It’s been a rather slow post holiday trading session, but there were a couple more notable options plays today. Once again a trader hit up URS Corp (URS) calls, this time in August, and Coca Cola Enterprises (CCE) saw a large call trade in the late morning.
URS Corp (URS) Calls Get More Action
We alerted you to an unusual call trade in URS July $50 calls on July 2, and those calls, which the investor paid less than 40 cents on, are now trading at $2.55 just a few days later. Now, an investor (the same one?) is counting on the rally to continue, as 1523 of the August $55 calls have now traded this afternoon.
URS Corp (URS) has surged from $46 last week to todays current price of $52.32. It’s up $1.59 today on twice the normal daily volume. The company is expected to release earnings on August 4, so this could certainly be a play on leaked numbers. Or it could be a coming upgrade. We’ll have to sit back and see how it plays out.
Coca Cola Enterprises Inc. (CCE) Calls Get Played
The August $49 calls in Coca Cola Enterprises Inc. saw an unusual opening trade this morning, when a trader bought 1760 of the calls.
Shares of CCE are up 33 cents on the day to $48.28. This one’s got a ways to go to pay off for the trader. There has been no news yet to explain why this trader bought a large number of the $49 calls. However, the company does announce earnings on July 24, 2014, and numbers may have leaked, or the trader just “anticipates” good numbers will be released. Wink, wink.
While the call volume is up, volume in the common is a little lighter than usual.
The call buy could also be a precursor to an analyst upgrade (as usual) that hasn’t been announced yet. CCE is currently rated Overweight, but its consensus price target is just $48. 84. We’ll have to keep an eye out for a potential price target raise from one of the firms.