With the second consecutive down day nearing 1%, the options flow seemed fairly mixed btwn single stock, etf and index names.
- TLT – at the very end of the trading day, as the SPX was on its lows of the session, a trader sold the June 117/
July 112 1×2 put spread 50k by 100k and collected . 20 Looks like they sold 50k fo the June 117 puts at 4. 75 to close and bought 100k of the July 112 puts for 2. 275. TLT closed at its lowest level in more than 1 year.
- VXX – saw some bullish action as what looked like a Risk Reversal traded in July. A trader sold 18,900 of the July 17 puts at .26 and bought 11,300 of the July 27 calls for .67. The VIX had its highest close since February and now sits 50% off of the May lows.
- SIRI – there was a large roll down and out in puts,
a trader sold 50k of the June 3. 50 puts to close at .23 & bought 150k of the July 3 Puts for . 06 to open. Given the fact the stock is up more than 75% in the last year from below $2.00, paying .06 to protect a long position at key support seems pretty reasonable.
- XLP – someone sold 20k of the Jan 2015 45 calls at .
77 and it looked like a closing trade as there is 50k contracts of open interest in the line.
- MSFT – saw its share of longer dated call sellers as a trader sold 14k of the Jan15 37/
42 call spread @ 1. 40 & someone sold 7k of the Jan15 40 calls@ 1. 99. MSFT shares today dramatically outperformed the broad market and the Nasdaq closing up 45 bps at $35.
- IYR – despite the etf’s 13.5% losses from the 52 week highs made on May 22nd, traders continue to reach for puts as someone bought 18,700 of the June 65 puts for .41 when the stock was at 66.19. The break-even on the puts at 64.59 marks almost the exact spot where the etf started the year 64.67.