Friday, October 11, 2013

Friday Oct 11 pre-mkt outlook

The /ES looks to open slightly lower at 1684 after finishing yesterday at 1686 after a massive 40 point rip on Thursday. It traded at a low of 1676 and a high of 1688 on the overnight session. The 10yr is trading lower at 2.658 after finishing yesterday at 2.686.

$JPM is out with earnings this AM sending the stock higher at 53.08 after closing at 52.50.

$SWY is out with earnings and is trading up 6.5% at 33.63 after closing at 31.50 yesterday. It traded at an ETH low of 33 and a high of 34.55. The options were looking bearish to me going into the report. Someone sold some 33 calls 10,000x and puts were active.

$MU posted earnings and is trading lower at 17.98 after closing at 18.40. The options were super-bullish going into the report with the stock sitting at 52wk highs. It hit an ETH high of 18.75 and a low of 17.55. A snake in the grass bot 2300 Oct 17 calls for 1.80 at 15:59:44. I'll be happy to see this stock action backfire on that guy.

$GPS is getting knocked 5% after posting disappointing same store sales. It is trading at 37.55 after finishing at 39.60. Using a simple 100 contract filter, their was HEAVY put action yesterday and almost no call action. Apparently this news was no surprise to those traders.

Unusual options from yesterday:

$ACTG saw a 3800x3800 Jan 17.50/15 put spread BTO for .65 with the stock trading at 20.09. The $1b co. currently has negative EPS yet pays a 2.5% dividend. Furthermore, it hasn't had a quarter in the past year with positive retained earnings. It has no debt, but its cash on hand has decreased the past four quarters. This trade makes me wonder if the dividend is about to be suspended. Earnings are in a week and a half.

No comments:

Post a Comment