There were a lot of unusual and large call buys yesterday, so many, that we missed this gem. There was a very unusual and large call buy in Consolidated Edison (ED). It’s made even more interesting given that the calls expire August 7.
A trader saw the light and bought 21,861 August $60 calls, paying up to 35 cents for all those contracts.
Currently Consolidated Edison (ED) is trading down 17 cents to $57.43, so if you’re into short term, risky options plays you may be able to get in at similar price to this smart money trader. ED has traded as high as $60.85 and as low as $52.23 over the past year.
Of course, you’ll have to also be into risky earnings plays, as Consolidated Edison (ED) is scheduled to report earnings on, of all days, August 7 at 4 pm. So this huge call buy is a bit of a head scratcher.
Looking at the analysts ratings, 19 analysts currently have a consensus HOLD rating on ED, and a price target of $58.21. Given that information, and the fact that earnings are released AFTER the the options expire, it’s quite possible this is one of our favorite analyst buying the calls before announcing a big upgrade on Consolidated Edison (ED).
Either way, we are thinking of buying the common for that nice 4.4% dividend yield, and possibly a later expiration August $60 call.