Wednesday, June 22, 2011

Options Flow Recap June 22nd


EEM iShares MSCI Emerging Markets IndxBuyer 5K Sep 39/44 put spreads for 1.00 vs 45.92, 20 delta

VIX saw 66% the normal volume with 318K calls and 127K puts traded.  Some larger trades in the pit:
·         Seller 20,000 Aug 25 calls at 1.525


BZH Beazer Homes USA, Inc.  – 3000 if the January 3 / February 4 bullish risk reversal traded for $0.10. It appears the calls were bought to open.

FMCN Focus Media Holding Limited – 3000 of the July 27 calls were bought for $1.55. The calls were bought to open.

LGF Lions Gate Entertainment Corp. – 1450 of the December 7 calls were bought for $0.35. The calls were bought to open.

WAG Walgreen Company – The August 44 / 46 1x2 call spread was bought for $0.24. The spread was bought to open.


NR Newpark Resources, Inc.  – 9800 of the August 10 calls were sold at $0.30. The calls were sold to open.

LNG Cheniere Energy Inc - Shares of the liquefied natural gas company climbed as much as 14% in intraday trading on above-average volume.  Shares saw a spike earlier today, to $9.24, and closed up 46 cents to $8.46 on reports of a 20-day contract win with India's state gas network operator, GAIL.  Call options were heavily traded with 23K contracts changing hands.  The July 8 calls, which are 56 cents ITM, were the most active with 7,511 contracts traded, 63% executed on the offer. The July 9 and 10 calls saw interest as well with most contracts trading on the ask showing strong bullish market sentiment.  Furthermore, out of all 158K open positions, 119K are calls while just 39K are puts.  Big trades were 1800 of the July 8 calls were bought for $0.70 and separately 1725 July 10 calls were bought for $0.50. Both lines were bought to open.

Industrial / Materials

EMR Emerson Electric Co - over 8K calls, or 3x its usual call volume in the name with most of the premium traded on offer.  The July 55 calls were the most active, 5,863 contracts traded against 4,701 in open interest at a VWAP of 0.64. Biggest block was 3430 of the July 55 calls were bought for $0.65.

NEM Newmont Mining Corporation – 5000 of the September 50 / 57.5 bullish risk reversal traded for $0.05, tied to 50,000 shares at $54.00.  Seeing a lot of bullish action in gold names. 

United States Steel Corporation – Two large blocks of 4125 and 4000 of the August 45 calls were bought for $1.68. Both are opening buyers.

MTW Manitowoc Company - traded 2.6x its usual volume with 3.5K calls and only 285 puts.  The put/call ratio dropped from 0.68 to 0.08 and most of the interest focused on September 17 calls.  Over 2K contracts were bought to open. 


INTC Intel Corporation – 11,800 of the April 26 calls appear to have been sold at $0.51. It was tied to 248,000 shares at $21.51.

OCZ OCZ Technology Group Inc.  – 1240 of the September 10 calls appear to have been bought for $1.00. Trader looking for yearly highs even though the stock is up 164% over the past 12 months. 

YHOO Yahoo! Inc. – 16,000 of the July 14 / 15 bearish risk reversal was sold at $0.55. The trade was tied to 1.6 million shares at $15.26,

RFMD RF Micro Devices, Inc.  – 4150 of the August 6 puts appear to have been bought for $0.60.

TIBX Tibco Software Inc. – 10,000 of the July 26 / August 28 call spread was bought for $0.25. The position was tied to shares at $25.63.

DELL Dell - had the 2nd largest option transaction at the exchanges today and, in total, traded over 2 times its normal options volume.  The trade was a customer buyer of 22,310 Jan 2013 15 calls for 3.65 with no stock.  Open interest is currently 16K.  Implied volatility on the trade was about 36% compared to historical levels of: 22.1% (20 day), 27.6% (60 day), 30.5% (120 day).  Also active were the Jan12 14 calls which traded 99% on the offer over 9,000x with open interest just north of 500 contracts.  In the news, Bloomberg News ran a story discussing the possible acquisition of RIMM by DELL.  The story is here: Link 


BAC Bank of America Corporation – 10,000 of the January’13 12.5 calls were bought for $1.28. The trade was tied to 440,000 shares at $10.86. Buyer 40K November 12 calls for .47.  Seller 10K July 10 puts at 09 vs 10.89, d-neu.  Looks like option players are positioned for a late year really in BAC.  


MDT Medtronic, Inc. – 15,000 of the January’13 55 calls traded at a an average price of $0.26 and appear to have been sold. 

 *Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, 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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