Too Many Options: $JCP, $IRM, $MAKO, $LEA, $AMAT

by Enis September 26, 2013 6:31 am • Commentary

Some less frequently traded stocks made the most-active list yesterday.

  1. JCP – Almost 400k puts traded, with implied vol exploding higher (30 day atm vol above 90) after Goldman’s report that recommended buying CDS.  The Nov 8 puts and Jan14 5 puts were the most active, with mostly buyers initiating to open.
  2. IRM – The Oct 40 and Oct 45 calls traded 29k at 0.10 and 0.05 respectively.  Looks like closing out a call spread at 0.05 that was traded back in May.
  3. MAKO – The Jan14 30 calls traded over 25k at an average price of $0.147, as implied vol was crushed after the Stryker deal was announced.  Risk arbitrage players likely active on that line.
  4. LEA – Unusually large volume in the LEA Dec 65 puts.  Looks like a seller to open at 0.975 on 30k.  The stock last traded below 65 in July.
  5. AMAT – Stock was higher for the second straight day after the Tokyo Electron deal.  The Oct 18 calls traded over 15k, mostly buyer initiated.