5 Names Seeing Bullish Flow
TheStreet Premium Services
A complimentary preview
of Options-Profits Previews
The recent pullback in the broad markets has trimmed about 4% from the all-time-highs touched in late May, and we have seen a notable uptick in hedges placed to lock in early-year gains, with the single-stock put/call ratio rising from 0.5 to near 0.7 since early May. CBOE VIX Index (VIX) lifting from 14 to 17 over the past two weeks further clarifies a more cautious general sentiment. A number of names continue to see speculative upside action, suggesting a view higher, or possibly a risk-limited way of continuing long exposure into the summer.
We saw an early call buyer in Community Health (CYH) today, paying $4.90 for 1,800 in-the-money September 45 calls to open what will be the largest block in the relatively thin name. Shares are near the 52 week high set earlier this week and this flow might indicate a 'stock replacement' trade, in which a long shareholder converts to a long-call holder to limit downside below the strike.
Beaten down biotech Savient Pharmaceuticals (SVNT) saw one dollar strike call buyers today, as shares briefly touched $0.90 (their highest level since mid-March) before whipping back below $0.80. More than 3,000 September 1 calls have traded at the $0.09 offer in opening flow.
BULLISH flow was seen in SodaStream International (SODA) yesterday, with 13,000 calls trading (15% above normal) and implied volatility increasing almost 7 points to 59%. June 70 calls were the most active, and June 67.50 put buyers stepped in later in the day. Stock was very whippy this morning on some overseas deal chatter that is unconfirmed.
Time Warner Cable (TWC) October 115 calls have been in demand for two days, with 5,000 trading for $0.425 per contract on ISE on Tuesday and Wednesday. Current open interest near 12,600 contracts is the largest block of OI in the name. Bullish trading in TWC comes despite lackluster action in the shares. The stock is down 2.6% year-to-date.
Big blocks of August 36 calls were trading in Williams Company (WMB) on Wednesday when shares were near $34.10, suggesting an institutional view of a good summer for the stock. More than 27K contracts were bought, 5.5% above the current spot, opening a substantial position.
Select the service that is right for you!COMPARE ALL SERVICES
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV