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5 Names Seeing Bullish Option Flow

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BJ's Restaurants (BJRI) options are relatively thin but saw the heaviest day for call volume in more than six months yesterday, as April 35 call buyers were active, paying $0.20 to $0.25 for about 1,000 contracts as shares traded near $31.68. 30-day ATMIV lifted 3 points to 31%.

McGraw Hills (MHP) shares traded higher on Wednesday and a 13,650-lot of May 50 calls traded on the stock for $1.90 when shares were near 48.58, closing one leg of a May - Aug 50 call spread opened earlier this month. The stock is up almost $2 since the spread was originated, and it appears the May 50s are being covered for a loss, while the Aug 50s left open -- reflecting the view the upside momentum in the stock could continue in the short-term and lift shares beyond $50 through the May expiration.

Bullish flow was detected in McKesson Corp (MCK) with nearly 5,000 calls trading on Wednesday, or 9x the recent average level. Upside April 115 and 120 calls were the focus, with 4,000 contracts of new call open interest established.

MCK Option Dashboard
Source: Trade Alert


Service firm Sirona Dental (SIRO) saw unusually strong call volume as well.

SIRO Daily Contract Volume
Source: Trade Alert


While a pretty thin name (ranks 1,452nd among single stocks, with ADV near 150 contracts), this spike in volume is the biggest I can see in well over a year and suggests a view that some further upside may be in store for shareholders. 52-week range for SIRO is about $65-$73.

Dreamworks (DWA) saw what looks like a call position rolled out and up yesterday, as a trader opened a new position in April 20 calls while selling March 17.5 to close. Data indicates the trader 'legged' the trade rather than executing as a spread, and collected about $0.86 in the process. Trade history suggests the original March position was opened nearly a month ago for $0.65 when shares were near $17.30- shares are near $19 now so this trader looks to be taking some money off the table but staying long into the spring.

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