Monday, July 11, 2011

Options Flow Recap July 11th

Macro / Thematic

EFA iShares MSCI EAFE Index Fund – 10,000 of the August 54 puts were bought for $0.70. Separately, 9000 of the August 56 / 57 put stupid was bought for $2.39.

IWM iShares Russell 2000 Index – 35,000 of the July 82 puts were bought for $0.42 and a separate buyer 35,000 July 82 puts for 42, & a buyer 26,000 Dec 72 puts to sell 19,000 Dec 60 puts, paying 1.41,  & a buyer 22,300 July 81 puts for 23.  

XLU  Utilities SPDR– 1500 of the January’12 31 / 35 strangles were sold at $1.39.

 VIX saw 115% the normal volume with 341K calls and 117K puts traded.  Some larger pit trades:
·         Buyer 10,000 Sep 17 puts for .725
·         Buyer 10,000 July 17 puts for .35
·         Buyer 10,000 Sep 30 calls for 1.05
·         Buyer 5,000 Nov 35 calls vs 21.85, 20 delta for .925
·         Seller 3,500 Aug 19 calls at 2.125
·         Buyer 2,600 Aug 18/25 call spreads for 1.75

IV Changes
Largest IV Increases: CLX, VIX, CIT, SWC, EFA, WMS, NOG, IVR, HRS, AMJ


EBAY eBay Inc. – 6200 of the August 31 puts were bought for $0.72. The put were bought to open.

HOT  Starwood Hotels & Resorts Worldwide, Inc– 9000 of the August 52.5 puts were sold at ~$1.38 to buy 5000 of the November 55 puts for $3.95. The November 55 puts were bought to open. The trade appears to be a roll of a position out three months and up to 2.5 strikes.

LVS  Las Vegas Sands Corp – 11,400 of the August 50 calls were bought for $0.86. The calls were bought to open.

MGM MGM Resorts International. – 8300 of the July 15 calls were sold at $0.13. The calls were reportedly sold to open.

SIRI  Sirius XM Radio Inc. – 5500 of the January 3 calls were bought for ~$0.15 in a multi-exchange sweep.

JAH Jarden Corp - is scheduled to hold their earnings conference call on July 27th and saw bullish options after someone pecked away at the August 35 calls on the offer over 2K times.  The company is a $3B manufacturer and distributor of lifestyle consumer products for outdoorsmen and athletes.  They have a large product pipeline and distribution channel ranging from personal floatation devices to fire logs, security cameras and toothpicks.  The 52 week range on the stock is 25.93 to 37.50 and today shares ranged in the $33 level which is right around the 50 and 200 day moving average of 33.56 and 33.96, respectively.  The trailing P/E is 16.17 versus a forward P/E of 8.90.  The stock’s beta is 1.67 and had increased 20.42% over a 52 week period compared to almost 25% in the S&P. 


HAL Halliburton Company – 2300 of the August 50 / 55 bearish risk reversal was bought for $0.06. The August 50 puts were bought for $1.46 and the August 55 calls were sold at $1.40. The position appears to be to open.

MPC Marathon Petroleum Corp – 1500 of the October 45 calls appeared to be sold at $0.85 against stock at $39.80.

SUG Southern Union Company – 2500 of the July 42.5 calls were bought for $0.45 against a sale of 250,000 shares at $42.67.

Industrials / Materials

ABX Barrick Gold Corporation – 17,350 of the July 35 / January 30 call spread was bought for $5.20. The January 30 calls were bought to open. It appears to be a roll from a deep in the money option to a longer dated, deeper in the money option.

FO Fortune Brands, Inc – 2200 of the July 65 calls were bought for $0.65. The calls were bought to open.

LPS Lender Processing Services, Inc. – 5090 of the September 17 / 25 put spread was sold at $3.85. The same spread traded on Friday in the exact same size and appears to be a roll down in strikes.


AAPL  Apple Inc – 12,000 of the July 355 / 360 / 365 call butterfly was bought for $0.95. The spread was bought to open.  Trader looking for a 360 pin. 

LEAP  Leap Wireless International, Inc – 4700 of the January 15 / 20 call spread sold to buy the January 12.5 puts, collecting $0.78 on the three way trade. The spread is likely closing a position.

MSFT Microsoft Corporation – 10,000 of the September 27 calls were sold at $0.78 versus 450,000 shares at $26.66. The calls were sold to open.


BAC  Bank of America Corporation – 21,000 of the July 11 puts were bought for $0.59.  

BCS Barclays PLC – 2700 of the July 15 calls were bought for $0.35.  Probably a hedge against short stock... stock is broken.  Lots of room below. 

CMA Comerica Incorporated – 8000 of the January 32.5 puts were sold at $2.37. The puts appeared to be sold to open.  Trader looking for the 30 level to hold? Stock looks bearish to me... not sure what they see. 


AMLN Amylin Pharmaceuticals, Inc. – 2000 of the August 14 / 17 call spread was sold at $0.54. The August 17 calls were bought to open.  Either rolling up or fading the 200ema. 

BAX Baxter International Inc. – 3250 of the Janaury 57.5 puts were bought for $2.74. The puts were bought to open.  Trader looking for the 50ema to break. 

ESRX  Express Scripts, Inc – 2250 of the August 55 calls were bought for $1.15. Probably a hedge against short stock. 

PCYC Pharmacyclics, Inc. – 4000 of  the August 11 calls were sold at $0.75. The calls were sold to open. Partys over. 

 *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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