Friday, March 18, 2011

Option Flow Recap & Chart Review March 18

Click on the company name to see the chart. If you have any questions or suggestions on how to make the blog better please let us know. 

Macro / Thematic

VIX  S&P 500 VIX Futures – 3550 July 19 puts were bought for $0.90, to open.

EEM iShares MSCI Emerging Markets Indx (ETF) - April 40/44 bull put spread for $0.53 credit 
trades 56600x. 

FXI iShares FTSE/Xinhua China 25 Index (ETF) - 4700 April 44 calls were rolled to the 
May 45 call.  Taking profits and staying bullish.

SLV iShares Silver Trust (ETF) - 3756 April 31/38 risk reversals trade for even money.  Very
 bullish trade as this trader either buys SLV at 31 (which is above its 50 DMA) or starts making
 pure profit above 38. 

read more after the jump... .


CECO Career Education Corp. – ~3200 April 20 puts traded on the day (68% on the offer).  Traders are looking for more downside as this stock is below all major moving averages and has a declining 200 DMA. 

WAG Walgreen Company  – 4000 April 39 calls were bought for $2.63, to open.  Buy the dip trade.  Interesting that they bought the in the money.  Could be a stock replacement. 

LO Lorillard Inc. – Over 46,500 calls and nearly 64,500 puts traded today. The action still appears defensive despite the rally in the shares today. A March 75 / April 65 1x2 put spread was bought 5000 x 10,000 times for a $0.54 debit.

HSY The Hershey Company – The company hit a 52-week high today and the April 60 calls were bought 500x for $0.15.  Cheap bet the trend continues. 


WMB Williams Companies, Inc. – 6150 August 26 calls were bought for $4.80, to open.  Great up trending name as the stock moves from the lower right to the upper left. 

DNR Denbury Resources Inc. – 2835 of the March 20 / June 24 calls spread trade for $2.00. The March 20 calls were bought to close for $3.50 and the June 24 calls sold to open at $1.50.  Long gamma trade. 

ECA EnCana Corporation (USA) – 5500 July 35 calls were sold at $1.85.  Big base.  Trader looking for a breakout. 

Industrials / Materials

GE General Electric Company – 45,000 of the September 12 puts were bought for $0.18, to open.  Trader looking for a test of the 200 DMA.

ANR Alpha Natural Resources, Inc.  – 6500 June 47 / 60 bullish risk reversal traded at $1.20.  Trader buy'n the dip.

CAT Caterpillar Inc. – 4000 May 105 puts were bought for $5.50, to open.  Trader looking for a retrace. 


CSCO Cisco Systems, Inc. – Option activity were very active today, 28,000 January’12 17.5 straddles were sold at $3.65. Also trading today; 5000 April 16 / 18 call spreads bought for $1.24. Lastly, 40,000 January’12 15 puts were sold and 40,000 January’12 17.5 / 22.5 call spreads were bought.  Bullish options action continues.  Traders keep looking for a bottom in this name. 

ADBE Adobe Systems Incorporated – An investor sold 5400 of the July 39 calls at $0.62 and bought the July 28 / 32 put spread for the $1.51.  Trade makes sense.  There is an open gap at 29.42.


PLD ProLogis – 14,000 March 13 / 15 risk reversals traded with the puts sold and calls bought and 14,000 July 12 / 15 risk reversals traded with the puts bought and calls sold.  Arbitrage play.  Don't read to much into it.  


MDVN Medivation, Inc. – 19,700 March / June 7 call spread was bought for $0.13, with the June leg being an opening position.  Looks like a roll.  Gap fill still in progress. 

*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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