Unusual Options Activity Tue 6/18/24

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• CVNA Jun 115 calls (volume: 2940, open int: 2160, implied vol: ~65%, prev day implied vol: 58%). Co is expected to report earnings early August.
• SMCI Jun 950 calls (volume: 13.3K, open int: 2.8K, implied vol: ~78%, prev day implied vol: 74%). Co  continues to expand in Silicon Valley with new campuses as the demand for liquid-cooled data center increases. Co is expected to report earnings early August.
• HPE Jun 22.5 calls (volume: 9830, open int: 5830, implied vol: ~47%, prev day implied vol: 44%). Co introduced introduces new ai and hybrid cloud programs to boost partner profitability.  We noted activity in the Jun 22 calls yesterday (see 6/17 13:31 OPTNX). Nvidia CEO Huang to appear at HPE's Investor Relations Summit on June 18 to speak about the companies' AI partnership. Co is expected to report earnings late August.
• IP Aug 45 calls (volume: 4200, open int: 1470, implied vol: ~38%, prev day implied vol: 35%). Co is expected to report earnings late July.
  

Bearish Put Activity:

• C Jun 58 puts (volume: 6410, open int: 6870, implied vol: ~27%, prev day implied vol: 25%). Co reaffirmed FY24 revenue guidance at investor day (ongoing). Co is confirmed to report earnings July 12 before the open.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.87, VIX: (12.54, -0,21, -1.7%).
June 21 is options expiration -- the last day to trade June equity options.

==Citigroup (C) reported earnings on Fri 14 Jul 23 (b/o)

 

Citigroup beats by $0.02, reports revs in-line

• Reports Q2 (Jun) earnings of $1.33 per share, $0.02 better than the FactSet Consensus of $1.31; revenues fell 1.0% year/year to $19.44 bln vs the $19.34 bln FactSet Consensus.
• Allowance for credit losses on loans was $17.5 bln 
• End of period deposits were ~$1.3 tln, largely unchanged versus last year.

Citigroup reaffirms FY23 revenue guidance in slide presentation

• Co reaffirms guidance for FY23 (Dec), sees FY23 (Dec) revs of $78-79 bln vs. $78.89 bln FactSet Consensus.
• Co sees FY23 net interest income of $46 bln+ from prior guidance of $45 bln.

BRK.A Berkshire Hathaway (Warren Buffett) : updated portfolio positions in 13F filing

Affirms OXY HPQ positions.

New C ALLY CE PARA CE MCK positions.

Exited WFC BMY ABBV

Highlights from 2022 Q1 filing as compared to Q4 2021:

• New positions in: OXY (~136.37 mln shares), HPQ (~104.48 mln), PARA (~68.95 mln), C (~55.16 mln), ALLY (~8.97 mln), CE (~7.88 mln), MCK (~2.92 mln), MKL (~0.42 mln)
• Increased positions in: CVX (to ~159.18 mln shares from ~38.25 mln shares), ATVI (to ~64.32 mln from ~14.66 mln), FWONK (to ~7.72 mln from ~2.12 mln), FND (to ~4.78 mln from ~0.84 mln), GM (to ~62.05 mln from ~60 mln) RH (to ~2.17 mln from ~1.82 mln)
• Maintained positions in: BAC (~1010.1 mln shares), AAPL (~890.92 mln shares), KO (~400 mln shares), KHC  (~325.63 mln shares), AXP (~151.61 mln shares), USB (~126.42 mln shares), DVA (~36.1 mln shares), MCO (~24.67 mln shares)
• Closed positions in: BMY (from ~5.2 mln), ABBV (from ~3.03 mln), WFC (from ~0.68 mln)
• Decreased positions in: VZ (to ~1.38 mln shares from ~158.82 mln shares), STOR (to ~14.75 mln from ~24.42 mln), RPRX (to ~1.5 mln from ~8.65 mln), KR (to ~57.99 mln from ~61.41 mln)

Earnings season: Money Center Q2 Recap

The table below provides a recap of the Q2 earnings season for the six major money center banks. The Book Value per Share, Tangible Book Value per Share, and three month change has been updated to reflect today's prices.

2Q19 Results	MS	JPM	BAC	WFC	C	GS
RoE	12.1%	16.0%	11.6%	13.2%	10.1%	11.1%
RoTCE	13.8%	20.0%	16.2%	15.7%	11.9%	11.7%
Rev Growth (Y/Y)	-3.4%	4.0%	2.0%	0.0%	2.0%	-2.0%
Net Income Growth	-1.0%	16.0%	8.0%	-3.0%	7.0%	-6.0%
TBVPS/Price	1.09x	1.95x	1.53x	1.45x	0.96x	0.99x
BVPS/Price	0.93x	1.57x	1.15x	1.10x	1.12x	1.04x
Trading Revs (Bln)	$3.30	$6.39	$3.20	N/A	$4.67	$3.48
Equity Trading (Bln)	$2.13	$1.73	$1.10	N/A	$0.79	$2.01
Equity (Y/Y)	-14%	-12%	-13%	N/A	-9%	6%
FICC Trading (Bln)	$1.39	$3.69	$2.10	N/A	$3.32	$1.47
FICC (Y/Y)	-18%	-3%	-8%	N/A	8%	-13%
3-month Return	-3%	1%	0%	9%	-3%	-4%
Forward P/E	8.4X	10.8x	9.5x	9.5x	8.5x	9.1x
NIM	N/A	2.49%	2.44%	2.82%	2.67%	N/A
Loan Growth Y/Y	N/A	2%	4%	1%	3%	10%

=Long trade : C +11% (9/17)

