E. I. du Pont de Nemours and Company (DD), commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Éleuthère Irénée du Pont. DD is currently trading around $68.88 in a 52 week range of $56.46 – 69.75. The company’s stock has been underperforming the market this year with shares up 5.96% year to date. Options traders seem to think that this trend will continue as order flow in DD has been decidedly bullish during the last few trading sessions. On Monday, a trader bought 2000 DD Fri 9/26 65.5 Calls (Wkly) @ $0.52. This is a bullish order and involved this trader laying out $100,000 in total premium. The stock rallied today on news that Trian Fund, a significant stakeholder in DuPont, launched a campaign to break the chemical giant into two separate businesses.

The Trade:
Buying the DD Fri 9/26 65.5 Calls (Wkly) @ $0.52 debit
Risk: $52 per 1 lot

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

(Full disclosure: I have no position on in this stock)

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long:http://bit.ly/11f0L9u.

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.

AVANIR Pharmaceuticals, Inc. (AVANIR) is a pharmaceutical company focused on developing and commercializing therapeutic products for the treatment of central nervous system disorders. AVNR is currently trading around $10.96 in a 52 week range of $2.62 – 11.38. The company’s stock has been outperforming the market this year with shares increasing 225.6% year to date.

On Friday, OptionHacker detected a large block of calls being bought in the Sept and Oct options for AVNR. Based on this unusual option activity, our trader’s established positions in both strikes at around $.50 and $1.50 per contract, respectively. News broke early monday morning that AVNR announced positive results from its phase II clinical trial of AVP-923, a promising treatment for agitation in patients with Alzheimer’s disease. The stock gapped up dramatically higher at the open, and reaching 52-week highs of $11.38 on above average volume. Our traders exited their positions at around $2.45 and $3.40, providing over a 500% combined return on the move. This is just another example of the early detection power of OptionHacker.

For more information, please visit www.OptionHacker.com

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long:http://bit.ly/11f0L9u.

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.

Gapping lower at the open, yesterday’s session saw the major markets back to near unchanged territory on a mixed day.  Higher index lows Thursday versus Wednesday were a positive sign to end the trading week.

The broad market S&P 500 SPX added nearly 2 points to 1997 ½ for a .1% gain.

As the epic, year long channel battle continues from $14 to $12, volatility slid little more than .5% with the VIX closing at $12.80 yesterday, after peaking at $13.67 .  VIX options traded 557,000 contracts in line with norms, nearly 70% on the call side.  The September $16 calls and October $18 calls were most active on more than 40,000 lots at each strike.

With Crude Oil marking new 16 month lows, the XLE Energy ETF pushed to its lowest level since May, before rebounding to close positive at $94.98.  XLE options saw a roll down and out, selling the October $95 puts to buy the November $92 puts.  The $92 strike is 3% below, with the XLE index up more than 7% in 2014.

Tech on the other hand lost 2 points, as the NDX Nasdaq 100 index couldn’t quite get back to closing on its highs at just under 4093.

Blackberry blazed up 5% to $10.78 with an acquisition announcement yesterday, as front month September expiration had buy to open activity in the $10 and $10.50 strikes.  59,000 BBRY options traded, with 81% on the call side.

Dow 30 stocks saw a 50/50 split with the index losing 20 points, down to 17,049, with a .1% drop.    For the second day in a row, blue chips dipped to under 17,000 during the session, but managed to meander back above 17,000 by the day’s end.

Coca Cola backed off .5% to just under $42, but the stock is holding strong, with a 6% upside performance in the last month alone.  January $44 calls were in play, mostly as new long buys around $.45 for more than 6000 contracts.

Stocks to watch this morning include:

Twitter is looking to raise up to 1.3 billion dollars in a bond offering.  Borrowing now, when interest rates are low, may be a sign they have some acquisition in mind.  TWTR is .25% at $52.75, as the total cash hoard would be 3.5 Billion including their spare change on hand.

