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Options Radar: Brightcove Inc, Cerner Corporation, and Deckers Outdoor

Reviewing notable options activity on Brightcove Inc, Cerner Corporation, and Deckers Outdoor Corp

by 7/25/2014 12:33 PM
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Three stocks seeing notable options activity today are cloud-based solutions provider Brightcove Inc (NASDAQ:BCOV), health care IT issue Cerner Corporation (NASDAQ:CERN), and footwear designer Deckers Outdoor Corp (NYSE:DECK). Here's a look at how today's options traders have been placing their bets on these three names.

  • Brightcove Inc (NASDAQ:BCOV) is crashing today, down 36.7% at $6.50, and fresh off a new annual low of $6.06. Precipitating the swoon was the company's trip to the earnings confessional last night, where -- despite posting a narrower-than-expected second-quarter loss -- BCOV disappointed with its third-quarter and full-year guidance. The result was a rush of downgrades and price-target reductions from firms such as B. Riley and RBC, among others. With the shares landing on the short-sale restricted (SSR) list this morning, traders are piling into BCOV's options pits -- especially on the put side, where volume is running at 402 times the intraday average. The stock's 30-day at-the-money (ATM) implied volatility (IV) has also spiked by 14.7% to 70.2%, signaling strong demand for short-term options -- and making now a good time to sell premium on the equity. Accordingly, it appears one individual sold to open a block of 10,000 deep out-of-the-money (OOTM) August 5 puts earlier, possibly assuming the worst is already over for Brightcove, and future downside limited.

  • Meanwhile, Cerner Corporation (NASDAQ:CERN) has gained 1.9% to trade at $56.67, following a solid showing in the earnings confessional last night. Specifically, the firm matched the Street's second-quarter per-share earnings estimate, topped the consensus revenue projection, and lifted its full-year outlook. In CERN's options pits, total activity is running at six times the typical intraday clip. Most active is the August 60 call, which bullish speculators are buying to open to take aim at additional short-term upside in the shares.

  • Finally, Deckers Outdoor Corp (NYSE:DECK) is popping today, up over 4% to rest near $88.90. Earlier, in fact, the shares hit a fresh two-year high of $94.80, in the wake of last night's slimmer-than-expected fiscal first-quarter loss, and a string of bullish brokerage notes from Canaccord Genuity, Credit Suisse, ISI Group, and Jefferies. In options land, total volume is nine times what's expected at this point in the session, and traders are apparently selling premium on the deep OOTM September 55 put. Meanwhile, it looks like a few eleventh-hour bulls are buying to open the weekly 7/25 94-strike call, amid hopes for even higher highs for DECK.


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