It’s the holiday season and some insiders were looking to make some extra Christmas cash in the options market on Monday. Two of the biggest gaining stocks Monday on our options radar were American Eagle Outfitters (NYSE:AEO) , and Canadian Solar Inc. (NASDAQ:CSIQ)
Clothing retailer American Eagle Outfitters (NYSE:AEO) has been on a roll this year, and one trader in the know seems to think AEO stock price has more room to rise. The “smart” trader bought a whopping 2628 JAN17 $16.00 calls Monday morning, at the ask, for a total wager of just $189,000. But wait, there’s more. Another smart trader also sold a huge 19,828 AEO JAN17 $14.00 PUTS for $0.11. That’s some serious conviction! Of course their should be a conviction for insider trading if (when) this thing pops, right? Not likely.
American Eagle (AEO) traded up to $16.97 yesterday, and closed at $16.92, up 75 cents or 4.64%.
American Eagle Outfitters doesn’t announce earnings until February 2017 so this trader must have knowledge of some other news event coming before then. The average analyst price target is $18.65, with a consenus rating of Overweight.
The second interesting and unusual options play yesterday was seen in Canadian Solar Inc. (NASDAQ:CSIQ). This one is no stranger to interesting options plays. CSIQ has had a rough year, but it appears one trader knows that things are going to turnaround in a hurry for Canadian Solar.
The trader came hard into a couple of the weekly’s Monday, buying 1569 DEC30 $12.00 calls at the ask, and also bought 1540 DEC30 $11.50 calls mostly at the ask. That’s a good sized “bet” for a down and out solar company.
Naturally CSIQ was up big Monday, trading in a range of $11.11 to $11.99, and closing at $11.79 up 72 cents or 6.5%. It was also up 19 cents to $11.98 in after hours trading. Canadian Solar was as high as almost $30 in the past 52 weeks, and it’s low was $10.25. It appears, from this likely insider trader, that CSIQ has bottomed out and is ready to rocket higher in the very near future.
This is clearly not an earnings play, so one wonders if maybe the company is in talks for a buyout maybe? Or maybe a large contract? We’ll have to hold on tight for the ride, and wait and see what the big news will be.
As usual, we will update you on and major developments on the interesting options plays in American Eagle Outfitters (NYSE:AEO) , Canadian Solar Inc. (NASDAQ:CSIQ) when they occur.