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Options Radar: Nu Skin Enterprises, Keurig Green Mountain, Youku Tudou

Reviewing notable options activity for Nu Skin Enterprises, Inc., Keurig Green Mountain Inc, and Youku Tudou Inc (ADR)

by 8/6/2014 1:49 PM
Stocks quoted in this article:

Three stocks seeing notable options activity today are personal products peddler Nu Skin Enterprises, Inc. (NYSE:NUS), K-Cup creator Keurig Green Mountain Inc (NASDAQ:GMCR), and Internet TV issue Youku Tudou Inc (ADR) (NYSE:YOKU). Here's a look at how today's options traders have been placing their bets on NUS, GMCR, and YOKU.

  • It's been a brutal session for NUS, with the stock down 22.6% at $44.85 this afternoon. Earlier, the shares bottomed out at a new annual low of $43.50, pressured by a weak second-half forecast. The drastic sell-off has triggered a short-selling restriction on Nu Skin Enterprises, Inc. (NYSE:NUS), and options volume has already more than tripled the stock's average daily volume. The two most active NUS options are the weekly 8/8 45-strike put and the August 40 put, with traders buying to open new bearish bets at both strikes.

  • GMCR will be reporting its fiscal third-quarter results after tonight's closing bell, and the options market is pricing in a 13.7% move. That's actually a somewhat modest forecast, as the stock has notched an average one-day return of 14.2% in the session following its last seven earnings announcements. However, one trader unwound a bullish spread ahead of tonight's quarterly report from Keurig Green Mountain Inc (NASDAQ:GMCR), with data from the International Securities Exchange (ISE) indicating the closeout of a long call spread at GMCR's September 125 and 150 strikes. On the charts, the stock is up 0.9% this afternoon to trade at $118.76.

  • Call volume on YOKU has ramped up to seven times the intraday norm, with 26,000 contracts crossing the tape so far. This sudden spike in option activity coincides with today's 3% rise in YOKU shares to $19.19. Bullish bettors are apparently predicting an extended rebound for Youku Tudou Inc (ADR) (NYSE:YOKU), which has shed nearly 37% of its value year-to-date. New positions are being bought to open today at the stock's weekly 8/8 and 8/22 20-strike calls. Activity at the longer-dated strike may be earnings-related, as YOKU is tentatively scheduled to report its second-quarter results in the second half of August.

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