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Option Clips: Walgreen Company,, and Seattle Genetics

Reviewing notable options activity on Walgreen Company, Inc, and Seattle Genetics, Inc.

by 2/12/2014 1:36 PM
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Three equities generating buzz on StockTwits today are pharmacy bigwig Walgreen Company (NYSE:WAG), travel website Inc (NASDAQ:PCLN), and cancer treatment concern Seattle Genetics, Inc. (NASDAQ:SGEN). Here's a look at how traders have been aligning their speculative bets today.

  • Walgreen Company (NYSE:WAG) -- which goes ex-div tomorrow -- is up 0.8% at $64.71, after earlier notching a record peak of $67. The stock's 30-day at-the-money implied volatility has jumped 9.6% to 28.3%, with intraday options volume running at four times the norm. Most active is the deep out-of-the-money (OOTM) January 2015 50-strike put, where more than 4,300 contracts have changed hands. More specifically, it looks like some speculators are selling the puts to open, on hopes that WAG remains north of the round-number $50 level through January 2015 options expiration.

  • Inc (NASDAQ:PCLN) also tagged an all-time high, peaking at $1,249.60 earlier in the session. At last check, the equity has trimmed its lead to 2.7% to trade at $1,246.14, and short-term options are flying off the shelves. So far today, roughly 17,000 calls and 14,000 puts have changed hands, compared to the stock's average intraday volume of about 11,000 calls and 9,900 puts. Digging deeper, weekly options are the contracts du jour, with 17 of the 20 most active strikes expiring on Friday. is slated to report earnings after the close on Thursday, Feb. 20.

  • Not to be outdone, Seattle Genetics, Inc. (NASDAQ:SGEN) jumped to a record high of $51.97 earlier, but was last seen flirting with a 13% gain at $51.58. The firm's stronger-than-expected fourth-quarter earnings report -- released last night -- has triggered a wave of call activity, with intraday volume running at seven times the normal rate. However, it looks like some traders are employing calls to bet on a near-term top for SGEN, selling to open the OOTM March 55 calls. Analysts, on the other hand, expect more upside, with Guggenheim and Credit Suisse lifting their price targets on SGEN this morning.


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