Today’s tickers: SAP, CTRP& JBLU

SAP – SAP AG –Put options on SAP are active on Friday, with shares in the softwarecompany down more than 4.0% in the early going at $72.42. SAP’s shares are decliningin sympathy with Accenture, the world’s second-largest technology-consultingcompany, after that company posted lower-than-expected third-quarter revenueafter the closing bell on Thursday. Traders positioning for shares in SAP topotentially extend declines during the next few weeks picked up roughly 2,000puts at the Jul $72.5 strike for an average premium of $1.97 each. The bearish strategymakes money at expiration in the event that SAP’s shares slide 2.6% fromtoday’s low of $72.42 to breach the average breakeven point on the downside at$70.53. Shares in the name, down nearly 12% since the start of 2013, lasttraded below $70.53 back in November of 2012. SAP is scheduled to reportsecond-quarter earnings ahead of the open on July 18th.

CTRP – International, Ltd. –Upside call options on are active thismorning, with shares in the online provider of travel services in China rising2.0% to $33.38 during morning trading. The most heavily traded contracts asmeasured by volume thus far in the session are the Aug $34 strike calls, withroughly 2,500 lots in play versus open interest of 12 contracts. Time and salesdata suggests most of the calls were purchased within a few minutes of theopening bell at an average premium of $2.03 apiece. Call buyers stand ready toprofit at expiration in August should shares in CTRP rally another 10% over thecurrent price of $32.87 to exceed the average breakeven point at $’s shares are up better than than 90% since this time last year.

JBLU – JetBlue Airways Corp –Takeover chatter sparked heavier than usual tradingtraffic in out-of-the-money call options on air carrier, JetBlue, Inc., thismorning. Shares in the name rose as much as 9.0% near the open to $6.63, thehighest level since mid-May, after a report in Brazilian newspaper, Folha deS.Paulo, on Friday said that David Neeleman, the founder and former CEO ofJetBlue and current owner of Brazilian airline Azul Linhas Aereas, is creatingan investment fund to buy back control of the company and purchase TAP, aPortuguese airline. Neeleman, according to a report by Bloomberg reporter, MarySchlangenstein, said, “No talks are underway” for such a fund during atelephone interview today. Shares are well off earlier highs, but remain up3.3% at $6.28. Options on JBLU popped on the unconfirmed takeover rumors, withvolume rising to 12,100 contracts by 11:40 a.m. ET versus the usual averagedaily volume of around 1,100 contracts. The Jul $7.0 strike calls are the mostactive, with some 7,300 contracts traded as of the time of this writing. Itlooks like most of the calls were purchased by for an average premium of $0.075each. The bullish position may be profitable at expiration next month if sharesin JBLU rally more than 12% over the current price of $6.28 to surpass theaverage breakeven point at $7.075.


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