Too Many Options: Tech Dominates, $MSFT, $AAPL, $BBRY

by Enis April 11, 2013 8:17 pm • Commentary

The tech sector was the most active among single stock options once again.

  1. MSFT – The same trader who bought the Apr 30 puts yesterday rolled them down to the Apr 29 strike and locked in a nice profit, selling the Apr 30 / 29 put spread at 0.63, 55k times.
  2. AAPL – Call to put ratio at 1.45.  The weekly 435 calls traded almost 45k, with the weekly 440 calls the second-most traded line, around 30k.  No standout strikes for expiry tomorrow.
  3. BBRY – Stock was down almost 8% on rumors of Z10 order weakness.  The weekly 13.5 puts traded more than 25k, mostly to open, bought in the afternoon.
  4. WFC – Earnings tomorrow morning.  Buyer of the May 38 / 40 call spread paying 0.52, looks like someone rolling down their long call from the 40 to the 38 strike.
  5. NE – Buyer of 24k of the Sept 38 calls paying 3.15, against which trader sold 36k of the Sept 45 calls at 0.97.  Also, likely same trader, sold the Jan14 45 / 55 call spread about 11k times at 1.38.  So new position:  long 24k Sept 38 calls, short 36k Sept 45 calls and short 12k Jan14 55 calls, sort of like a long 1×2 call spread.
  6. T – Buyer of 27k of the Jul 39 puts throughout the day for an average price of 1.54.  Stock hit a new 4.5 year high today.
  7. PBR – Buyer of 24,500 of the May 20 calls for 0.10.  Stock down 15% in 2013.
  8. PG – Buyer of 20k of the Apr 82.5 calls for 0.05.  Long-shot punt on big move in the next week.
  9. GM – Someone bought around 15k of the June 31 calls this morning at an average price around 0.66.  Stock is up close to 8% this week.
  10. PFE – After the Apr 30 calls traded 20k yesterday, the same line traded around 20k today as PFE broke through 30 for the first time since 2004.