Unusual Options Activity Mon 10/9/23

Stocks seeing volatility buying (bullish call buying/bearish put buying):

Calls:

• PXD Oct 250 calls are seeing interest with 12.5K contracts trading vs. open int of 1.6K, pushing implied vol up around 13 points to ~50%. Co is expected to report earnings early November.
  
• OXY Oct 64 calls are seeing interest with the underlying stock up 4% with 13.2K contracts trading vs. open int of 1.1K, pushing implied vol up around 10 points to ~39%. Chevron (CVX) was interested in Occidental Petroleum (OXY) at the beginning of the year, according to The Wall Street Journal. Co is expected to report earnings November 7 after the close.
• LMT Oct 450 calls are seeing interest with the underlying stock up 8% with 2810 contracts trading vs. open int of 0, pushing implied vol up around 5 points to ~41%. Defense names showing strength amid Israel/Hamas war. 
  

Puts:

• DLO Oct 17 puts are seeing interest with 11.0K contracts trading vs. open int of 0, pushing implied vol up around 19 points to ~65%. Co is expected to report earnings mid-November.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.96, VIX: (17.75, +0.30, +1.7%).
October 20 is options expiration -- the last day to trade October equity options.

Lockheed Martin (LMT) reported earnings on Tue 26 Oct 21 (b/o)

• Missed consensus for Q3 revs. Net earnings included a noncash pension settlement charge of $1.7 bln. Supply chain challenges, moderating growth rates in the US defense budget, and shifts in customer priorities driven by events such as the withdrawal of US forces from Afghanistan were among factors impacting co's sales trajectory. Issued downside guidance for FY21 EPS and revs and for FY22 revs.

 ** charts after earnings **

 

 

Earnings this week : Oct 25 - 29, 2021 (wk 43)

 

Monday, October 25: Kimberly-Clark (NYSE:KMB), Facebook (FB) and Universal Health (NYSE:UHS).

Tuesday, October 26: UPS (NYSE:UPS), General Electric (NYSE:GE), Lockheed Martin (NYSE:LMT), Alphabet (GOOG), Microsoft (MSFT), Twitter (NYSE:TWTR), F5 Networks (NASDAQ:FFIV), Hasbro (NASDAQ:HAS), Visa (NYSE:V), Robinhood Markets (NASDAQ:HOOD) and AMD (NASDAQ:AMD).

Wednesday, October 27: FISV, Boeing (NYSE:BA), Coca-Cola (NYSE:KO), Kraft-Heinz (NASDAQ:KHC), McDonald's (NYSE:MCD), eBay (NASDAQ:EBAY), Ford (NYSE:F) and General Motors (NYSE:GM).

• Afternoon: AFL AEM AGI ALGN ALGT ALSN NLY AM AR ACGL ASGN AZPN AVB AXS NTB BHE BMRN BOOT BCOV CACI CG CCS CHX CHDN CINF CNO CDE CTSH FIX CYH CNMD CLB CONE DRE EBAY EW ESI EHC ENSG EQT EQC ETD RE EVTC EXR FLEX FLS F FORM FWRD GSHD THG PI NGVT ISBC INVH IRBT JBT KRC KLAC KN LC MXL MTH MEOH MAA MKSI MC MOH MSA MUSA MYRG NTGR NDLS ORLY OII PGRE PEGA PDM PPC PLXS PPD RJF SIGI SCI NOW SIMO SNBR SSB SAVE SRI TDOC TROX TTMI TWLO TYL UCTT URI UPWK VICI WCN WOLF WH XLNX YUMC

Thursday, October 28: Anheuser-Busch InBev (NYSE:BUD), Caterpillar (NYSE:CAT), Merck (NYSE:MRK), MasterCard (NYSE:MA), Apple (AAPL), Atlassian (NASDAQ:TEAM), Amazon (AMZN), Altria Group (NYSE:MO), Hershey (NYSE:HSY), Comcast (NASDAQ:CMCSA), Keurig Dr Pepper (NASDAQ:KDP) and Starbucks (NASDAQ:SBUX).

• Morning: FLWS AOS ABMD AGCO ATI ALGM ADS AB ALNY MO AEP AMT BUD AVNT BAX BPMC BC CRS CARR CAT CBZ CBRE CHKP CLVT CMS CNX COLB CMCO CMCSA COR CFR DBD EXP EME FCN THRM GPI HSY HBAN IDA ITW IMAX INSM ITGR ICE JHG KBR KDP KEX LH TREE LECO LIN LKQ MA MDC MPW MD MRK MDP TAP MCO COOP NEM NLSN NOC NVCR NVT OSK OSIS OSTK PATK PTEN PBF BTU PRFT PRLB PACK RLGY RS RGEN RDS.A SAIA SNY SNDR SHOP SIRI SWI SAH SMP SWK STM TROW TFX TPX TXT TW TRS VLY VC WST WEX WLTW WNS XEL YUM
• Afternoon: ACHC AMZN ABCB AAPL ATR AJG TEAM AVTR AVT AX BIO CPT CDNA CWST CHE COHU COLM OFC CUZ DVA DECK DXCM DRQ EMN EIG ENVA EXPO FHI FE FTV FTAI FTDR GLPI GILD LOPE HIG HTGC HTH HUBG KMPR KNSL LMAT LPLA LTC MGRC MERC MMSI MSTR MHK MPWR NATI NXGN OPK PEB POLY POWI PTCT RNST RSG RMD SGEN SPNE SKX SKYW SM SPSC SSNC STAG SBUX SYK TEX TXRH X VRSN VCRA WRE WERN WDC AUY ZEN

