Tuesday, May 24, 2011

Options Flow Recap May 24th

Macro / Thematic

SMH Semiconductor HOLDRs – 7500 of the June 32 / 34 put spread was bought for $0.31. The spread was bought to open.

VIX saw 66% the normal volume with 185K calls and 49K puts traded.  The most active VIX options were: June 25C (17K), Nov 35C (15K), June 32.5C (15K), July 30C (14K), Sep 30C (14K).  

Volatility Movers
Greatest increase in 30 day ATMIV vs prior session: LWSN, HRS, LPS, GSIC, VIT, CHBT, INCY, TIVO, NAT, BKS
Greatest decrease in 30 day ATMIV vs prior session: DSW, ID, AZO, SOLR, REDF, EP, PWRD, MDT, VSEA, EAT


CPB Campbell Soup Company – 10,000 of the June 35 puts were sold at $0.35. It appears to be an opening position.

GM General Motors Company  – 16,200 of the September 25 puts were sold at $0.40 and bought 8100 of the September 40 and 42.5 calls for $0.10 and $0.05, respectively.

AEO American Eagle Outfitters – 5000 of the June 15 calls were bought for $0.25. The calls were bought to open.

SKS Saks Incorporated – 25,000 of the August 10 puts were sold at $0.40. It is an opening position and likely tied to stock.

PHM PulteGroup, Inc. – 5000 of the June 8 calls were bought for $0.12. The calls were bought to open.


EP El Paso Corporation – 5000 of the July 18 calls were sold at $2.32 to buy 5000 of the June 21 calls for $0.37. It appears to be a roll higher in strikes, opening the June 21 calls.

NOV National-Oilwell Varco, Inc. – 3500 of the June 60 puts were sold at $0.38. The puts were sold to open.

Industrials / Materials

VALE Vale – 13,700 of the June 31 puts were sold at $1.00 versus 726,000 shares at $30.73.

MT ArcelorMittal – 6150 June 33 calls were bought for $0.86. The calls were bought to open.

FCX Freeport-McMoRan Copper & Gold Inc. – 3000 of the January’12 46.5 puts were bought for $5.55.

ITT ITT Corporation – 3000 of the July 55 / 60 bearish risk reversal was initiated at $0.70.

The Rare Earth names (AVL, REE, MCP) rallied today after recent pull backs of over 30% in some of the names (Molycorp).  MCP was definitely the key beneficiary of the Rare Earth push today soaring over 5% in trading.  Even though these names were pushed higher today, it was on unusually low volume compared to expectations.  Looks like the feature option series in MCP was the weekly 60 calls traded over 2K times, mostly on the bid.  In REE, it looks like traders are opening the June 10 calls after 500 traded on the offer.  In AVL, traders like the June 8 calls; it appears they are buying them as well. 
As for top positions, here they are:
MCP Molycorp, Inc. - June 60P (6.7K), June 60C (6.4K), June 70C (4.3K), June 55P (4.2K), June 65C (4.1K). MCP closed up 2.86 to 60.67.
REE Rare Element Res Ltd Ordinary Shares - July 12P (6.7K), July 14C (5K), June 18C (4.1K), June 18P (4K), July 15C (3.9K). REE closed up .22 to 11.42.
AVL Avalon Rare Metals - July 7.5C (4K), July 7.5P (3.6K), July 9C (2.8K), July 10C (2.4K), Oct 9C (2.3K). AVL closed up .23 to 7.23.


CSCO Cisco Systems, Inc. – The January 12.5 / 16 1x2 put spread was bought for $0.71

YHOO Yahoo! Inc.  – 20,000 of the June (weekly) 17 calls were bought for $0.13.


Citigroup Inc. – 10,000 of the January 35 puts were sold at $1.72 to buy the January 43 / 50 call spreads for $1.65.

AIG American International Group, Inc. - 3780 June 35 puts trade on the offer for 6.00. Opening, 77 delta


PCYC Pharmacyclics, Inc. – 5500 of the August 7 puts were sold at $0.65. The puts were sold to open.

PFE Pfizer Inc. – 10,000 of the January’12 22.5 calls appeared to have been sold at $0.58.

*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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