Options Flow Recap Aug 15

Macro / Thematic

FXI iShares FTSE/Xinhua China 25 Index - 28,500 of the September 40 calls were bought to open for $0.50. A total of 40,609 traded on the day. Also a buyer of 23,000 Nov 42 calls for 65 

IWM iShares Russell 2000 Index – 32,000 of the November 57 / 63 / 69 put fly was bought for $0.62. The put fly was bought to open and has a maximum profit $5.38 if the IWM closes at $63.00 on November expiration, a decline of 12.2% from the current price ($71.76).


GLD SPDR Gold Trust : seller 11,500 Jan 135/150 call spread for 13.10


IYR iShares Dow Jones US Real Estate : seller 5,500 Aug 61 puts, seller 5,500 Sep 56 calls, collecting 7.20

VIX saw 76% the normal volume with 244K calls and 204K puts traded.  Some large trades in the pit:

·         Buyer 6,000 Sep 22.5/25 put stupid vs 27.15 d-neu for 3.225
·         VXX seller 5,000 Sep 30 puts vs 32.90, 32 delta at 2.20
·         Buyer 3,000 Sep 35 calls for 1.925
·         Seller 2,500 Aug 27.5/32.5 call spreads at 3.50
·         Buyer 2,500 Sep 30/40 call spreads for 1.525

SPX saw 105% the normal volume with 352K calls and 738K puts traded. Some large trades in the pit:

·         Buyer 10,000 Aug/Sep 1170 put spreads for 24.50, vs 1192.50
·         Buyer 5,000 Aug/Sep 1000 put spreads for 5.15 (4K), 5.20 (1K), 7 delta, tied to 1195
·         Buyer 4,000 Aug 1100/1150/1200 put flys for 10.40 (1.3K), 10.50 (2.7K)
·         Buyer 2,000 October 950 puts for 8.40 vs 1196.00
·         Seller 2,000 Oct 1175/1275 risk reversals at 32.30 (selling put), 68 delta, tied to 1193
·         Seller 2,000 Aug 1125/1200 risk reversals at 10.00 (selling call) vs 1192.00

IV Changes

Largest IV Increases: LPHI, DKS, NOK,, IDCC, DEEF, CFN, BIDU, MRX, SA< RKH

Largest IV Decreases: MMI, TXI, D, GILD, GS, ZAGG, CMA, MS, HTZ, CZZ

Consumer

HOT- Starwood Hotels & Resorts Worldwide, Inc- 3000 of the September 38 / 48 strangle was sold at $1.77 to buy the September 43 calls for $3.55.

LVS Las Vegas Sands Corp. - 3000 of the September 40 / 48 strangle was sold at $2.08 to buy the September 43 calls for $3.54.

SIRI - Sirius XM Radio Inc. - 40,000 of the January 2.5 calls at an average of $0.175.

SVU SUPERVALU INC - 9000 of the January 5 puts were sold at an average of $0.375. The trade was tied to 126,000 shares at $7.29 and might be closing.

Energy

HAL Halliburton Company - 6000 of the September 40 / 50 strangle was sold at $2.16 to buy 4000 of the September 45 calls for $3.93.

WMB Williams Companies, Inc. - 15,500 November 23 Puts were bought for $0.90. 15,500 of the November 27 Calls were sold at $3.31. 9000 of the August 28 Calls were bought for $1.03. 3500 of the August 26 Calls were bought for $2.72. 3000 of the August 27 Calls were bought for $1.80. The 5 leg trade was done as a package.

Industrials / Materials

AVT Avnet, Inc. - 2500 of the August 29 calls were bought for $0.35. The trade is likely to close.

TIN Temple-Inland, Inc.  - 3000 of the January 30 / 35 call spread was sold at $1.50.

Tech

T AT&T Inc.  - 2700 of the November 25 puts sold for $0.47. The trade was an opening position.

VZ Verizon Communications Inc. - seller 2,394 Oct 31 puts at .53

YHOO Yahoo! Inc. - 19,150 of the January 22.5 calls appear bought for $0.09.

Financials

EQR Equity Residential - 7000 of the August 62.5 calls were bought for $0.25.

JPM JPMorgan Chase & Co. - 4500 of the September 30 / 35 put spread was bought for $0.97.

Healthcare

MAKO MAKO Surgical Corp.   - 2300 of the August / September 30 call spread was sold at $0.70

WLP WellPoint, Inc.  – 3000 of the September 57.5 / 65 strangle at $2.52 to buy 2,000 Sep 60 calls for $3.78.


DNDN Dendreon Corporation - buyer 3,000 Nov 14/18 call spreads for 63




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*Special thanks to Option Radar, BMO Capital, MEB Options, Bloomberg, Reuters, Optionistics, LiveVolPro, CBOE, AMEX, 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.