GLUU, FSL Options – Unusual Trading Activity – July 14, 2014
This week we’re taking a look at unusual options trading activity in Glu Mobile (GLUU) and Freescale Semiconductor (FSL).
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:
Glu Mobile (GLUU)
Mobile game maker GLUU has been on quite the ride recently – and options traders believe the good times may continue.
GLUU is currently trading for $6.28 (and is up 55% so far this year). The price is 199% above the 52-week low of $2.10 and is now 3% above the previous 52-week high of $6.09.
Today, 8,000 August 7 calls were purchased from a range of $0.25 up to $0.40. There was no open interest in the strike, so this is all opening activity.
GLUU has performed very well since releasing its ultra-popular Kim Kardashian game. Call buyers are betting the good times will continue as today’s trades start becoming profitable above $7 per share plus the price of the calls.
Freescale Semiconductor (FSL)
At least one trader believes there’s a limit to how far FSL could fall before September.
FSL is trading for $23.43, up 44% on the year. The shares are 10% below the 52-week high of $26 and 70% above the 52-week low of $13.75.
It looks like a trader sold 3,000 September 18 puts in blocks at $0.15 and $0.20 per option. The put seller will collect the premiums should FSL remain above $18 per share at September expiration.
FSL, an embedded processor provider, was trading below $16 early this year. But, there looks to be strong resistance at roughly $20. As such, this put sale appears to be relatively safe.
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
