EMCORE Corporation (EMKR) offers semiconductor products for fiber optics, solar power, and broadband industries. The stock is currently trading around $5.55 in a 52 week range of $3.32-$6.75. The stock has been strong this year, outperforming the broader market, rallying over 29% year to date. . On Wednesday there was heavy trading in the EMKR Dec 5 calls. Open interest in that line has now swollen to over 8,600 contracts indicating there is a good chance EMKR continues higher. With stock trading in bullish technical territory as well we are looking for a covered call set up in EMKR. Using a covered call will allow a trader to profit if the stock moves higher, slightly lower or not at all. (more…)

A trader bought 51,000 CCE Jan 45 Calls for $0.50 (131 times usual volume) with stock at $41.84
A trader bought 2,600 DVA Nov 60 Calls for $1.15 (2.6 times usual volume) with stock at $58.43
A trader bought 2,500 WIFI Nov 7.5 Calls for $0.30 (149 times usual volume) with stock at $7.08
A trader bought 1,200 CPE Apr 5 Calls for $2.25 (2.7 times usual volume) with stock at $7.03
A trader bought 12,000 KKR Jan 2015 27 Calls for $0.85 (6.3 times usual volume) with stock at $22.19

A trader bought 10,600 HAL Oct 25^th 51 Puts for $0.47 (2.6 times usual volume) with stock at $52.38
A trader bought 1,000 RCII Nov 35 Puts for $1.10 (16.1 times usual volume) with stock at $36.00
A trader bought 1,500 FRX Nov 40 Puts for $0.30 (4.6 times usual volume) with stock at $44.76
A trader bought 5,000 OUTR Apr 55 Puts for $4.30 and sold 4,000 Apr 75 Calls for $2.60 with stock at $64.01

A trader bought 10,600 HAL Oct 25^th 51 Puts for $0.47 (2.6 times usual volume) with stock at $52.38
A trader bought 1,000 RCII Nov 35 Puts for $1.10 (16.1 times usual volume) with stock at $36.00
A trader bought 1,200 CPE Apr 5 Calls for $2.25 (2.7 times usual volume) with stock at $7.03
A trader bought 12,000 KKR Jan 2015 27 Calls for $0.85 (6.3 times usual volume) with stock at $22.19
A trader bought 51,000 CCE Jan 45 Calls for $0.50 (131 times usual volume) with stock at $41.84

EMCORE Corporation (EMKR) offers semiconductor products for fiber optics, solar power, and broadband industries. The stock is trending higher today up $0.40 (7.54%) on the day on the back of bullish order flows earlier this week. On Wednesday there was heavy trading in the EMKR Dec 5 calls. Open interest in that line has now swollen to over 8,600 contracts indicating there is a good chance EMKR continues higher.  The stock is also trading in bullish territory according to the Ichimoku Cloud. The cloud is upward sloping and trending higher, also indicating further upside in EMKR. We believe that EMKR sets up well for a long term trade. (more…)

McDonald’s Corporation (MCD) operates and franchises restaurants in 119 countries around the world with nearly 35,000 locations worldwide.  The company’s stock is currently trading around $95.00 in a 52 week range of $83.31-$103.70. MCD has performed well this year, but has lagged the broader market, rallying 7.56% year to date.  MCD is set to report their most recent quarterly earnings on Monday morning before the bell. The stock has been weak on earnings day having sold off 3 of the past 4 quarters. Over the past 8 quarters the stock has sold off 5 times with an average move of 2.4%. MCD is looking relatively weak on a chart. Shares are trading below the Ichimoku Cloud and the futures cloud is indicating there could be more downside in store for MCD. The options market is currently implying a move of $1.90 (1.99%) higher or lower by next Friday’s expiration.  With historically weak performance in MCD and the bearish chart set up we believe that MCD is a good candidate for a short into earnings. Using the implied move we can calculate a downside target of $93.60 and set up a trade at that target. (more…)

Las Vegas Sands Corp (LVS) is a developer of casino and gaming resort properties in the U.S. and Asia. The company’s stock is currently trading around $69.60 in a 52 week range of $40.28-$70.62. The stock has rallied over 50% year to date and over 55% in the past 12 months. Today’s options activity in LVS suggests that the stock might have more room to run. Earlier in today’s session a trader bought 30,000 LVS Nov 72.5 calls for $1.44 indicating this trader believes LVS will continue to head higher through November expiration. This block of calls also represents volume 3.2 times the average option volume in LVS. This trade will also add to bullish sentiment in LVS with a current open interest put/call ratio of 0.74. LVS also reported better than expected earnings today after the close sending the stock higher. We believe that these conditions are lining up well for a long term trade in LVS. (more…)

A trader bought 1,000 EYCT Jan 10 Calls for $2.90 (4.5 times usual volume) with stock at $11.51
A trader bought 3,000 CHRW Jan 2015 85 Calls for $0.60 (3.5 times usual volume) with stock at $58.74
A trader bought 4,600 PWR Nov 30 Calls for $0.35 (12.2 times usual volume) with stock at $28.10
A trader bought 9,400 TMO Oct 95 Calls for $0.20 (13.3 times usual volume) with stock at $93.25
A trader bought 1,500 NGD Nov 5 Calls for $0.90 (3.7 times usual volume) with stock at $5.77