Tesla giga factory in Nevada was approved by state legislators, signing off on tax incentives for car maker.  TSLA sits unchanged at $280 ½, with the record up above $290.

Darden Restaurants is back above $50 (+5%) as it reviews a plan to separate its food business from its real estate holdings. Sources say it could double DRI value to $100.

Overseas markets have The Nikei in Japan up .25%, leading the day once again.  Europe is mixed with the FTSE in London up .2% and the DAX in Germany -.2%.

Stock index futures prices are steady with the Emini S&P up 2 points.  The Dow futures are 10 points higher here this morning with an hour to go before the open of the cash stock market.

Lululemon Athletica inc. (LULU) is a designer and retailer of technical athletic apparel operating primarily in North America and Australia. LULU is currently trading around $43.72 in a 52 week range of $36.26 – 77.75. The company’s stock has been underperforming the market this year with shares declining 25.96% year to date.

For the quarter, LULU delivered a 13% increase in net revenue to $390.7 million as total comparable sales, which includes retail locations as well as online sales, were flat on a constant currency basis. Physical same-store sales dipped 5%, while comparable direct to consumer revenue rose 30% year-over-year. Net income for the quarter totaled $48.7 million, or an adjusted $0.33 per share, down from $56.5 million, or $0.39 per adjusted share in the year-ago period, while gross margin dipped 350 basis points to 50.5%. By comparison, Wall Street’s consensus expectation had called for $376.8 million in revenue and just $0.29 in EPS.

Lululemon also adjusted its full-year sales and earnings guidance. The company is now forecasting revenue of between $1.78 billion and $1.8 billion based on total comparable sales in the low-single-digits, and anticipates adjusted EPS will be in the $1.72 to $1.77 range. Both figures are in-line with current Wall Street forecasts.

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long:http://bit.ly/11f0L9u.

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.

Facebook, Inc. (FB), is engaged in building products to create utility for users, developers, and advertisers. People use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about.  FB is currently trading around $77.85 in a 52 week range of $42.43 – 78.17. The company’s stock has been outperforming the market this year with shares increasing 42.43% year to date.

Today we got a great signal of FB breaking the Ichimoku Cloud to the Upside, on the first 5-minute bar of the trading day. This is our ideal set-up, as the stock breaks the cloud to the upside and closes on the highs.  We would have a stop under the low of the day: $76.40. A less aggressive trader might set a stop in the Ichimoku Cloud, at around the $76.80 level. Our head trader took profits at the the targets listed below. These types of trades are short-term day trades, and appropriate stop loss and target prices are critical to successfully managing the position. Facebook soared higher today, and the stock is trading near its 52-week high towards the end of today’s session.

The Trade: Buying FB at $77.13

STOP Loss: $76.40

Target #1: 50% of Stop Loss

Target #2: 100% of Stop Loss

Target #3: 150 of Stop Loss

Target #4: 200% of Stop Loss

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long:http://bit.ly/11f0L9u.

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.

Apple (AAPL) announced two new products at their “Special Event” on Tuesday.  As anticipated, the company unveiled an upgraded and redesigned iphone (iPhone 6 & iPhone 6 Plus), as well as a new product deemed the Apple Watch.  Apple also announced a new NFC based payment system integrated into the iPhone 6.  Naturally, the payment system is named “Apple Pay”.

Going into the 1PM Est event AAPL shares were trading at $100.41 with investors expecting a 4% move in the stock by Friday.  The first hour of the event consisted of presentations introducing the iPhone 6, iPhone 6 Plus, and Apple Pay.

Investors seemed to be happy with the iPhone 6′s and the Apple Pay service as they pushed the price of AAPL up to a high of 103.08 at 1:58PM Est.

Around 2PM, Apple began demonstrating the Apple Watch.   The feature packed watch looks classy and intuitive for consumers, but investors aren’t buying it.  As Apple began demonstrating the watch, the price of AAPL proceeded to fall.  By the end of the event, shares of AAPL were trading below $99 and ultimately closed the day at $98.

