Unusual Options Activity Report
Here’s a quick look at 5 stocks showing unusual options activity with some color around the trading setups and recent news about the companies.
ACE Limited (ACE)- 2,000 Nov $100 puts were sold for $3.30. ACE is acquiring insurance competitor, Chubb, for $28.3B in a cash and stock deal. Earnings are due out on July 21st.
Cypress Semiconductor (CY)- 9,000+ Sep $12 calls were bought for $0.70-$0.80. Cypress Semiconductor earnings are due out on July 16th (shares have moved higher after earnings on 5 out of the last 6 reports). Yesterday, Barclays initiated the stock with an overweight rating and a $15 price target.
Swift Transportation (SWFT)- The Aug $22 straddle was put on 5,000 times for a $2.95 debit. Earnings are due out on July 23rd. He/she is betting on SWFT moving above $24.95 or below $19.05 by August options expiration (bet on volatility ahead of earnings).
Zayo Group (ZAYO)- 8,000 Dec $30 calls were purchased for $0.91-$0.92 and 4,000 Dec $25 puts were sold for $1.83. Similar activity occurred yesterday as well. The bandwidth infrastructure provider across the U.S. and Europe went public in October of last year, up $6 since then. Zayo is projected to become profitable next year as they currently trade at a price to sales ratio of 4.84x and a price to book ratio of 5.39x.
ARM Holdings (ARMH)- 1,700 Oct $44 puts were bought for $1.40-$1.45. Also, there was sizable buying in the July and Aug puts (put activity was 17x the average daily volume). Shares of ARMH are nearing a test of the $48 support level. Several tech stocks have saw big put buying in recent days. ARM Holdings earnings are due out on July 22nd.
Thanks for reading.
Read more from Mitchell on his options blog.
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.
