Unusual Options Activity Thur 12/14/23

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:

• GS Dec 385 calls (volume: 8140, open int: 2, implied vol: ~35%, prev day implied vol: 28%). Underlying stock is higher by 6%. Co is confirmed to report earnings January 16 before the open.
  
• CG Jan24 45 calls (volume: 2640, open int: 0, implied vol: ~29%, prev day implied vol: 22%). Underlying stock is higher by 7%. Co is expected to report earnings early February.
• INFY Jan24 19 calls (volume: 1670, open int: 0, implied vol: ~27%, prev day implied vol: 22%). Underlying stock trading higher by 5%.

Bearish Put Activity:

• SEDG Dec 91 puts (volume: 2390, open int: 3, implied vol: ~127%, prev day implied vol: 61%). Underlying stock trading higher by 16%. Co is expected to report earnings mid-February.
• BHC Jan24 6 puts (volume: 9040, open int: 0, implied vol: ~77%, prev day implied vol: 67%). Co is expected to report earnings late February.
  

Sentiment: The CBOE Put/Call ratio is currently: 1.01, VIX: (12.36, +0.17, +1.4%).
December 15 is options expiration -- the last day to trade December equity options.

-=Infosys (INFY) plunges after whistleblower complaints

BENGALURU (Reuters) - U.S.-listed shares of Infosys Ltd fell on Monday after the Indian software services exporter said it had received whistleblower complaints alleging "unethical practices" by the company's executives.

The company issued a statement after The Economic Times reported https://economictimes.indiatimes.com/tech/ites/whistleblower-complaint-placed-before-audit-committee-infosys/articleshow/71686001.cms that an anonymous group sent letters to Infosys' board and the U.S. Securities and Exchange Commission alleging that the company was taking "unethical" steps to boost short-term revenue and profit.

The group alleged that Chief Executive Officer Salil Parekh was bypassing reviews and approvals for large deals, the ET report said.

"In large contracts like Verizon, Intel, JVs in Japan, ABN AMRO acquisition, revenue recognition matters are forced, which are not as per accounting standards," the report said, citing cited the letters.

Indian markets were closed on Monday for a holiday.

Infosys (INFY) : CEO resigns

MUMBAI (Reuters) - India's second-biggest IT firm Infosys (INFY) said on Saturday it will buy back shares worth up to 130 billion rupees ($2 billion), a day after Vishal Sikka resigned as chief executive after a long-running feud with the company's founders.

• The announcement of the company's first-ever buyback could offer at least some respite to Infosys shareholders on Monday after the value of their holdings fell nearly 10 percent on Friday following Sikka's surprise exit.
• Bigger, cash-rich rival Tata Consultancy Services announced a buyback of up to 160 billion rupees earlier this year.

Infosys (INFY) reported earnings on Fri 15 July 2016 (b/o)

** charts after earnings **

 

Infosys misses by INR0.11, misses on revs :

• Reports Q1 (Jun) earnings of $15.03 per share, INR0.11 worse than the Capital IQ Consensus of INR15.14; revenues rose 16.9% year/year to INR167.82 bln vs the INR170.67 bln Capital IQ Consensus.
  • Added 3 clients to $100 million + category taking total count to 17
• Co Commentary "We had unanticipated headwinds in discretionary spending in consulting services and package implementations as well as slower project ramp-ups in large deals that we had won in earlier quarters, resulting in a lower than expected growth in Q1..."
• Co issues guidance for FY17, sees FY17 revs of +13.7-15.2% (in INR terms as of June 30), compared to +14.5% YoY growth (INR714.79 bln) Capital IQ Consensus Estimate.
  • The above constant currency guidance translates to 11.7%-13.2% in INR terms based on March 31st rates and 13.7%-15.2% based on June 30th rates
  • FY 17 revenue guidance revised to +10.5%-12.0% in constant currency; translates to 10.8%-12.3% in USD terms based on March 31st rates and 10.0%-11.5% based on June 30th rates, compared to prior expectation of +11.5-13.5% in constant currency and increase between +11.8-13.8% in dollar terms based on the exchange rate at the end of March.

INFY — is it a buy?

• 5/27/16:    Is INFY a buy?

• 6 weeks later:

INFY — is it a buy?

• 4/15/16:  Right after earnings.  Is INFY a buy?

• 6 weeks later:

Infosys (INFY) reported earnings on Fri 15 Apr 2016 (b/o)

** charts before earnings **

  

** charts after earnings **

  

 Infosys beats by INR0.54, reports revs in-line; guides FY17 revs in-line:

• Reports Q4 (Mar) earnings of INR15.74 per share, INR0.54 better than the Capital IQ Consensus of INR15.20; revenues rose 23.4% year/year to INR165.5 bln vs the INR164.42 bln Capital IQ Consensus.
• Co issues in-line guidance for FY17, sees FY17 revs of +11.5%-13.5% to INR696.2-708.7 bln vs. INR704.87 bln Capital IQ Consensus Estimate.
• Board Recommended a Final Dividend of INR14.25 per share

INFY — is it a buy?

• 10/20/15:   Is INFY a buy?

• 6 weeks later: