Halliburton Company is an oilfield services company. The Company is provider of services and products to the energy industry related to the exploration, development, and production of oil and natural gas. HAL is currently trading around $54.14 in a 52 week range of $47.60 – 74.33. The company’s stock has been outperforming the market this year with shares increasing 6.71% year to date. Shares have traded flat since Monday, with the stock gapping up this morning in anticipation of the earnings report next Monday.

Halliburton is scheduled to report Q3 2014 earnings before the opening bell on Monday, October 20th. The results are scheduled for release at approximately 9:30 a.m. EST, during the conference call starting at 9:00 AM EDT. Analysts expect the company to announce earnings of $1.10 per share and revenue of $8.52 billion for the quarter. 5 research analysts have rated the stock with a Hold rating,23 have given a Buy rating and 1 has assigned a Strong Buy rating to the company’s stock, with an average target price of $77.13.

Looking at the company’s earnings history, HAL has rallied 5 of the last 8 quarters. On average, the stock has moved about 2.9% in the last 8 quarters as a result of earnings releases. This earnings season, market makers are implying about a +-  6.3% move in the stock for the October 24 option chain. HAL has been trading above the Ichimoku Cloud on the daily chart since February, falling under the cloud since early September.

Morgan Stanley (MS) is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals.  MS is currently trading around $33 in a 52 week range of $28.13 – 36.44. The company’s stock has been underperforming the market this year with shares decreasing 5.82% year to date. Shares have decreased nearly 5.82% so far since Monday, but are around $3 below their 52-week high of $36.44.

Morgan Stanley is scheduled to report Q3 2014 earnings before the opening bell tomorrow. The results are scheduled for release at approximately 7:15 a.m. EST, with a conference call to follow at 10:00 AM EDT. The earnings release is the last of the banks this quarter. Analysts have rated the stock with 9 Buys, 9 Holds, and 1 Sell rating. Morgan Stanley’s quarterly profit more than doubled in the second quarter as stronger performances by its investment banking and wealth management businesses more than made up for a fall in revenue from bond trading. The Manhattan-based company is expected to report a profit of 54 cents a share on revenue of $8.17 billion, compared with EPS of 50 cents on revenue of $8.2 billion.

Looking at the company’s earnings history, MS has rallied 5 of the last 8 quarters. On average, the stock has moved about 2.5% in the last 8 quarters as a result of earnings releases. This earnings season, market makers are implying about a +- 3% move in the stock for the October 17 weekly option chain. MS has been trading above the Ichimoku Cloud on the daily chart for the past 5 months, falling under the cloud in the last few days.

The Goldman Sachs Group, Inc. (GS), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. GS is currently trading around $171.90 in a 52 week range of $151.65 – 189.50. The company’s stock has been underperforming the market this year with shares decreasing 2.96% year to date.

GS is expected to report a fiscal third-quarter loss of 9 cents per share, excluding items, on revenue of $21.36 billion, compared with a profit of 20 cents per share on revenue of $21.53 billion a year earlier. Goldman is projected to issue a profit of $3.21 per share on revenue of $7.85 billion, compared with earnings per share of $2.88 on revenue of $6.72 during the same period a year ago. Looking at the company’s earnings history, GS has rallied 3 of the last 8 quarters. On average, the stock has moved about 1.8% in the last 8 quarters. This earnings season, market makers are implying about a +- 3.6% move in the stock for the October 17 weekly option chain. GS is trading above the Ichimoku Cloud on the daily chart, but it is difficult to determine how investors will react to the earnings release. The company will announce earnings tomorrow morning at 9:30 EDT.

Bank of America Corporation (BAC) is a bank holding company, and a financial holding company. BAC is currently trading around $16.53 in a 52 week range of $13.80 – 18.03. The company’s stock has been outperforming the market this year with shares increasing 6.16% year to date. Shares have gained nearly 5.5% so far in 2014 through Monday, but are 9% below their 52-week high of $18.03.

The second-biggest U.S. bank is expected to report a third-quarter loss of 9 cents a share, compared to a profit of 20 cents a share in the same quarter the year before, according to analysts surveyed by FactSet. The loss includes an expected 43 cents charge tied to the bank’s $16 billion mortgage settlement with the government in August. BAC is also expected to report a decline in revenue. The consensus estimate is for revenue of $21.34 billion for the quarter, compared to $21.53 billion a year ago. BAC will report tomorrow before the bell, with a conference call following at 8:30AM EDT.

Looking at the company’s earnings history, BAC has rallied 3 of the last 8 quarters, for the 3 quarters in succession spanning from July 2013 through January 2014. On average, the stock has moved about 2.5% in the last 8 quarters. This earnings season, market makers are implying about a +- 3.6% move in the stock for the October 17 weekly option chain. BAC is trading above the Ichimoku Cloud on the daily chart, but it is difficult to determine how investors will react to the earnings release. Shares have sold off from the beginning of October, where the stock was trading about $.70 off its 52 week high at $17.29.

Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. The Company provides other financial services through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. WFC is currently trading around $50.84 in a 52 week range of $40.30 – 53.80. The company’s stock has been outperforming the market this year with shares increasing 11.88% year to date.

WFC is reporting earnings tomorrow before the be.. The company conference call is scheduled for 10AM EST. Wall Street analysts forecasted that Wells Fargo & Co will be able to deliver $1.02 in earnings per share on $21.2 billion in revenue for the third quarter. The current estimates were higher compared with its $0.99 in earnings per share and $20.7 billion in revenue recorded in the same period last year. Analysts covering the bank’s stock have an average price target of $55 per share. 17 analysts have a Buy rating, 16 have a Hold rating, and 2 have a Sell recommendation for the company shares.

