Too Many Options: Calls More Active

by Enis December 10, 2012 7:33 pm • Commentary

On the fourth straight day of gains for the SPX, calls continued to see more interest in the options market.

  1. AAPL – Call to put ratio was at 1.2, with the weekly 525 puts and weekly 540 calls the most traded lines.  The Jan13 600 calls continue to be the most active among non-weekly options
  2. MSFT – The Jul 28 calls was the most active line in single stock options, as a buyer this morning paid $1.15 for more than 40k, looks like to close.  The Jul 27 calls traded 35k, seller at 1.52 to open.  Likely someone rolling their call overwrite position (long stock, short calls) from the 28 to the 27 strike in July.
  3. GE – Someone traded 10,500 of the Jan13 20 calls at 1.47 around 3pm, in what looks like selling to close.
  4. EWJ – 250k of the March 10 calls traded at 0.09, likely sold to close.  ETF has been more active as yen has weakened in the past month ahead of Japanese elections next week.
  5. ADBE – Stock made a new 52 week high today, closing at 35.75.  Earnings are after the close on Dec 13th.  The Apr 40 calls and Jan12 37 calls were most active.
  6. MRO – The COO resigned, announced around 10:30 am, and the stock sold off a quick 3%.  The Dec 29 puts traded more than 40k, mainly from one buyer paying 0.315 near the lows of the day in the stock.
  7. USB – Someone sold the Dec / Jan13 32 put spread almost 10k times at 0.45
  8. DMND – Options were active after stock reported earnings on Friday.  Stock closed down 10%, near all-time lows.  The weekly 13.5 calls and puts were the most active lines
  9. SLV – Trader sold the Jan13 32 / 35.5 risk reversal (sold 32 put, bought 35.50 call) 7500x, collecting 0.66 for the trade
  10. CSCO – Stock was up more than 2%, and the Dec and Jan13 20 call lines were very active again, with Dec trading around 15k, and Jan13 trading around 30k.