It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.
Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.
Unusual Options Activity: 10 Stocks With Notable Trades
Monday
WhiteWave Foods (WWAV) – There was a rollout from 6,000 July $50 calls ($0.65-$0.70 credit) into the Oct $45 calls (1,700+ traded) and Oct $50 calls (4,100+ traded). The uptrend in WWAV is still intact, but traders wanting more time for their calls. They’ve been talked about as a takeover target.
Tuesday
Anacor Pharmaceuticals (ANAC) – There was another rollout from 1,000 July $80 calls ($7.80 credit) into 1,000 Aug $90/$120 bull call spreads ($11.60 debit). This same trade occured on July 6th in ANAC shares too. The maker of Kerydin (anti-fungal toenail treatment) had its price target raised to $80 from $70 at Jefferies on July 1st. They are upbeat about upcoming Phase 3 results out within the next month on AN2728.
Exelon (EXC)- 4,000+ Aug $34 calls were bought for $0.34-$0.35. Two weeks ago, Exelon was selected to provide electricity to the city of Cleveland, OH. The 3.8% dividend yielding utility company will report earnings at the end of this month.
Navistar International (NAV) – There was a rollout from 25,800 Oct $27 puts ($6.70-$6.90 credit) into 33,300 Oct $22 puts ($2.80-$3.10 debit). The long-term downtrend in Navistar Internation (NAV) remains intact. Short interest in the heavy duty manufacturer is over 18% as of the latest update.
Sunedison (SUNE) – There was a rollout from 10,000 July 17 $32 calls ($0.30 credit) into 10,000 July 17 $30 calls ($0.80 debit). SUNE has been trying to sustain a move the 50-day EMA for the past week. On June 26th, Northland Securities gave SUNE an outperform rating and a $38 price target.
Wednesday
Lumber Liquidators (LL) – There was a rollout from 5,000+ July 17 $19 puts ($0.30 credit) into 5,000+ Aug 21 $19 puts ($1.80 debit). The stock is down 83% from the 2013 highs, but shares have not been able to sustain any bullish momentum for more than a couple of weeks. Lumber Liquidators has lost several top executives at the company amid fraud allegations that were brought up by 60 Minutes.
Raptor Pharmaceuticals (RPTP) – 3,500 Aug $14 calls were bought for $1.20. They have Phase 2 data results due in Q3 or Q4.
Thursday
Conn’s (CONN) – The 1×2 Aug $45/$50 ratio call spread was put on 10,000 times for a $0.45 debit. This trade may have been done against a long stock position (1M shares) in a way to add additional exposure for $450K vs $40M+ for another 1M shares. Conn’s is still in recovery mode (company and stock). The company reported June sales were up 11.9% and named a new CFO on July 9th.
JPMorgan Chase (JPM) – There was a rollout from 41,891 July 17 $70 calls ($0.08 credit) into 21,000 July 17 $67.50 calls ($0.57 debit). He/she is bullish on JPMorgan Chase (JPM), but is willing to add more premium in order to get a higher delta. JPMorgan Chase earnings are due on July 14th. On July 6th, Credit Suisse reiterated their outperform rating on JPM and a $75 price target.
SanDisk (SNDK) – 6,922 July 24 weekly $50 puts were bought for $0.89. SanDisk (SNDK) earnings are due out on July 22nd (shares have dropped after earnings on 4 consecutive reports). Samsung and AMD’s weak Q2 outlook are concerning for SNDK.
Thanks for reading and have a great week!
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.
