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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.
Jared Levy takes a look at Lam Research Corporation (LRCX), Akamai Technologies Inc. (AKAM), and Chesapeake Energy Corporation (CHK).
Lam Research Corp. (LRCX) News: Earnings are due on October 21st after the close, after October options expire. We are currently seeing a call seller on the November 40 calls, which are trading around 5,700 times at about $1.30. Volatility is coming in on that sale. This is on the heels of a Barclay’s upgrade; the firm boosted LRCX to “overweight” from “equal weight” and lifted its target price to $50 from $32.
Akamai Technologies Inc. (AKAM) News: There is takeover chatter in Akamai with Google (GOOG) and the stock is up 42 cents, or about 2%. Earnings are due out October 28 after the market close. We are seeing action in the October 21 calls, as traders are buying these 4,500 times. With open interest at only 1,700, these are likely being bought to open with expiration looming on Friday.
Chesapeake Energy Corp. (CHK) News: Stock is trading slightly lower today – earnings are due on or around October 26th and an analyst meeting is scheduled for tomorrow. The April 35 calls were popular among buyers yesterday and today we are seeing more buying. The October 31 strike has seen 7,600 contracts trade versus open interest of fewer than 4,000 contracts. Perhaps someone is initiating a buy ahead of expiration and the company analyst meeting.
LRCX: $38.00 up $0.0900 or 0.24% volume: 1.34 million shares
Nov09 40.00 Call: volume over 5743, trading last: $1.30 bid: $1.25 ask: $1.35 OI: 824
Straddle: Nov09 40.00 trading $4.6000 price over strike: 11.5000%
Prev. Day Straddle: Nov09 40.00 trading $4.9500 price over strike: 12.3750%
BuyWrite: Mar10 40.00 Calls Yielding 8.68% call: $3.30
Prev. Day BuyWrite: Mar10 40.00 Calls Yielding 8.82% call: $3.35
AKAM: $20.55 up $0.4200 or 2.09% volume: 1.92 million shares
Oct09 21.00 Call: volume over 4577, trading last: $0.30 bid: $0.30 ask: $0.35 OI: 1748
Straddle: Nov09 21.00 trading $2.8500 price over strike: 13.5714%
Prev. Day Straddle: Nov09 20.00 trading $2.6500 price over strike: 13.2500%
BuyWrite: May10 21.00 Calls Yielding 13.50% call: $2.78
Prev. Day BuyWrite: May10 21.00 Calls Yielding 12.29% call: $2.53
CHK: $28.61 down $0.4000 or 1.38% volume: 3.02 million shares
Oct09 31.00 Call : volume over 7659, trading last: $0.15 bid: $0.10 ask: $0.20 OI: 3993
Straddle: Nov09 29.00 trading $4.0250 price over strike: 13.8793%
Prev. Day Straddle: Nov09 29.00 trading $4.0000 price over strike: 13.7931%
BuyWrite: Apr10 29.00 Calls Yielding 13.98% call: $4.00
Prev. Day BuyWrite: Apr10 30.00 Calls Yielding 12.93% call: $3.70
