Given the recent market weakness, it was a rather busy day for the “unusual call buyers”. There were several large and interesting call buys yesterday, that you may still want to consider jumping on today. The three most interesting were seen in Tyson Foods (TSN), QLIK Technologies (QLIK), and Synergy Resources (SYRG).
Up first, QLIK Technologies (QLIK) saw a trader come in and gobble up 3,000 November $27 calls. The buyer paid $2.60 per contract, making it a rather large bet with a transaction value of $780,000. Now that’s confidence!
QLIK had a big day after that big call buy, closing well up, at $27.39 on average volume. It’s interesting timing for this call buy given that the COO of the company announced he’d sold $1.4 Million worth of shares on July 31. Earnings have come and gone on July 24, so this call buyer is counting on something else coming down the pipes for QLIK Technologies (QLIK).
QLIK is currently rated “Overweight” and has an average price target of $30.80. It’s possible that a major firm is about to upgrade QLIK with a higher price target as well.
The second interesting trade was in Tyson Foods (TSN) where a trader bought 3,836 September $37 calls at a price of $1.55, all at the ask. This trader certainly ain’t playing chicken. There must be a rather good reason for throwing $600,000 into TSN call options. Unfortunately we don’t know what it is.
Earnings have passed for TSN as well, and the stock is already rated overweight and has a hefty average price target of $46.67, so a surprise analyst upgrade seems unlikely though not impossible. We aren’t super excited by this unusual call buy.
Maybe it’s a value play, Tyson Foods (TSN) seems to be bouncing nicely off it’s 200 day moving average.
The 3rd interesting large and unusual call buy was in Synergy Resources (SYRG), which had a very big day yesterday. A trader bought 2,224 August 10 calls, paying $1.25, almost all at the ask. This is a rather large in the money bet on calls that expire in a couple weeks.
Synergy Resources (SYRG) spiked up over $1.00 around the time of the call buy, so naturally the trader had already double his money in a few minutes. The transaction value was $278,000. So a nice quick profit for this guy/girl.
We feel like we missed this fast moving boat, but would be interested in getting in if it falls off some today. The only thing we can think is a some kind of large deal announcement is coming. The stock is rated a buy, with a price target of $16.00, so a surprise upgrade doesn’t seem all that likely.
Have a great Tuesday.