Macro / Thematic
QQQ PowerShares QQQ Trust, Series 1 - buyer 17,000 Oct 47/52 put spread for 1.19
SPY SPDR S&P 500 ETF - 46,000 of the October 101 / 107 / 113 put fly was bought for $0.51. The put butterfly was bought to open.
IV Changes
Largest IV Increases: ASIA, DTG, GME, FTNT, INT, DRIV, AMRN, TZOO, CRM, BKS
Largest IV Decreases: SUG, CMED, CZZ, REGN, SPLS, ADI, ETE, DELL, DSX, CHS
Money Flow
Buying on Weakness: IWB, XLK, IWM, EMC, UTX, TUDO, MT, LOW, WMT, ORCL, GOOG, MSFT, IVW, ESRX, ALU
Selling on Strength: XLE, IYR, XLP, AGG, MMI, XOP, AMGN, DBO, MCD, OIH, APA, DWM, VZ, MSI, SPLSSPX saw 138% the normal volume with 455K calls and 1M puts traded. Some larger trades in the pit:
· Buyer 7,000 Nov 650 puts for 1.25 vs 1202.50
· Buyer 5,000 Dec 1000 puts for 23.80 vs 1184.75
· Buyer 5,000 Aug 1150 puts vs SPY Aug 115 puts for .10, Live
· Buyer 2,000 Aug 1100 puts for .25 vs 1196.25
VIX saw 87% the normal volume with 286K calls and 235K puts traded. Official Settlement 32.73. Some large trades in the pit:
· Buyer 15,000 Sep 17 puts for 05
· Buyer 10,000 Sep 35/45 call spread for 1.00
· Buyer 10,000 Sep 20/21 put spreads for 15
· Buyer 9,600 Oct 20/21/22.5 put tree for 05
· Buyer 8,000 Sep 35 calls at 1.60 to sell 5,000 Sep 45 calls at .70
· Buyer 5,000 Sep 47.5 calls vs 27.55, 14 delta for .70
· Seller 4,000 Nov 19/22 put spreads vs 25.65, 16 delta at 1.30
· Buyer 3,000 Sep 35 calls to sell 3,000 Sep 30 straddles, collecting 6.25
Consumer
ARO Aeropostale, Inc. – 4350 of the August 13 calls were bought for $0.30. The calls were bought to open ahead of the company’s earnings report after the close on Thursday, August 18th.
FINL The Finish Line, Inc. – 4000 of the November 22 / 25 call stupid was bought for $1.25. The trade was tied to stock at $19.00
SVU SUPERVALU INC. - 5000 of the January 7.5 straddle was sold at $2.26. The straddle was sold to open.
TGT Target Corporation – 12,050 of the January’13 60 calls were sold at $2.80. The trade was tied to $50.55 on a 32 delta. Separately, 1700 of the January 57.5 / 60 / 62.5 call butterfly was bought for $0.27. The butterfly was bought to open.
MMI Motorola Mobility Holdings Inc - buyer 8,500 Oct 24 puts for 15
Energy
HAL Halliburton Company - 2500 of the October 42 puts were sold at $2.02.
HES Hess Corp. - 2250 of the January 65 / 75 / 80 call ladder was bought for $1.74 The trade entails buying the January 65 calls and selling both the 75 and 80 calls. The call ladder was bought to open. The trade was tied to $60.00 stock on a 10 delta.
NOG Northern Oil & Gas, Inc. - 5000 of the March 17 / 25 call spread was bought for $3.30. The call spread was bought to open.
Industrials / Materials
BA Boeing Company - completed its 20 month long test program on the 787 aircraft and is nearing final approval from the FAA before it can deliver its first Dreamliner. According to Bloomberg News, Japan ANA (All Nippon Airways) will be receiving the first one which will be over 3 years late. Analysts are expecting a turbulent ride ahead in meeting production demand and, according to Douglas Harned at Sanford Bernstein, the Dreamliner probably won’t be profitable until the 1000th delivery. In options, it looks like someone bought the Sep 60/62.5 strangles about 1,000 times for 4.119.
HRBN Harbin Electric, Inc. - 4000 of the August / September 20 put spread was bought for $1.80
UTX United Technologies Corporation - 4000 of the February 72.5 / 80 1x2 call spread was bought for $0.90. The ratio call spread appeared to be bought for $0.90.
Tech
RIMM Research In Motion Limited - 12000 of the March 24 puts were sold at $3.20. The trade appears to be to open and was tied to 396,000 shares at $26.15.
YHOO Yahoo! Inc. - 15,000 of the October 15 / 18 call spread was bought for $0.52.
EMC EMC Corp, a $46B capitalized information and virtual infrastructure company will report earnings on October 18th and analysts are expecting .371/share. The company was recently upgraded at Oppenhemier on August 1st (Perform to Outperform) and at Auriga on August 8th (Hold to Buy). Recently, we have seen a lot of put buying in EMC with traders buying 2,000 Jan 15 puts yesterday for .20 and today buying the Sep 21 and 22 puts today about 3,000 times each. From the tape, it appears these transactions were opening (at least partially) and swept across the exchanges when the underlying was trading at the 22.90 level. The Sep 21 puts have a 20 delta and IV about 39 while the Sep 22 puts have a 33 delta with an IV about 36. This compares to historical vols of: 42.7% (30 day), 32.5% (60 day), and 28% (120 day).
Financials
BAC Bank of America Corp - 15,000 of the May 5 calls were bought for $3.10 versus a sale of 50,000 of the January 10 calls at $0.39. (Pro Trade!... 2.6M debit... love the risk reward on this... margin is insane though ) Separately, 20,500+ of the September 7 / 5 put spread was bought for $0.47. The trade was tied to $7.46 stock (unclear if the stock was bot or sold.... could be a short stock replacement or just a hedge on long stock)
Healthcare
BIIB Biogen Idec Inc. - 1250 October 80 puts were sold at $2.55 to October 95 / 105 call spread was bought for $3.35.
FLML Flamel Technologies S.A. - 8700 of the August / September 2.5 call spread was bought for $0.07.
TEVA Teva Pharmaceutical Industries Ltd - 11,000 of the September / January 35 put spread was bought for $1.20.
WLP WellPoint, Inc. - 2100 of the December 52.5 / 70 strangle was sold at $3.40 to buy 1400 December 62.5 puts for $5.10. A similar trade went up in WLP two days ago however calls were bought against a strangle sale.
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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.
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