Too Many Options – $FB Dominates

by Enis October 24, 2012 4:28 pm • Commentary

With Facebook up around 20%, it’s no surprise that it dominated options flow today.

  1. FB – 4 of the top 7 lines in the single stock options market today were in FB.  The Nov 24 calls, the Oct 24 calls, and the Nov 21 puts were the most actively trade.
  2. AET – It reports earnings before the open tomorrow, and more than 13k of the Nov 45 calls traded throughout the day, mostly buyer initiating
  3. XLF – Someone bought 65k of the Jan14 14 puts for 0.99 to open, looking to get more than 1 year of protection for 6% of current spot.
  4. EEM – Bullish structure in EEM this morning, as a big player sold the Dec 40 and 41 puts to buy the Nov 42.5, Dec 43 and Dec 44 calls.
  5. APC – Customer bought 5,100 of the Feb 75 / 85 call spread for $1.65.  APC is down 10% in the last week as crude oil has gotten drilled.
  6. F – A lot of activity in the weekly and November calls.  The weekly Oct 10.5 calls traded more than 40k times, buyer initiating, which was bizarre given that F reports earnings next week. Stock had a strong rally in the afternoon.
  7. AKAM – Traded 10 times normal volume ahead of the earnings report this afternoon (which looks better right now).  Looks like the Nov 35 / 31 put spread traded around 10k
  8. TPX – Stock fell 20% on earnings today, after lowering its guidance for the rest of the year on increased competition.  Options traded more than 10 times normal volume.  December options were the most actively traded across several lines
  9. NFX – Interesting intraday move, as the stock actually opened higher, but quickly traded lower as the CEO said on the conference call that international oil volumes could be down 25% in 2013.  The Nov 32 and 28 calls were most active, mostly sellers to close.
  10. WMB – Someone sold 27k of the Nov 32 puts around 0.41 to open this morning, a bullish bet ahead of earnings next week.