Too Many Options: $SPY, $YHOO, $UPS, $SD, $T

by Enis September 27, 2013 5:39 am • Commentary

The CBOE Put/Call ratio closed at 0.70, only the third time this year that it has closed at that level or lower.

  1. SPY – The Dec31st 190 calls traded over 250k at around 0.09 to open.  This is essentially a lotto ticket, but it’s still almost $2.5 million in premium, so no chump change.
  2. YHOO – Stock makes another 5 year high.  Trader sells 35k Jan30 calls & 23k Jan38 Calls to close & buys 100k Jan 40 calls for .51 & 67k Jan 35 calls for 1.55 to open.
  3. UPS – Big notional trade: Buyer of 60,000 of the Jan 2015 110/120 call spread for $0.70, $4.2 million in premium.  UPS currently trading at an all-time high.
  4. SD – Trader sold 100k of the March 6 puts at 0.907 to open.  Break-even on trade is around $5.10, which is an area that held as support over the last 2 months.
  5. T – Trader bought over 45k of the Jan14 34 puts for an average price of $1.594, mostly in the morning.  My Chart of the Day post yesterday in T.