Options Flow Recap Aug 19

Macro / Thematic

UUP - 50,000 of the December 22 calls were bought for $0.30.

XLF – 100,000 of the XLF October 10 puts were bought for over the day for ~$0.39.

VIX saw 120% the normal volume with 443K calls and 277K puts traded.  Some large trades in the pit:

·         Seller 10,000 Oct 40/50 call spreads at 1.00
·         Seller 6,000 Sep 22.5 puts at .225
·         Seller 5,000 Sep 35 calls at 3.825
·         Buyer 5,000 Sep 27.5 puts vs 32.90, 22 delta for 1.45
·         Seller 4,000 Sep 27.5 puts vs 30.90, 30 delta at 2.125
·         Buyer 4,000 Oct 50 calls for 1.225
·         Buyer 4,000 Oct 32.5 calls for 3.55
·         Buyer 2,000 Sep 25 puts for .75


IV Changes

Largest IV Increases: TDC, SBUX, INFA, PLCM, TIN, CVLT, CTSH, CAN, IBM, HRS

Largest IV Decreases: MMI, SINA, QIHU, NTGR, DLTR, NRG, FSIN, SHLD, SPRD, CSE

Money Flow

Buying on Weakness: SPY, SNI, VTI, PXD, NTAP, JPM, QCOM, ABX, OIH, CI, BHP, CTSH, LOW, MGM, WFC, MS

Selling on Strength: NSM, WMT, TLT, GLD, HK, SINA, FAZ, IAU, CNX, SNPS, SODA, EK, SKM, UGL, PICB, QIHU

Consumer

AEO – 8230 of the September 9 puts were bought for $0.15. It appears to be an opening transaction.

NYT – 10,000 of the September 6 puts were bought for ~$0.23.

PHM – 24,800 of the September 4 / 6 put spread was bought for $1.62. The September 4 puts were sold to open.

TWI – 5000 of the October 20 calls were bought for $1.60. The calls were bought to open.

Energy

COP – 8000 of the November  62 / 67.5  bearish risk reversal appeared to be bought for $1.50. The risk reversal appears to be bought to open.

Industrials / Materials

DRYS – 4000 of the September 1.5 puts appear to be bought for $0.04. The transaction appears to be to open.

TIN – 7000 of the January 35 calls were bought for $0.20.

Tech

CSCO – 20,000 September 16 calls were sold to buy 20,000 of the January 17 / 20 call spread for $0.12. The call spread appears to be opening, the sale of the September 16 calls is possibly opening, indicating that the investor believes the stock will remain below $16.00 over the next 30 days.

GLW – 26000 of the Jauary’13 17.5 calls were sold at $1.68 and 16,300 of the January’13 15 calls were sold at $2.60 versus a purchase of 2.02 million shares of stock.

STX – 5000 of the December 11 calls were bought for $1.29. A block of 3860 calls were bought earlier in the day for $1.42.  Both blocks  were bought to open.

Financials

BAC – 25,000 of the November 4 puts were bought for $0.35. The puts were bought to open.

C – 26,000 of the January 35 / 42 / 49 call butterfly was bought for $0.95. The fly was bought to open.

CBG – 14,100 of the September 15 / 20 put spread was bought for $4.15. It appears to be a roll from the September 20s down to the September 15s.

http://seaofopportunity.blogspot.com/ *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.