Business Magazine

Under Armour Calls Active

Posted on the 27 March 2012 by Phil's Stock World @philstockworld

UA - Under Armour, Inc. – Options on the athletic apparel maker are more active than usual today, with volume of 11,300 contracts running more than four times the stock’s 90-day average options volume of 2,475 contracts. Shares in Under Armour are down 0.80% at $98.19 in early-afternoon trade, slipping Tuesday after hitting a new all time high of $99.35 on Monday. Options traders exchanging around 2.5 calls on the name for each single put in play so far in the session appear to be positioning for the price of the underlying to continue to secure fresh highs in the next few weeks. In- and out-of-the-money calls in the front month are seeing the most action, with the April $95 and $97.5 strike calls trading upwards of 1,100 times each. Traders positioning for fresh record highs in the price of the stock snapped up more than 500 calls at each of the April $105 and $110 strikes, paying premiums of $1.00 and $0.33 apiece, respectively. Call buyers may profit at expiration should Under Armour’s shares post sharp gains prior to the Company’s first-quarter earnings report on April 24th. The April contract calls expire several days ahead of UA’s earnings release. Traders long the call options may profit at April expiration as long as Under Armour’s shares surge 6.7% and 11.1% to top average breakeven prices of $106.00 and $110.33, respectively.

AIG - American International Group, Inc. – Shares in AIG have mostly traded within the range of $20.00 to $30.00 during the most recent six month period. Activity in long-dated call options on the insurer, however, suggests one strategist is positioning for the price of the underlying to break out strongly to the upside at some point during the next ten months. Shares in American International Group, Inc. are up 2.2% this morning at $29.70 after analysts at Deutsche Bank predicted the insurer’s stock buyback program may be larger and more rapid than is implied by the current share price. The largest single trade in AIG options this morning indicates one player expects the shares to trade at a substantial premium to the current price by January 2013 expiration. The trader appears to have purchased a block of 7,280 calls at the Jan. 2013 $45 strike for a premium of $0.35 apiece, though upwards of 9,800 call options have changed hands at that strike in the first half of the session. Profits are available to the call buyer at expiration as long as AIG’s shares surge 53.0% in the next ten months to top the effective breakeven price of $45.35. Shares in AIG last traded above $45.35 in January 2011.

TIE - Titanium Metals Corp. – The titanium producer is in rally-mode today, with shares in the Dallas, Texas-based Company trading 0.90% higher on the day at $13.86 just after 11:45 a.m. in New York. Front-month call buying on Titanium Metals Corp. may mean some market participants anticipate the stock will extend gains in the near term. Options volume on TIE is concentrated in the April $14 strike call, where some 4,750 contracts changed hands against 1,525 open positions. It looks like most of the day’s volume was generated by buyers paying an average premium of $0.40 per contract. Traders long the calls profit at expiration as long as shares in the metal producer rally another 4.0% to surpass the average breakeven price of $14.40.

Caitlin Duffy
Equity Options Analyst

Email This Post
 Email This Post  
Under Armour Calls Active
Twitter  
Under Armour Calls Active
LinkedIn  
Under Armour Calls Active
del.icio.us   Google+  


You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Lipoprotein (a) Used to Be the Forgotten Lipid. Not Anymore.

    Lipoprotein Used Forgotten Lipid. Anymore.

    Lipoprotein (a) - or its abbreviation, Lp(a), pronounced "el-pee-little-a" - is emerging from obscurity. And for good reason. Among them, Bob Harper, the TV... Read more

    The 18 October 2018 by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • How to Avoid an Identity Crisis.

    Avoid Identity Crisis.

    The secrets of a branding identity review - and when to ask for help. Quick quiz: Which of the following items are part of your company's brand identity? ... Read more

    The 18 October 2018 by   Marketingtango
    BUSINESS, MARKETING & ADVERTISING
  • Wake Up You Sleepy Head!!

    So how are your mornings?? Is your teen a member of the "I'm getting up!!! Leave me alone club!! Do you dread getting out of bed, knowing that your early mornin... Read more

    The 18 October 2018 by   Joanigeltman
    FAMILY, PARENTING
  • Rothy’s Shoes Review

    Rothy’s Shoes Review

    A year ago, I purchased my first pair of Rothy's flats. After giving them a real beating through the streets of New York, I wrote my first Rothy's flats... Read more

    The 18 October 2018 by   Wardrobeoxygen
    FASHION, SELF EXPRESSION, SHOPPING
  • This Week’s Meal Plan: Egg-free Meals!

    Our popular keto meal-plan tool gives you everything you need to succeed on a keto low-carb diet. Meal plans, recipes and shopping lists - no planning... Read more

    The 18 October 2018 by   Dietdoctor
    DIET & WEIGHT, HEALTH, HEALTHY LIVING, MEDICINE
  • ExWeb Interviews Controversial Mountaineer Denis Urubko

    ExWeb Interviews Controversial Mountaineer Denis Urubko

    If you're looking for some interesting reading today, check out Explorers Web's great interview with climber Denis Urubko, an extremely talented mountaineer... Read more

    The 18 October 2018 by   Kungfujedi
    OUTDOORS
  • AAU Acceptance And School Fees Registration Procedure – 2018/2019

    The Ambrose Alli University (AAU) Acceptance fee payment and registration procedure for newly admitted candidates in the 2018/2019 academic session have been... Read more

    The 18 October 2018 by   Naijapary
    SOCIETY, A-CLASSER

Magazines