Wednesday, April 6, 2011

Option Flow Recap April 6th

Macro / Thematic

XLI Industrial SPDR (ETF)  - 60,000 of the May 37 / 34 put spreads were bought for $0.47. This follows a purchase of 15,500 yesterday.


GPS The Gap Inc. – 4100 September 22 puts were bought for $1.40, tied to 152K shares at $23.12 per share

UAL United Continental Holdings, Inc.  – 10,000 of the June / September 29 calls were bought for $0.55. The trade appears to be a roll out of a bullish position from June to September.

CVS CVS Caremark Corporation – 2875 May 37 calls were bought for $0.51, in a multi exchange sweep, followed by another sweep of 2170 for $0.52. There was a research report discussing the fact the company is in a position to pick up CALpers business that will no longer be handled by Medco Health Solutions.

DHI D.R. Horton, Inc. - 15,000 of the November 9 puts were sold at $0.48 to finance the purchase of 10,000 of the November 11 / 14 2x3 ratio call spread for $1.77. The bullish trade appears to be to open.

AXL American Axle & Manufact. Holdings, Inc. - 2100 April 13 calls were bought for $0.25


VLO Valero Energy Corporation  - 7400 of the June 29 calls were bought for $2.69. The calls were bought to open.

ETE Energy Transfer Equity, L.P. - 1250 of the October 50 calls were sold at $0.40. The calls were sold to open.

ESV ENSCO PLC - 1400 of the May 60 calls were bought for $2.30.

Industrials / Materials

YRCW YRC Worldwide Inc. - 2500 of the May 5 risk reversal was sold at $3.40. With the May 5 puts were sold at $3.42 and the May 5 calls were bought for $0.02.


S Sprint Nextel Corporation - 20,000 of the May 5.5 calls were sold at $0.07

STX Seagate Technology PLC  - 19,600 of the April 15 calls were bought for $0.31.

MRVL American International Group, Inc. - 21,500 of the April / May 15 put spread was bought for $0.37


AIG American International Group, Inc. - An investor bought 6000 of the August 45 calls and sold 9500 of the August 50 calls for $0.35. A total of 7000 and 10,500 calls traded on the day respectively. It appears to be a bullish bet that the stock will move above $45 but not higher than $50.

PNC PNC Financial Services - 8000 of the April 65 calls were bought for $0.43 to $0.46 at the end of the day.


AMRN Amarin Corporation plc - 750 of the May 12 calls were sold at $0.95. The calls were sold to open.

ABT Abbott Laboratories - traded 2.2 times its usual daily volume with 22K calls and 12K puts.  42% of the sentiment was bullish versus 28% bearish.  May 50 calls were the most actives, followed by Aug 52.5 calls that traded 2.4K, 78% on the ask side.  An article came out on believed that the stock was “unloved and undervalued” as it has low P/E ratio, increasing dividend payout ratio, and other fundamental and technical signs.  ABT closed up 0.69 to 50.68.

*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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