Unusual Options Activity for June 25 2015
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.
Advanced Micro Devices (AMD) – Roughly 14,000 Aug $2.50 calls were purchased for $0.30. AMD is rumored to be looking at separating/ spinning off part of the business, but they have so far denied the Reuters report. AMD Micro Devices is scheduled to report Q2 earnings on July 16th.
Chesapeake Energy (CHK) – A likely rollout from 5,000 Jan 2016 $12 puts ($2.07 credit) into 10,000 Jan 2016 $10 puts ($1.06 debit). Chesapeake (CHK) is down for the 5th consecutive week, but doesn’t have any major support until the 2008 lows near $8.50. Analyst EPS estimates for 2015 and 2016 have worsened in recent months, falling to -$0.16 from +$0.04 for this year. Here’s a long-term chart of CHK.
HCA Holdings (HCA) – The July 17 $85/$92.50 bull call spread was closed out 4,080 times for a $4.30 credit. They put this on yesterday for $1.95 debit. Hospital stocks (including HCA) rallied around 10 A.M. EST today, following the SCOTUS ACA ruling.
NCR Corp (NCR) – The July $31/$33 bull risk reversal was put on 5,000 times for a $0.15 debit. Private Equity firms are reportedly interested in acquiring the company.
Penn Virginia (PVA) – 4,000+ July $5 calls have traded with the majority being bought for $0.25-$0.40, against open interest of 5,372 contracts. There were rumors of BP looking at acquiring Penn Virginia for $8 per share today.
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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.
