Too Many Options: Financials Active, $MS, $BAC, $ETFC

by Enis March 14, 2013 7:59 pm • Commentary

Financial option volumes picked up ahead of tonight’s stress test results:

  1. MS – Large buyer of the weekly 22.5 puts throughout the day, with a total of around 75k trading on the day at an average price of 0.13.  Stock at 23.28 in after-market at 7:15 pm EST after its capital plan was approved by the Fed.
  2. BAC – The weekly 12 calls, weekly 12 puts, and weekly 12.5 calls all traded more than 25k.  Stock trading at 12.47 in the after-market after announcing a $5B buyback, though no dividend increase from 0.01 (but buyback larger than expected div increase).
  3. ETFC – Good timing yesterday from trader who bought back 20k of Jan15 7 puts to close (#7 in TMO yesterday).  Citadel announced that it was selling the balance of its stake, sending the stock down 8% today.  30k of the Jan15 10/17 call spreads traded at 1.93 to close.
  4. RAD – Rite-Aid Apr 2 calls were active.  One large buyer this morning, bought 25k for an average price of 0.134.  Stock reports Apr. 11th, and hasn’t remained above 2 for more than a week since 2008.
  5. SD – Weekly 6 puts trade 28k at average price of 0.38, mostly buying this morning, likely to close based on large open interest.
  6. BBRY – Stock pulled back after yesterday’s +8% move.  Call to put ratio has been around 2 both days.  The weekly 15 and 16 calls both traded over 20k today.
  7. QIHU – Sept 25 puts trade almost 12k, at avg. price of 2.31, buying to open this morning as the stock moved to negative on the year (2012 closing level is 29.69)
  8. KKD – Krispy Kreme up more than 100% in the past 6 months. Options active (10x average, though average only around 850), earnings after bell.  The busiest line has been the Apr 13 puts. IV 30 is up 7.5 points. Stock down 5% after hours on earnings.
  9. RVBD – The Apr/May 15 call spread was bought opening just under 5000 times.  The trade moved IV30 7 points lower. Last year’s earnings were Apr 19th but should be May expiry this year.
  10. AAPL – Call to put ratio a bit lower today, down to 1.35.  Weekly 435 calls and weekly 430 puts both trade over 30k.  No strong pin strikes for tomorrow based solely on open interest.