We love seeing Apple continue to push the smart phone market forward with yet another cutting edge iPhone release. The design is beautiful and with two separate models being offered Apple can continue to satisfy the general consumer market while also appeasing the advanced pro user market.  Some worry that the 5.5″ iPhone Plus will cut into iPad sales, but it is important to note that Apple’s gross margin is about 15-20% higher on iPhones than iPads.

We also love seeing Apple cut into the e-commerce payment industry which reportedly includes $12 billion in US transactions a day.  Apple Pay represents massive revenue potential and adds yet another diversified income stream to their day to day operations.

Investors are overlooking the good news from this event and putting too much weight on the Apple Watch product release.  Yes, we are also upset that we cannot get the trendy watch until “early 2015″ but we won’t let that cloud our judgment on the stock.

Apple Pay and the iPhone 6 are the shining gems of this event.  Revenue growth does not appear to be slowing down anytime soon for Apple.  The phone looks like another stunning addition to the iPhone line and these phones will be selling fast.  Watch for Apple Pay to lead to huge revenues for AAPL while also taking swings at e-payment companies like eBay/Paypal (ebay) and Square.

Dunkin’ Brands Group, Inc. (DBGI) is a franchisor of quick service restaurants (QSRs) serving hot and cold coffee and baked goods, as well as hard serve ice cream. The Company franchises restaurants under its Dunkin’ Donuts and Baskin-Robbins brands.  DNKN is currently trading around $46.56 in a 52 week range of $40.50 – 53.05. The company’s stock has been underperforming the market this year with shares declining 3.41% year to date. Options traders seem to think that this trend will reverse as order flow in DNKN has been decidedly bullish during today’s trading session. Today a trader bought over 5600 DNKN Dec 50 105 calls at $.95. This is an extremely bullish order and involves this trader laying out over $550,000 in total premium. The stock is trading flat towards the end of today’s session.

The Trade:
Buying the DNKN Dec 50 Calls for $1.05
Risk: $95 per 1 lot
Targets: $1.20 and up every $.15, 5 Targets

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

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/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long:http://bit.ly/11f0L9u.

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.

Crude oil opened down 1.7% on Monday as investors were rattled by more negative news from the Ukrainian front.  Although an apparent ceasefire was reached, fighting near two flashpoint cities in East Ukraine broke out less than 48 hours after the agreement.   The fighting has forced Western nations to threaten additional sanctions against Moscow.   Investors will continue to keep a close eye on the conflict as Russia is the second largest oil producer in the world.

Oil has dropped over 13% from its yearly high reached in late June of this year.  Disappointing Chinese and European data  stopped the recovery attempt Oil investors made last week and lower prices appear to be coming.  Poor Chinese factory output numbers showed that China, the number two consumer of oil in the world, may be entering a cyclical decline thus lightening demand.

Oil tends to follow a pattern of peaking in the middle of summer followed by a weak 2 – 4 months before continuing up.  While this drop may be cyclical in nature, economic and political concerns continue to keep investors on their toes.

We will continue to watch for a bottom in $OIL as it tries to hold near its 52 week low at 21.30.

DISCLAIMER:

eBay Inc., is a global technology company. The Company enables commerce through three reportable segments: Marketplaces, Payments, and GSI. The Company by providing online platforms, tools and services to help individuals and small, medium and merchants around the globe engage in online and mobile commerce and payments, the Company can facilitate transactions.  EBAY is currently trading around $53.99 in a 52-week range of $48.06 – 59.70. The company’s stock has been underperforming the market this year with shares increasing -1.54% year-to-date. Today, a trader bought over 4353 EBAY Fri 9/5 53 Calls (Wkly) at $0.58. With the short duration of these contracts, the trade was most likely set up as a day trade. EBAY is trading lower in today’s session, but these calls are up over 60% as the stock trades off the lows of the day.

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 EBAY Fri 9/5 53 Calls (Wkly) at $0.58

Risk: $58 per 1 lot

Greeks of this Trade:

Delta: Long
Gamma: Long
Theta: Short
Vega: Long