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

Options Radar: King Digital, Arrowhead Research Corp, and Ford Motor

Reviewing notable options activity for King Digital Entertainment PLC, Arrowhead Research Corp, and Ford Motor Company

by 8/13/2014 11:55 AM
Stocks quoted in this article:

Three stocks seeing notable options activity today are game maker King Digital Entertainment PLC (NYSE:KING), biopharmaceutical firm Arrowhead Research Corp (NASDAQ:ARWR), and Detroit darling Ford Motor Company (NYSE:F). Here's a look at how today's options traders have been placing their bets on KING, ARWR, and F.

  • It's a dismal day for KING, following a poorly received earnings report and subsequent round of bearish brokerage notes. At last check, the shares were off 22.8% to trade at $14.05, after earlier bottoming out at a fresh record low of $13.65. Against this backdrop, the stock has been relegated to the short-sale restricted list, sending options volume soaring to 21 times the average intraday pace. Diving deeper, a number of speculators are calling a bottom to King Digital Entertainment PLC's downward trajectory by selling to open the stock's September 13 put.

  • ARWR is also trading lower in the wake of its fiscal third-quarter results, down 6.2% to linger near $12.20. On the heels of this scheduled announcement, the stock's 30-day at-the-money implied volatility has plunged 57.8% to 91.1% -- in the lower end of its annual range. Overall option volume, meanwhile, is trading at 10 times what's typically seen at this point in the day, with calls outpacing puts by a more than 2-to-1 margin. The most active Arrowhead Research Corp option is the September 15 call, and according to data from the International Securities Exchange (ISE), there's a mix of buying- and selling-to-open activity happening here.

  • F is in the green today, after Stifel Nicolaus raised its outlook on the stock to "buy" from "hold," citing better-than expected year-to-date sales trends, as well as the upcoming launch of the company's new F-150 pick-up. At midday, shares of F are 1.1% higher to hover around $17.40, bringing the equity's year-to-date lead to an impressive 12.8%. In the security's options pits, calls are trading at two times the expected intraday amount, with the majority of the action centering on F's September 17 and January 2015 18-strike calls. According to Trade-Alert, it appears one speculator is rolling her bullish bet up and out amid F's continued uptrend.

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.