• Sept 11:  #1, 3, 4, 5, 9, 12, 15, 22, 26, 52, 58, 59, 72, 97
• vol.  17 M;  $67

=Citigroup (C) reported earnings on Fri 15 Apr 16 (b/o)

Citigroup beats by $0.05, reports revs in-line:

• Reports Q1 (Mar) earnings of $1.10 per share, $0.05 better than the Capital IQ Consensus of $1.05; revenues fell 11.1% year/year to $17.55 bln vs the $17.44 bln Capital IQ Consensus. 
• Reported net income for the first quarter 2016 of $3.5 billion, Capital IQ consensus $3.3 bln.
• Tangible Book Value per share increased to $62.58; BVPS $71.47.
• Credit Reserve Build $233 mln compared to guidance of $400 mln.
• Return on Tangible Common Equity 7.3%
• Return on Assets 0.79%
• Citigroup's operating expenses decreased 3% to $10.5 billion in the first quarter 2016, as lower expenses in Citi Holdings, lower legal and related expenses and the impact of foreign exchange translation were partially offset by higher repositioning costs and ongoing investments in Citicorp.
  • Operating expenses in the first quarter 2016 included legal and related expenses of $166 million, compared to $388 million in the prior year period, and $491 million of repositioning charges, compared to $16 million in the prior year period.
• Citigroup's loans were $619 billion as of quarter end, approximately unchanged from the prior year period, and up 1% in constant dollars.
• Institutional Clients Group
  • ICG revenues of $8.0 billion decreased 12%, driven by a 15% decrease in Markets and Securities Services revenues and a 9% decrease in Banking revenues. Banking revenues of $4.0 billion decreased 6%.
  • Investment Banking revenues of $875 million decreased 27%, primarily reflecting lower industry-wide activity during the current quarter.

Citigroup (C) reported 4Q earnings on Fri 15 Jan 2016 (before open)

** charts before earnings **

** charts after earnings **

Citigroup reports EPS in-line, beats on revs :

• Reports Q4 (Dec) earnings of $1.06 per share, in-line with the Capital IQ Consensus of $1.06; revenues rose 3.1% year/year to $18.46 bln vs the $17.93 bln Capital IQ Consensus.
• Citigroup revenues of $18.6 billion in the fourth quarter 2015 increased 4%, driven by a 61% increase in Citi Holdings, partially offset by a 2% decrease in Citicorp revenues.
• Citigroup's net income increased to $3.4 billion in the fourth quarter 2015, primarily driven by the higher revenues and lower operating expenses, partially offset by a higher cost of credit. Citigroup's operating expenses decreased 23% to $11.1 billion in the fourth quarter 2015.
  • Operating expenses in the fourth quarter 2015 included legal and related expenses of $411 million, compared to $2.9 billion in the prior year period, and $313 million of repositioning charges, compared to $655 million in the prior year period.
  • Citigroup's cost of credit in the fourth quarter 2015 was $2.5 billion, a 25% increase, with a net loan loss reserve build of $588 million, primarily in Institutional Clients Group (:ICG), compared to a net loan loss reserve release of $441 million in the prior year period, and partially offset by a 22% decrease in net credit losses.
  • ICG cost of credit was primarily driven by a net loan loss reserve build of $549 million, including approximately $250 million related to the energy portfolio, with the remainder reflecting volume growth and macroeconomic conditions.
• Citigroup's allowance for loan losses was $12.6 billion at quarter end, or 2.06% of total loans, compared to $16.0 billion, or 2.50% of total loans, at the end of the prior year period.
• Citigroup's loans were $618 billion as of quarter end, down 4% from the prior year period, and down 1% in constant dollars.
• Citigroup's book value per share was $69.46 and tangible book value per share was $60.61, each as of quarter end, representing 5% and 7% increases, respectively.
• Institutional Clients Group
• ICG revenues of $7.4 billion increased 4%, driven by a 9% increase in Markets and Securities Services revenues. Banking revenues of $4.2 billion increased 3% .
• Investment Banking revenues of $1.1 billion increased 6%.
  • Advisory revenues increased 15% to $303 million, debt underwriting revenues increased 12% to $616 million, and equity underwriting fell 18% to $206 million, reflecting lower industry-wide underwriting activity during the current quarter.
  • Markets and Securities Services revenues of $3.2 billion increased 9%.
  • Fixed Income Markets revenues of $2.2 billion in the fourth quarter 2015 increased 7%, reflecting improved trading conditions in spread products as well as continued strength in rates and currencies.
  • Equity Markets revenues of $606 million increased 29%, driven by growth across products and improved performance in EMEA.

Great trade : C Aug $28 weekly calls @ $1.78

Calls were bought 2 days ago @ $0.48, sold today @ $1.78 --> 270% gain

08/25/11

Option

Sell Close

C Aug 26 '11 $28 Call w

Mkt

Day

Mkt

1.78

C Aug 26 '11 $28 Call w

1.71  +0.82  (+92.13%)

Bid (Size) 1.78 (10)	Ask (Size) 1.84 (334)	Volume   489	Open Interest 8,162

Real Time

8/25/11 10:45:00 AM ET

Bought C calls : Aug $28 weekly @ $0.48

$28 call : bot Tue 8/23 weekly option expires Friday (3 days away)

08/23/11

Option

Buy Open

C Aug 26 '11 $28 Call w

Mkt

Day

Mkt

0.48

C Aug 26 '11 $28 Call w

0.44  +0.20  (+83.33%)

Bid (Size) 0.44 (268)

Ask (Size) 0.48 (181)

Volume   4,509

Open Interest 8,682

Real Time

8/23/11 3:59:00 PM ET