Monday, March 21, 2011

Option Flow Recap & Chart Review March 21

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

EWJ iShares MSCI Japan Index (ETF) - 100,000 April 8 Puts were sold at $0.03. *Note: remember all of that EWJ action we reported back on the 15? Those risk reversals are paying off big time so far. 

Read more after the jump


SVU SUPERVALU INC. – 11,000 April 8 puts were sold $0.25, to open.  A bet the down trend is over. 

SPLS Staples, Inc – 3750 September 19 puts were bought for $1.29; 5000 September 22 calls were sold at $0.66.  Trader shorting the bounce.

EL The Estee Lauder Companies Inc. – 6800 April 85 puts were sold at $0.90. The puts may have been sold on the view that shares will hold above $85 through the April expiration, which represents a 7.2 percent decline over 25 days.  Stock is in a very nice uptrend. 


SNCR Synchronoss Technologies, Inc. - 2100 April 30 calls were bought for $3.26, to open.  Trader gets 1 for 1 with the stock and has an auto stop in place.  Stock moving from lower left to the upper right. 

S Sprint Nextel Corporation - 30,000 May 5.5 calls were bought for $0.08. The position is likely a bet to the reaction today of the AT&T / T-Mobile deal. There was also talk that S might become a target for Verizon. 28,700 August 5.5 calls were also bought for $0.17.  Traders buying the dip. 

Materials / Industrials

GE General Electric Company – Very heavy bearish put buying today in the September 12 puts. Over 58,000 traded on the day with ~50,000 bought on the offer.  Cheap bet that could really pay off if GE starts to roll over.  Could also just be a hedge. 

KGC Kinross Gold Corporation (USA) – 12,000 April 16 calls were bought for $0.26, to open.  Ex div tomo and buy out rumors. 


BAC Bank of America Corporation - An investor sold 36,500 January 15 calls and bought 36,500 January'13 $17.5 calls for $0.13. It's possibly a closing trade or a roll up and out.  BAC is still coiling. 

BPOP Popular, Inc. - An investor sold 20,500 July 3 puts at $0.28 and 2.3mm shares at $3.01 and bought 30,000 May 3.5 calls for $0.08 and 25,000 July 3.5 calls for $0.12.

MFC Manulife Financial Corporation – 5000 May 17 puts bought for $0.83  Traders looking for more downside. Maybe a test or break of the 200 DMA.   The stock got close to the underside of its 50 DMA today.  Previous support is now resistance. 


AMRN Amarin Corporation plc - 3000 June 9 / 11 call spreads were bought for $0.65. Also 1000 of the June 5 / 9 risk reversal traded at $0.65, the June 5 puts were sold and the June 9 calls bought.  As the chart shows the stock has found support at its 100 DMA twice in the past.  Traders looking for the third times a charm trade.  Plus as we noted last time there is still a HUGE gap to fill. 

*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.


  1. great posts! keep it up

  2. WOW that EWJ trade is kill'n it...thats a very hard trade to put on