XRT was down more than 2%, as consumer discretionary led on the downside today. It’s been one of the best performing sectors of the bull market.
- XRT – A trader sold 10k of the Nov 63 / 58 put spread to close around 1.75, taking profits as XRT approached support at 61.
- KORS – IV30 has reached the highest point since listing options in December 2011. Stock was down almost $4 today and IV30 up 12 points to the high 70’s. KORS could be FOSL related as they sell some Fossil products and stock was down Monday when FOSL reported and got hit. Option volume was over six times the average. The Dec 50 puts traded 6000 times on a line with small open interest. It looks like they were bought a lot in the morning and then perhaps a seller of 3400 just before noon. The Nov 55 and 45 puts traded 2500 times each. It looks like a spread although both are listed as buywrites. Earnings are the 13th before the bell.
- IGT – International Gaming Technology, earnings after the bell today. Stock hasn’t moved much today but IV30 is up over 20 points into the high 60’s. 11K Nov 13 calls have traded in a product that averages 1300 options a day. The Jan’13 12.5/14 call spread traded 500 times. There has been some positive media around their launch of online slot game Star Trek: Against All Odds. IGT does casino gaming and systems technology as well as domestic. They have reported falling income for 3 straight quarters but improved revenue the last two quarters
- BAC- Bank of America the Feb 7/9 put spread went up 42K by 30K. Open interest is a bit less that that on both lines. Almost 500K options traded today, average is 350K+. 32K of the Jan’13 10 calls, I am not sure if there was one big trade and 26K of the Feb 10 calls traded with one lot of 20K trading for $ .50.
- ZIP – IV30 vol at highest point since inception in April 2011. Earnings are after the bell today.
- GRPN – at 3:57 with earnings after the bell the Nov’17 4.5/5 call spread went up 13K times. Option volume was 76K+ versus an average of 27K+.
- DTG – another big option trading day similar to yesterday, based on the HTZ tender offer.
- USB – Interesting action, as it looks like a trader who was short Nov 34 and Nov 33 puts bought those back, and sold the Dec 34 and Dec 32 puts, essentially staying long delta.
- SPY – Active day again, with the Nov 136 puts expiring next week the most active line, followed by the Nov 140 puts that traded massive size yesterday
- AAPL – Top 10 lines all weekly options again. Starting to see a sentiment shift the call to put ratio was only 1.2 (1.2x more calls traded), whereas even on yesterday’s 4% move lower, the ratio was 1.4 (and in some cases this year has been 3-4x)