Options Intelligence Report: NextEra Energy, Inc. (NEE) & Saks, Inc. (SKS)

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NEE ñ NextEra Energy, Inc.
Investors are scooping up call options on Florida-based, NextEra Energy, Inc., today in order to position for continued appreciation in the price of the underlying shares through the end of the year. NEEís shares rallied as much as 2.85% this morning to reach an intraday high of $55.25, but are currently up a lesser 1.35% to stand at $54.44 as of 1:50 pm ET. Bullish players hoping shares of one of the nationís largest providers of electricity-related services are on the up-and-up purchased roughly 1,800 calls at the December $55 strike for an average premium of $1.90 per contract. Call buyers stand ready to accumulate profits as long as NEEís shares jump 4.5% over the current price of $54.44 to exceed the average breakeven point at $56.90 by expiration day in December. NextEraís overall reading of options implied volatility is up 9.00% to arrive at 18.75% by 1:55 pm ET.

 


SKS ñ Saks, Inc.
Frenzied put buying activity on the operator of high-end luxury retail department stores suggests some options traders are bracing for bearish movement in the price of the underlying stock to continue through September expiration. Saksí shares declined as much as 5.40% in afternoon trading to touch an intraday low of $7.17. The retailerís shares are currently down 4.6% to stand at $7.23 as of 12:50 pm ET. Pessimistic players positioning for additional share price erosion picked up at least 4,500 puts at the September $7.0 strike for an average premium of $0.30 per contract. Put buyers make money if SKS shares fall another 7.33% from the current price of $7.23 to breach the average breakeven point to the downside at $6.70 by expiration day next month. Saksí shares last traded below $6.70 on February 16, 2010. Increased investor demand for put options on Saks contributed to the 9% increase in the stockís overall reading of options implied volatility to 54.04% this afternoon.

                                       

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