The Home Depot, Inc. (HD) is a home improvement retailer. The Company operates The Home Depot stores, which are full-service, warehouse-style stores. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. HD is currently trading around $91.32 in a 52 week range of $73.74 – 93.75. The company’s stock has been outperforming the market this year with shares increasing 10.84% year to date. Today, a trader bought 13057 HD Oct14 91.0 Puts for $1.06. This order involves this trader laying out over $1.3 million in total premium.

Markets have been weak this past week, yet HD has held strong, surviving weak home sales numbers and a credit card data breach earlier this month. Also, Home Depot is trading above the Ichimoku Cloud on the daily chart, indicating that price momentum is still bullish. The stock is also trading about $2 off its 52 week high. This trader might be looking to hedge a stock position with this massive bet, in case the market continues to sell of and head lower.

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 HD Oct14 91.0 Puts $1.06

Risk: $106 for every 1 lot

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

Occidental Petroleum Corporation (OXY) conducts its operations through various subsidiaries and affiliates. The Company operates in three segments: oil and gas segment; chemical segment, and midstream, marketing and other segment. OXY is currently trading around $95.83 in a 52 week range of $85.90 – 105.64. The company’s stock has been underperforming the market this year with shares increasing .86% year to date. Today, a trader bought 2,967 OXY Oct14 100 Calls at $0.70, and, 2,964 OXY Oct14 100 Calls at $0.50. This order involves this trader laying out over $350,000 in total premium. OXY traded 2.2x the average daily option volume today, and these calls are fairly far out-of-the money and are front-month contracts with very little time value left, which might indicate this trader is most likely very bullish on the name. Oil stocks have been selling off in the recent past, yet crude oil rallied today from its deepest sell off since 2012, helped by a combination of encouraging Chinese factory data and sliding crude inventories in the United States.

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 2,964 OXY Oct14 100 Calls for $0.50

Buying the 2,967 OXY Oct14 100 Calls for $0.70

Risk: $50 for every 1 lot, $70 for every 1 lot

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

Delta Air Lines, Inc. (DAL) provides scheduled air transportation for passengers and cargo throughout the United States and around the world. The Company’s route network gives it a presence in every domestic and international market.  DAL is currently trading around $36.18 in a 52 week range of $22.71 – 42.66. The company’s stock has been outperforming the market this year with shares increasing 31.92% year to date. Today, a trader bought 20000 DAL Dec14 40.0 Calls for $0.90. This order involves this trader laying out $1.8 million in total premium.

While this huge bet looks bullish on the surface, it is possible that a trader is hedging a short stock position in DAL. The stock traded 7.2 million shares today, and this order controls 2 million shares. While this is a very large order, it is not necessarily ‘unusual’. DAL crossed below the 200 day moving average of $35.50, changing hands as low as $35.18 per share. Also, if we look at the Ichimoku chart using the 5-minute bar, we see that DAL is trading below the Cloud, indicating downward momentum building in the stock. Therefore, this order could indicate bearish sentiment on the stock, which is confirmed by the Ichimoku Cloud, or could indicate that a trader is rolling a bullish position out to December.

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 DAL Dec14 40.0 Calls for $0.90
Risk: $90 for every 1 lot

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

GoPro, Inc., GPRO, develops hardware and software solutions to alleviate consumer pain points associated with capturing, managing, sharing and enjoying engaging content. The Company’s mountable and wearable cameras and accessories, which the Company refer to as capture devices, enable professional-quality capture and exceptional versatility. GPRO is currently trading around $88.82, hitting an all-time high today as investors gear up excitement in light of rumors that the company is building a more affordable, budget camera.

Leaked information indicates that the new camera, which unlike their flagship model,  will have noWiFi or Bluetooth connectivity, no 4K video mode, and no touch display. The device will reportedly have a one-touch QuikCapture button, high quality 1080p 30fps and 720p 60fps video, 5-megapixel camera with 5-frame-per-second burst photo mode, and a microSD card slot for upto 32GB storage. GoPro’s affordable camera will come with a non-removable, rugged waterproof case, 2.5 hours of battery life, and a built-in microphone.

Price point for the new device has yet to be determined, yet investors are viewing the new information favorably for the wearable device company. GoPro is currently trading at a lofty forward price to earnings multiple of 93x, and forward price to sales multiple of 7.5x. Meanwhile, short interest in the stock has increased rapidly, as the possibility of $100 share price might be in the not-too-distant future.

Shares continue to trade higher in today’s session, maintaining momentum above the Ichimoku cloud and trading at higher-than-average volume.

Avon Products, Inc. (AVP) is a manufacturer and marketer of beauty and related products. The Company’s product categories are Beauty and Fashion & Home. Beauty consists of color, fragrance, skincare and personal care.  AVP is currently trading around $12.62 in a 52 week range of $12.65 – 22.86. The company’s stock has been underperforming the market this year with shares decreasing 26.48% year to date. Today, a trader bought 6880 AVP Nov14 12.0 Puts for $0.45. This order involves this trader laying out over $300,000 in total premium. AVP is trading at its 52 week low, and this position more than likely indicates that this trader believes the stock is headed even lower. As the common adage goes, ‘The trend is your friend’, and the stock is trading below the Cloud, meaning this trader is banking on more downside for AVP.

