Thursday, February 24, 2011

Option Flow Recap Feb 24

Macro / Thematic

XLE  - Downside plays today March 74-71 1x2 put spreads bought for 0.50, 7000x by 14000x. The trade makes money with XLE closing on March expiry between 73.50 and 68.50, max profit of 2.50 with XLE closing on March expiry at 71.00 (7.75% lower from here), if assigned on short puts getting long XLE for 68.50 (~10.5% lower from here)

SPY - 8200 weekly call verticals bot @ $0.63 

GLD - Downside play with a 1x2 put spread 26440x13220 in the Sept 132/120 puts for a 1.97 debit (possible hedge)


HBI – Bullish trading today with the March 25 calls seeing the most action. The largest single trade being 1730 March 25 calls bought for $1.15 to open.

TOL – Bullish flow in the homebuilder today with over 16,000 calls and 1400 puts trading on the day. Almost all the trading took place in the March 21 calls which was over 12,500 on the day

PHM – 18,850 April 7 puts were sold at $0.45. The investor saw the three day slide in homebuilders as an opportunity to sell the at the money puts.


PBR – 3000 April 45 calls were bought for ~$0.50.

KWK – 7000 of the March 15 / 16 call spreads were bought for $0.45

HK – 20,000 January 30 / 35 call spreads were bought for $0.53 to open.

Industrials / Materials        

WM – Bearish option flow today with over 11,000 puts and only 2100 calls trading on the day.

FDX – 1500 April 90 / 95 call spreads were bought for $2.41.


BRCD – 19,000 of the April 6 straddles were sold at $0.77.

LLTC – 4900 March 34 calls were bought for $0.85


RDN – 1000 March 8 / April 7 put spreads were sold at $0.35. The March puts were sold and the April puts bought.

*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.

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