Big Moves Higher in Sigma Designs, Inc. (SIGM) on Bullish UOA

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Sigma Designs, Inc. (SIGM) is a California based semiconductor and chip manufacturer specializing in integrated circuits used for television and home monitoring systems. At the time of this post (2:00PM CST), SIGM is currently trading higher by 15.44% on the day, up to 7.40 after continuing to rip higher off the market open. The stock is currently pressing its 52 week highs which were made on the session, and it appears a large bullish bet detected by OptionHacker earlier this morning both anticipated and expects this recent strength to continue.

At 10:21AM CST OptionHacker detected and flagged a large 885 contract buy-to-open transaction in the Feb ’15 7.5 strike calls that went off at the ask for $0.30. While the open interest in this strike was already at 584, we can still ascertain that this was an opening transaction as the block-buy lifted the offer at the time. Since OptionHacker flagged this unusual activity, the stock has continued to rally higher on the day, up approximately $0.50 in the underlying, leading to nearly a 100% gain already in the options that were bought. We will continue to keep an eye on this position going into the February monthly options expiration, but for the time being it appears bullish sentiment continues to drive this semiconductor name higher.

Trade: A trader bought 885 of the SIGM Feb 7.5 Calls for $0.30
Risk: $30 per 1 lot
Reward: Unlimited
Breakeven: $7.80

These calls have already traded as high as $0.60 on the day meaning a trader could have locked in massive profits in SIGM.

Someone is Betting Against the Utilities Select Sector SPDR ETF (XLU)

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Earlier this morning at approximately 8:49AM CST, we detected and flagged some unusually large bearish activity in the Utilities Select Sector SPDR ETF (XLU). The most notable trade to hit the tape at this time was a large buy of over 5,300 Jun 44.0 strike puts which were purchased at the ask for $1.04. This block-buy came on the heels of several other sizable trades that had already amassed thousands of contracts bought up at the ask just prior. It appears a significant bearish position is being established in the energy utility ETF, betting on about a four point move lower by the June 19th 2015 monthly options expiration.

As of the time of this post, over 12,200 total contracts have traded already in the Jun 44.0 puts, and the XLU has now traded over 2.5x its average daily options volume.

Trade: I bought 200 of the XLU Jun 44 Puts for $1.05
Risk: $105 per 1 lot
Breakeven: $42.95

Bearish Put Buying Hitting the Tape in Freeport-McMoRan Inc. (FCX)

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Freeport-McMoRan Inc. (FCX) is a natural resources company based in the U.S. with assets around the world. The company’s stock is currently trading around $23.58 in a 52 week range of $20.94-$39.32. The stock has been massively under-performing the market this year with shares falling over 37% year to date. Traders are expecting this weakness in FCX to continue through the beginning of the New Year as we have seen some very bearish options activity in FCX during today’s session.

Earlier today a trader bought 3,223 FCX Feb 20 puts for $0.43. Nearly 12,000 contracts have now traded on that line and FCX is lower from where it was when the puts were bought. This is a very bearish trade and has a breakeven below the stocks 52 week low. FCX is also trading below the Ichimoku Cloud meaning that it is still in technically bearish territory. With a weak chart and large blocks of bearish positions coming across the tape I think that FCX sets up well for a short here.

Trade: I bought the FCX Feb 20 puts for $0.42
Risk: $42 per 1 lot
Breakeven: $19.58

Nice Winner Hits OptionHacker in Boyd Gaming Corporation (BYD)

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Boyd Gaming Corporation (BYD) is gaming, resort and casino operator based in Las Vegas. At the time of this post (10:10AM CST) BYD is currently trading up 2.55% on the day to 12.46. The stock is currently trading well within the upper potion of its 52 week range of 8.78-14.58 after finding some buyer support earlier this month around the 11.00 level on the daily chart.

Just moments ago this morning at 10:01AM CST, OptionHacker detected and flagged some hugely bullish unusual options activity as over 9,800 of the Feb ’15 13.0 strike calls traded on the ask-side of the spread for $0.58. This large opening transaction occurred against an open interest of just 42, so we can be confident that this was an opening buy on these calls looking for BYD to continue its upside push into the second month of the coming New Year. At the time of this post, over 13,000 total of the Feb ’15 13.0 calls have traded, mostly on the ask, as buyers position for an anticipated move back up towards the 52 week highs by the February 20th, 2015 monthly options expiration. I did not take entry in this trade, but will be watching to see if this huge bullish bet in BYD pays off.

