Thursday, July 7, 2011

Options Flow Recap July 7th

Macro / Thematic

XLF  Financial Select Sector SPDR – 25,000 of the October 16 /15 1x2 put ratio spread traded at $0.05. One October 16 put was bought and two October 15 puts were sold.

XLP Consumer Staples Select Sect. SPDR – 20,000 of the January 37 calls were bought for $0.03. Separately, 10,000 of the January 36 calls were bought for $0.07. Both were bought to open.

SPY SPDR S&P 500 ETF – 22,000 of the July(8th) 135 puts were bought for $0.35. The puts were bought to open and will expire on Friday (July 8th)  This was tied to stock d-neu so they're looking for a big move tomo...

EFA iShares MSCI EAFE Index Fund - August $54/$57/$60 put butterfly 9,500x19,000 for a $0.45 debit, or $427,500.

 IV Changes
Largest IV Increases: LZ, CADZ, BLUD, ID, GRM, FST, KLAC, AMJ, CIS, AFFX


AEO  American Eagle Outfitters – 65,000 of the February 15 calls were sold at $1.12. The calls were sold to open and were not tied to stock.  Trader selling upside above 200 dma.

PG The Procter & Gamble Company – 17,900 of the January 65 / 70 call spread was sold at $1.58. It is possibly an opening position or a roll to a higher strike.

ZAGG ZAGG Incorporated - a designer, manufacturer and distributor of protective covering for audio accessories and devices, traded higher today despite a negative report from Citron Research titled “What A Mess Under those Covers”.  You can see the full report here: Link.  The company puts a one month price target of $8 on it and $2 over 24 months.  The name has been hard to borrow for 3 days and has traded over 5 times its normal option volume.  The July 11 and 13 puts were the most active with the majority of contracts traded on the offer.  All day, 17K calls traded against 27K puts.  


FST  Forest Oil Corporation – Implied volatility jumped nearly 20% today to 43 as analysts slashed their earnings estimates on the heels of the revised forecast.  Stock was down over 13% on volume.  Nothing really stands out option wise BUT this is a name that ought to be on your watch list for trend days, a gap fill or to sell that volatility pump eventually.  Long gamma short volatility plays are interesting for anything over night.  Great opening break in here today... and even gave a second entry.  Here are the details.  As always risk 1 to make 2 minimum. 

Industrial / Materials

GE  General Electric Company - 4600 of the July(8th) 19 puts were bought for $0.03. The puts will expire on Friday July 8th and were bought to open.  Cheap hedge for anyone who bot stock the last few weeks.

FCX Freeport-McMoRan Copper & Gold Inc. – 3000 of the July(8th) 55 puts were bought for $0.15. The puts will expire on Friday July 8th and were bought to open.  The bet makes sense when you look at the chart


ACN Accenture Plc  – 1300 of the August 65 puts were bought for $2.60. The puts were bought to open.

MSFT Microsoft Corporation – 7700 of the October 27 puts were bought for $1.40. The puts were bought to open.

STX Seagate Technology PLC – 30,000 of the August 17 / September 16 call spread was sold at ~$0.73.

TXN Texas Instruments Incorporated – 750 of the January 34 straddle was bought for $4.80. The straddle was bought to open.

AAPL Apple Inc. - August $330/$335/$340 put butterfly 7,250x14,500 for a $0.17 debit, or $123,250.


AIG American International Group, Inc. – 10,000 November 30 calls were bought for $2.40. The calls were bought to open.  Trader looking for a test of the 200 dma or higher.

BX The Blackstone Group L.P. – Over 16,000 of the January’13 20 calls were bought @ $1.55. This is the second day in a row the January’13 20 calls have seen bullish opening buying. Traders looking for multi year highs.  Stock looks to be trending up and bounced nicely off its 200 dma.


ITMN InterMune, Inc.  – 1100 of the January 25 puts were sold at $1.83. The puts were sold to open.  Above the gap and below the 200 dma.

THOR Thoratec Corporation – 25,000 of the July 35 puts were sold on the day @ $0.25. The puts were sold to open.  Wow... thats some confidence... stock looks like it could break out too... 

 *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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