Tuesday, April 5, 2011

Option Flow Recap & Chart Review April 5th

Macro / Thematic

EEM iShares MSCI Emerging Markets Indx – 100,000 of the April 50 / 52 call spreads were rolled into 100,000 of the May 51 / 53 call spreads for $0.12.  Rolling up and out... trader looking for a test or break of the 2008 highs. Hit new 52 week highs today before reversing. 

GLD SPDR Gold Trust – The May 143 / 146 / 149 call butterfly spread was bought.  I like this spread as the trader is long deltas, short vol, and short theta.  Great way to get long and better than buying calls out right IMO. Pro trade. 

IWM iShares Russell 2000 Index  43,000 of the April 75 puts were bought for $0.07; looks to be a closing trade.

EWJ iShares MSCI Japan Index – 24,500 of the September 10 puts are bought for $0.74.  Bulls are done with it rolling back over now.  Under the 200 SMA. 
more after the jump

GRMN Garmin Ltd– 9500 of the January’12 35 puts were sold at $6.05.  Trader willing to get long at 29 which is below the 200 DMA and at some support from last November. 

EK Eastman Kodak Company – 10,000 of the April 4 / July 3.5 put spreads were bought for $0.01.  Tough to read exact what is going on here.  But traded 9x puts vs calls on 2x average volume.  Stock moving from from upper left to lower right. 


APC Anadarko Petroleum Corporation – 6000 of the May 57.5 puts were bought for $0.18. The puts were bought to open.  Black swan bet.  Stock has been trending up. 

CIE Cobalt International Energy, Inc.  – 3000 of the July / October 17.5 call calendar spread was bought for $1.00. Both sides of the trade were opening.

WMB Williams Companies, Inc. – 1350 of the August 33 calls were sold at $1.25.


CSCO Cisco Systems, Inc. – 18,000 of the January’12 15 puts were bought for $0.78.  Probably just a hedge.  Bullish divergence and double bottom possible. 

RIMM Research In Motion Limited – 2500 of the January 40 / 50 1x2 put ratio spread was bought for $1.30.  Pro trade.  Stock breaking down here and not much support until 50

HPQ Hewlett-Packard Company – 4000 of the November 45 / 50 1x2 call ratio spread was bought for $0.43.  Tech is weak.  Seems like lots of rotation into energy. 

MSFT Microsoft Corporation – 10,000 of the May 22.5 puts were bought for $0.11.  Same. 

AMD Advanced Micro Devices, Inc. – 10,200 of the May 8 puts were sold at $0.41. The puts were sold to open. Trader willing to get long at 7.59.  Pretty good support there and near 200DMA. 

Industrial / Materials

VSH Vishay Intertechnology – 5000 of the July 17.5 puts were sold at $1.35.  Trader willing to buy the stock near its 100 DMA. 

IRM Iron Mountain Incorporated  – 1875 of the July 40 calls were bought for $0.35.  Stock is breaking out.  Continued bullish action.  This looks like a cheap bet it keeps running. 

GRS Gammon Gold Inc Canada-headquartered miner of gold and silver deposits in Mexico, traded 3 times the usual volume with 2.8K calls and just 130 puts with traders taking most the interest in the May 11 calls. They have traded on the offer about 92% of the time and look like they’re all opening transactions as interest is just shy of 200 contracts.  The majority (96%) traded for .30 around a 48 IV.  Historical volatility is: 54% (20 day), 46.7% (60 day), 44% (120 day).  The top positions in the name are: Sep 9C (4.2K), April 9C (2K), May 10C (1.8K), Sep 10C (1K), June 5C (1K).  GRS reported record earnings and operating cash flow on March 23rd.  Traders looking for a break out.   


HIG Hartford Financial Services – 1770 June 26 puts were sold at $1.12.  Trader willing to buy the stock near its 200 DMA. 


ELN Elan Corporation, plc – 5000 of the May 6 calls were sold at $1.05. The calls were sold to open.

*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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