U.S. stock futures showed mixed trends this morning. Wall Street is experiencing another round of corporate profits ahead of potentially unstable political weekend.
In particular, General electric company (Ticker NYSE:GE) is lifting the Dow Jones after beating first quarter estimates. However, in the political arena can significantly heat up. The Ministry of justice overturned ex-FBI notes Director James Comey about the details of his conversations with President Donald trump. The tweets are already flying this morning.
Against this background, futures fell 0.06%, the S&P 500 index and the MICEX index gained 0.03 percent, and the Nasdaq-100 index , the MICEX index fell 0.18%.
Turning to the options pits, volume has been robust on Thursday. About 20.2 million and 18.1 million calls puts crossed at the session. Index cboe one session equity put call volume ratio has jumped to 0.64. The 10-day moving average held at 0.64.
Taking a closer look at options trading activity on Thursday, General electric saw at options heading into its quarterly report this morning. With GE stock rose nearly 5% in premarket, it seems “smart money”.
Elsewhere Amazon.com Ink. (Nasdaq:events of the week) was also called heavy after announcing it had 100 million Prime subscribers. Amazon earnings reports next week. Finally, someone is betting big on Bank of America Corp (Ticker NYSE:bac) stock rally, using may options.
General electric company (GE)and
GE shares this morning working. The company reported adjusted first-quarter earnings of 16 cents a share compared with 14 cents a year ago. Analysts had expected a profit of 11 cents a share. Revenue grew 7% to 28.66 billion, including the upgrade from the merger of its oil and gas business with Baker Hughes last year.
GE options traders loaded up on the calls ahead of the event. Volume soared to contracts 446,000, nearly doubling the average of GE. Calls accounted for 63% of the day to take.
GE plans to open just shy of $15 this morning, put in a warehouse to the North of all the major call open interest strikes in may and June series. However, the peak of April call OI keeps the $15 strike and could create today in a zone of turbulence.
Finally, if you were in one of the GE options I suggested on Tuesday, you have to sit on a nice profit right now.
Amazon.com Ink. (Weekly news)
Prime subscribers, Amazon now will be about 100 million. The company offered the first official look at the post of the Prime results of the membership, and analysts and the whirring of options. 100 million subs favorably with Netflix, Inc. and (code Nasdaq:NYSE: nflx) reported 125 million subscribers, but it is important to remember that the Prime is much more than just Prime TV streaming.
Meanwhile, Amazon will report a profit next week after closing on Thursday. Analysts expect profit of $1.26 per share, down from $1.48 per share last year. However EarningsWhispers.com adds a whisper number at $1.32 per share.
Weekly options trading traders reacted to the picture of the subscriber options. The volume increased to 250,000 contracts, calls, to 62% in the day to take. That said, in the week of April 27 to put the ratio/call OI remains middling 0.78, with calls only puts them for the series. 27 APR implieds prices for 6.7% move in amzn stock following earnings.
Corporation Bank of America (BAC)
Bank of America stock certainly looks to buy after the recent quarterly profit report this. The shares yesterday rose 2%, recovering the former support at $30 in the process. But options traders can have higher aspirations for BofA shares.
Yesterday, Tom jumped to 508,000 contracts, ahead of the average, ATSB. Calls were kings, claiming as many as 82% of the day to take. The big piece that the ringer volume was associated in pairs, and the tank of the bullish trades, according Trade-Alert.com.
The first block may 38,500 to $35 calls traded at the price of only 2 cents or $2 per contract. Breakeven on this trade is at $35.02, but will require a 16% move in the stock tank to strike.
The second was the spread trade is concentrated in a week from 27 April to 31 $call Jan 2019 42 $call. Reportedly, two blocks of approximately 29,000 contracts traded on the relevant questions. Given the spread and the difference in months, this seems a calendar spread trade on bac stock.
At the time of this writing, Joseph Hargett does not occupy a position in any of the above securities.