Archive for the ‘Options’ Category

Huge Volume Spike in LED Stocks: It Looks Real This Time (CREE, VECO, AIXG)

On Friday there was explosive volume in the LED stocks on news that China is going to be phasing out larger incandescent bulbs over the next year and smaller bulbs over the next three years.  The volume was three-times and four-times normal in many of these stocks.  What is different about the news is that [...]

Weekend Review of Unusual Options Trading (ACOR, CAAS, GME, HK, S, TEVA, VVUS)

Each Saturday we usually try to do a review of some unusual options trading at the end of the week.  With Friday being expiration date, that can always mask some of the larger trades.  We tracked unusual options trading in shares of Acorda Therapeutics, Inc. (NASDAQ: ACOR), China Automotive Systems Inc. (NASDAQ: CAAS), GameStop Corp. [...]

The Alcoa Buyout Rumors (AA)

Alcoa, Inc. (NYSE: AA) is up today on buyout rumors, but there are some concerns that these may be overblown. Rio Tinto is the supposed bidder here… Shares have already doubled normal trading volume and then some with over 52 million shares traded as of 1:10 PM EST versus an average volume of about 25 [...]

Weekend Review: Unusual Options Trading Review (AMR, CSTR, SLV, SFI, MSFT, SPPI)

It is Saturday and we decided to go dig through the Friday options trading looking for unusual trading in the crazy world of stock options.  Some of these are probably just par for the course but two stood out as really unusual.  We outlined the options trading and gave color in the following: AMR Corporation [...]

Mother of all Volume Spikes for Molycorp (MCP)

Molycorp, Inc. (NYSE: MCP) is going to have the mother of all volume spikes this Friday.  The company has priced a $180 million offering of 5.50% mandatory convertible preferred stock being sold by the company AND it priced 13,500,000 shares of common stock at a price per share of $50.00 which are being sold by [...]

7 Unusual Stock & Option Volume Standouts on Friday (ANN, CIEN, CSTR, DLB, JDSU, LVS, NG)

Friday is always an interesting day when it comes to volume spikes.  Buyout rumors, contract award rumors, drug events, management changes and more all tend to get speculated on each Friday.  We are looking at some key equity volume spikes as well as the options volume spikes that stand out as unusual. AnnTaylor Stores Corp. [...]

Increased Put Options Review Before Earnings (CRM, VMW, JNPR, NFLX, AMZN)

An article in Barron’s this weekend against Salesforce.com (NYSE: CRM) and the risks associated with chasing its 100-times forward earnings multiple is adding some weight on the shares of several key high-flying tech shares ahead of this week’s earnings. Virtualization leader VMware Inc. (NYSE: VMW) is reporting earnings after the close on Monday and Thomson [...]

Option Expiration’s Largest Open Interest Contracts (GE, MSFT, PFE, INTC, YHOO, CSCO, WFC, SPY, QQQQ, FXI, XLK, XHB)

Today marks the January 2011 options expiration date. There are many active options expiring, and the reason these are so large is because many are LEAPS rather than just normal monthly options.  The old rule of thumb is that options tend to drift toward their closest and most active options contract strike prices.  We identified [...]

Intel Pre-Earnings Options Analysis (INTC)

Intel Corporation (NASDAQ: INTC) is due with earnings Thursday after the close and we could not help but notice two key issues around the options trading in Intel.  First was that the volatility is much lower and the options market is not expecting a huge price move from earnings.  Second would be that the bias [...]

Gold Options Showing Major Price Swings Coming (GLD)

The five straight days of lower prices in the SPDR Gold Shares (NYSE: GLD) comes with an interesting twist.  This week we saw elevated options trading when you consider that only one single day of the last week was above its average daily volume.  A fight appears to be more than just starting to brew. [...]