Too Many Options – Rolling from Oct to Nov

by Enis October 17, 2012 4:39 pm • Commentary

A few large trades involved traders moving their October options out to November today.

  1. MRO – Largest print of the day as the stock made 6 month highs.  Someone rolled their long Oct 29 puts into long Nov 30 puts, rolling protection up and out, 42k of both lines traded (a $125 million notional trade)
  2. RIMM – Trader sold around 38k of the Oct 7 calls to buy a similar number of the Nov 7 calls, paying about 0.20 more in premium to roll.
  3. BAC – Looks like someone was rolling their long Oct 10 calls to the Nov 10 calls after earnings this morning.  Those were the 2 most traded lines after earnings today
  4. NCR – Someone rolled their Oct 23 calls out to the Nov 23 calls in this name, ahead of its earnings report tomorrow after the close.
  5. XHB – With XHB up 2% after the strong housing data, someone bought the Dec 24 / 23 / 22 put fly 5k times for $0.09.  The trade sees a max profit with XHB down a little more than 10% by December expiry.
  6. CBS – A large print in a rarely traded name, as someone bought 20k of the Jan13 40 calls for 0.39
  7. FXI – The China ETF has been on a tear in the past 2 weeks, rallying 10%.  Interesting trade today, as someone sold 20k of the Jan13 34 / 38 strangle at $1.89, and bought 30k of the Jan13 25 puts for $0.05
  8. GRMN – Smaller name, but someone traded the Jan14 30 / 45 risk reversal, buying call, selling put, paying $0.45, 3100 times.
  9. NOK – The Oct 3 put line traded 35k over the course of the day.  Traders likely bet on a potential pin on Friday, as the Oct 3 calls also traded 16k.
  10. DG – Traded 12 times normal volume after cautious comments midday.  Dan mentioned this possibility in the Morning Word on Monday.