WAG, GLW Options – Unusual Trading Activity – May 19, 2014
This week we’re taking a look at unusual options trading activity in Walgreen (WAG) and Corning (GLW).
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:
Walgreen (WAG)
Drug store giant Walgreen is seeing bullish action in options early this week.
WAG is currently trading for $69.31. The price is 63% above the 52-week low of $42.60 and is just 2% below the previous 52-week high of $71.02.
Traders purchased over 5,500 WAG 69 Weekly calls, expiring at the end of this week. The biggest block traded for $1.04 (about 3,700 contracts). Open interest was only around 50 contracts before today, so this is all opening action.
Long calls expiring in just one week can really only mean one thing – a straight-up bullish bet. With the stock above the strike price already, it doesn’t need to move up much farther for the largest block traded to be profitable by expiration.
Corning (GLW)
A neutral to slightly bullish trade hit the tape today in Corning options.
GLW is trading for $21.10. The shares are 3% below the 52-week high of $21.77 and 55% above the 52-week low of $13.61.
A trader sold over 4,500 July GLW 22 calls for $0.21. With open interest sitting at just around 1,000 before the trade, this is pretty clearly an opening position.
This trade is mostly likely part of a covered-call strategy. The call seller is likely long the stock versus the short call position. If that’s the case, the strategy would reach maximum payout if the stock closes at $22 on July expiration.
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
