Unusual Options Activity: JPM, SNDK, CONN, NAV, And More

It’s time to review several stocks that had unusual options activity over the last week. Although traders can never be sure why these trades take place (and who’s making them), I believe it’s important to be aware of notable options activity as an indicator for directional bias.

Here’s a weekly recap of 10 stocks that had unusual options activity and what, if any, significance these trades may have.

Unusual Options Activity: 10 Stocks With Notable Trades

Monday

WhiteWave Foods (WWAV) – There was a rollout from 6,000 July $50 calls ($0.65-$0.70 credit) into the Oct $45 calls (1,700+ traded) and Oct $50 calls (4,100+ traded). The uptrend in WWAV is still intact, but traders wanting more time for their calls. They’ve been talked about as a takeover target.

Tuesday

Anacor Pharmaceuticals (ANAC) – There was another rollout from 1,000 July $80 calls ($7.80 credit) into 1,000 Aug $90/$120 bull call spreads ($11.60 debit). This same trade occured on July 6th in ANAC shares too. The maker of Kerydin (anti-fungal toenail treatment) had its price target raised to $80 from $70 at Jefferies on July 1st. They are upbeat about upcoming Phase 3 results out within the next month on AN2728.

Exelon (EXC)- 4,000+ Aug $34 calls were bought for $0.34-$0.35. Two weeks ago, Exelon was selected to provide electricity to the city of Cleveland, OH. The 3.8% dividend yielding utility company will report earnings at the end of this month.

Navistar International (NAV) – There was a rollout from 25,800 Oct $27 puts ($6.70-$6.90 credit) into 33,300 Oct $22 puts ($2.80-$3.10 debit). The long-term downtrend in Navistar Internation (NAV) remains intact. Short interest in the heavy duty manufacturer is over 18% as of the latest update.

Sunedison (SUNE) – There was a rollout from 10,000 July 17 $32 calls ($0.30 credit) into 10,000 July 17 $30 calls ($0.80 debit). SUNE has been trying to sustain a move the 50-day EMA for the past week. On June 26th, Northland Securities gave SUNE an outperform rating and a $38 price target.

Wednesday

Lumber Liquidators (LL) – There was a rollout from 5,000+ July 17 $19 puts ($0.30 credit) into 5,000+ Aug 21 $19 puts ($1.80 debit). The stock is down 83% from the 2013 highs, but shares have not been able to sustain any bullish momentum for more than a couple of weeks. Lumber Liquidators has lost several top executives at the company amid fraud allegations that were brought up by 60 Minutes.

Raptor Pharmaceuticals (RPTP) – 3,500 Aug $14 calls were bought for $1.20. They have Phase 2 data results due in Q3 or Q4.

Thursday

Conn’s (CONN) – The 1×2 Aug $45/$50 ratio call spread was put on 10,000 times for a $0.45 debit. This trade may have been done against a long stock position (1M shares) in a way to add additional exposure for $450K vs $40M+ for another 1M shares. Conn’s is still in recovery mode (company and stock). The company reported June sales were up 11.9% and named a new CFO on July 9th.

JPMorgan Chase (JPM) – There was a rollout from 41,891 July 17 $70 calls ($0.08 credit) into 21,000 July 17 $67.50 calls ($0.57 debit). He/she is bullish on JPMorgan Chase (JPM), but is willing to add more premium in order to get a higher delta. JPMorgan Chase earnings are due on July 14th. On July 6th, Credit Suisse reiterated their outperform rating on JPM and a $75 price target.

SanDisk (SNDK) – 6,922 July 24 weekly $50 puts were bought for $0.89. SanDisk (SNDK) earnings are due out on July 22nd (shares have dropped after earnings on 4 consecutive reports). Samsung and AMD’s weak Q2 outlook are concerning for SNDK.

Thanks for reading and have a great week!

Twitter:  @MitchellKWarren

No position in any of the securities mentioned at the time of publication.  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.