Too Many Options: Consumer Technology Galore

by Enis November 26, 2012 6:41 pm • Commentary

Consumer technology names dominated the options trading today.

  1. YHOO – The stock made a brief 2 year high at 19 this morning, quite close to the 3 year high at 19.12.  The Jan13 19 calls were the most active, trading almost 40k throughout the day.  The Dec 17 and Jan13 17.5 calls both traded more than 20k as well
  2. AAPL – Back to its usual ways, weekly calls in AAPL were 4 of the 15 most active single stock lines in the market today.  Call to put ratio was up to 1.5 today
  3. FB – Stock made a 5 month high, closing above 25 for the first time since 2nd quarter earnings.  The Dec 24, Dec 25, and Dec 26 calls were the most active, all trading more than 20k on the day.
  4. EBAY – EBAY broke out to 7 year highs on decent volume.  Calls were 9 of the 10 most traded lines, with the Dec 52.5 and Dec 49 calls the most active.
  5. RIMM – Stock continued its recent run, up for the 8th straight day, and 10th out of 11th.  The weekly Nov 12 calls traded more than 20k.
  6. DELL – Another beaten down name that is up 10% in the past week.  Sentiment still seems negative, as the 3 most traded lines were still puts, with the Jan13 7.5 and Jan13 9 puts the most active.
  7. NOK – Nokia had rallied more than 30% in the past 10 trading days, but sold off 5.5% today.  Someone bought the Jan13 4 / 3.5 put spread for 0.27 in the morning, 20k times.
  8. LVS – Someone rolled 10k of the Dec 48 calls into 10k of the Mar 50 calls, paying 0.91 for the roll.
  9. VIX – Large structure, as trader sold the Dec 23 / 35 call spread to buy the Jan13 25 / 35 call spread, paid 0.29 for the package.  Trader likely expects volatility after the holidays
  10. EEM – Someone sold the Dec13 37 put to buy the Dec13 43 / 50 call spread, collecting 0.35, 20k times.  A 1 year maturity trade that makes it max profit with EEM up 20% in the next year.