Too Many Options: $AA, $BBRY, $F, $TSLA

by Enis November 4, 2013 4:59 pm • Commentary

 

  1. F – Buyer of over 50k of the Jan14 18 calls, mostly for 0.32, shortly after the open.  F has not traded above $18 since January 2011 (high in 2013 is 18.02).
  2. FDX – Buyer to close of 10k of the Jan14 110 puts for 0.48.  Stock is up 13 of the last 15 trading sessions.
  3. FSLR – solar stocks went bezerk today, with FSLR acting tamest among closing at  new 52 week highs up 4.5%, vs a stock like SCTY that was up 19% at one point on the day before closing up only 11%.  The largest block that traded in FSLR was a buyer of 830 of the Nov 8th weekly 63 calls paying 1.10 to open.
  4. BBRY – Traders with bearish positions were taking profits soon after the open with the stock down nearly 20%.  A trader sold 13k Dec 7 / 8 put spreads at .60.  In the last hour of the day a trader sold 6k Nov 8/9 put spread at .97.   Largest single line of new open interest was the Dec 6 put, with 67k trading on the day with the largest block being a buy of 10k for .50 shortly after 2pm.  The stock closed at a new 52 week low and the options traded more than 6x normal volume.
  5. EWZ – Last Thursday there was a buyer of 49k Jan 45 puts paying .68 outright, it looks like that trader sold to close almost 40k of them at .705, in 2 blocks of 18k and smaller lots following the prints.
  6. AA – stock surged to new 52 week highs, up nearly 27% from last months lows with options traders eyeing a breakout above $10 a level it has not been above since early 2012.  The largest block that traded was 7500 of the Jan 11 calls, looks like they were sold at .22, but there was a ton of action in the Dec and Jan 10 calls were 16k and 29k traded respectively, seeing heavy spikes in implied volatility, signaling buying.
  7. TSLA -reports Q3 results tomorrow after the close, the options market is implying about a 12% one day move (read our full preview here).  Options activity was heavy today with 90k calls trading to 63k puts on day that saw the stock close up 8% above its 50 day moving avg, a level that was thought to be important technical support throughout the stocks ytd run.  The most interesting options block that I saw was a buyer of the Nov 8th weekly (this Friday expiration) 230 calls, with 1900 being bought for .19 to open.  This is obviously a massive lotto ticket.