Whole Foods Market, Inc. (NASDAQ:WFM) and Encana Corporation (USA) (NYSE:ECA) had unusual options activity and there have sudden peaks and dips in the calls.
Jon Najarian, FMHR trader was discussing about the unusual activity in Whole Foods Market, Inc. (NASDAQ:WFM) options calls on CNBC. He had a few options on the Whole foods and when it peaked up, he sold just 50% of it to keep the balance which didn’t prove to be profitable at all as the options quickly dipped down to where they were before. The options expire next Friday so he expects it to pick up into the weekend however it would have been perfect if he had sold them off at the peak.
Another unusual activity was seen in the energy space. There has been unusual activity on Encana Corporation (USA) (NYSE:ECA)’s calls. The performance of the stock has been excellent YTD and it is well in front of other stocks in the energy space. Market is generally bullish on Encana Corporation (USA) (NYSE:ECA) and it has been doing well. The stock has grown almost 25% YTD which is way above the average growth of S&P 500.
“The performance of Encana has just been absolutely extraordinary Year To Date, well in front of the XLE or the various parts of energy that you want to look at the service sector as well.” Pete najarian spoke about the growth curve of Encana Corporation (USA) (NYSE:ECA).
The options trade has been interesting for Encana Corporation (USA) (NYSE:ECA) where traders are selling off the July calls taking out the profit and buying the January $23 calls. 22,500 calls were traded yesterday and over 8,000 calls were traded today. The stock has been around $24 at the highest so a $23 call looks to give profit considering the number of months available to attain the $23 value by January. Pete Najarian has also bought a few calls on Encana today, though he didn’t own any of the options for the stock before.