at $28.00
A trader bought 800 IMAX Jan 30 Puts for $2.05 (3.6 times usual volume) with stock at $29.17
A trader bought 1,500 VIPS Nov 60 Puts for $0.70 (2.9 times usual volume) with stock at $73.76
A trader bought 1,400 RDA Dec 17.5 Puts for $0.10 (5 times usual volume) with stock at $18.17

Unusual Options Activity

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A trader bought 2,200 TIF Dec 80 Calls for $3.20 (3.1 times usual volume) with stock at $80.48
A trader bought 1,800 ONVO Nov 10 Calls for $0.30 (2.5 times usual volume) with stock at $8.77
A trader bought 1,400 RDA Dec 17.5 Puts for $0.10 (5 times usual volume) with stock at $18.17
A trader bought 2,900 TSM Jan 20 Calls for $0.15 (5 times usual volume) with stock at $17.75
A trader bought 2,000 HRB Dec 27 Puts for $0.80 (3.8 times usual volume) with stock at $28.00

Covered Call fo the Day: JNPR

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Juniper Networks, Inc (JNPR) is a company that designs and sells network infrastructure products and services. The company’s stock is currently trading around $18.97 in a 52 week range of $15.62-$22.98. The stock has been underperforming the market this year having fallen over 3.7% year to date. Despite this weakness in the stock we have seen options traders make some very bullish bets on JNPR today. Early in today’s trading session a trader sold 3,962 JNPR Dec 19 puts for $0.76. This is a very bullish bet that has also involves a high level of risk meaning this traders conviction is relatively high. Although JNPR has been trading in bearish territory since they reported earnings on Oct 22nd we believe that this order signals for a great covered call set up in JNPR. (more…)

Earnings Trade of the Day: DF

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Dean Foods Company (DF) is a food company that operates in the processing and distribution of milk and other dairy products in the U.S. The company’s stock is currently trading around $19.40 in a 52 week range of $17.40-$42.12. The stock has been massively underperforming the market this year with share prices falling over 41% year to date. DF is set to report their most recent quarterly earnings tomorrow before the opening bell. Despite the stock’s dismal performance this year it has been a relatively strong performer on earnings. The stock has rallied 5 of the past 8 quarters with an average move of 11%. On a chart DF is trading in neutral to bearish territory according to the Ichimoku Cloud. The future cloud is flat to downward sloping indicating there is neutral to bearish price action on the horizon. With the neutral to bearish chart and strong historical earnings day performance we believe that DF is setting up well for a iron butterfly. This will have us fading the implied movement in DF and will allow time to work in our favor. We can also choose to skew this trade slightly higher to better set up should the stock head higher. (more…)

Bullish Signals

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A trader bought 5,600 CPWR Nov 11 Calls for $0.10 (2.7 times usual volume) with stock at $10.37
A trader bought 3,300 MM Jan 12.5 Calls for $1.50 (3 times usual volume) with stock at $7.02
A trader bought 5,300 BSX Dec 12 Calls for $0.34 (3.2 times usual volume) with stock at $11.73
A trader bought 4,140 PWE Dec 9-10 Call Spreads for $0.58 (3 times usual volume) with stock at $8.62
A trader bought 14,575 NBL Jan 80 Calls for $1.05 (5 times usual volume) with stock at $73.88