Too Many Options – $EEM, $VIX, $KGC, $VALE, $ADI

by Enis September 11, 2013 6:00 am • Commentary

ETFs were more active than single stock options, continuing the trend in September.

  1. EEM – Buyer of 50k of the Sept 37 puts for 0.06, likely to close (200k of open interest).  The Nov 40 straddle traded around 43k times for close to $3.55, a trade worth $15 million in premium.
  2. VIX – Sept VIX expiry now one week away.  The Sept 23, 18, and 16 calls all traded more than 50k times.  Sept VIX Futures closed at 15.15.
  3. KGC – Seller of almost 40k of the Jan14 6 call at an average price of $0.475 to open.  KGC has not traded above 6 for most of the past 5 months.
  4. VALE – Very active call volume for the second straight day.  The Sept 17 calls traded over 30k, with the largest print a seller of 10k at 0.32 midday.  VALE closed right at its 200 day ma.
  5. ADI – Buyer of 24k of the Oct 47 puts for an average price of 1.12, most of which traded in the morning.  That volume is double the existing open interest in puts for ADI prior to today.