Unusual Options Trades: International Paper (IP), GoGo Inc. (GOGO), Cameron International (CAM)

It’s a slow day today with respect to unusual options trades, however there were several more yesterday afternoon, that may still be good to get into.  Some of the biggest, unusual options trades yesterday afternoon were seen in calls of International Paper (IP), GOGO Inc. (GOGO), and Cameron International Corporation (CAM).

 

Large Opening Bet in International Paper (IP)

One of the largest trades of the day was a buy of 10,000 January $52.50 calls in International Paper (IP) at the ask price of $1.23.  Total value of that little bet was $1,230,000.  This is one “confident” trader.

While this is a very interesting and large bet and one we’d be interested in copying, the fact that IP announces earnings on July 31 makes us a little hesitant to jump on the bandwagon.  However, if the stock price comes down some immediately after earnings, it may be a good time to pounce on these January $52.50 calls.

 

Big Bet On Gogo Inc (GOGO) Call Options

Gogo_Inflight_Logo

One trader “sees” big things coming for Gogo Inc., as they bought 9,942 August $22 calls for just 25 cents.  That’s a total bet of almost $249,000.

Gogo Inc. (GOGO) options have seen some profitable unusual call buys in the not so long ago past, so we kind of like this one especially given that today GOGO is only trading at $16.30, up 25 cents on the day.  The trade still has lots of wiggle room.  This trade could be based on a positive earnings report leak, as the company is scheduled to report earnings on August 4, 2014.

This is a volatile stock to begin with given it’s small float.  It’s traded as high as $35.77 this year and as low as $9.71.  The company is not widely followed with 7 analysts covering it with a consensus OVERWEIGHT rating and a hefty price target of $22.25.

We really don’t like the company’s long term prospects, but that’s okay.  Late August isn’t long term, so we will do as the “insiders” do and buy a bit here.

Cameron International (CAM) Sees Very Unusual Call Buy

One trader is “betting” big on CAM with the unusually large call buy.  Yesterday around mid day, one trader bought 11,186 January $75 calls in Cameron International Corp (CAM), paying $2.05 to $2.10.  That makes it a very large bet of over $2,300,000 on a fairly thinly traded, little known company.  These are the kinds of options buys we find most interesting, and profitable to copy.

However, there is one caveat here: Cameron International (CAM) announces earnings next week, on July 24.  These are the kinds of options buys that make us sweat.

The company is rated an overweight holding and has a price target of $75.00.  It’s also very profitable, and operates within the drilling services industry which has been hot lately.

So we think a positive earnings leak is a plausible explanation for this very large call bet.  We’re in, in a small way.

 

That’s all for now.