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 6880 AVP Nov14 12.0 Puts for $0.45
Risk: $45 for every 1 lot

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

6880 AVP Nov14 12.0 Puts $0.45

T-Mobile US, Inc. provides mobile communications services under the T-Mobile, MetroPCS, and GoSmart brands in the United States, Puerto Rico, and the U.S. Virgin Islands. It offers postpaid and prepaid wireless voice, messaging and data services, and wholesale wireless services. TMUS is currently trading around $28.50 in a 52 week range of $24.90 – 35.50. The company’s stock has been underperforming the market this year with shares decreasing 15.21% year to date. Today, a trader sold 16700 TMUS Oct14 27.0 Puts at $0.28. This order involves this trader collecting just over $460,000 in total premium credit. This position could be a hedge on short stock, or bullish speculation on the upside. TMUS trades an average 1.4 million shares day, and this order controls 1.6 million shares. This indicates a very strong support level at $26.72, since any close lower than the 27 strike will force this trader to buy stock. TMUS is trading below the Ichimoku Cloud, indicating that price momentum could be pushing the stock lower, however, put selling is one of the strongest bullish indicators of Unusual Option Activity.

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:
Selling the TMUS Oct14 27.0 Puts at $0.28
Risk: Stock going to $0

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

Jabil Circuit, Inc. (JBL) is a provider of worldwide electronic manufacturing services and solutions. Jabil provides electronics design, production and product management services to companies in the aerospace, automotive, computing, consumer, defense, industrial, instrumentation, medical, networking, peripherals, solar, storage and telecommunications industries.  JBL is currently trading around $20.78 in a 52-week range of $15.30 – 24.13. The company’s stock has been outperforming the market this year with shares increasing 19.14% year to date.

The electronics manufacturer is scheduled to announce earnings today after the bell. In July, Jabil Circuit announced its Board of Directors had authorized the repurchase of up to $100 million worth of shares of the company’s common stock. CFO Alexander Forbes was quoted during the last conference call saying, “Our third fiscal quarter performed largely as planned and is highlighted by a strong balance sheet performance, driven by significant cash flow from operations and a total cash position of $1.3 billion. We believe the strength of our balance sheet positions us well as we consider strategic investments in key growth areas in fiscal 2015.” While the expectations of management might be positive, the historical data tells a slightly different story.

Historical data shows that for the past 8 earnings reports, JBL has moved an average of 7.4%, with 5 out of 8 last reports moving the stock to the downside. The near-term at-the-money straddle is implying a 8.3% move in the stock. By comparing historical data to current implied data, we can infer that implied volatility is 1% higher than the historical mean, suggesting more tension and increased interest in JBL options. Accounting for historical vs. implied data, we are neutral-to-bearish on this name.

DISCLAIMER:

Yahoo! Inc. (Yahoo!) is a global technology company. Through the Company’s technology and insights, Yahoo! delivers digital content and experiences, across devices and globally. The Company provides online properties and services (Yahoo! Properties) to users, as well as a range of marketing services designed to reach and connect with those users on Yahoo! and through a distribution network of third-party entities (Affiliates). YHOO is currently trading around $38.88 in a 52-week range of $30.02 – 44.01. The company’s stock has been underperforming the market this year with shares declining 3.58% year to date.

YHOO shares have sold off recently in light of the Alibaba IPO. On Monday, a whopping 106 million Yahoo shares changed hands, almost triple the daily average. YHOO owns 22% of BABA, and investors are using YHOO to hedge against a possible downward movement in BABA. BABA has yet to become optionable, and traders are either selling stock short, or buying puts on YHOO to hedge their long BABA positions. We believe that this downward move in YHOO is temporary, and have gotten bullish on the stock

The Trade: Buying the YHOO Nov 40-43-46 Call Fly for $.42 debit

Risk: $42 per lot

Reward: $2.58

Greeks Of The Trade

Delta: Long

Gamma: Long

Theta: Short

Vega: Long

BBBY reports earnings after the bell today, and investors are eager to see what the home furnishing’s giant has in store.

Bed Bath & Beyond Inc. is a chain of retail stores, operating under the names Bed Bath & Beyond, Christmas Tree Shops, Harmon and Harmon Face Values, buybuy BABY and World Market or Cost Plus World Market. The Company sells a range of domestics merchandise and home furnishings.  BBBY is currently trading around $62.76 in a 52-week range of $54.96 – 80.82. The company’s stock has been underperforming the market this year with shares declining 21.66% year to date.

Morgan Stanley’s home-furnishings survey conducted in August was released Monday, and found almost 80% of shoppers at Bed, Bath & Beyond in the past three months listed the company’s 20% off an-item coupon as what drove them to the store, much higher than other factors including selection or quality of merchandise. Analysts surveyed by FactSet estimated the company earned $1.14 a share, down from $1.16 a share. The retailer in June cut its profit outlook for the second quarter to $1.08 to $1.16 a share. Increased usage of coupons and online spending are expected to be hurt profit margins.

Historical data shows that for the past 8 earnings reports, BBBY has moved an average of 6.1%, with 6 out of 8 last reports moving the stock to the downside. The near-term at-the-money straddle is implying a 6% move in the stock, which is right in line with past performance.

DISCLAIMER:

Shares of Dr. Pepper Snapple Group (NYSE: DPS), the Plano, Texas-based soft drink company, has steadily carved out new all highs in 2014. Shares are already up over 37% in 2014, having traded in a 52-week range of $43.18-$65.43.

At least one institution seems to think the original “King of Beverages” is headed higher. Last Friday at 2:05 pm EST, a trader came in to buy 5,755 DPS Nov 70 Calls for $0.65 in what was labeled an opening position.

In terms of total risk premium, this trade isn’t exceptional – only about $374,075, not a huge number for unusual options activity. However, should these calls expire in-the-money, the trade would control about 575,000 shares, or around a third of the average daily volume traded in DPS. The market was also $0.55-$0.65, with the trader paying the ask-price being indicative of strong level of conviction.

Within minutes of coming across our scanner, these Nov DPS 70 Calls traded $0.75-$0.80, and eventually moved to $1.00-$1.05 before the end of Friday’s session.

Monday’s session saw DPS shares hit a new all-time high of $65.43.