* WLT Oct 3.5 calls are seeing interest with the underlying stock +7% following interest payment news and peer BTU guidance (volume: 3060, open int: 70, implied vol: ~108%, prev day implied vol: 99%) -- we noted unusual put activity earlier this month (see 9/11 14:01 OPTNX). Co is expected to report earnings late October. * DRYS Oct 3 calls (volume: 4.1K, open int: 1.3K, implied vol: ~50%, prev day implied vol: 47%) -- co is expected to report earnings early November. * RAX Oct 32 calls are seeing interest with continued weakness in the underlying stock (volume: 4270, open int: 1080, implied vol: ~40%, prev day implied vol: 38%) -- co ended Formal Evaluation of M&A Transactions last week (stock has since been under considerable pressure). * AER Jan15 47.5 calls (volume: 5360, open int: 190, implied vol: ~28%, prev day implied vol: 26%) -- one 5K transaction traded on the offer. Co is scheduled to present next week on Sept 29 at RBC conference and expected to report earnings early November.
Notable Call Activity following M&A speculation:
* GOGO calls are seeing interest with the underlying stock +2% on renewed Verizon takeover rumor. More than 6.2K total calls have traded vs 160 puts with most notable volume in the Oct 19/20 calls. GOGO is expected to report earnings early November. * VOD is seeing heavy call buying as renewed AT&T M&A speculation circulates (20K+ total calls have traded vs 1.4K puts). VOD reports earnings November 11 before the open.
Bearish Put Activity:
* DF Oct 13 puts (volume: 6730, open int: 0, implied vol: ~42%, prev day implied vol: 36%) -- co is expected to report earnings mid-November.