Strange Call Buys in Veeva Systems (VEEV), Amkor Technologies (AMKR), NiSource (NI)

Today’s unusual options trading started off with a flurry of put buys, but now we’re getting a bunch of call buying coming in. Three notable call buys were seen in Veeva Systems Inc (VEEV), Amkor Technologies Inc (AMKR) and in NiSource Inc (NI).

First off a trader has just hit up the call options in Veeva Systems Inc (VEEV).  It was started off with a trader buying 989 October $29 calls, paying $1.75 at the ask, for the contracts.  But now, there’s been a total of 1,000+ contracts traded as some others nibble a bit on a copycat trade.  Those options are now bid $1.75, ask $2.00.  May not want to chase that.

Veeva Systems Inc (VEEV) is currently trading at $29.52 up 18 cents on the day. The stock is actually off it’s low of the day of $29.10 and naturally, bounced after the call buy.  VEEV has a 52 week high of $49.00, and a low of $17.11 for the year, quite a trading range.

Veeva Systems Inc (VEEV)just saw some analyst action yesterday with both Pacific Crest and Deutsche Bank reiterating and boosting their target prices to $35.00.   Given the unusual nature of this call buy, I’d guess that another upgrade/target boost is about to come down, with Morgan Stanley being the culprit, as our guress.

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Meanwhile Amkor Technology (AMKR) saw some more action in it’s calls today.  A trader bought 2,000 of the AMKR October $10.00 calls at the ask of $0.25.  We got burned on a call buy in this name a couple months ago, after following the lead of the “smart money”.  Doesn’t mean this one won’t work out but we’re a little gun shy this time around.

Amkor Technology (AMKR) is currently trading at $9.51 up 11 cents on the day, though well off its earlier low of $9.35 since the call buying happened.  AMKR has a 52 week high of $12.27, and a low of $4.19 for the year.  It’s traded 405,000 shares today so far, currently on track for roughly average daily volume, which is 1.21 million shares.

Amkor Technology (AMKR) doesn’t announce until October 27, so this call buyer is expecting something other than an earnings leak for AMKR.  Maybe an analyst upgrade is in the works to be released today or Monday.

The third unusual call buy was in NiSource Inc (NI).  A trader stepped into 3,000 of the October $40 calls in NI this morning.  The trader paid 80 cents, at the ask, for this opening trade.   There’s now been a total of over 4800 of the Oct 40’s trades.  We missed the boat on this move as the contracts are now bidding $1.00 and an ask of $1.20, with the last trade at $1.10.  Something is clearly up with NiSource Inc (NI), and these call buyers are the only ones who know what that is.

NiSource Inc (NI) is currently trading up to $40.07, up 84 cents so far today, though it looks to want to move higher yet. I’m going out on a limb and guess that a big fat upgrade with price target raise is coming down the newswires within the next two days.  Our money is on Jefferies, or Citigroup.  You heard it here first.