Too Many Options: Massive $AAPL Volume

by Enis November 9, 2012 2:00 pm • Commentary

On an otherwise quiet day in the options market, AAPL options dominated volume.  Other large prints were mostly calendars, with traders rolling positions from Nov out to other months a theme for the second straight day.

  1. AAPL – Top 6 single stock option lines were all AAPL options expiring today.  More than 100k of the 550 calls, more than 70k of the 545 puts, more than 60k of the 545 and 555 calls, more than 50k of the 540 puts and 550 puts traded.
  2. JCP – Active after earnings miss.  19-20 is huge support.  Interesting put calendar trade went up.  Someone sold 14k of the Jan14 13 puts to buy 14k of the Jan15 13 puts, a very long-dated put calendar.  It was a trader who was long the Jan14 13 puts, rolling protection it out to Jan15, paid $1.29 on the calendar.
  3. EFA – Someone rolled their protection in the EMEA ETF, selling the Nov 51 puts, and buying the Jan13 50 / 47 put spread, 23k times.
  4. WFT – Stock made a 3 year low yesterday.  Someone rolled their bullish Nov 12 calls out to the Jan13 12.5 calls, paying 0.20 on 10k contracts.
  5. MET – Similar trade to WFT.  Trader sold 10k of the Nov 35 calls to buy 10k of the Dec 35 calls, paying 0.40 for the calendar.
  6. HES – 2 large trades went up.  First was around 10am, a buyer of about 30k of the Dec 50 puts paying around 1.90.  Second trade was in the afternoon, looks like a buyer of the Jan13 52.5 / 47.5 1×2 put spread, 20k x 40k, paid about 0.35.
  7. LMT – A large put fly went up.  Trader bought the Jan13 85 / 80 / 75 put fly, 10k x 20k x 10k, paid 0.575 for the structure.  A nice risk/reward trade for a 10% fall in this defense name.
  8. VIX – The Nov 35 calls traded almost 40k, at 0.05, the bulk coming between 4:00 and 4:15, as someone clearly reaching for 8 day crash protection after the close.

Only 8 today, enjoy the weekend.