Options Flow Recap July 12th

Macro / Thematic

SPY SPDR S&P 500 ETF – 10,000 of the July 130 / August 129 put spreads were bought for $1.43. 11,000 of the December 125 puts were bought for ~$4.39

 VIX saw 113% the normal volume with 340K calls and 119K puts traded.  Some larger pit trades:

·         Buyer 25,000 July 17p/22.5c risk/rev for .30
·         Buyer 10,000 Aug 25 calls vs 19.70, 30 delta for .925
·         Seller 10,000 July 25 calls at .15
·         Buyer 7,000 July 17 puts for .275 to sell 4,400 July 20 puts at 1.875
·         Buyer 5,000 July 19 puts vs 19.10, 26 delta for 1.175
·         Buyer 5,000 July 25 calls for .25
 

IV Changes

Largest IV Increases: BRFS, AZN, TSL, GRM, MCHP, ID, CADX, MBI, ANN, FCS

Largest IV Decreases: INFY, AA, FAST, NVLS, ANH, BJ, CFSG, CLX, WMS, DEER

Consumer

CBS CBS Corporation – 10,000 of the September 23 / 30 strangle was bought for $1.15. It is likely a closing trade from last month when the same strangle was sold at $1.60.

DAL Delta Air Lines, Inc – 3000 of the January’13 12.5 / 17.5 call spread was bought for $0.65. The spread was bought to open.

GES Guess?, Inc. – 10,000 of the September 44 calls were bought for $1.45.

GT The Goodyear Tire & Rubber Company – 10,000 of the August 18 calls were bought for $0.65.

MHK Mohawk Industries, Inc – 6125 of the August 55 puts were bought for $2.25. The puts were bought to open. It could be a play on earnings which are due to be released early August.

MJN Mead Johnson Nutrition CO – 5000 of the July 65 calls were bought for $3.40 and the November 55 / 65 bearish risk reversal traded for a $5.16 credit.

Energy

LNG Cheniere Energy, Inc. – 8500 of the December 12 calls were bought for $0.95.

PXP Plains Exploration & Production Company – 32,000 of the January 32 puts were bought against a sale of 16,000 January 40 calls for a net debit of $0.06, tied delta neutral to $37.15 stock

WMB Williams Companies, Inc. – 17,300 of the November 24 / 34 bearish risk reversal was bought for $0.26. The opening trade was tied to 390,000 shares at $28.77.

Industrials / Materials

GFI Gold Fields Limited – Nearly 29,000 of the GFI August 14 calls traded on the day. No large prints but 68% of the trades were on the offer as the stock rallied 4.3% on the day. The open interest in the August 14 calls is 301, indicating nearly all the trades today were to open. (heard rumors a big new letter said to buy calls)  bullish gold action continues. 

TIN Temple-Inland, Inc. – 4500 of the July 26 / 29 strangle was bought for $1.45. 4500 of the August 26 / 30 strangle was sold at $1.40

WY Weyerhaeuser Company – 2500 of the October 25 calls were bought for $0.45. The calls appear to be bought to open.

Tech

AAPL Apple Inc – 10,000 of the July 355 / 360 / 365 call fly was bought for $0.86. The same call fly was bought yesterday.  Some people saying these are closing but could very well be 360 pin plays. 

CREE Cree, Inc. – 10,250 of the September 32.5 / 37.5 call spread was bought for $1.45.  Knife catcher have been going at this name... watch for a bounce. 

QCOM QUALCOMM, Inc. – 10,000 of the August 50 / 62.5 bearish risk reversal traded for a $0.03 credit.  Trader buying the dip.

BRCM Broadcom Corporation August $35/$30 bull risk reversal for a $0.38 debit.  Another tech dip buy. 

Financials

MBI MBIA Inc. – 2500 of the January 10 calls were sold at $1.50. It is possibly a closing trade following the rally in the stock today on the announcement the company agreed to drop a lawsuit against Bank of America and Merill Lynch.

NLY Annaly Capital Management, Inc. – 12,400 of the October 17 calls were sold at $1.25. The calls were sold to open.

BAC Bank of America Corporation: seller 11,00 Jan13 15 calls vs 10.32, 24 delta at .4 

Healthcare

LIFE Life Technologies Corp. – 4000 of the August 45 puts were sold at $0.50. It is possibly a closing transaction.

WCRX Warner Chilcott Plc – 2500 of the July 24 puts appeared bought for $0.45. The trade also appears to be an opening transaction.

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 *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.