Legg Mason (LM) $30.14 +1.65%
Legg Mason (LM) options volume was 5X average Friday due to 1 large bearish risk reversal for 5,500 contracts in August. The trader sold the August $35 calls and bought the August $25 puts for a net debit of $0.30, shares at $30, betting on at least a 16% fall in shares in coming months. [...]
Waters Corp. (WAT) $65.07 +0.0%
Waters Corp (WAT) was mentioned intraday Wednesday, with unusual call action and it continued throughout the day with shares closing near highs, up 1.6% while IV spiked 13% higher. More than 6,600 calls traded, which is 35X average, and comes after the recent takeover of Millipore has many thinking Waters could be next as a [...]
Norfolk Southern (NSC) $53.74 +0.0%
Norfolk Southern (NSC) is often considered the best managed rail company, but the stock is not at 52 week highs like it’s counterparts Union Pacific (UNP) and Kansas City Southern (KSU). That could change with a break of $55, which would target a move to $60. Option traders were decisively bullish Tuesday, with 4,425 calls [...]
Quest Diagnostics (DGX) $55.44 -.43%
Quest Diagnostics (DGX) had a large straddle sell at 3:15pm Tuesday, as 2,000 March 55 straddles were sold for $3.25, believing shares are trapped between $51.75 and $58.25 through March. That puts shares between a gap as resistance and a double bottom support level, so a fairly high probability trade, although the value is not [...]
Genzyme (GENZ) $56.67 +1.81%
Genzyme (GENZ) trader takes a bullish bet as shares trade for $55 Tuesday, and the trade was done twice, 2,500 contracts each. In this trade, the strategist sold April $47.50 puts at 65 cents and bought the April $60 calls at $1.05 in bullish risk reversals. Shares were hanging around the 200 day EMA and [...]
Foster Wheeler (FWLT) $32.68 -.30%
Foster Wheeler (FWLT) traded around 1,200 March $35/$30 bullish risk reversals Wednesday, costless trades (paying $1.15 on the calls and collecting $1.15 on puts.) Shares are re-testing a bullish channel breakout at $32, and also bounced off the 20 day EMA. There is substantial upside potential in the heavy construction Company’s shares that trade 12.7X [...]
Humana (HUM) $47.03 +0.0%
Humana (HUM) February $48 calls traded more than 6,000 contracts Wednesday, as bullish action continued in the healthcare names. Shares were at $45.56 when the trades hit, and closed at $47. HUM is in a sharp trend higher and have some resistance at $50 and then a major gap from 53.65 to 62.37. Humana is [...]
Merck (MRK) $37.72 +0.0%
Merck (MRK) with a large trade Thursday, as 10,000 of the April $40 calls are sold and 10,000 of the January 2011 $40 calls are bought for a $1.04 calendar call spread. There has also been the sale of around 10,000 February $40 calls today, so the move higher may be slow, but looking for [...]
Lubrizol (LZ) +$75.25 – 1.76%
Lubrizol (LZ) call volume rose to 5X average Wednesday, with offer side buyers on wide spreads in both the February $75 and $80 calls, the uppermost strike. Lubrizol is set to report earnings on February 4th, and unusual call buying has been seen before big pops in the stock a couple times this year. The [...]
Peabody Energy (BTU) $50.40 +1.84%
22,000 calls traded on Peabody Energy (BTU) yesterday, more than 3X average daily volume, and the action in February with earnings set for 1/27. The February $50 and $55 OTM calls saw big block buys, with 8,000+ of the more than 10% OTM $55 calls being bought. Shares are trading at $49.40 with implied volatility [...]
