Stock Options Watch: NTRI, NEE, DDD

NTRI – Nutrisystem, Inc. – Shares in Nutrisystem rose more than 7.0% to a six-month high of $10.18 on Friday after the maker of weight loss products announced Thursday it has increased production of its Nutrisystem D 5-Day Jumpstart Weight Loss Kit to offer the product in 3,700 Walmart locations by the end June. Options in play on NTRI today indicate some traders are prepared to profit from further gains in the price of the underlying during the next couple of months. Traders initiating near-term bullish bets on the stock snapped up calls at the Jun $10 and $11 strikes, purchasing around 900 of the $10 calls for an average premium of $0.17 each and 500 of the $11 calls at a premium of $0.05 apiece. The Jul $10 strike calls are also changing hands today, with more than 500 of those contracts purchased at an average premium of $0.31 each. Looking out to the September expiry options, one or more traders appear to have purchased more than 200 of the Sep $11 calls for an average premium of $0.28 per contract. Buyers of the Sep $11 calls profit at expiration in the event that Nutrisystem’s shares gain another 10% to surpass the average breakeven price of $11.28.

NEE – NextEra Energy, Inc. – Clean energy company, NextEra Energy, Inc., popped up on our ‘hot by options volume’ market scanner in the early going on Friday due to heavier than usual trading traffic in upside calls. Traders dabbling in September expiry calls appear to be positioning for shares in NextEra to hit fresh record highs by expiration. The stock today is up 1.2% at $80.10 as of 1:05 p.m. ET. Traders appear to have purchased more than 750 calls at the Sep $82.5 strike for an average premium of $1.44 each. The bullish trade makes money at expiration as long as shares in NextEra rally 4.8% over the current price of $80.10 to top the average breakeven point at $83.94. NEE shares in April traded up to an all-time high of $82.65.

DDD – 3D Systems Corp. – U.S. stocks kicked off the final trading day of the week in positive territory, but turned negative within the first 30 minutes of the session, reversing some of Thursday’s gains. Shares in 3D printer maker, 3D Systems, Inc., which rose as much as 4.6% near the open to an intraday high of $48.70, remain positive in early afternoon trading, up 1.4% at $47.22 as of 12:05 p.m. ET. Some options traders appear to be positioning for shares in DDD to extend gains during the next four weeks, exchanging more than 2,500 calls at the Jul $48 strike against open interest of just 450 contracts. It looks like most of the calls were purchased for an average premium of $3.35 each. Call buyers may profit at expiration if shares in DDD rally more than 8.0% over the current price of $47.22 to exceed the average breakeven point at $51.35. 3D Systems shares traded up to an all-time high of $51.94 in May.

About Caitlin Duffy 373 Articles

Affiliation: Interactive Brokers

Caitlin Duffy joined Interactive Brokers in 2009. In her role as Equity Options Analyst, Caitlin provides daily market commentary; highlighting various options trades, trading patterns and strategies of interest. Through Interactive Broker's webinar program, Ms. Duffy presents a number of educational, options-related events describing the theoretical pricing of options, the option Greeks as well as options strategies.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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