SuperValu (SVU) is up 18 cents to $17.16 and May 17.5 calls are busy for a second day ahead of earnings. Friday, after UBS added SVU to its Short-Term Buy list, a block of 3000 contracts traded at the 35-cent asking price, which opened a new position. Another 4189 trade today (38% Bid / 62% Ask). The top trade is 1500 on the 60-cent bid, which might close out half of the position opened Friday at a 25-cent profit. Beyond that, the next largest trade is a lot of 315 contracts at the 65-cent asking price and it looks like premium buyers are dominating most of the flow, possibly looking for good earnings to lift shares Tuesday morning. Implied volatility is up ab out 5 percent to 36 ahead of the news.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.