Too Many Options – Blue Monday

by Kristen January 7, 2013 4:15 pm • Commentary

Kind of a slow day in the markets with light volume on the equity and options fronts. Maybe a hangover from last week’s wild moves. Here were a couple of names with activity we noticed:

SPWR – stock down 10% today and IV30 up 5%, up above 80. Over 8k options traded versus an average of 1500, calls to puts 1: 2.5. Stock rose sharply from $7 to $9 on January 3rd on news that MidAmerican Solar, a Berkshire Hathaway company bought one of their solar projects. The June 8/5 put spread has traded 2000 times.

CROX – Jun 18/22 call spread bought 2500x to open, mar 15 calls 2500 sold, could be rolling.

ILMN – stock down 8% and IV30 down 21% on report that Roche no longer interested in buying them. Over 10K options have traded, primarily call sellers in January.

AMZN – reaching new highs, stock up almost 3% today and IV30 peaking up 8% today. 87K options trading today versus 62K.

EEM – iShares Emerging Markets Index – lots of big trades went up. Jan1 43 puts were sold 15,000x, Jan 42 and 42.50 puts were sold 10,000x, plus  the following:

  • Jan19 45/47 call spread 8400x and then again 6600x
  • Jun22 45 calls 10,000x
  • Jun22 41 calls and puts 5640
  • Jun22 46 calls 17,500x
  • Jan  45calls 38K look like they were bought
  • Mar 40/43 puts 10000


FB – Feb 28/30 calls and Feb 27/26/24 puts 17626x

P – Jan19 11 calls, Mar 8 puts 7500 times, Mar 12/13 calls 5000 times. IV30 trading at lows since last Spring. 33K options have traded versus an average under 10K. Pandora is presenting at CES.

XHB – a trader bought the Mar 27/24 Put Spread in the Homebuilder ETF, 10,000x paying .695 as the ETF hovers near 5 year highs.