MBIA (MBI) financial services company that is currently trading at $12.23. MBIA is trading in in a fifty two week range of $11.96-12.78. The stock has been slightly under performing the market with shares rallying 2.57%. Options traders seem to think the stock will stay above $12. We saw 1800 June 12 puts being sold for .33 cents. By selling puts, this trader is obligated to buy the stock if it is at or below the $12 strike before expatriation. If the stock stays at $12 or above, the trader will keep the $59,400 in premium. As long as the stock stays above $11.65 by June expiration, this trader will make money off the premium sold. A trader believes that (MBI) is setting up to stay above $12 strike before June.

Yahoo (YHOO) internet search giant and major shareholder of Alibaba, is currently trading at $34.53. Yahoo (YHOO) is currently trading in a $23.82-41.72 fifty two week range. Yahoo has been under performing the market as shares have fallen 14.74% year to date. This year Yahoo has generated poor earnings performance from its core internet business. However Yahoo’s 24% stake in the up and coming Alibaba has given a boost to yahoo’s quarterly reports and stock. With Alibaba’s upcoming IPO, Options traders have a bullish outlook on Yahoo. Yesterday we saw a trader buy 19,105 YHOO Friday 5/30 weekly calls at the $34.00 strike for $1.37 premium. Yahoo is currently trading below the Ichimoku Cloud; however with the bullish order flow in Yahoo and the hype surrounding the Alibaba IPO, I believe Yahoo is setting up for a long position.

Block Trade: A trader bought 19105 (YHOO) 5/30 Weekly 34 calls.
Risk: $137 per one lot
Reward: Unlimited
Breakeven: $35.37

Activision, Inc. (ATVI) is a publisher of entertainment products for a number of different devices and platforms. The company’s stock is currently trading around $20.60 in a 52 week range of $13.27-$21.50. The stock has been doing very well this year with shares rallying more than 15% year to date. Options traders seem to think this trend will continue as block orders hitting the tape during today’s session have been decidedly bullish. Earlier today a trader bought 2,850 ATVI Jun 21 Calls for $0.47. This is a very bullish trade and with shares of ATVI above the Ichimoku Cloud it seems unlikely this is a hedge against a short stock position. With strong order flow and a bullish chart set up it appears ATVI could be setting up well for a long position.

Block Trade: A trader bought 2,850 ATVI Jun 21 Calls for $0.47
Risk: $47 per 1 lot
Reward: Unlimited
Breakeven: $21.47

Tesaro (TSRO) is another biotech that is on fire this morning! Tesaro is up 16.83% this morning 5/12/14. Tesaro has been trading in a 52 week range of $22.15-51.95. Tesaro is currently trading below the ichimoku cloud at $27.67 up $3.66 today. Despite a weak chart, Tesaro is making headlines today with positive phase three Rolapitant results. Rolapitant is a new drug used to treat the side effects from chemotherapy. As I write this article (TSRO) continues to rip higher as another bull market biotech darling.

Twitter (TWTR) social media giant has bottomed near 52 week lows after it’s first two earnings misses. The stock is currently trading in a 52 week range of $29.51-74.53. Twitter looks bearish on the Ichimoku Cloud as it trades way below the cloud at $33.09. After last weeks IPO lockup period ended share plummeted more than 18%. The charts for (TWTR) are weak and fifty two week lows usually go lower. With that said, we could be near the bottom in Twitter, as the new quarter begins and all the negative news has passed. Twitter is up about a dollar today as the stock tries to climb up from the bottom.

Vector Group Ltd (VGR) is a tobacco company. The company’s stock is currently trading around $21.50 in a 52 week range of $14.61-$21.85. The stock has been doing relatively well this year with shares of VGR rallying more than 31% year to date. Options traders seem to think this trend will continue as orders hitting the tape in today’s trading session have been decidedly bullish. Earlier this morning a trader bought 1,000 VGR Aug 22.5 calls for $0.55. This may not seem lie a large order but this block is the largest to trade on a day where VGR is seeing option volume nearly 15 times its average daily volume. With stock trading above the cloud and just off of its 52 week highs it seems likely that this trader is getting long VGR rather than hedging a short stock position.  With a strong technical case and bullish order flow VGR could be setting up well for a long here.

My Trade: I bought the VGR Aun 22.5 Calls for $0.55
Risk: $55 per 1 lot
Reward: Unlimited
Breakeven: $23.05

The Interpublic Group of Companies, Inc (IPG) is a global advertising and marketing company. Shares of IPG are currently trading around $17.85 in a 52 week range of $13.67-$18.00. The stock has been relatively flat this year with shares gaining only 0.9% year to date. Options traders seem to be expecting a move higher however, as orders hitting the tape today are very bullish. Earlier this morning a trader bought 6,000 IPG Jul 20 Calls for $0.20. This trade is nearly 5 times the average daily volume in IPG. With shares of IPG trading above the Ichimoku Cloud this order flow could be signaling for a long opportunity in IPG.

Block Trade: Trader bought the IPG Jul 20 Calls for $0.20
Risk: $20 per 1 lot
Reward: Unlimited
Breakeven: $20.20

The Kroger Co. (KR) is a food retail and distribution company in the United States. The company’s stock is currently trading around $46.73 in a 52 week range of $32.77-$46.80. The stock has been massively outperforming the market this year with shares of KR rallying more than 18% year to date. Order flow in the options market during today’s trading session has been decidedly bullish indicating that traders think this trend will continue. Earlier this morning a trader bought 7,610 KR May 47 Calls for $0.30. This is a very bullish trade requiring the trader to lay out nearly $230,000 in capital. This was labeled as an opening position and the short time to expiration suggests this trader has a higher level of conviction in KR. With stock trading well above the Ichimoku Cloud KR could be setting up well for a long here.

Block Trade: Trader bought 7,610 KR May 47 Calls for $0.30
Risk: $30 per 1 lot
Reward: Untitled
Breakeven: $47.30