Today’s tickers: CSCO, TGT, LVS, DISCA, HGSI, OREX, EWJ & GE
CSCO – The largest maker of networking equipment received an upgrade to ‘outperform’ from ‘neutral’ at Credit Suisse Group AG, boosting shares up more than 2.5% to $21.05. Option-bulls were seen picking up call options at the August 22 strike price 3,600 times for an average premium of 42 cents each. Call buying was observed up at the August 23 strike where 2,300 lots were purchased for 18 cents apiece. Shares of CSCO must rally another 10% to the breakeven point at $23.18 in order for call-buyers at the higher August 23 strike to amass profits by expiration. Other traders locked into gains by scooping up protective put options 3,800 times at the August 21 strike for 79 cents per contract. Finally, bullish sentiment spread to the September 23 strike price where 3,000 calls were coveted for 34 cents each. – Cisco Systems, Inc.
TGT – A bullish reversal on the retailer today suggests that at least one investor is hoping for shares of TGT to appreciate through expiration in October. The stock is currently trading flat at $39.56. The sale of 5,000 put options at the October 40 strike price for a premium of 3.20 apiece was spread against the purchase of 5,000 calls at the same strike for 2.70 each. The individual responsible for the transaction receives a net credit of 50 cents and will add to his profits if shares rally through $40.00 by expiration. Perhaps this investor is expecting the stock to rise because the reasonably-priced store may attract a greater percentage of cash-strapped back-to-school shoppers this year. – Target Corp.
LVS – Investors of the hotel and casino operator have enjoyed a more than 15.5% rally in shares of LVS to $9.95. The stock jumped after the firm announced plans to “apply for an initial public offering of shares in its Macau casinos in Hong Kong as early as next month”. Option traders hoping for a continued rally, were seen purchasing call options in the near-term August contract. The August 12 strike price had 1,700 calls bought for 40 cents apiece while the higher August 13 strike also had 1,700 lots coveted for about 26 cents each. The stock would need to improve 33% from the current price in order for August 13 strike call-buyers to profit at the breakeven price of $13.26. – Las Vegas Sands Corp.