Skyworks Solutions, Inc. (SWKS) is a producer of semi-conductors and integrated circuits. The company’s stock is currently trading around $32.55 in a 52 week range of $19.57-$39.33. The stock has been outperforming the market this year with shares rallying nearly 25% year to date. SWKS call options have been active today with a block of May 37 calls being bought this morning. A trader bought 2,500 SWKS May 37 calls for $1.25, labeled as an opening position. This is a $312, 500 bet on further upside in SWKS through May expiration. With shares of SWKS trading above the Ichimoku Cloud it would appear that this trader is getting long rather than hedging a short position.

Block Trade: Trader bought 2,500 SWKS May 37 Calls for $1.25
Risk: $125 per 1 lot
Reward: Unlimited
Breakeven: $38.25

Cheniere Energy (LNG) is an energy company engaged in the liquefied natural gas  related business. It operates through two segments, LNG Terminal Business, and LNG and Natural Gas Marketing Business. Today a trader bought 8300 LNG Jan 2015 65-80 Bull Call Spreads and sold the 45 Puts for $.40 credit. This trader will get LONG LNG at two different levels, $45 and $65. This is a bullish bet and the trader will make money as long as LNG stays above $44.60 by Jan 2015 expiration.

My Trade: Buying the Jan 2015 65 Calls for $4.55
Risk: $455 per 1 lot
Reward: Unlimited
Targets: 5, $5.00 and up every $.40

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

The iShares MSCI Mexico Capped ETF (EWW) seeks to track the investment results of a broad-based index composed of Mexican equities.  I watch over 1300 trades a day and this is one of the only two trades that I have taken today.  The chart looks great and I think that EWW will break to the upside and one trader thinks the stock is heading north of $66.

My Trade: Buying the EWW 5.30.2014 65 Calls for $1.55
Risk: $155 per 1 lot
Reward: Unlimited
Targets: $1.75, $1.95, $2.15, $2.30 and $2.75

Yelp Inc. (YELP) operates as an online local guide that connects people primarily with boutiques, mechanics, restaurants, and dentists.

Yesterday, we at www.keeneonthemarket.com saw a trader buy 9,500 YELP May 75-90 bull call spread for $2.60 debit.

(more…)

Pandora Media, Inc. (P) provides internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access free music and comedy, as well as offers Pandora One, a paid subscription service to listeners.  Yesterday, we at www.keeneonthemarket.com saw a trader buy 21,676 P May 31-35 Bull Call Spread for $.55 debit.  This is a HUGE bet that P will trade above $31 by May expiration.  This was a $1.5 Million bet, so yesterday I bought the May 31 Calls for $.95 and I am up over $8,000 in 2 days and I think that P has more upside potential.

The Trade: I bought the P May 31 Calls for $.95
Risk: $95 per 1 lot
Reward: Unlimited
Targets: $1.10, $1.30, $1.50 and $1.75

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

Express, Inc. (EXPR) is a men’s and women’s clothing retailer selling apparel and accessories in stores and online. The company’s stock is currently trading around $15.80 in a 52 week range of $15.42-$25.05. The stock has been underperforming the market this year with shares falling more than 15% year to date. Options traders seem to think that this trend will reverse as orders hitting the tape today are very bullish. Earlier this morning a trader bought 2,000 EXPR May 15 calls for $1.27. This trader is betting more than $250,000 on upside in EXPR through May expiration. With stock just off of 52 week lows this is an aggressive countertrend setup. This does however suggest this trader has a relatively high level of bullish conviction in EXPR.

Block trader: Bought the May 15 Calls for $1.27
Risk: $127 per 1 lot
Reward: Unlimited
Breakeven: $16.27

MGM Resorts International (MGM) owns and operates casinos and resorts in the U.S. and China. The company’s stock is currently trading around $24.00 in a 52 week range of $11.97-$28.75. The stock has performed relatively well this year with shares rallying 2.25%. Options orders hitting the tape early in this morning’s trading session would indicate that traders believe this trend will continue through the end of the year. Early this morning a trader bought 14,674 MGM Jan 2015 30 calls for $1.10. This is a very bullish trade that requires this trader to lay out more than $1.6 million in capital. Although the stock has traded below the cloud, it is still in positive territory this year. With such a large bet being made in MGM it would appear that this trader is expecting some serious upside for MGM this year.

Block Trader: Bought the MGM Jan 2015 30 Calls for $1.10
Risk: $110 per 1 lot
Reward: Unlimited
Breakeven: $31.10

Host Hotels & Resorts, Inc (HST) is a REIT that holds luxury hotels in the U.S. and around the world. The company’s stock is currently trading around $20.75 in a 52 week range of $15.60-$20.90. Shares of HST have been performing well this year as the stock has rallied nearly 7% year to date. Options order flow in HST during today’s trading session would suggest that traders expect this trend in HST to continue through April expiration. Earlier this morning a trader bought 5,427 HST Apr 21 calls for $0.30. This is a very bullish trade and the largest block to trade in HST today as calls are out trading puts 210 to 1. Nearly 22 times the average daily option volume in HST has already traded today. HST is also looking strong on a chart. The stock is trading above the Ichimoku Cloud and is just off of its 52 week highs.  With a bullish chart set up like this it seems like this trader is taking a speculative long in HST. Both the chart and order flow are signaling for a long in HST.

Block trader: Bought the HST Apr 21 Calls for $0.30
Risk: $30 per 1 lot
Reward: Unlimited
Breakeven: $21.30

PPG Industries, Inc. (PPG) is a supplier of paint and decorative coatings around the world. The company’s stock is currently trading around $196.00 in a 52 week range of $130.65-$201.59. The stock has been performing relatively well this year with shares rallying nearly 3.35% year to date. Options traders seem to believe this trend will continue as orders hitting the tape today have been decidedly bullish. Earlier this morning a trader bought 1,000 PPG Apr 200 calls for $2.40. While this may not seem like a large order this block is the largest to trade on a day when PPG is seeing 5 times its average daily option volume already traded. This is a very bullish trade that requires this trader to lay out $240,000 in capital. With shares of PPG trading above the Ichimoku Cloud it would appear that this trader is looking for a speculative long in PPG. The stock is also trading above its 9 and 26 period moving averages and the future cloud is upward sloping. With a strong technical set up this order flow provides a very bullish signal in PPG.

Block trader: Bought the PPG Apr 200 calls for $2.40
Risk: $240 per 1 lot
Reward: Unlimited
Breakeven: $202.40

Superior Energy Services, Inc. (SPN) is a company that provides services and equipment to customers in the oil and gas industry. The company’s stock touched off of a new 52 week high today and shares are currently trading around $30.69 in a 52 week range of $22.85-$31.41. The stock has been performing well this year with shares up nearly 15% year to date. There has been some bullish options activity in SPN today and it seems like options traders are expecting this uptrend to continue. Earlier this morning a trader bought 2,000 of the SPN Apr 32.5 calls for $0.25. This is the biggest block to trade today with calls massively out trading puts. Nearly 4.4 times the average daily option volume has traded in SPN today. With shares of SPN trading at 52 week highs and looking strong on a chart we believe that this order flow is signaling further upside in SPN.

Block Trader’s Trade: Buying the SPN Apr 32.5 Calls for $0.25
Risk: $25 per 1 lot
Reward: Unlimited
Breakeven: $32.75