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Sidewinder
A fast-paced review of equities and ETFs seeing notable price action and unusual option-trading activity with Chief Investment Strategist Jud Pyle.
Options activity accumulates in three names with earnings reports due out throughout the next couple months.
AA shares are up 89 cents, or 7.5%, to $12.82 now that the company’s quarterly earnings are out of the way as of two weeks ago. The December 13 calls have hit the tape 7,500 times for around 82 cents, and the January 2010 14 calls have traded 15,600 times for around 73 cents. AA did not report any news today, but call action suggests bullishness in the market.
AA: $12.82 up $0.8899 or 7.46% volume: 14.91 million shares
Dec09 13.00 Calls: volume over 7496, trading last: $0.82 bid: $0.79 ask: $0.83 OI: 997
Jan10 14.00 Calls: volume over 15597, trading last: $0.73 bid: $0.71 ask: $0.75 OI: 18094
Straddle: Nov09 13.00 trading $1.2800 price over strike: 9.8462%
Prev. Day Straddle: Nov09 12.00 trading $1.1650 price over strike: 9.7083%
BuyWrite: Apr10 13.00 Calls Yielding 12.60% call: $1.62
Prev. Day BuyWrite: Apr10 12.00 Calls Yielding 12.21% call: $1.57
PLL shares are up $1, or 3%, to $33.21 during the first hour of trading. The company’s next earnings release is on Dec. 9 after the market closes. The company is approaching its 52-week high or $34.54, and the company is still a possible take-over candidate for information technology and multi-industry players. Credit Suisse said a possible deal to take over PLL could be in the worlds because the company did not renew its poison pill in the latest proxy filing. The November 35 calls have traded 5,300 times so far today for around 95 cents. The Nov. 35 straddle is trading at $3.58, or 10.2% or strike, compared to yesterday’s November 35 straddle that closed at $3.33.
PLL: $33.21 up $1.0000 or 3.10% volume: 0.46 million shares
Nov09 35.00 Calls: volume over 5275, trading last: $0.95 bid: $0.90 ask: $1.00 OI: 819
Straddle: Nov09 35.00 trading $3.5750 price over strike: 10.2143%
Prev. Day Straddle: Nov09 30.00 trading $3.3250 price over strike: 11.0833%
BuyWrite: Jun10 35.00 Calls Yielding 8.43% call: $2.80
Prev. Day BuyWrite: Mar10 35.00 Calls Yielding 5.12% call: $1.70
RDC is due to announce earnings on Nov. 3 before the market opens, and it looks like investors are trading puts to protect against downside. The stock is currently up $1.09, or 4.6%, to $24.67 this morning. The January 2010 25 puts have traded 9,300 times for around $2.55. The November 25 straddle is trading at $2.68, or 10.7% of strike, and the November 22.5 straddle closed yesterday at $2.80.
RDC: $24.67 up $1.0900 or 4.62% volume: 0.83 million shares
Jan10 25.00 Puts: volume over 9286, trading last: $2.55 bid: $2.40 ask: $2.55 OI: 2731
Straddle: Nov09 25.00 trading $2.6750 price over strike: 10.7000%
Prev. Day Straddle: Nov09 22.50 trading $2.8000 price over strike: 12.4444%
BuyWrite: Apr10 25.00 Calls Yielding 12.97% call: $3.20
Prev. Day BuyWrite: Apr10 25.00 Calls Yielding 10.44% call: $2.58
