Unusual Options Activity for June 3rd 2015
A quick look at 5 stocks showing unusual options activity with some color around their trading setups as well as recent news and happenings.
1. Â AcelRx Pharmaceuticals (ACRX) – 2,000 July $2.50 calls were purchased for $1.40-$1.50. Call activity was 9x the average daily volume. AcelRx has Phase 3 data due out in Q4.
2.  FedEx (FDX) – More than 4,000 June 5 weekly $180 calls have traded with the majority being bought for $0.75-$1.25. Interesting as FedEx stock heads into two notable resistance levels (179 and 183 – its highs).
FedEx (FDX) Stock Chart
3. Â iShares China Large-Cap ETF (FXI) – The Nov $41.50/$52.50/$57 bull call spread risk reversal was put on 10,000 times for a $0.35 debit. He/she is betting that the pullback in Chinese stocks has run its course and will make new highs by November (possibly up to $57). If FXI falls below $41.50 he/she faces significantly more losses than the $0.35 debit the trade was put on for (requires margin).
4.  Heron Therapeutics (HRTX) – A rollout from 1,250 Sep $17.50 calls ($9.60 credit) into 2,500 Sep $27.50/$35 bull call spreads ($2.60 debit). Bulls continue to bet on more upside in the small cap biotech even after doubling in a week (here’s yesterday notable action in HRTX). Brean Capital has had a buy rating and a $40 price target on HRTX for quite some time now and they reiterated their stance on May 29th.
5. Â Maxim Integrated Products (MXIM) – 1,000 June $34 calls were bought for $1.05-$1.10, against open interest of 1,831 contracts. MXIM has been rumored as an M&A target and the likelihood increased following the AVGO/BRCM and INTC/ALTR deals in the chip space.
Thanks for reading.
Read more from Mitchell on his options blog.
Twitter: Â @MitchellKWarren
No position in any of the securities mentioned at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
