Monday, April 4, 2011

Option Flow Recap April 4th

Macro / Thematic

TLT hares Barclays 20+ Yr Treas.Bond (ETF) – 45,000 of the June 101 calls were bought for $0.21. The calls were bought to open.

SPY SPDR S&P 500 ETF – 15,000 of the April 130 puts were bought for $0.50.
more after the jump

Garmin Ltd – 4000 off the January’13 20 / January’12 35 risk reversal traded at $0.11credit, 4000x. It is possibly a closing trade or a bearish play.

UAL United Continental Holdings, Inc. – 5000 of the September 28 calls were bought for $1.32.

TGT Target Corporation – 2500 of the July 49 puts were bought for $2.03. Also today, 2000 off the January’13 40 calls were bought for $12.40


HK Petrohawk Energy Corporation – 20,000 of the June 35 calls were bought for $0.08. The calls were bought to open. The stock would need to rally over 44% for this trade to be profitable.

NOV National-Oilwell Varco, Inc. – 8500 of the May 85 calls were sold at $2.51 and bought 6000 of the August 90 calls for $3.65. It appears to be a roll of a bullish position up five strikes and out three months.


VOD Vodafone Group Plc – 9000 May 31 / 27 risk reversals trade for $0.15. The May 27 puts were bought for $0.35 and the May 31 calls were sold at $0.20.

JNPR Juniper Networks, Inc. – 6800 May 40 / 36 put spreads was bought for $1.36. Inc (SOHU) and (SINA) climbed up the charts today and hit new 52 week highs on higher than usual volume. reported on a research paper which cites a McKinsey study that predicts China’s internet community will reach 740 million by 2015 and will grow by 6 million new users every month.  This bullish prediction led the longs out of the pin reaching for the front-month OTM calls.  In SOHU, the most popular flavor was the April 110 calls which traded nearly 2K times – 89% on the ask.  The majority were executed for .45 at a 55.8 IV.  Historical vols are: 48% (20 day), 41% (60 day), 46.5% (120 day).  In SINA, the April 115 calls were the most popular.  The execution VWAP was $4.98 with an IV about 56.  Historical vols are: 45.3% (20 day), 53.3% (60 day), 49.2% (120 day).  SOHU closed up $6.42 to $97.30 and SINA closed up $5.11 to $116.56.     

Industrials / Materials

HRBN Harbin Electric, Inc. – 1400 of the June 17.5 / 10 put spreads were bought for $1.20. The spread appeared to be bought to open.

TCK Teck Resources Limited – 3000 of the August 70 / 80 call spreads were bought for $1.07. The spread was bought to open.

MON Monsanto Company – 2500 January 45 puts were sold at $1.06, tied to $74.16 stock


BAC Bank of America Corporation – 19,000 of the May 14 calls were bought for $0.36 to open.

ACE ACE Limited – 3000 of the May 65 calls were bought for $3.00.


PFE Pfizer Inc. – Nearly 5000 of the September 20 calls were sold at $1.39 with the stock right at its 52 week high. 

*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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