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Bullishness in Cree, bearishness in Bank of America, Disney sees moderate bearishness ahead of earnings report.
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.
Cree Inc. (NASDAQ: CREE) announced better-than-expected earnings figures last night, and beat estimates by eight cents. The company reported earnings of 38 cents per share, and J.P. Morgan raised its target price to $58 from $51. The Stock climbed more than 17% out of the gate to $63.57, and an investor traded a very bullish play. The February 65 calls and the February 60 puts crossed nearly 4,000 times thanks to an investor who sold the puts and bought the calls.
Bank of America Corp. (NYSE: BAC) announced 60 cents EPS before the market opened this morning, which was seven cents worse than analysts’ estimates. The company’s stock, however, climbed five cents to $16.37 during morning trading. The March 15 puts traded 10,800 times after an investor bought these options potentially looking for downside protection.
Shares of Walt Disney Co. (NYSE: DIS) climbed eight cents to $31.09, and the company is scheduled to announce earnings figures on Feb. 9 after the market closes. The April 36 calls and the April 32 calls traded roughly 3,000 times out of the gate. An investor sold the 32-calls and bought the 36-calls in a bear call spread, collected a credit of 87 cents.
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