Options Intelligence Report: Symantec Corp. (SYMC), The Mosaic Co. (MOS) & Saks, Inc. (SKS)
Symantec Corp. Entices Options Combo Players
SYMC ñ Symantec Corp.
Large-volume options combination plays on the provider of security, storage and systems management solutions that aid consumers and businesses with information management, indicate at least one investor expects shares of the underlying stock to trade within a specified range through expiration in October. Symantecís shares edged 0.60% lower during the first half of the trading day to stand at $16.95.
It looks like one trader initiated a short strangle on Symantec by selling approximately 26,000 put options at the October $15 strike for a premium of $0.65 apiece, and by shedding about 26,000 calls at the higher October $19 strike for $0.63 each. Gross premium pocketed by the strangle-seller amounts to $1.28 per contract. The investor responsible for the transaction keeps the full premium if Symantecís shares trade within the range of the strike prices specified above through expiration. However, the trader is vulnerable to losses should shares rally through the upper breakeven price of $20.28, or if shares slip beneath the lower breakeven point at $13.73 ahead of expiration day.
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MOS ñ The Mosaic Co.
Bullish options traders flooded phosphate and potash crop nutrients manufacturer Mosaic Company today amid a 2.85% rally in its share price to $60.84. Investors positioned for continued upward movement in the price of the underlying shares by scooping near-term call options on the stock.
Approximately 2,100 in-the-money call options were picked up at the April $60 strike for an average premium of $2.34 apiece. Investors holding these contracts stand ready to accrue profits if Mosaicís shares rally above the effective breakeven price of $62.34 by April expiration day. Buying interest continued at the higher April $65 strike where 4,400 calls were purchased for an average premium of $0.95 each.
Uber-bullish individuals paid an average of $0.33 per contract to secure 3,500 long calls at the higher April $70 strike price. The April $70 strike call options will expire worthless at expiration unless the potash producerís shares rally at least 15% from the current price to exceed $70.00 by expiration. Investors long the contracts do not accrue profits unless shares breach the effective breakeven price of $70.33 ahead of expiration day.
SKS ñ Saks, Inc.
Shares of the operator of luxury fashion retailer Saks Fifth Avenue attained a new 52-week high of $9.57 yesterday after Saks was raised to ëoverweightí from ëneutralí and given a 9-month target share price of $11.00 at JPMorgan. Saksí shares surrendered much of the prior dayís rally to close at $8.96, but recovered partially today to stand 1.55% higher to $9.10.
Investors initiated bullish positions on the clothing and accessories retailer by picking up call options in the April contract. Optimistic traders expecting continued bullish movement in the price of the underlying stock bought 3,000 calls at the April $10 strike for a premium of $0.15 apiece. Call-buyers profit if Saksí shares increase 11.5% over the current price to breach the effective breakeven point at $10.15 by expiration day next
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