Too Many Options: $AAPL, $WMB, $MU, $SE, $GILD

by Enis June 17, 2013 4:45 pm • Commentary

Quiet day for stock and options volumes, with a few large trades.

  1. AAPL – Buyer of 10,200 of the Jul 470 calls for 2.26 to open, a large trade in notional terms.  Call to put ratio around 1.7.
  2. WMB – The Jan14 40 / 50 call spread traded at 0.65, 85k to close.  Also, the Jan15 50 calls traded 22,500 at 0.42, also likely to close.  Stock near the lows of the year after last week’s fall.
  3. MU – The stock was up another 3% after breaking above the $12 resistance level last week.  It is at its highest level since July 2007.  Call to put ratio all the way up to 6, mostly call buying.  Oct 14 and Jul 14 calls were the most active lines.
  4. SE – Trader rolled up the Sept 33 calls, selling 24k at 2.50 to close, and buying 16k of the Sept 36 calls for 1.10 in their place.  Stock made a new all-time high last week.
  5. GILD – Stock was down in an up market today.  Trader sold 13k of the Jul 60 calls at around 0.09, using that premium to buy the Jul 40 puts at an average price of 0.18, more than 13k times.  Likely against a long stock position.