Too Many Options: $XLF, $FDX, $MU, $YHOO, $INTC

by Enis July 9, 2013 7:27 pm • Commentary

Options activity was a bit more elevated today ahead of the FOMC Minutes tomorrow.

  1. XLF – Trader rolled about 170k of the Aug 19/17 Put Spread out to the Oct 19/17 Put Spread, paying about $0.17 for the privilege.  XLF close above 20 for only the 3rd time this year.
  2. FDX – Very heavy call buying from the get-go, as some traders were speculating that Ackman might reveal that FDX is the stock for his single stock fund.  1 month implied vol was up about 8 points, a huge move for a name like FDX.  The July 105 calls were the most active line, trading almost 20k.
  3. MU – Massive call volume, with over 220k calls trading (vs. 43k puts), as the stock fell 6%.  The Aug 14 calls traded almost 40k, and the July 13 calls traded almost 30k.
  4. YHOO – Oct 29 calls traded 10,300 at 0.81 in the afternoon, looks like they were bought, not sure if to open or close.  Stock closed above the 50 day ma for the first time since June 19.
  5. INTC – Buyer of the Oct 28 calls for 0.28 in both the morning and afternoon, with that line trading over 45k on the day.  INTC’s high this year is 25.98 on June 4th.
  6. QCOM – Stock made a new low for 2013 today, but a big call spread traded.  Trader bought the Jan14 65/72.50 1×2 call spread 20k by 40k for .80.
  7. ABX – The Jan2015 25/37 1×2 call spread was bought 12,500 by 25,000 for .19.
  8. FDO – High volume day with over 20K options trading.  Earnings are tomorrow morning.  Busiest line was the Jul 60 puts with 4878 trading.
  9. VOD – July 30 calls were sold 40k this morning at 0.10, most likely to close.
  10. BAC – The July 13 puts and the July 14 calls both traded over 45k, as traders positioned ahead of earnings on July 17th.