Transcript:
Showing posts with label MS. Show all posts
Showing posts with label MS. Show all posts
Saturday, June 11, 2011
Wednesday, February 9, 2011
Option Flow Recap for Febuary 9 2011
Macro / Thematic
IWM – 30,000 of the April 72 puts were bought for $0.95 to open.
GDX – 10,000 of the February11 (weekly) / February (regular expiration) 57 call spread was bought for $0.43. The weekly option appeared sold at $0.25 to open and the regular February option appeared bought for $0.68 to open. The investor is betting the shares of GDX remain below 57 for the rest of the week before moving higher into next week’s expiration.
FXI - 7,500 Feb 41/42 put sreads bot to open
EEM - 20,000 May 36 puts sold @ .40 10,000 April 43 puts bought @ 1.1 (possible roll up and out)
Consumer
JCP – Over 5000 of the March 35 / 31 1x2 put spreads were bought to open as the stock hits a new 52-week high. The trade appears to be a short term hedge as the stock has made a 15.6% move over the past four days.
M – Options were active in Macy’s today with almost 20,000 calls and 7700 puts trading. Most of the early action was bullish with call buyers active in the February 25 and 26 calls.
SCSS – An investor sold 6000 June 7.50 puts at 0.275
F – 15,000 March / May 17 call spreads traded for $0.48. The trade appears to be a roll out two months.
SLE – 17,000 March 17 puts appeared bought today (99% traded on the offer). The company’s stock has been under pressure since the company announced that it was planning to split into separate companies rather than put itself up for sale.
BBBY - 1500 March 50 calls bought at $1.18
Energy
EPD – Bearish trade in Enterprise Products Partners where May 40 - 44 bullish risk reversal, bought at 40 cents, 3800x after news of a fire at a Houston plant.
SOLR – February 10 calls were active today with 6500 trading on the day. While early action appeared to be call buyers, the overall action appeared to be both ways.
PPL – 800 July 24 puts were sold to open at $1.05
HNP – 700 March 22.5 calls were sold $0.30.
TMT
ATML – Bullish post earnings trade: 25,000 lot block of May 17 calls bought for 1.40 versus a sale of 15,000 Feb 13 calls for 3.40.
NOK – 6000 July 10 / 8 put spreads were bought for $0.275
ALU – February 3.5 calls are active today with 7800 trading. The company reports tomorrow 2/10.
NTAP – 8000 of the February 65 calls appeared sold at $0.35. earnings on 2/16
YHOO – 10,000 April 17 / Jan 17.5 call spread was bought for $1.10,
Industrials / Materials
USG - An investor apparently sold 2,250 February 17.5 calls at $1.425 to appear to buy to open a May 19 / 22.5 calls spread for $1.30
PCX – 4000 March 25 calls were bought for $1.40
YRCW – 37,000 April 2.5 puts were bought for $0.27. The puts were bought to open
Financials
CBOE – Speculative call buying was active in CBOE following news the NYSE Euronext (NYX) and Deutsche Boerse are in advance merger talks. Almost 15,000 calls and 5000 puts traded on the day.
KFN - Buyer of 3k March 10 calls @ $0.60 and 5k March 11 calls @ $0.20
Healthcare
THC – Over 5000 of the March 7 calls appeared bought in a multi exchange sweep.
*Special thanks to Option Radar, BMO Capital, LiveVolPro, CBOE, Option Monster, and all of the options desks and traders we work with for pointing out the option flow!
Tuesday, February 8, 2011
WFC trades 2X its daily average
Wells Fargo (WFC) traded 129,121 options today, 94,688 calls and 34,473 puts vs a daily average of 65,483 options, 37,088 calls and 28,395 puts. Traders added 844k deltas in the calls and -168k deltas in the puts.
The print that caught my eye was a buyer of 10,000+ in the money March 32 calls this morning. After these prints hit the tape the stock never looked back.
There was also a diagonal short calendar spread where a trader sold 2500 of the March 35 calls @ $0.64 and bought 2500 of the Feb 34 calls @ $0.60. This trade is profitable above $34.17 tomorrow and above $34.73 on expiration day. This is a professional trade to be long deltas, long gamma, and short vol, for a credit of $0.04. Here is the risk/reward for tomorrow:
As you can see in the chart below WFC is testing its highs from April of 2010. This is very interesting when you compare it to the other big banks. JPM, GS, C, MS, AIG, BAC, USB, PNC and of course XLF are all below their 2010 highs.
The print that caught my eye was a buyer of 10,000+ in the money March 32 calls this morning. After these prints hit the tape the stock never looked back.
There was also a diagonal short calendar spread where a trader sold 2500 of the March 35 calls @ $0.64 and bought 2500 of the Feb 34 calls @ $0.60. This trade is profitable above $34.17 tomorrow and above $34.73 on expiration day. This is a professional trade to be long deltas, long gamma, and short vol, for a credit of $0.04. Here is the risk/reward for tomorrow:
As you can see in the chart below WFC is testing its highs from April of 2010. This is very interesting when you compare it to the other big banks. JPM, GS, C, MS, AIG, BAC, USB, PNC and of course XLF are all below their 2010 highs.
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