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Investors put on protection plays in three names out of the gate
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.
CVS Caremark (NYSE: CVS) is scheduled to announce earnings on Feb. 8 before the market opens, and analysts are calling for earnings of 78 cents a share. The stock climbed 16 cents to $33.08 during the first hour of trading, and we saw heavy options volume hit the tape. The August 30 puts and the August 36 calls traded 10,000 times, as an investor bought the puts and sold the calls in a bearish play.
Freeport McMoRan (NYSE: FCX) received an upgrade from Citigroup this morning to buy from hold, and the stock popped up 43 cents to $72.02. The March 70 puts traded more than 10,000 times out of the gate, and it looks like buying action. We saw volatility and the at-the-money February 70-straddle expand, the stock was up during morning trading, and the price of the puts and calls climbed.
Paychex Inc. (NASDAQ: PAYX) has not announce earnings figures, but the company could report sometime around March 25. The stock climbed 15 cents to $29.47 during morning trading, and we saw the March 27.5 puts cross 4,300 times out of the gate. It looks like buyers putting on a protective play in PAYX. Investors could have traded these options in anticipating of the jobs number due out on Friday.
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