Trader bought the BYD Feb 13 calls for $0.50
Risk: $50 per 1 lot
Reward: Unlimited
Breakeven: $13.50

These puts have already traded as high as $0.75 making this a very profitable trade.

Big Bullish Bets in Best Buy Co. Inc (BBY) Hitting the Tape Today

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Best Buy Co., Inc (BBY) is an international tech retailer based in Richfield, MN that operates just under 2,000 brick and mortar locations across the US, Canada, Mexico and China. At the time of this post (12:55PM CST), BBY is currently trading down 1.34%, to 38.62 on the day. The stock continues to push the 40.00 level resistance on the daily chart, but has thus far been unable to break higher with any conviction after breaking lower through this level and eventually gapping down hard in mid-January of 2014.

Earlier this morning, we detected and flagged some unusually bullish options activity in the BBY Feb ’15 40.0 calls as a large buyer stepped in and bought a huge lot of over 8,500 contracts against an open interest of just 264. This purchase went off above the ask for $2.09, and in conjunction with the open interest statistics, we can be confident that this was an opening long transaction. It would appear that a confident buyer anticipates Best Buy will be able to finally break above key 40.00 resistance going into the second month of the New Year, and the initial block purchase of over 8,500 contracts represents a cash outlay of approximately $1,794,265 before commissions. As of this post over 10,800 of the Feb ’15 40.0 calls have traded on the day.

Trade: A trader bought 8,585 BBY Feb 40 Calls for $2.10
Risk: $210 per 1 lot
Reward: Unlimited
Breakeven: $42.10

Aggressive Call Buyers in BGC Partners Inc. (BGCP)

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BGC Partners Inc. (BGCP) is a New York City based investment and brokerage services provider that also maintains a presence in the wholesale real-estate financing sector. At the time of this post (2:00PM CST), BGCP is currently trading higher by 2.64% on the day, up to 9.30. The stock printed fresh 52 week highs earlier in the session, trading as high as 9.57 before pulling back slightly into the late afternoon.

Earlier this afternoon, at approximately 12:06PM CST, OptionHacker detected and flagged some unusually bullish options activity crossing the tape just before BGCP exploded to new highs for the year. The first large block buy detected by OptionHacker was a 2,200 contract lot of the Aug ’15 10.0 calls bought up for $0.61, which was over the ask price at the time. This purchase went off against an open interest of just 8 contracts, so we can be very sure this was a buyer stepping in and looking for continued upside in BGCP heading into next summer. OptionHacker detected and flagged two more large block buys in the same calls, the next for 1,500 contracts purchased for $0.80 at 12:17PM CST and another 900 contract lot bought for $0.83 at 12:45PM CST, both of which paid over the ask. With a total cash outlay of over $320,000 pre-commission, the large buyers of these calls have given themselves approximately eight months for BGCP to continue its bullish trend higher. While I like the technical setup and the bullish options flow, I am not willing to chase up the current ask price on these contracts, and will remain only an observer of this trade for now.

Trade: Trader bought the BGCP Aug 10 Calls for as high as $0.84
Risk: $84 per 1 lot
Reward: Unlimited
Breakeven: $10.84

A Huge Winner in Avis Budget Group, Inc. (CAR) On OptionHacker!

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Avis Budget Group, Inc. (CAR) is a New Jersey based car and truck rental provider for both business and retail consumers. As of the close of today’s trading session, CAR finished higher by 9.95%, closing at 64.48 on the day. The stock is now just under five points off of its 52 week highs after today’s impressive rally.

Earlier this morning, just before 11:40AM CST, OptionHacker detected and flagged an unusually large, bullish transaction labeled as a buy-to-open in the Feb ’15 72.5 calls that would prove to be an extremely profitable trade for the day. This opening transaction took place when a buyer lifted the offer for $0.55 on a large order of 655 contracts that went off against an open interest of just 38. This initial order was followed up by other large buys in the same strike, and before 12:00PM CST over 2,500 of the Feb ’15 72.5 calls had traded, paving the way for a 7.8x usual daily options volume in CAR. The initial call buy flagged by OptionHacker took place as the stock was beginning to push through 63.00 resistance on the daily chart, and the rally continued as the stock pushed higher by just under 10% on the day. The Feb ’15 72.5 calls that were flagged by OptionHacker traded as high as 1.05 on the session, making this an extremely profitable trade if taken from the 0.55 entry as highlighted earlier this afternoon.

