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

A trader bought 2,000 KBE Dec 31 Puts for $0.89 (9.9 times usual volume) with stock at $31.31
A trader bought 2,500 ANW Oct 10 Puts for $0.10 (21 times usual volume) with stock at $10.84
A trader bought 3,495 AMRH Nov 26 Puts for $1.15 (2.3 times usual volume) with stock at $48.81
A trader bought 1,500 CE Nov 50 Puts for $0.75 (2.7 times usual volume) with stock at $54.07

A trader bought 3,495 AMRH Nov 26 Puts for $1.15 (2.3 times usual volume) with stock at $48.81
A trader bought 1,500 CE Nov 50 Puts for $0.75 (2.7 times usual volume) with stock at $54.07
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 2,000 KBE Dec 31 Puts for $0.89 (9.9 times usual volume) with stock at $31.31

Chipotle Mexican Grill, Inc (CMG) operates 1,230 restaurants in the United States focusing on a menu of burritos, tacos, and salads.  The company’s stock is currently trading around $439.50 in a 52 week range of $233.82-$447.65. The stock has been outperforming the market this year, rallying nearly 48% year to date and nearly 52% in the past 12 months. CMG is set to report their most recent quarterly earnings today after the bell. Historically, CMG is a strong performer on earnings day. The stock has rallied 5 of the past 8 quarters with an average move of 9.4%. CMG also looks very strong on a chart. The stock is trading well above the Ichimoku Cloud and is just off of its 52 week highs. With strong technical and strong historical performance we believe CMG sets up well for a long ahead of earnings.  Currently the options market is implying a $26.50, or 6%, move in CMG by tomorrows close.  Using this implied move we calculate an upside target of $466.50 for tomorrow’s close. With this target in mind we can now set up a trade. (more…)