Tuesday, March 24, 2015

March 24 Tuesday Notes

I won't be around this AM, but wanted to punch this up anyways.

CHK: +2.5%, 314k - Co. cut expenditures
DGLY: +16%, 18k - earnings
MKC: +3%, 2.4k - earnings

SONS: -32%, 648k -  Slashing Q1 revenue outlook
WLL: -21%, 2.5m - Huge secondary
JRJC: -18%, 24k - Earnings
OCN: -6%, 53.5k - Threat of delisting
FCX: -2.9%, 435k - Cut dividend 85%, now yields 1%

WLL is getting smoked on a huge secondary offering. A radical departure from when the stock popped 10% a couple weeks ago after it announced it was seeking "strategic alternatives". I didn't think that was at all bullish for the co. and thought it would be a good short entry. I had the flu and did nothing, the stock faded then ripped hard when some OTM call buyers came in.

Monday Recap:

PFE weekly opex and weekly Apr1 opex 34.5 and 35 calls were getting tagged in large volume (thin premium) off the open. They were all quite profitable going at least 2x on the day

NSC saw 1500 of the weekly 109 puts trade on the open around .90 off the KSU warning. They went ITM and were good for 150%

MON saw large volume in weekly opex 112p on the open, and those were also good for 100% as the stock was reacting to herbicide cancer news.

WUBA saw some unusual call action in the April 50 calls that caused the stock to rip. Good for a day flip, nothing I would want to hold considering it's the most highly shorted name out there.

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