Too Many Options: $MSFT, $GE, $SD, $XOM, $AU

by Enis October 28, 2013 5:10 am • Commentary

No major theme in Friday’s options volumes.

  1. MSFT – Stock neared its high of the year, and ended up 6%.  The Nov 37 calls and the Jan14 40 calls both traded over 25k, as traders looked at the potential for a breakout to 10 year highs (the November 2007 high is 37.50).
  2. GE – Seller of 25k of the Dec 26 calls at 0.56, likely locking in profits after much of the position was initiated prior to earnings.
  3. SD – Buyer of over 50k of the Nov 6 puts to open for an average price of 0.20 in the afternoon.  Stock reports earnings next week, and has rallied about 50% from its April low.
  4. XOM – Buyer of over 20k of the Nov 87.5 puts for 1.25 average price in the afternoon.  XOM reports earnings on October 31st before the open.
  5. AU – Buyer of 12k of the Jan15 20 calls for 2.275, vs. selling 18k of the Jan15 30 calls at 0.75.  The 1 x 1.5 call spread was to open.