WFC is trading neutral according to the Ichimoku Cloud chart. Shares have been oscillating in a range of about $50-53.80, with the upper end being the stock’s 52 week high. Market makers are implying about a +- 3% move in the stock for the October 17 weekly option chain.

B/E Aerospace, Inc. (BEAV) is a manufacturer of cabin interior products for commercial aircraft and business jets and distributor of aerospace fasteners and consumables. It also designs, engineers and manufactures customized fully integrated thermal and power management solutions for participants in the defense industry, aerospace original equipment manufacturers (OEMs) and the airlines. BEAV is currently trading around $76.66 in a 52 week range of $73.52 – 101.13. The company’s stock has been underperforming the market this year with shares decreasing 12% year to date.

Today, a trader bought 5000 BEAV Nov14 70.0 Puts for $2.15. This order involves laying out $1,075,000 in total premium. BEAV options traded 3.2x the average daily option volume today. The stock is getting hammered lately, with a sharp downward move in the recent past. BEAV is trading below the Ichimoku cloud, indicating further downward momentum for the stock, and this trader is most likely looking to capture this downward move. Given the short duration of these options, the move is expected to happen sooner rather than later.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trade:
Buying the 1000 PCAR Feb15 67.5 Calls for $0.55

Risk: $55 for every 1 lot

Greeks of these Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

PACCAR Inc (PCAR) is engaged in the design, manufacture and customer support of light, medium- and heavy-duty trucks under the Kenworth, Peterbilt and DAF nameplates. The company also provides customized financial services, information technology and truck parts related to its principal business.  PCAR is currently trading around $58.55 in a 52 week range of $53.59 – 68.81. The company’s stock has been underperforming the market this year with shares decreasing .88% year to date.

Today, a trader bought 1000 PCAR Feb15 67.5 Calls for $0.55. This order involves laying out $55,000 in total premium. The stock is looking pretty strong today, in a market that is trading lower. We have seen 2x the average daily volume in PCAR today, and this order represents a larger than average trade size in the name. The stock is trading below the Ichimoku cloud, indicating that this might not be an appropriate setup for beginners. However, with the stock performing strong in the last few days, it seems like this trader is looking to capture a move to the upside.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trade:
Buying the 1000 PCAR Feb15 67.5 Calls for $0.55

Risk: $55 for every 1 lot

Greeks of these Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

Full Disclosure: I am currently in this trade

Arrowhead Research Corporation (ARWR) is a biopharmaceutical company developing targeted RNAi therapeutics. The Company is leveraging its drug delivery technologies to develop drugs based on the RNA interference mechanism that silences disease-causing genes.  ARWR is currently trading around $6.09 in a 52 week range of $5.47 – 27.63. The company’s stock has been underperforming the market this year with shares decreasing 43.22% year to date.

Today, a trader bought 1000 ARWR Oct14 11.0 Puts for $0.55. This order involves this trader laying out $55,000 in total premium. While this is not necessarily an unusually large bet, shares of ARWR fell 40% right after these puts were purchased. The company announced today that data from the ongoing Phase 2a study of ARC-520, its candidate for the treatment of chronic hepatitis B (HBV) infection, was disappointing, leading shares to tumble as investors pulled out of the biotech name. These contracts have increased over 10X in value in just a few hours, reaching as high as $5.40 as the stock continues to sell off in today’s session.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trade:
Buying the ARWR Oct14 11.0 Puts for $0.55

Risk: $55 for every 1 lot

Greeks of these Trade:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long

Penn West Petroleum Ltd. (PWE), formerly Penn West Energy Trust, is a Canadian exploration and production company. Penn West is engaged in the business of acquiring, exploring, developing, exploiting and holding interests in petroleum and natural gas properties and related assets. PWE is currently trading around $5.92 in a 52 week range of $5.86 – 11.75. The company’s stock has been underperforming the market this year with shares decreasing 29.30% year to date, as oil stocks continue to get hammered in the recent past.

Today, OptionHacker flagged over 20,000 PWE Mar15 6.0 Puts for an average of  $0.90. This order involves this trader laying out over $1,800,000 in total premium. Shares are currently trading around the 52 week low, and the underlying is trading underneath the Ichimoku cloud, indicating bearish momentum. As the popular saying goes, “The trend is your friend,” which might indicate that this trader is looking for the stock to keep heading lower, as oil prices have continued to drop lower in the recent past.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trades:
Buying the  PWE Mar15 6.0 Puts for $0.90

Risk: $90 for every 1 lot

Greeks of these Trades:
Delta: Short
Gamma: Long
Theta: Short
Vega: Long

Patterson-UTI Energy, Inc. (PTEN) owns and operates fleets of land-based drilling rigs in the United States. The company provides pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian Basin. PTEN is currently trading around $30.13 in a 52 week range of $21.29 – 38.43. The company’s stock has been outperforming the market this year with shares increasing 18.87% year to date, however, oil stocks have been under pressure lately, since demand has been lower while crude supply has increased.

Today, a trader bought around 4200 PTEN Nov14 34.0 Calls at $0.80. This order involves this trader laying out over $336,000 in total premium. Shares have seen a drastic reversal in the last few days, as stock came off of last months highs. The underlying is trading underneath the Ichimoku cloud, indicating bearish momentum, and this trade might be a hedge against more downside movement for PTEN, as oil markets are seeing increased volatility in the near term.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/1usQnKR or through the only Unique Unusual Options Activity Scanner: http://bit.ly/1sCSaws

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

The Trades:
Buying the PTEN Nov14 34.0 Calls for $0.80

Risk: $80 for every 1 lot

Greeks of these Trades:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long