AMAT, BCOV Options – Unusual Trading Activity – October 27, 2014

| October 27, 2014 | 0 Comments

Unusual Trading VolumeThis week we’re taking a look at unusual options trading activity in Applied (AMAT) and Brightcove (BCOV).

As many of you know, unusual options volume can be a valuable indicator as to what traders are thinking, and more importantly, where these stocks are heading in the short-term.

This is something professional options traders pay a lot of attention to, and for good reason… Unusual options activity can “tip off” big moves in a stock, either up or down.

So let’s take a look at some ‘interesting’ activity that caught our eye this week:

Applied (AMAT)

A short-term trade suggests AMAT is going to hold steady this week.

AMAT is currently trading for $21.21. The price is 31% above the 52-week low of $16.16 and is 9% below the 52-week high of $23.36.

At the end of last week, someone sold 2,000 Weekly 20.50 puts expiring on October 31st. The puts were sold at $0.18 each and it was opening action.

Now, 18 cents doesn’t seem like a lot, but keep in mind, the trade will last just a week before it expires. AMAT is sitting just above two major moving averages, so perhaps the put seller believes the support will hold, at least for this week.

Brightcove (BCOV)

Cloud-computing software company BCOV is seeing a surprising amount of options action this week.

BCOV is trading for $5.25, down 63% on the year. The shares are 67% below the 52-week high of $16.25 and just 4% above the 52-week low of $5.06.

Today, over 5,000 November 5 puts were sold for $0.25. The volume is well above normal trading volumes in this small cap company.

Once again, $0.25 doesn’t seem like a lot to make on a put sale. But, it’s a fairly large percentage move down in the stock, which is also right near its 52-week low. It could also be a play on earnings, which come out later this week.

More Options Ideas…

That wraps up this week’s unusual options trading and volume…

Keep in mind, there’s a lot more unusual options activity going on than what we discuss here.

We just try to bring you what we feel are the most significant ones– and the ones you might actually be able to make some money on!

So keep an eye on your email inbox… we have a lot more options trading ideas coming your way!

Yours in Profit,

Gordon Lewis

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Category: Unusual Options Trading Activity

About the Author ()

Gordon Lewis is the Chief Investment Strategist and editor for the popular daily newsletter – Options Trading Research. He’s also editor of our dynamic theme-based options trading service, Advanced Options Adviser, and one of the key analysts behind the highly successful Options Trading Wire.