Options Radar: magicJack VocalTec, Gogo Inc, and Hovnanian Enterprises

Reviewing notable options activity on magicJack VocalTec Ltd, Gogo Inc, and Hovnanian Enterprises, Inc.


Published on Nov 11, 2014 at 1:56 PM
Updated on Apr 20, 2015 at 5:32 PM

Three stocks seeing notable options activity today are voice-over-IP issue magicJack VocalTec Ltd (NASDAQ:CALL), in-flight wireless provider Gogo Inc (NASDAQ:GOGO), and homebuilder Hovnanian Enterprises, Inc. (NYSE:HOV). Here's a look at how today's options traders have been placing their bets on these three names.

  • magicJack VocalTec Ltd (NASDAQ:CALL) has tumbled 17.7% to hover near $8.64, following poorly received quarterly earnings results. Not surprisingly, put volume on the stock has exploded -- running at 19 times what's typically seen at this point in the day -- as traders seek alternative ways to bet bearishly on CALL. However, the equity's most active strike is on the call side of the fence. Specifically, CALL's deep out-of-the-money January 2016 15-strike call has 1,007 contracts on the tape thus far, and appears to be seeing a mix of buying and selling activity.

  • Gogo Inc (NASDAQ:GOGO) is off 0.7% at $18.27, on the heels of Monday's volatile post-earnings session. In the options pits, contracts are trading at twice the typical intraday rate, and calls more than double puts. Most active is the May 16 call, where new positions are being initiated. The next most sought-after call is the weekly 11/14 20 strike, where buyers are busy. However, with implied volatility 10.6 percentage points lower at 67.3%, it's unclear whether these positions are opening or closing.

  • Hovnanian Enterprises, Inc. (NYSE:HOV) has rallied 5.3% to trade at $4.16. Meanwhile, traders have rushed the stock's options pits, as volume outpaces the expected intraday level by a 7-to-1 margin. Digging deeper, a sweep of 5,000 in-the-money May 4 calls was exchanged earlier at the ask price. According to Trade-Alert, these contracts are being bought to open, as speculators roll the dice on long-term upside for HOV.

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