Biggest Option Trades: Gogo Inc. (GOGO), SBA Communications (SBAC), TE Connectivity (TEL)

It was another busy day of large, unusual options trades in a bunch of names today.  This is shaping up to be an excellent earnings season for options traders in the know.  You may know jack, but you can watch what the smart money is buying in bulk and copy their trades.  Here’s three large, unusual call buys from today:  SBA Communications (SBAC), TE Connectivity (TEL) and, Gogo Inc. (GOGO).

Just 4 days ago we wrote about a big call buy in Gogo Inc. (GOGO) August $22 calls, and now today a big trader bought 2,401 of the November $15 calls at the ask price of $3.90.  This is rather interesting call buy given the 9900 August $22 calls bought last week.

Gogo Inc. is scheduled to report earnings on August 4, so it certainly looks likely that some positive numbers have leaked to someone close to the company.

GOGO was up 30 cents today to $16.94, and is also up 30 cents after hours to $17.24, though we haven’t checked the volume on that AH trading.

SBA Communications (SBAC) saw a very interesting, large call buyer today, who gobbled up 4,461 of the SBAC August $110 calls at at a price of 90 cents.  I’m sure it’s just a “coincidence” (nudge nudge, wink wink), that SBAC is sheduled to report earnings on July 24th at 4 pm.    Sure this isn’t someone acting on leaked numbers, that never happens, right SEC?  Just kidding, go back to sleep.

We like this trade a lot, even if we don’t normally like copying the earnings plays.

SBA Communications (SBAC) was down 20 cents today, to $104.34 though it is back up 20 cents after hours.  There’s still time to get into this one tomorrow depending on the early price action and world events.  Right now the August $110 ask price is 95 cents, not up much from the smart money.


The third unusual call buy was in TE Connectivity (TEL) which saw an usual trader come in and buy 2,253 of the October $70 calls at the ask price of 55 cents.   This seems like a very unusual trade for TE Connectivity, formerly Tyco Electronics.  We love seeing foreign based company options activity, it always seems to pay off to copy these trades.  TEL is based in Switzerland.

It’s a very profitable business, and one that could definitely surprise to the upside on earnings.  Oh, did we forget to mention that earnings are announced tomorrow morning by TE Connectivity?  That’s right, the day before earnings someone bought 2253 out of the money options.  Brass balls?  Fortune teller? Insider info?  We don’t know which, but we like this risky play and are in at 60 cents.

Good luck and good trading.