Option Flow Recap Feb 25

Macro / Thematic

XLF - An investor sells 50,000 March 15 puts at a nickel and buys 25,000 June 15 puts at 36 cents. This 1x2 time spread, for a net debit of $0.26, might be rolling out of a hedge from March to a position half the size in June.

GLD - April 138/143 call 1x2 front spread for $.043 debit

Consumer

SLE – An investor sold 62,000 July 18 Calls at $0.49.

PHM – 3500 January 7.5 calls were bought for $1.13. Appears to be a bullish play and a bet that the stock will find a floor, then rally in the months ahead.

F – The June 17 / 20 1x2 calls spread was bought 5,500 by 11,000 times for $0.26.

MED – The April 23 / 26 call spread was bought 1000 times for $1.20. The company is due to release its results early-March.

ARO – 3000 April 25 puts were sold at $1.00

EXPE – 1400 April 20 calls were bought for $1.10.

Energy

HK – An investor sold 37,600 June 19 calls at  $3.71 to close and bought 47,000 June 21 calls for $2.53 to open. It appears to be a rolling up in strikes.

EP – An 1100 contract block of April 18 calls were bought for $1.01 to open.

RRC – Bullish activity today in Range Resources, including, 7200 June 70 calls being bought for $0.45 to open. Over 11k contracts traded in the June 70 strike.  IV was up 2.4%.  1k June/March 52.5 calenders were also bought. 

Industrials / Materials

TIN – 4000 March 25 calls were sold at $0.60

RTN – Bearish activity: 2100 of the March 50 puts were bought to open for $0.67

Tech

ATVI – The May 12 Calls were bought 20,000 times for $0.28 vs 11.10 stock

GLW – 9500 April 24 / May 25 call spread was bought for $0.05 to open. It appears to be a roll of a bullish position from May to April, down one strike.

YHOO – Bullish long term play in Yahoo where 3900 January’13 15 calls were bought for $4.30 to open

Financials

CIM – 23,500 June 4.5 calls were sold at $0.05.

Healthcare

JNJ – 4500 January’13 75 calls were sold at $0.72

AVNR – 4100 June 3.5 calls were sold at $0.45.

*Special thanks to Flotilla Partners, Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, 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.

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!