Trade: A trader bought 655 CAR Feb 72.5 Calls for $0.55
Risk: $55 per 1 lot
Reward: Unlimited
Breakeven: $73.05

Will Walgreen Co. (WAG) Continue its Bearish Earnings Trend?

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Walgreen Co. (WAG) is a Deerfield, IL based operator of over 8,200 nationwide brick-and mortar Walgreen’s drug stores that provide retail goods, pharmacy and health-and-wellness services. At the time of this post, (12:00PM CST) WAG is currently trading at 73.74, up 0.70% on the day. The stock is currently well within the upper portion of its 52 week trading range of 55.27-76.39, and is set to report earnings before the open tomorrow, 12/23/2014.

Over the last eight quarters of earnings data available, WAG has traded mostly bearishly, moving lower five out of eight sessions immediately following the EPS release. The average historical move during this same time period was 2.9%. Currently the options market is pricing in an implied move of approximately 2.64% or $1.95 in the underlying stock by this Friday’s 12/26/2014 weekly expiration, which would be well within the expected historical range. WAG is currently trading under 75.00 resistance on the daily chart after this level held firmly twice in early and mid June and rejected the uptrend again last week. Perhaps most worrisome is that the stock was unable to break through and trade above this level despite massive broad-market strength last week that saw most individual stocks ripping higher. As WAG has demonstrated an inability to trade higher despite favorable market conditions, I am currently leaning bearish this name and will look to establish a short position going into earnings tomorrow.

Trade: Buying the WAG Dec 26th Weekly 72.5-71.5 Put Spreads for $0.30
Risk: $30 per 1 lot
Reward: $70 per 1 lot
Breakeven: $72.20

Trader Getting Long Nike, Inc. (NKE) on the Pullback

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Nike, Inc. (NKE) is an athletic footwear and athletic apparel retailer based out of Beaverton, OR. At the time of this post (12:30PM CST), the stock is currently trading at 94.42, down 2.74% following a disappointing future orders number released as a part of last night’s quarterly earnings report. The stock traded as low as 92.83 earlier this morning, but has since rallied back after finding support around 93.00 on the intraday chart.

This morning at around 9:54AM CST, OptionHacker detected some unusual options activity crossing the tape as a relatively large buyer stepped in and bought the dip in NKE just as it was beginning its bounce. A trader purchased 658 of the NKE Jan 30 ’15 99.0 strike calls, a weekly contract that will be expiring the last Friday of the coming month. This large order crossed the tape near the ask, and went off against a minuscule open interest of just 5 contracts, which confirms that this was an opening transaction. NKE has pulled back off its 52 week highs of 99.76 that printed 11/28/2014, and after gapping down significantly following an overall earnings beat, it looks like this buyer decided to pounce on the weakness and establish a long position looking for a continued bounce back toward the highs. These options have about a month to expiry, which should provide a comfortable window of time in case this trader should decide to adjust their position. I will be looking to get long NKE into the New Year in order to capitalize on this potential continuation bounce.

Bullish on OptionHacker in UnitedHealth Group Incorporated (UNH) Weekly Options

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UnitedHealth Group Incorporated (UNH) is a diversified healthcare company that operates a number of healthcare related businesses. The company’s stock is currently trading around $101.35 in a 52 week range of $69.57-$101.42. The stock has been performing very well this year with shares rallying by nearly 35% year to date. Earlier in today’s session we saw some unusual options activity that suggests traders believe UNH will continue to be strong in the short term.

Earlier today a trader bought 1,479 UNH Dec 26th Weekly 102 Calls for $0.67. This trade hit OptionHacker and shortly after it did the stock rallied to new intraday highs. This high also represented a new 52 week high for UNH. The calls have already traded as high as $0.80 on the day meaning this is already a profitable trade. I bought some for $0.70 and have taken my first profit target at $0.80.

Trade: Buying the UNH Dec 26th Weekly 102 Calls for $0.70
Risk: $70 per 1 lot
Reward: Unlimited
Breakeven: $102.70