Thursday, March 17, 2011

Option Flow Recap & Chart Review March 17

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. 


FXE CurrencyShares Euro Trustlong June $145 straddle 3,000x.  Looking for a big move either way.  FXE is right at its 61.8 retrace level and kinda in no mad's land.... so makes sense if you expect more currency volatility. 

VIX S&P 500 VIX Futures- An investor bought the April 25 / 32.5 1x2 call ratio spread for $0.15, 30,000x. Another sold the April / May 45 call spread at $0.20, 25,000x. Early in the trading day April 22.5 / 27.5 1x2 call ratio spread was sold $0.55, 25000x with the 22.5s bought for $3.15 and 50,000 of  the 27.5s sold at $1.85 each.

SLV iShares Silver Trust (ETF)  Bullish 3 way trade short 3,000 July 30 puts to buy July $35/40 call spread 3,000x

read more after the jump


BEBE bebe stores, inc.  - 2000 March 6 calls were bought for $0.05. The stock would need a 9.8% move before the close tomorrow in order for the trade to be profitable. At least a portion of the calls were bought to open given the 697 in open interest.  Probably a hedge against short stock that is already in the green. 

DAN Dana Holding Corporation - 2038 March 17.5 calls were bought for $0.25, reportedly to open. The stock would need to move 8.6% higher before the close tomorrow in order to be profitable. 

FO Fortune Brands, Inc. - 7000 June 50 puts were bought for $0.675, to open. The strike is 11.8% below the current stock price and is likely a hedge or a downside bet on the stock. FO is right at its 100 DMA. 


XCO EXCO Resources, Inc.  - Nearly 8500 of both the March 20 and June 21 calls trade today for $0.25 and $0.55, respectively. Though it was reported both are opening trades, the open interest is more than sufficient for these to be closing trades.

CBEH China Integrated Energy, Inc. – A lot of bearish activity today with over 10,200 puts and only 1700 calls trading on the day, with the major highlights being 2930 September 2.5 puts trading for ~$0.76 and 1846 June 2.5 puts trading for ~$1.20. The Chinese oil and gas refiner was down 24.6% today following a 16% drop yesterday on news that a law firm alleged overpayment and third party transactions in an M&A deal.

Materials / Industrials

HRBN Harbin Electric, Inc. - 10,000 April 20 calls were bought for $0.60, to open, tied to 219k shares of stock at $16.66. The bullish trade comes after the company reported earnings that topped expectations and also said that is evaluating a $24 offer to go private from Chairman/CEO Yang.  The stock doesn't act like its going private.  Down almost 4% today and closed on its lows with volume.. 

BLL Ball Corporation - 2587 August 32.5 calls were bought for $3.40, to open. The company will present at a Barclay's High Yield Bond and Syndicated Loan Conference on 3/24.  The stock is right below its 100 DMA.  There is still an open gap at 31.91.  Smart to buy in the money options here in case of a gap fill or test of its 200 DMA. 

DE Deere & Company - 2000 April 95 / 100 call spreads were bought for $0.83. The trade could either be closing or a bullish play. DE recently bounced off its 100 DMA and did not make new lows as the SPY did. 

NOC Northrop Grumman Corporation - 10,000 May 65 calls were bought for $3.65 tied to 590k shares of stock at $66.27. This is the largest single block of open interest in the name.  

ADS Alliance Data Systems Corporation - ~7000 January'12 65 puts were sold at $3.10 as the stock reached a new 52-week high today.  Very strong name with huge out performance in a nice uptrend.  Put sellers willing to buy the stock below its 200 DMA if the markets fall apart. 


RHT Red Hat, Inc. - 13,000 April 44 / 45 call spreads were bought for $0.20. The break even on the trade is 12.5% higher than the stock's closing price of $39.29.  Dip buyers come in right at its 200 DMA.  Risk 1 to make 4.  RHT could have just completed an ABC corrective pattern. 

NIHD NII Holdings, Inc. - 1000 June 39 / 44 call spreads were bought for $1.50, to open.  Dip buyers. 

GOOG Google IncMarch $550 short straddle 3,000x. Also GOOG Bullish 3 way trade short 1,900 June 560 puts to buy June $575/625 call spread.  GOOG is getting close to filling its gap from Oct and also its 200 DMA.


Citigroup Inc. - 10,000 September 4 puts were sold at $0.21 and 10,000 September 4.5 / 5 call spread was bought for $0.21 leading to a three way trade for even money.  Stock is still in its down channel but getting close to longer term trend support and its 200 DMA. 


MHS Medco Health Solutions Inc- Options were active once again today with a 7655 block of April 55 calls bought for $1.75, to open. April 57.7 calls were also active and were trading predominantly on the offer.  Tought call here as these could be bullish plays trying to buy the capitulation but it could also just be guys hedging their short positions. MHS did fill its gap from Nov.

*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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