Tuesday, May 3, 2011

Option Flow Recap & Chart Review May 3

Click the links to pull up the chart

Macro / Thematic

PowerShares DB US Dollar Index Bullish 
– 2500 of the September 23 / December 24 calls stupid was purchased for $0.29. The calls were both bought to open.  Has UUP capitulated

iShares Russell 2000 Index 
– 10,000 of the June 77 puts were sold at $0.81.  Found support on its 20 ema today... 77 puts are below support from Jan and March. 76.19 break even


Career Education Corp. 
– 1800 of the May 23 calls were bought for $0.55. The calls were bought to open. The company is scheduled to release earnings tomorrow (5/4) after the close.  Double bottom with a little bullish divergence... cheap beat they beat

– 9000 of the October 13 calls were bought for ~$0.59. Recall yesterday, 12,000 October 8 / 11 put spreads were bought against a sale of 12,000 October 13 calls.  Yeah some one killed it... and looks like they think there is more

– 2400 of the May 17.5 calls were bought for ~$0.65.


First Solar, Inc. 
– 1500 of the May 140 / 155 call spread was bought for $3.00.  Can solar stock work if oil keeps falling? Trader buying this dip... don't see it personally

Chesapeake Energy Corporation
– 1750 of the CHK January’13 50 calls were bought for $1.75

Industrials / Materials

Alpha Natural Resources, Inc. 
– 3000 of the June 52.5 / 57.5 strangles were bought for $3.51, likely tied to 51,000 shares at $55.46

Gold Resource Corporation  
– 5000 of the September 20 puts were bought for ~$1.04. The puts were bought to open. Short GORO and long NGD & SSRI (see below)... interesting.  Could be unrelated.. 

Sino Clean Energy Inc. 
– 3500 of the September 4 calls were bought for $0.70. The calls were bought to open.  (stock up 5% after hours)

New Gold Inc. (USA)  
– 2000 of the November 10 puts were sold at $1.35. The puts were sold to open.  Gets the trader long at 8.65... pretty close to where the 200 dma will be

Silver Standard Resources Inc. 
– 2000 of the September 25 puts were sold at $1.25. The puts were sold to open.  Trader gets long at 23.75 below the 200 dma.


BMC Software, Inc. 
– 10,000 of the May 52.5 / 55 calls was bought for $0.45. The spread was bought to open. The company will report earnings after the close Wednesday.


Citigroup Inc. 
– 49,000 of the September 4.5 / 5 call spread was sold at $0.18 to buy 49,000 of the September 4 puts for $0.10.  Unwinding trade for .08!!! Pro trade...very nice...they put it on for even & some for .01...  

Assured Guaranty Ltd. 
– 1000 of the May 18 calls were sold at $0.33 and 1000 of the July 16 / 13 put spread was bought for $0.86. The spread was tied to 100,000 shares at $16.70.  So a buy write with protection in case this thing fills its gap


– 3000 of the May 85 / 90 call spread was sold at $1.10 to buy 3000 of the August 85 / 90 call spread was bought for $2.60. All four of the legs of the trade appear to be opening. Dead money for may but looking for upside after... vertical calendar.  

*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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