MCP - Molycorp, Inc. – Shares in
rare earth metals mining company, Molycorp, Inc., are reeling Thursday
morning after the Greenwood Village, Colorado-based company missed its
2012 production target and lowered its 2013 revenue and cash estimates.
The stock is currently down 24% on the day to stand at $8.20 as of 11:00
a.m. ET. Analysts at JPMorgan cut their price target on the stock to
$5.00 from $8.00 today. Options traders positioning for shares to weaken
further by the end of this week initiated bearish plays in weekly put
contracts. Put volume is on the rise at the Jan 11 '13 $9.0, $8.5 and
$8.0 striking prices this morning. Traders appear to have purchased
around 1,100 in-the-money puts at the $9.0 strike, and another 2,350
lots at the $8.5 strike in the early going. The $8.0 strike puts have
traded upwards of 2,200 times thus far today versus zero previously
opened positions, with the bulk of the contracts purchased for an
average premium of $0.13 apiece. Traders long the Jan. 11 '13 $8.0
strike puts stand ready to profit at expiration this week should
Molycorp's shares decline another 4% from the current price of $8.20 to
breach the average breakeven point at $7.87. MCP shares, down more than
70% since January 2012, last traded below $7.87 on November 23rd.
IACI - InterActiveCorp – Options
activity on media and Internet company, InterActiveCorp, this morning
indicates one trader is preparing for shares in the name to potentially
decline in the near term, perhaps following the company's fourth-quarter
earnings report in February. Shares in the operator of online dating
websites, match.com and okcupid, are down more than 3% today at $43.99
as of 11:15 a.m. in New York. The single-largest transaction in IACI
options this morning was the purchase of 1,500-lot Feb. $40/$45 put
spread for a net premium of $1.55 each. The bearish spread makes money
if shares in InterActiveCorp slip 1.2% from the current level to trade
below the breakeven price of $43.45. Maximum potential profits of $3.45
are available at expiration next month in the event that shares in the
media company drop 9% to a new 52-week low of $40.00.
LNKD - LinkedIn Corp. – Shares in
online professional network operator, LinkedIn Corp., are rallying
Thursday after the company announced yesterday it has reached 200
million members. The milestone marks an increase of more than 13 million
members since its last announcement on November 1, 2012, according to a
statement on the company's website. LinkedIn shares jumped 5% to an
intraday high of $119.37 at the start of the session after the stock was
rated new ‘outperform' with a price target of $133.00 at CLSA. Options
traders snapping up weekly call options on LNKD this morning are
positioned to profit should the price of the underlying extend gains in
the near term. The Jan. 11 '13 $120 strike calls are the most active of
the weekly contracts with one full trading session remaining to
expiration. Upwards of 2,500 $120 strike calls changed hands before
midday on the East Coast, and it appears most of the contracts were
purchased for an average premium of $0.49 each. Call buyers stand ready
to profit at expiration this week should shares in LinkedIn rally above
the average breakeven point at $120.49. Bullish positioning on the stock
spread to the Jan. 18 '13 $125 strike, where roughly 400 calls were
purchased for an average premium of $0.31 apiece. Traders long the $125
strike calls that expire next week may profit in the event that shares
rally another 5% to surpass $125.31. Shares in the name last traded
above $125.31 in mid-September 2012 when the stock reached an all-time
high of $125.50 on an intraday basis.