Too Many Options: $MSFT, $HPQ, $FTK, $FB, $TSLA

by Enis October 3, 2013 5:00 am • Commentary

The CBOE Put/Call Ratio fell back down to 0.75, near the lows of the year, as calls were more active once again.

  1. MSFT – The Jan14 30 / 34 risk reversal traded 50k times.  Trader looks to have sold 50k of the Jan14 30 put at 0.42, and bought 50k of the Jan14 34 call for 1.50.
  2. HPQ – Trader bought around 30k of the Oct 22 calls yesterday morning, mostly for 0.44.  The stock has not traded above 23 since its huge gap lower after earnings on 8/22.
  3. FTK – The March 22.5/17.5 put spread traded, 20k x 30k (not 1 for 1), with the 22.5 leg trading for 1.80, and the 17.5 leg trading at 0.50.  FTK is up almost 100% in 2013
  4. FB – Following Tuesday’s Dec 65/70 call spread, the Nov 70/75 call spread traded 25k times for 0.20.  Traders clearly setting up for earnings on October 30th, most likely speculating on the progress in mobile.
  5. TSLA – Option volumes almost 3x the 1 month average.  The weekly 180 puts were the most active line.  1 month implied volatility was almost 10 points higher.