Option Flow Recap Feb 23

Macro /  Thematic

SPY – 100,000 March 126 / 116 put spreads appeared bought for $0.83

Consumer

LYV – Over 4100 of the July 10 puts traded today (77% on the offer) for ~1.15. It appears some investors are bracing for further downside in the entertainment company.

F – 25,000 March / April 15 call spreads were bought today for $0.26. It is either a roll out a month or a bet that the shares will hold below 15 between now and March expiration (3/19) and then rally from that point.

GM – Options were active ahead of the company’s earnings report tomorrow morning. Over 98,000 calls and almost 62,000 puts traded on the day. One notable trade was 4000 June 40 / 34 collar for $1.00.

Energy

KWK – Call options were active today with over 11,000 calls and only 1900 puts trading. March 16 calls were the most active with almost 6600 trading on the day (52% on the offer). The activity comes ahead of the company’s earning report due February 28^th, before the market open.

PBR – 4500 April 42 / 45 1x2 call spreads were purchased for $0.34. It appears to be a bullish play targeting $45 per share by April expiration.

SD – 3000 of the June 6 calls were bought for $3.00.

Materials / Industrials

SLW – 3000 of the March 41 / 38 put spreads appeared bought for $1.37 to open.

IPI – 2200 June 40 calls were bought for $1.70, to open.

CF – Options were active today as the stock reversed a nearly 8% decline in the morning to end the day up almost 2%. 28,000 calls and 13,000 puts traded on the day. The April 125 calls were the most active with almost 5500 trading on the day.

Tech

EMC – The stock saw a lot bearish flow this morning with over 23,000 April 26 puts trading in the first hour of the day. Most of the flow appeared to be opening customer buyers

STX – Bullish activity today with 18,000 September 12 calls being purchased for $1.95. The calls were bought to open.

Financials

C – 70,000 January’12 7.5 calls were bought for $0.06.

AIG – 5000 January’12 35 puts were sold at $3.95, tied to $40.03 stock. The puts were sold to open.

Healthcare

CLDA – 6500 June 40 straddles appeared to be bought for $10.25 to open.

*Special thanks to Flotilla Partners, Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, and all of the options desks and traders we work with to provide the option flow!

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.