NuStar GP Holdings, LLC (NSH) is a company engaged in the storage, transportation and marketing of petroleum products in the U.S. The company’s stock is currently trading around $23.25 in a 52 week range of $19.34-$34.17. The stock has shown weakness this year, selling off over 16% year to date and over 24% in the past 12 months.  Despite the weakness the stock has shown this year traders have stepped in today to take large bullish bets on NSH. Earlier in today’s trading session a trader bought 3,800 NSH Nov 25 Calls for $0.40. This order represents volume over 5 times the average daily option volume in NSH. This trade indicates that this trader believes there is upside potential in NSH through November. This also gives this trade exposure to NSH’s next earnings report on November 12^th.  NSH is historically a strong performer on earnings having rallied 5 of the past 7 quarters. This trade will also add to the already very bullish current open interest put/call ratio of 0.18. We believe that all of these factors are lining up well for a long swing trade in NSH stock. (more…)

GNC Holdings Inc (GNC) is a specialty retailer of health products in the U.S. and 54 countries around the world. The company’s stock is currently trading around $54.95 in a 52 week range of $30.92-$55.85. GNC has had a huge run this year, rallying over 66% year to date. After seeing some very bullish order flow in GNC yesterday we see continuation of that trade into today’s session. Yesterday a trader bought 2,000 GNC Nov 55 calls for $2.75. Earlier in today’s session we saw traders adding to this position, buying nearly 1,500 more GNC Nov 55 calls for $1.60. The chart is still supporting a long in GNC and continued buying of these calls confirms the rationale for a long. Today we will look at an options strategy that gets a trader long GNC, short premium, and short implied volatility. As always this trade also provides a great risk vs. reward set up. (more…)

Geron Corporation (GERN) is a biopharmaceutical company developing clinical stage treatments for myelofibrosis and similar disorders. Shares of GERN are rallying over 24% in today’s trading session on heavy option volume.  Today’s move adds to strength we have seen in GERN this year as the stock is now up over 172% year to date. Options action would suggest even more upside in GERN as large block put sellers are coming into the market today. Earlier in today’s trading session a trader sold 15,000 GERN Nov 4 puts for $0.70. This is an extremely bullish order and adds to the already bullish options sentiment in GERN. We believe that this options activity confirms the move higher in GERN and signals as an opportunity for a covered call in GERN. (more…)

eBay Inc (EBAY) is a tech company that provides services and tools for individuals, small businesses, and merchants engage in commerce online.  The company’s stock is currently trading around $53.70 in a 52 week range of $45.66-$58.04. The stock has underperformed the broader market this year, rallying only 5.9% year to date. EBAY is set to report their most recent quarterly earnings today after the market close. EBAY has performed relatively well on earnings day over the past 8 quarters. The stock has rallied 5 times on the release of the last 8 earnings reports with an average move of 6.2%. The options market is currently implying a move of around 5% by this Friday’s expiration.  EBAY is currently trading above the Ichimoku Cloud meaning it is in bullish territory technically. With the strong historical earnings performance in EBAY and the relatively bullish chart we believe that EBAY sets up well for a long into earnings. (more…)