Unusual Options Trade: B/E Aerospace (BEAV), Great Plains (GPRE), Discovery Communications (DISCA)

It’s all sunshine and lollipops in the markets today, and the options players are getting in on the bullish action.  There have been several unusually large call trades so far today, including call buys in B/E Aerospace (BEAV), Great Plains (GPRE), and Discovery Communications (DISCA).

One of the most interesting trades was in B/E Aerospace (BEAV).  A trader bought 3,213 August $85 calls, paying $1.65 at the ask.  That makes a total trade value of $530,000.   With only one week to make some money, you have to expect some serious news coming out regarding B/E Aerospace (BEAV) in the next day or two at the most.

BEAV is up $1.29 today, trading at $86.05 at 1:30 PM Monday.  Volume is actually light relative to it’s average daily volume of 1.5 million shares.  It’s traded just 527,000 so far today.  B/E Aerospace (BEAV) does present at the Jefferies Global Industrials Conference on Wednesday August 12, so it could be that news has leaked ahead of that.

be aerospace BEAV logoBEAV has a consensus rating of Overweight, and a price target of $104.25 so it doesn’t seem likely that a big upgrade is coming.

Second unusual call trade was seen in Great Plains (GPRE).  A smart money trader bought 2,937 September $45 calls all at the ask.  GPRE is already up $1.86 today, last traded at $42.33.  Interestingly, Great Plains (GPRE) is also presenting at the Jefferies Global Industrials Conference on August 11.

GPRE is rated an overweight as well, with a price target of $47.   This one could be a case of an impending analyst upgrade with a nice increase in the price target.  Wouldn’t be surprised by that being announced tomorrow.  Another case of analyst firms buying options before they announce their own upgrade.  Welcome to America, home of the toothless SEC.

Up next, a not so large, yet still unusual, call buy was seen in Discovery Communications (DISCA). The Discovery Channel company was discovered by an options trader today who bought 1,013 September $45 calls, all at the ask, in an opening trade.

Discovery Communications (DISCA) is up just 19 cents today, to $42.48 on volume of 1.56 million.

Not really clear what is going on with this call buy, but again, it could just be an indication of an impending analyst price target increase.  The current consensus on Discovery Communications (DISCA) is Overweight with a price target of $45.86.

That’s all for now.