GIS, SUNE Options – Unusual Trading Activity – December 8, 2014
This week we’re taking a look at unusual options trading activity in General Mills (GIS) and SunEdison (SUNE).
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:
General Mills (GIS)
Is cereal king GIS about to take a tumble?
GIS is currently trading for $52.96. The price is 16% above the 52-week low of $45.60 and is just 3% below the 52-week high of $54.77.
Today, the December 52.50 puts were purchased over 5,000 times between $0.43 and $0.50. The trade will pay off if GIS closes below $52 (approximately) by December expiration.
GIS has been moving higher the last several weeks, but could be at a key resistance point. With earnings coming out later this month, traders could be positioning for disappointing news.
SunEdison (SUNE)
Is the solar industry primed for a pullback this week?
SUNE, a chip maker for the solar power market, is trading for $20.15, and is up 61% this year. The shares are 17% below the 52-week high of $24.35 and 81% above the 52-week low of $11.11.
This morning, a trader grabbed 5,000 Weekly puts which expire at the end of the week. The price was $0.21 per contract, and it was clearly opening action.
With the options expiring in just five days, the trade probably isn’t a hedge. More likely, someone is betting SUNE will drop below roughly $19.80 by the end of the week – possibly due to the current downtrend in energy stocks.
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
Category: Unusual Options Trading Activity
