Option Flow Recap May 5

Marco

Technology led the way with 2.4M contracts traded (97% normal with 66% calls and 34% puts). The Oil & Gas sector followed with 1.4M contracts traded (168% normal with 59% calls and 41% puts). The Basic Materials were the next most active with 1.3M contracts traded (132% the normal with 62% calls and 38% puts).

UUP PowerShares DB US Dollar Index Bullish - buyer 26,400 Jan12 24 calls for .18

Financial Select Sector SPDR (ETF) XLF - seller 75,000 May 15 puts at .035 

VIX - 

·         Buyer 9,700 May 16 puts for .30
·         Buyer 5,000 May 16/17 put spread for .375
·         Buyer 3,500 June 22.5 calls for 1.525
·         Seller 3,000 May 19/June 24 call spread at .10
·         Buyer 10,000 June 18 puts for 1.15 (3K), for 1.20 (7K)

Consumer

AEO American Eagle Outfitters – 1300 of the June 15 puts were bought for $0.75. Over 6500 of the puts traded on the day.

RJET Republic Airways Holdings Inc.  – Nearly 20,000 of the November 5 calls traded today with 58% being bought on the offer. The company hit a 52 week low yesterday.

OMX OfficeMax Incorporated – 12,500 of the June 8 puts were sold today at $0.15. The puts were sold to open.

KFT Kraft Foods Inc. – An investor bought 7760 of the June 32 puts for $0.265 and sold 4400 of the June 29 puts at $0.32.

MGM MGM Resorts International. – 3000 of the June 12 / 13 call spread was bought for $0.82.

CBS CBS Corp - saw large bearish play with 6K Jan12 20 calls, sold at $7.30. After 6 months' climbing, the stock seems expensive enough and some investors are seeking a way to protect their gained profits.  10K Jan12 20 calls traded (93% on the bid) with implied volatility up 5.3 to 40.4.   

Energy

BHI Baker Hughes Incorporated – 12,600 of the January 50 calls were bought for $22.30 and 10,500 January 35 calls were sold $35.55. The investor was rolling up from the January 35s into the January 50s.

SD SandRidge Energy Inc.  – 10,000 of the September 14 calls were bought for $0.52 versus 260,000 shares at $10.73

NE Noble Corporation  – 3300 of the May 39 puts were bought for $0.63. The puts were bought to open.

Industrials / Materials

PPO Polypore International Inc - the maker of a key component in electric-car batteries, was the most shining star in the NYSE.  Shares jumped almost 20% on the Q1 earnings that net income rose 47%, beating analyst estimates (39 cents expected), and touched a fresh 52-week high.  PPO traded 6.8 times the usual volume in the options market with 5K calls and 1.8K puts.  All kinds of calls, ranging from May 55 to 70 plus Jun 55 and 60 saw brisk trading.  Slightly over a half of the call premium traded on the ask side.

PWR Quanta Services, Inc. – 1200 of the June 21 calls were bought for $0.30. The calls were bought to open.

MOS The Mosaic Company – 5800 of the May 75 calls were bought for $0.86 and 11,200 of the May 80 calls were sold at $0.24.

VMC Vulcan Materials Company - the nation's largest producer of construction aggregates, announced a loss of $55 million, or $0.42 per diluted share.  The stock traded down and the options market acted bearish as well. Unusual volume was detected with over 6K calls and 2K puts.  May 40C was the most actives, almost 4K traded.  Premium of the contract went down from 3.75 to 2.15, which 83% on the ask side.

Tech

EQIX Equinix, Inc. – 9400 of the January 110 / 130 / 145 call fly was bought for $3.80

NVLS Novellus Systems, Inc. – 1000 of the September 40 calls were bought for $1.00 and 1000 of the June 36 calls were bought for $0.75

CSCO Cisco Systems, Inc. – 25,000 of  January 19 calls were bought for $1.04. A minute later 10,000 additional January 19 calls were bought.

Financials

V Visa Inc. – 1800 of the June 80 calls were bought for $2.21

NLY Annaly Capital Management, Inc. – 4500 of the  June 18 puts were bought for $0.30. The puts were bought to open.

Healthcare

COV Covidien plc – 3000 of the October 60 calls were sold at $1.25. The calls were sold to open.

SVNT Savient Pharmaceuticals, Inc. – 3500 of the June 11 calls were bought for $0.25.

Earnings
05/06   ACET Earnings before open
05/06   ARNA Earnings
05/06   AVA Earnings before open
05/06   AVD Earnings
05/06   BAH Earnings
05/06   BEC Earnings
05/06   BIP Earnings before open
05/06   BKH Earnings
05/06   BPL Earnings before open
05/06   BRNC Earnings before open
05/06   CAS Earnings before open
05/06   CCO Earnings before open
05/06   CEG Earnings before open
05/06   CEP Earnings before open
05/06   CHD Earnings before open
05/06   CNK Earnings
05/06   COWN Earnings before open
05/06   CRZO Earnings
05/06   CWH Earnings before open
05/06   DRQ Earnings before open
05/06   DSX Earnings before open
05/06   DVAX Earnings
05/06   EBIX Earnings
05/06   ESLR Earnings
05/06   GPOR Earnings
05/06   GTE Earnings
05/06   HALO Earnings
05/06   HAYN Earnings
05/06   HIL Earnings after close
05/06   HTGC Earnings
05/06   IBI Earnings before open
05/06   IBOC Earnings
05/06   INHX Earnings
05/06   KCAP Earnings
05/06   KDN Earnings before open
05/06   KSWS Earnings before open
05/06   LEE Earnings before open
05/06   LINTA Earnings
05/06   MDVN Earnings after close
05/06   MSG Earnings before open
05/06   NCT Earnings before open
05/06   NFG Earnings before open
05/06   NPO Earnings before open
05/06   NU Earnings
05/06   OGXI Earnings
05/06   OPTR Earnings
05/06   OREX Earnings
05/06   PNM Earnings before open
05/06   POM Earnings before open
05/06   REN Earnings after close
05/06   ROSE Earnings
05/06   SIRO Earnings before open
05/06   SLH Earnings
05/06   SRI Earnings before open
05/06   SRZ Earnings
05/06   SUP Earnings before open
05/06   TDS Earnings before open
05/06   TREE Earnings
05/06   TTI Earnings before open
05/06   UPL Earnings before open
05/06   USEG Earnings
05/06   VHC Earnings
05/06   VISN Earnings before open
05/06   WCG Earnings before open
05/06   WCRX Earnings before open
05/06   WTR Earnings before open
05/06   WTW Earnings before open
05/06   XEC Earnings before open
05/06   XTEX Earnings before open
05/06   XTXI Earnings
05/06   YRCW Earnings before open
05/06   ZEUS Earnings before open
05/06   ZINC Earnings before open

Possible Div Plays  
05/09   AMLP ExDiv 0.243243/share (est)
05/09   ART ExDiv 0.06/share
05/09   COLB ExDiv 0.05/share
05/09   FO ExDiv 0.19/share
05/09   LAD ExDiv 0.07/share
05/09   MCRL ExDiv 0.035/share
05/09   MDC ExDiv 0.25/share
05/09   MIC ExDiv 0.2/share
05/09   RGS ExDiv 0.06/share
05/09   SBUX ExDiv 0.13/share
05/09   WTI ExDiv 0.04/share
05/09   X ExDiv 0.05/share

*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.