Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Options Radar: AK Steel, Crocs, Inc., and GameStop Corp.

Reviewing notable options activity on AK Steel Holding Corporation, Crocs, Inc., and GameStop Corp.

by 7/21/2014 12:09 PM
Stocks quoted in this article:

Three stocks seeing notable option activity today are commodity issue AK Steel Holding Corporation (NYSE:AKS), footwear seller Crocs, Inc. (NASDAQ:CROX), and video game retailer GameStop Corp. (NYSE:GME). Here's a look at how today's option traders have been placing their bets on these three names.

  • AK Steel Holding Corporation (NYSE:AKS) is off 4.2% today to trade at $8.48, after earlier spiking to a fresh two-year high of $9.14 on news that the company will acquire a Dearborn, Michigan-based factory from Russian steelmaker Severstal OAO. Meanwhile, in the options pits, AKS call volume is more than tripling the expected intraday amount, and the stock's 30-day at-the-money (ATM) implied volatility (IV) has jumped 9.1% to 53%. Traders are buying to open the out-of-the-money August 10 call in the hopes that the shares will rally over the next four weeks into double-digit territory -- last seen in February 2012. Looking ahead, AKS will report second-quarter earnings next Tuesday morning.

  • Crocs, Inc. (NASDAQ:CROX) is up 0.7% to hover near $14.97, with the company slated to report second-quarter numbers bright and early tomorrow. Option volume has exploded ahead of this event -- especially on the call side, where volume is running at 19 times the intraday average. Plus, the equity's 30-day ATM IV has popped 18.3% to 48.9%, pointing to a growing affinity for short-term options. More specifically, traders are buying to open CROX's August 15 call -- per data from the International Securities Exchange (ISE) -- expecting that an earnings beat will propel the shares north of the strike, and bring the contracts into the money by the close on Friday, Aug. 15, when newly front-month options expire.

  • Finally, GameStop Corp. (NYSE:GME) is trading slightly lower at midday, around $42.73, after the company announced a new partnership with gift card exchange platform Cardpool. In options land, puts are being exchanged at eight times the normal intraday pace. According to Trade-Alert, speculators may be looking for an intermediate-term pullback by buying to open GME's October 40 put.


permalink

Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.