A trader sold 5,389 CHRW Nov 55 Puts for $0.05 (3.9 times usual volume) with stock at $59.63
A trader bought 5,000 PBI Nov 22 Calls for $0.35 (2 times usual volume) with stock at $21.93
A trader bought 4,850 ANF Nov 8^th 32 Puts for $0.08 (2 times usual volume) with stock at $36.44
A trader bought 7,250 HMA Feb 12 Puts for $0.60 (15.7 times usual volume) with stock at $12.65
A trader bought 3,048 TNGO Feb 25 Calls for $0.25 (4.7 times usual volume) with stock at $17.00

Keryx Biopharmaceuticals, Inc (KERX) is a biopharmaceutical company focused on the development of treatments for cancer and renal disease. The stock is currently trading around $13.95 in a 52 week range of $2.23-$14.34. KERX has been massively outperforming the market this year adding over 430% to share prices year to date. A flurry of unusual option activity we’ve seen in today’s trading session suggests that traders believe upside in KERX will continue. Early in today’s session a trader sold 5,000 Dec 11 puts for $0.30. This is an extremely bullish order that also represents volume 2.9 times the average daily option volume in KERX.  The high level of risk this trade involves also shows this trader’s conviction and strong belief the stock will be above $11.00 on December expiration.  The stock is also trading relatively well on a chart, with shares trading well above the Ichimoku Cloud. The future cloud also suggests that the stock could have further upside potential. Given the bullish technical and the unusual order flow in KERX we believe there is a good opportunity for a covered call here. (more…)

CBS Corporation (CBS) is a media company operating in entertainment, cable networks, publishing and local broadcasting. The stock is currently trading around $60.65 in a 52 week range of $33.04-$60.91. The stock has had a great year adding over 59% to share prices year to date. CBS is set to report their most recent quarterly earnings report today after the close. Historically, CBS is a very strong stock on earnings. The stock has rallied 7 of the past 8 quarters on earnings day with an average move of 2.9%. The stock has also rallied the past 6 consecutive quarters. The stock is also trading well on a chart. Shares of CBS are on a new 52 week high going into the release and are trading well above the Ichimoku Cloud. The slope of the future cloud also indicates that there could be further upside in store for CBS.  With strong technical and a solid earnings performance record we believe that CBS sets up well for a long position ahead of earnings.  (more…)

A trader bought 3,600 KORS Nov 8^th Calls for $0.15 (2.9 times usual volume) with stock at $78.11
A trader bought 1,400 CSUN Nov 10 Calls for $0.34 (5.4 times usual volume) with stock at $8.55
A trader bought 1,000 MWW Dec 4 Calls for $0.65 (3 times usual volume) with stock at $4.39
A trader bought 7,659 ADSK Dec 45 Calls for $0.92 (2.5 times usual volume) with stock at $41.46
A trader bought 2,500 ITUB Jasn 15 Calls for $0.65 (4.1 times usual volume) with stock at $14.76

A trader bought 1,400 HSP Nov 40 Puts for $1.05 (19.6 times usual volume) with stock at $39.98.
A trader sold 5,000 BRY Feb 50 Calls for $3.70 to buy 2,500 Feb 45 Puts for $1.65 (21.1 times usual volume) with stock at $51.46.
A trader bought 810 ANN Dec 35-31 Put Spreads for $1.15 (2.2 times usual volume) with stock at $35.70
A trader bought 3,808 DDD May 55-50 Put Spreads for $1.60 (2.3 times usual volume) with stock at $69.88

A trader bought 810 ANN Dec 35-31 Put Spreads for $1.15 (2.2 times usual volume) with stock at $35.70
A trader bought 3,808 DDD May 55-50 Put Spreads for $1.60 (2.3 times usual volume) with stock at $69.88
A trader bought 7,659 ADSK Dec 45 Calls for $0.92 (2.5 times usual volume) with stock at $41.46
A trader bought 2,500 ITUB Jasn 15 Calls for $0.65 (4.1 times usual volume) with stock at $14.76
A trader bought 1,400 CSUN Nov 10 Calls for $0.34 (5.4 times usual volume) with stock at $8.55

A trader bought 1,000 XBI Dec 122 Calls for $4.10 (2.9 times usual volume) with stock at $120.62
A trader bought 7,800 TWM Jan 32 Calls for $0.05 (4.3 times usual volume) with stock at $13.74
A trader bought 1,367 MAT Nov 45 Calls for $0.725 (2.9 times usual volume) with stock at $45.26
A trader bought 1,000 ALLT Mar 12.5 Calls for $1.85 (13.6 times usual volume) with stock at $12.87
A trader bought 8,000 LCC Dec 23 Calls for $1.85 (2.4 times usual volume) with stock at $23.55

A trader bought 8,517 AVG Nov 20 Puts for $1.25 (3.4 times usual volume) with stock at $20.17
A trader bought 13,695 BBRY Dec 7 Puts for $1.06 (4.9 times usual volume) with stock at $6.63
A trader bought 2,800 NUAN Dec 14 Puts for $0.45 (2.9 times usual volume) with stock at $15.76
A trader bought 1,000 CLH Nov 60 Puts for $1.35 (7.8 times usual volume) with stock at $61.38

A trader bought 1,000 ALLT Mar 12.5 Calls for $1.85 (13.6 times usual volume) with stock at $12.87
A trader bought 8,000 LCC Dec 23 Calls for $1.85 (2.4 times usual volume) with stock at $23.55
A trader bought 8,517 AVG Nov 20 Puts for $1.25 (3.4 times usual volume) with stock at $20.17
A trader bought 13,695 BBRY Dec 7 Puts for $1.06 (4.9 times usual volume) with stock at $6.63
A trader bought 7,800 TWM Jan 32 Calls for $0.05 (4.3 times usual volume) with stock at $13.74

United States Steel Corporation (X) is a producer and seller of steel mill products in North America and Europe. The company’s stock is currently trading around $25.50 in a 52 week range of $15.80-$26.29. The stock has been performing well this year but has lagged the overall market adding only 6.54% to share prices year to date. Despite the stocks relative under-performance to the broader market options traders have stepped in to make some very bullish bets on X through January. Earlier in today’s trading session a trader sold 21,000 of the Jan 26-23 put spreads for $1.22. This short in the money put spread is a bullish bet that exposes this trader to $3.74 million worth of risk. This block also represents volume 2 times greater than the average daily option volumes in X. Shares of X are also trading well on the chart. X is well above the Ichimoku Cloud and the future cloud is indicating there could be more upside in store for X. We believe that this unusual option activity and strong chart present us with an opportunity for a covered call trade in X. (more…)