McDermott (MDR) loses 6 cents to $11.96 and options order flow in the Houston, TX machinery company seems bullish today, with 4,000 calls and 265 puts traded in the name so far. The top trade is a multi-exchange sweep of 641 Mar $13 calls this morning at the 50-cent asking price. More recent trades include a sweep of 300 Mar 13 calls for 60 cents when the market was 50 to 60 cents. 3,118 contracts now traded. Aug 16 calls on MDR are seeing interest as well. Implied volatility is flat at 46.5 and the heightened call activity might be a play on earnings, due late-Feb or early-March. The last two reports have triggered very volatile reactions in the share price. MDR tumbled 25 percent on 10/27 when results were last reported. Three months before that, the stock plunged 26.8 percent on 8/4 when the EPS number came up short of Street estimates.
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.