Too Many Options 11/12/13: $INTC, $MSFT, $ADSK, $ZNGA, $PEP

by Dan November 12, 2013 4:15 pm • Commentary


  1. INTC –   saw heavy call activity today as it appeared there closing buyers of upside calls. These could have been long holders who had overwritten the stock.  Shortly after 11am, a trader bought 43k Nov 25 calls for .03 to close, 47k traded on the day.  There was also heavy call buying in the Dec 25 line with 56k trading on the day, these were also marked closing and was vs open interest of 80k.  The company has an analyst meeting on Nov 21st.
  2. MSFT – The largest block in the stock on the day was a buyer of 19k Dec 36 puts paying .55.  Most of the volume that has caught our eyes of late has been call buying, primarily traders rolling strikes up and out given the stock recent move back to the 52 week and multi-year highs.  I suspect investors will continue on edge a bit as rumors of CEO replacements come and go as some candidates will be much preferred to others.
  3. ZNGA – It appears like a decent size overwrite as a trader sold 50k Dec 3.5 calls at .21 to open when the stock was 3.46.  If this was the case, this implies a call away level of 3.71 or up 7.2% on Dec expiration.
  4. ADSK – The stock is trading a dime below the all time highs made yesterday, a trader buys 5k of the Dec 42 calls for 2.84 to open.  The company reports Q3 earnings on Nov 21st.
  5. PEP –  a trader look to be taking profits on a bullish bet and rolled up by selling 26k Jan 85 calls at 1.97 to close and bought 39k Jan 90 calls for .36 to open.
  6. EWG – a long holder sold 25k Dec 29 calls at .625 to open