Monday Options Watchlist: RF Micro Devices (RFMD), Loews Corp (L), Amkor Technology (AMKR), Polaris Industries (PII)
Friday was a busy day on the unusual options trading patterns front. We talked about some of the most interesting big call buys on Friday, but here’s a few that we didn’t have time to write about, including RF Micro Devices (RFMD), Loews Corp (L), Amkor Technology (AMKR), and Polaris Industries (PII).
Big Call Buyer Signals A Buy in RF Micro Devices (RFMD)
One smart trader knows something not many others know about RF Micro Devices (RFMD), as they bought up 7449 contracts of the August $11 calls just after noon Friday. The majority of the opening position was purchased at the ask.
RFMD was up 62 cents on Friday, closing at $10.27. It spiked up in early trading and then settled in for the rest of the day, even after the huge call buy.
It could be a nod to positive earnings leaking, which are scheduled to be announced this Thursday, the 24th of July. Of course, it could be due to an impending upgrade and price target increase. RFMD is currently rated an OVERWEIGHT, with a price target of $10.92.
Keep in mind earnings plays are risky.
Big Call Buyer Hits Loews Corp (L)
Just after noon a big trader hit Loews Corp (L) calls hard, buying up 2,204 September $45 calls at the ask of 70 cents. That makes for a nice bet of over $154,000. This is a strange bet in an interesting holding company that has very diverse holdings in oil and gas exploration, and drilling, hotels, and insurance?
Loews Corp. (L) announces earnings on August 4, so definitely a possible catalyst for the call buyer. But, we don’t like to play earnings too often, as it can (and often does) go the wrong way.
Loews was up 65 cents Friday, closing at $44.41.
Amkor Technology (AMKR) saw some unusual opening call buying Friday. This little known company saw a buyer come in and grab 2,976 of the August $11 calls. The August contracts saw a total of 4647 calls trade Friday, likely copy cat traders such as ourselves. The buyer paid 50 cents, mostly at the ask.
AMKR was up just 6 cents to $10.81. The company announces earnings on July 28, a Monday. We didn’t like the August calls so bought the September $11 calls instead.
Once again, earnings plays can go either way, so don’t put all your eggs in one basket.
Polaris Industries (PII), the maker of recreational vehicles saw some interesting call buying action Friday as well. This one was kind of small, but definitely unusual. A trader bought 865 of the August $140 calls. Total call volume was 1290 for that contract.
Polaris (PII) was up 95 cents to $132.80. Earnings are scheduled to be announced on Tuesday, July 22. We don’t like earnings plays, but this little trade made us want to participate in a small way.
These plays will make for an interesting Monday and rest of the week. Just be sure to do some research on these four stocks to see which ones you like.
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