Options Radar: Coach Inc, Huntsman Corporation, and Pfizer Inc.

Reviewing notable options activity on Coach Inc, Huntsman Corporation, and Pfizer Inc.


Published on Oct 27, 2014 at 2:07 PM
Updated on Apr 20, 2015 at 5:09 PM

Three stocks seeing notable options activity today are accessories designer Coach Inc (NYSE:COH), chemical expert Huntsman Corporation (NYSE:HUN), and blue chip Pfizer Inc. (NYSE:PFE). Here's a look at how today's options traders have been placing their bets on these three names.

  • Coach Inc (NYSE:COH) is up 0.4% to trade at $36.10 this afternoon, with the company slated to report fiscal first-quarter earnings tomorrow morning. Meanwhile, in the stock's options pits, contracts are changing hands at quadruple the usual intraday rate, and COH's 30-day at-the-money implied volatility has popped 3.4% to 39.6%, suggested elevated demand for short-term strikes. Seeing the most activity is the equity's weekly 10/31 38-strike call, where a sizable portion of the 3,363 contracts exchanged so far have been bought to open, as speculators gamble on end-of-week upside. Historically, the shares -- down roughly 36% in 2014 -- haven't ended a week atop the $38 level since mid-June. However, last time COH entered the quarterly confessional, the shares rallied 4.3% in the session following an earnings beat.

  • Huntsman Corporation (NYSE:HUN) has tumbled 5.8% to hover near $23.08, after reporting disappointing third-quarter sales -- though per-share earnings topped expectations (subscription required). In the options pits, puts are flying off the shelves at 14 times the intraday norm. The in-the-money November 24 put is HUN's most active strike, with nearly 4,500 contracts traded. Based on data from the International Securities Exchange (ISE), at least some of these puts are being bought to open, as traders roll the dice on continued downside through front-month options expiration.

  • Pfizer Inc. (NYSE:PFE) is slightly lower this afternoon at $29.09, after ending an agreement to develop a painkiller for Pain Therapeutics, Inc. (NASDAQ:PTIE) in favor of a deal with DURECT Corporation (NASDAQ:DRRX). Meanwhile, ahead of tomorrow morning's third-quarter earnings report, puts are being exchanged at a slightly accelerated rate. Nevertheless, PFE's November 30 call is the most active strike, and appears to be seeing buy-to-open activity, as traders gamble on the stock to topple the round-number $30 level by the close on Friday, Nov. 21, when front-month options expire.

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