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
Options Trading Blog
Options Trading Tips and Strategies
Bearish Signals
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
Unusual Option Activity
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
Earnings Trade of the Day CMG
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…)
Stock Swing Trade of the Day KNDI
Kandi Technologies Group, Inc (KNDI) designs, manufactures and commercializes electric vehicles in China. The company’s stock is currently trading around $7.75 in a 52 week range of $3.37-$9.20. The stock has performed very well this year, rallying nearly 95% year to date. Options flow in KNDI has been relatively bullish over the past week leading us to believe there is an opportunity for a long stock swing trade in KNDI. Options markets are extremely bullish on KNDI with a current open interest put/call ratio of 0.31. KNDO is also trading in bullish territory according to the Ichimoku cloud. The stock is sitting right on short term support at $7.63 and this recent pullback in the stock offers an opportunity to get long. Buying stock at current levels with a stop below longer term support at $7.15 presents a good risk to reward set up. (more…)
Covered Call of the Day ALU
Alcatel Lucent SA (ALU) is a French company that offers solutions for voice, video and data services to businesses and governments. The company’s stock is currently trading around $3.75 in a 52 week range of $0.97-$4.02. The stock has been outperforming the market this year, rallying nearly 170% year to date and over 250% in the past 12 months. ALU options order flow suggests that this trend could continue as we have seen massive bullish bets being placed in ALU this week. In yesterday’s trading session we saw a trader sell 30,000 ALU Jan 3.5 puts for $0.35. This is an extremely bullish trade and obligates this put seller to buy 3 million shares of stock below $3.50. This gives us a great signal to get long ALU. We are looking to set up a covered call on ALU. A covered call will allow us to take the same view as the institutional trader while setting up a great return potential. (more…)
EWY Trade
Bearish Signals
A trader bought 3,000 IRWD Nov 7.5 Puts for $0.20 (4.8 times usual volume) with stock at $10.95
A trader bought 1,360 TROW Nov 75 Puts for $1.80 (3 times usual volume) with stock at $75.45
A trader bought 8,200 CA Nov 28 Puts for $0.40 (19.7 times usual volume) with stock at $29.81
A trader bought 2,900 VWO Nov 42 Puts for $0.95 (2.9 times usual volume) with stock at $42.22
A trader bought 3,500 KMX Nov 48 Puts for $1.40 (2.3 times usual volume) with stock at $48.26
Bullish Signals
A trader bought 3,900 NSH Nov 25 Calls for $0.40 (5.2 times usual volume) with stock at $23.15
A trader bought 870 XIN Nov 7.5 Calls for $0.35 (5.9 times usual volume) with stock at $6.90
A trader bought 2,100 NYCB Jan 16 Calls for $0.30 (5.3 times usual volume) with stock at $15.73
A trader sold 15,000 GERN Nov 40 Puts for $0.63 (6.7 times usual volume) with stock at $3.73
Unusual Option Activity
A trader bought 2,100 NYCB Jan 16 Calls for $0.30 (5.3 times usual volume) with stock at $15.73
A trader sold 15,000 GERN Nov 40 Puts for $0.63 (6.7 times usual volume) with stock at $3.73
A trader bought 8,200 CA Nov 28 Puts for $0.40 (19.7 times usual volume) with stock at $29.81
A trader bought 2,900 VWO Nov 42 Puts for $0.95 (2.9 times usual volume) with stock at $42.22
A trader bought 3,500 KMX Nov 48 Puts for $1.40 (2.3 times usual volume) with stock at $48.26