DNR – Denbury Resources Inc. – Oil and natural gas producer Denbury Resources popped up on our ‘hot by options volume’ market scanner today amid heavier than usual trading in upside call options ahead of the company’s third-quarter earnings report prior to the opening bell on Tuesday. Shares in DNR are up better than 2.0% at midday to stand at $19.30.
The Nov $20 strike calls are the most traded options on Denbury today, with volume currently above 6,400 contracts versus previously existing open interest of 1,076 calls. Traders appear to have purchased most of the $20 calls this morning for an average premium of $0.32 each. Buyers of the calls may profit at expiration next week if shares in Denbury Resources.
MAT – Mattel Inc. – Shares in Mattel are on the rise today, rallying as much as 2.0% to $45.70 in the first half of the trading day. Options changing hands on the maker of Barbie dolls and board games suggests some traders are positioning for the price of the underlying to extend gains in the near term.
The most traded options on MAT today are the Nov $45 strike calls, with upwards of 3,000 contracts in play against open interest of 610 contracts. Time and sales data indicates most of the $45 calls were purchased for an average premium of $0.74 each. Traders long the calls stand ready to profit at expiration this month in the event that Mattel’s shares settle above the average breakeven price of $45.74.
BBRY – Blackberry Ltd. – Options volume on Blackberry is currently three times the stock’s average daily level just two hours into the trading week, with upwards of 235,000 contracts traded this morning versus the average daily reading of approximately 75,000 contracts. Shares in the name are down more than 12.5% at $6.80 after the takeover bid from Fairfax Financial Holdings Ltd. fell through and the company announced CEO Thorsten Heins will step down. The stock was halted with news pending in the premarket, and opened sharply lower to touch down at a new 52-week low of $6.40 at the start of the session.
Trading in BBRY puts is outpacing that of calls at present, with the put/call ratio hovering near 1.5 as of the time of this writing. The most traded contracts by volume are the December expiry puts, with heavy volume in the Dec $6, $7 and $8 strike contracts.
