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GILD At All Time High Attracts Call Buyers

Gilead-Sciences

The stock that received a lot of love from call option traders today was Gilead Sciences (GILD). The August 2014 calls registered high activity at a number of strikes (see below). Overall, $20m+was transacted in these option trades suggesting that large players were involved. This activity comes on the back of the stock price making its all time high. The chart shows a powerful bullish formation with the stock price breaking out. If you […]

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Cisco: This Option Trader Expects A Large Bull Move

cisco

Cisco surprised Wall Street on May 14, 2014 reporting strong quarterly data after the market close. Investors cheered the results pushing the price significantly higher over night.  The stock price opened with a +6% gap on May 15. This has become the most significant “surprise” delivered by Cisco during the last several quarters. Since then, the stock price has been slowly pushing higher. Today, one large option trader, placed a […]

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EBAY Is Challenging All Time Highs

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Hypothesis: EBAY reached its previous all time high of $60 last week. Should the price break above this level, there will be enough bulls to jump on the train and move the stock price another 10%-15% during the next several weeks. Buying long summer calls is a good way to profit from this bullish expectation. Challenging All Time Highs: Last week was great for EBAY shareholders. They have finally seen […]

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WFC: Time To Consider Buying May Calls

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Hypothesis: Large banks enjoyed a strong bullish week. One of them was Wells Fargo (WFC), which has been making 52 weeks new highs for each of the last 3 trading sessions. The stock’s weekly chart shows a rising triangle pattern with a strong breakout. This bullish price behavior came on the back of a falling Implied Volatility for WFC, which makes it a great candidate for the long May 2014 […]

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Akamai Technologies Ready To Rock&Roll

akamai

Akamai Technology is the company that definitely should be on your bull radar. The company’s management has been revising its earnings estimates upward lately. The outperformance was driven by a stronger-than-expected growth in revenues and earnings per share. Also, the speculation that had been going on for some time regarding whether Apple would develop a CDN of its own has been put to rest as per Bloomberg reports. This positive shift in estimates has […]

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GLD Puts Are 30% More Expensive Than Calls: Where Is Gold Headed?

gold

Gold prices have been consolidating for the last several weeks. Usually, after a period of consolidation, prices start to move either upwards or downwards. The sentiment on the options market suggests that most option traders expect the prices to go down during the next couple of months. This is clear when one compares option premiums on GLD puts and calls. Currently, put option premiums are priced higher than the call […]

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Yahoo: Is It Time To Buy Calls?

Melissa-Mayer-Yahoo1-475x356

A potential long call set up is being formed on YHOO. There are number of factors converging at the moment. First, the stock has been in a box-type of consolidation phase for more than a month. Second, after Q3 earnings report, YHOO implied volatility has been falling from 45% to almost 30%. Third, technical indicators are about to flash an entry, which has previously led to substantial price move to […]

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