VIX saw 57% the normal volume with 160K calls and 65K puts traded. Some larger trades in the pit:· Buyer 7,500 Aug 18 calls for 2.15
· Buyer 5000 Sep 27.5 calls to sell the Sep 22.5 straddle, collecting 5.025
· Seller 4,000 Aug 16/18 call spread vs 18.55 at .91
· Buyer 3,000 Aug 16/18 put spreads for .125
Largest IV Increases: WEN, WMS, NWSA, CVC, URBN, MRO, VHC, RIG, LEG, BJ
Largest IV Decreases: ROVI, CPB, UTHR, ZRAN, TIN, GRM, JOE, GORO, TIVO
BIDU Baidu – has been on quite the hunt all over the world for acquisitions lately. In the past couple months, Baidu has announced its buying China’s #1 travel search engine valued at $306 million, a deal with MSFT to offer English language search to users and a separate deal to put internet search boxes on television screens in China. According to Robin Li, CEO of Baidu, that is not going to end anytime soon. As he spoke on the 5th anniversary of Baidu’s listing on the Nasdaq, he made the companies intentions clear by saying: “In the past few years, Baidu has made very few acquisitions because our core business has been growing very rapidly…going forward we are increasingly keen on making this kind of strategic move”.
Looks like option traders are following the money and buying calls on BIDU. Out of a basket of ADRs we follow, BIDU weeklies were the most active - especially the 7/8 145 and 150 call strikes on the offer. In the regular July 145 call options, it appears someone was executing a VWAP for $3.50. Earnings will be out July 18th, which is just a few days before those options expire. The last Upgrade BIDU saw was on July 6, 2011 when Collins Stewart Initiated coverage to a Buy and the company has an earnings history of positive surprises. BIDU closed down .03 to 145.84.
*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.