Too Many Options: $QCOM, $NOK, $EWZ, $F, $JNJ

by Enis July 24, 2013 8:26 pm • Commentary

Earnings related issues dominated volume again.

  1. QCOM – Large buyer of the Sept 67.5 calls to open, paying 0.43 for 43k, vs. selling 774,000 shares at $61.95, likely stock replacement ahead of earnings.  Stock up 4% after hours.
  2. NOK – Seller of 50k of the Jan15 5 calls at 0.53 to open.  Stock has not traded above $5 since early 2012.
  3. EWZ – Buyer of almost 50k of the Aug 42 puts for 0.455 to open, executed in the last half hour of the day.  EWZ’s low this year was at $40.68 on July 5th.
  4. F – Call to put ratio near 6 to 1 on the day, as call volume exceeded 200k.  The Sept 17 and Nov 18 calls were the most active lines.  Stock was up 2.5% after earnings.
  5. JNJ – Buyer of 8k x 16k of the Aug 87.5 / 82.5 1×2 Put Spread, paying 0.05 for the trade.  JNJ’s June low was $82.12.