Friday, October 29: Exxon Mobil (NYSE:XOM), AbbVie (NYSE:ABBV), Church & Dwight (NYSE:CHD), Chevron (NYSE:CVX), Colgate-Palmolive (NYSE:CL) and L3Harris Technologies (NYSE:LHX).

• Morning: ABBV AON ABR B BAH CCJ CRI CBOE CERN CHTR CVX CHD CL XOM FTS GWW HUN IMGN IMO LAZ LYB NWL PSX PSXP PNM POR PFS RCL SJR SHLX SLCA WPC WY WETF

Lockheed Martin (LMT) reported earnings on Tue 24 Apr 2018 (b/o)

** charts after earnings **

 

Lockheed Martin beats by $0.66, beats on revs; raises FY18 guidance 

• Reports Q1 (Mar) earnings of $4.02 per share, excluding non-recurring items, $0.66 better than the Capital IQ Consensus of $3.36; revenues rose 3.8% year/year to $11.63 bln vs the $11.25 bln Capital IQ Consensus.
• Co issues raised guidancefor FY18, sees EPS of $15.80-16.10 from $15.20-15.50, excluding non-recurring items, vs. $15.56 Capital IQ Consensus Estimate; sees FY18 revs of $50.35-51.85 bln from $50.0-51.5 bln vs. $51.03 bln Capital IQ Consensus Estimate.

Earnings this week : Oct 23 - 27, 17 (wk 43)

=Lockheed Martin (LMT) reported earnings on Tue 24 Jan 2017 (b/o)

Lockheed Martin beats by $0.21, beats on revs; guides FY17 EPS below consensus, revs in-line :

• Reports Q4 (Dec) earnings of $3.25 per share, $0.21 better than the Capital IQ Consensus of $3.04; revenues rose 19.4% year/year to $13.75 bln vs the $12.99 bln Capital IQ Consensus.
  • Backlog of $96.2 billion at the end of 2016
• Co issues guidance for FY17, sees EPS of $12.25-12.55, excluding non-recurring items, vs. $12.72 Capital IQ Consensus Estimate; sees FY17 revs of $49.4-50.6 bln vs. $49.39 bln Capital IQ Consensus Estimate.
• Sikorsky Issue
  • The Corporation is completing its assessment of the effectiveness of its internal control over financial reporting as of Dec. 31, 2016. However, the Corporation expects to report a material weakness in internal control over financial reporting at its Sikorsky Aircraft Corporation (Sikorsky) business in its Annual Report on Form 10-K for the year ended Dec. 31, 2016. Sikorsky was acquired on Nov. 6, 2015 and generated about 10% of the Corporation's total net sales for the year ended Dec. 31, 2016. Prior to 2016, Sikorsky was not included in assessments of the effectiveness of the Corporation's internal control over financial reporting as the U.S. Securities and Exchange Commission. The Corporation expects that the remediation of this material weakness will be completed prior to the end of fiscal year 2017.

=Lockheed Martin (LMT) reported earnings on Tue 25 Oct 2016 (b/o)

Lockheed Martin beats by $0.74, reports revs in-line; raises FY16 guidance ; raises quarterly dividend 10% to $1.82/share; increases share buybacks by $2 bln :

• Reports Q3 (Sep) adj earnings of $3.61 per share, $0.74 better than the Capital IQ Consensus of $2.87; revenues rose 14.8% year/year to $11.55 bln vs the $11.45 bln Capital IQ Consensus.
• Co raises guidance for FY16, sees EPS of $12.10 (prior $11.15-11.45), excluding non-recurring items, vs. $11.72 Capital IQ Consensus Estimate; sees FY16 revs of $46.5 bln (prior $45-46.2 bln) vs. $46.38 bln Capital IQ Consensus Estimate.
• The co expects its 2017 net sales to increase by approximately 7% as compared to 2016. Total business segment operating margin is expected to be in the 10.0 percent to 10.5 percent range. Depending on the timing of F-35 collections, 2017 cash from operations will be greater than or equal to $5.0 bln or greater than or equal to $5.7 bln.
  • "Looking ahead to 2017, we are focused on providing innovative solutions to our customers, while executing on our realigned business portfolio to generate growth and value to shareholders."
• Increased share repurchase authorization by $2.0 bln.
• Increased quarterly dividend rate 10 percent to $1.82 per share.