Building Materials company Masco (MAS) closed up $0.33 at $19.88 in active trading of 4.5 million shares and options volume was 10x the daily average with 18,000 calls and 1,000 puts trading. The top trades surfaced early when an investor bought the October 19 - 21 call spread on MAS for $1.05, 6,000x, and appears to be rolling a position down in strikes. October 21 calls saw opening activity on 5/14 (3,000 contracts) and 5/22 (3,000 contracts). June 21 and July 19 calls on MAS are also busy, but no immediate news to explain the relative strength and bullish activity in the name. The stock is up nearly 20% year-to-date, but well off the high of $22.83 seen in mid-May.
Large call spread in Achillion Pharma (ACHN) Wednesday indicates a customer doubling up on a trade opened May 31 when shares were about $0.50 above today's $7.82 close. Buyer paid $1.30 for 10,000 January 10-20 call spreads, a $1.3 million position that could pay off about 669% if shares were to exceed the 20 strike, currently 331% away.
Shares of Mattress maker Select Comfort (SCSS) saw relative strength Wednesday, with shares lifting more than $1 to close at $23.45. On the options front, a call buyer in SCSS September 25 strike, paid $1.60 for 2,500 contracts to open a new position struck 8% out of the money. This position is now the second largest block of open interest in the stock. Shares had been above $28 until the January 2013 earnings and today's order flow seems to be reflecting expectations for a return to those levels through mid-September.
Check Out Our Best Services for Investors
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
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
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.