Today’s tickers: WAG, IO, HTZ & NBR
WAG - Walgreen Co. – Shares in the largest U.S. drugstore chain may rally sharply heading into the New Year, according to one options player dabbling in Jan. 2012 contract call options this morning. The buyer of a sizable bull call spread may be using the position to prepare for Walgreen’s shares to pop after the company reports first-quarter earnings ahead of the opening bell on December 21. The stock currently trades flat on the session at $34.01 as of 11:45 AM in New York. It looks like the trader purchased a roughly-3,000 lot Jan. 2012 $35/$39 call spread for an average net premium of $1.06 per contract. The investor stands ready to profit at expiration next year as long as shares in Walgreen Co. increase 6.0% to exceed the average breakeven price of $36.06. Maximum potential profits of $ are available to the call-spreader if the drug retailer’s shares soar 14.7% to trade above $39.00 at expiration in January. Walgreen’s shares last traded above $39.00 at the beginning of August.
IO - ION Geophysical Corp. – The provider of seismic solutions and equipment to the global energy industry rallied in sympathy with shares in Mitcham Industries (MIND), which jumped to a new 52-week high today after reporting better-than-expected third-quarter earnings after the close on Tuesday. ION’s shares are up 1.8% to stand at $6.82 as of 12:20 PM in New York. At least one options trader is taking advantage of the positive day for ION’s shares by picking up bearish put options on the cheap. It looks like the investor purchased more than 3,000 puts at the Dec. $6.0 strike for a premium of $0.10 each. These same options would have cost the trader $0.50 each less than one week ago. The bearish position may yield profits…
