Too Many Options: $FB, $AVG, $XOP, $AEO, $LCC

by Enis October 31, 2013 5:22 am • Commentary

FB dominated options volumes ahead of earnings.  Stock is currently up around 2% in the pre-market.

  1. FB – The Nov15th expiry 70 calls and the Nov15th 60 calls were the 2 most active lines (top 5 most active lines were all calls).  The stock was pricing in around a 12% move for earnings, but is much more calm right now.
  2. AVG – $1 billion internet security firm, was down 13.5% on big volume after a downgrade.  Buyer of over 35k of the Nov 17.5 puts to open for 0.323 average price.  Stock reports earnings next week.
  3. XOP – Large protection structure traded, 30k times to open.  Seller of the Dec 77 call to buy the Dec 70/65 put spread, paid about 0.93 for the package.
  4. AEO – Buyer of over 20k of the Nov 16 calls to open for an average price of $0.427.  AEO has not traded above 16 since its August breakdown.
  5. LCC – Seller to open of over 15k of the Feb 22 calls at an average price of $2.17.  Stock trading around 5 year highs.