Too Many Options: $WFC, $CMCSA, $HD, $GPOR, $LEN

by Enis November 11, 2013 7:04 am • Commentary

The CBOE composite put/call ratio remained below 1 on Friday Nov 8th.  The last time it was at 1 or higher was on October 15th.

  1. WFC – Customer sold over 100k of the Jan14 44 calls to open at an average price of $0.51 in the afternoon.  The high of the year is $44.79, and this trade’s break-even is $44.51.
  2. CMCSA – Trader sold over 25k of the Jan14 49 calls to open at an average price of 1.115, mostly in the afternoon.  Stock’s high of the year (which is the all-time high) is $48.90.
  3. HD – Trader sold around 20k of the Nov22nd 77 calls at an average price of $0.762.  HD reports earnings on November 19th.
  4. GPOR – Trader bought 17k of the Jan14 60 calls for $2.80 to open, and sold the Jan14 65 calls 20k times at $1.26.  Stock is up 50% on the year, but down 20% from its October high.
  5. LEN – Trader buys a bullish call spread to open, buys 12k of the Jan 35/38 call spread for .74.  LEN hit its lowest level since early September on high volume.