Thursday, April 7, 2011

Option Flow Recap April 7th

Macro / Thematic

QQQ PowerShares QQQ Trust - 25,000 of the April 57 puts were sold at $0.16.
 read more after the jump 


LVS Las Vegas Sands Corp. – The April 45 / May 50 call spread was bought today for $0.12, 10,000x and the again for $0.04, 5000x. The investor sold the April 45 calls and bought the May 50s, likely rolling the bullish position from April to May (up and out a month).

SVU SUPERVALU INC.  – Nearly 6500 of the April 8 puts were bought today for $0.10. The contract is 11.8% out-of-the-money and expires at the end of next week. The company releases earnings on April 14th ahead of expiration. The company's shares dropped 11.6% when they reported earnings on January 10th.

HTZ Hertz Global Holdings, Inc. - The May 17 calls were bought for $0.60. The calls were bought to open.

CETV Central European Media Enterprises Ltd. - 2500 October 25 / 30 call spread was bought and the May 20 puts were sold paying $0.75 for the package. The position was tied to 120,000 shares at $21.55 and appears to be to open.

LUV Southwest Airlines Co. - 7700 of the May 11 calls were sold at $1.10. The calls were sold to open. Shares have been under pressure since Monday when the company said it was canceling flights to inspect cracks in fuselage on 737 planes.

UAL United Continental Holdings, Inc. - 10,000 of the June 19 puts were sold and the June 22 / 26 call spread bought, with the investor collecting $0.10 on the package. It appears to be an opening position and was tied to $20.84 stock. Airlines have been under pressure as the industry continues to face the challenges of rising jet fuel costs, diminished travel to Japan, and weak monthly traffic numbers released late-Tuesday.

AMR AMR Corporation - 20,000 of the January'13 3 puts were bought for $0.46. The puts were bought to open.


LDK LDK Solar Co., Ltd - 7700 of the April 13 calls were bought for $0.14. It appears to be a bullish trade ahead of the company's Investor Day on April 11th. The contracts are 11% out of the money and will expire at the end of next week. On Monday, April 11, the company will have its Investor Day in New York City and management will start presenting at 2:00PM.  More details on the live and recorded webcast here: Link The top open interest positions for LDK right now are: Jun 9P (33K), Jun 10P (20K), Jun 8P (16K), Jun 15C (14K), April 12C (14K). 

HDY Hyperdynamics Corporation - 10,000 of the September 4 puts were sold at $0.65. The calls were sold to open.

Industrial / Materials

Power-One, Inc. PWER - 5300 of the May 9 calls were bought for $0.55. The calls were bought to open.

UTX United Technologies Corporation - 2000 of the January 72.5 puts were sold at $2.75, tied to $85.10 stock.


YHOO Yahoo! Inc. - 10,000 of the April 17 calls were sold to buy 20,000 of the April 16 puts, collecting $0.14 on the bearish 1x2 risk reversal.

CSCO Cisco Systems, Inc. - Nearly 11,000 of the October 16 / 21 bearish risk reversals were bought for $0.30. The trade was tied to 527k shares for $17.90.

NSM National Semiconductor Corporation  - 10,000 of the January 22.5 / 25 call spreads were bought for $2.25. The spread traded 26,000x. The trade comes two days after Texas Instruments said it was buying NSM for $25 per share in an all-cash deal. If the merger is concluded before January expiration the investor will profit $0.25 on the spread.


HBC HSBC Holdings plc - 5000 of the May 52.5 / 55 call spread was sold at $1.43. The activity appears to be a roll up in strikes.


XNPT XenoPort, Inc. - 5750 April 10 calls were bought for $0.49.

*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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