ALKS Trade Idea
4/2/13: Drug developer Alkermes has been trending higher, and the bulls are looking for more. Heat Seeker shows the purchase of about 2,500 August 23 calls for $2.30 to $2.50 against open interest of 220 contracts.. most of the volume priced at the higher premium.. Total option volume is almost 5 times greater than average in the stock so far today, with calls outnumbering puts by more than 100 to 1. ALKS rose 3.68 percent to $23.93....Updated 4/17 as shares popped and the calls more than doubled to $5.10-$5.50. Exited balance on 4/22 at $7.90-$8.50.
ESI Trade Idea
4/11/13: ITT Educational Services pretty much lives at the woodshed... It's been parked at lows last seen in early 2001.. but short interest is massive and earnings come out on April.. Now some interesting activity appears on Heat Seeker in the May 15 calls.. some 2,500 have been purchased for $0.45 to $0.50 against open interest of 343, with most of the large chunks fetching the higher price... We often shy away from trades immediately before earnings, but these have some time before the release comes and the shorts might get nervous and trigger a squeeze higher. Total option volume is almost 10 times greater than average, with not a single put trading so far. ESI fell 0.81 percent to $12.82.....Updated the same day as the calls doubled to $1.00. On 4/19 lightened up some more at $1.30-$1.45 ahead of earnings. On 4/25, shares popped and exited balance at $2.21-$2.63.