JNS, WFC Options – Unusual Trading Activity – January 24, 2014
This week we’re taking a look at unusual options trading activity in Janus Capital Group (JNS) and Wells Fargo (WFC).
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:
Janus Capital Group (JNS)
One strategist believes JNS could be in trouble in the months ahead.
JNS is currently trading for $12.13 per share after dropping over 6% yesterday. The share price is 57% above the 52-week low of $7.74 and is 7% off the 52-week high of $13.10.
One trader bought 10,000 June 12 puts for $1.20. That means the trade will be profitable if JNS closes below $10.80 on June expiration.
Considering the puts traded were in-the-money, the trader clearly believes the stock has much further to fall. This downside strategy is probably based on this week’s news that JNS saw its highest capital outflows in nearly 10 years.
Wells Fargo (WFC)
A big trade this week suggests that WFC is going to hold its ground.
WFC is currently trading for $46.35. The shares are up 37% from the 52-week low of $33.77 and are just 1% below the 52-week high of $46.84.
This week, a trader sold 15,000 February 45 puts for $0.39. The strategy suggests WFC won’t fall below $44.61 by February expiration.
WFC is only around $1.50 away from the trader’s short strike, so he or she must be confident the banking giant isn’t in much danger to drop substantially from current levels. There also appears to be significant technical support around the $45 level.
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
