Too Many Options: $EWJ, $CSCO, $FXI, $YUM, $TWTR

by Enis November 18, 2013 4:58 am • Commentary

CBOE composite put/call ratio closed at 0.75 on Friday.  It has not closed at 1.00 or higher since October 15th, as bullish enthusiasm reigns.

  1. EWJ – Buyer of around 70k of the Dec 12 puts for 0.24 to open in the afternoon.  The Japan ETF hit its highest level since May on Friday.
  2. CSCO – Trader bought 45k of the Dec 24 calls for 0.05 vs. selling 45k of the Dec 19 puts at 0.03, putting on a wide risk reversal for a 0.02 debit.  CSCO’s low in 2013 is $20.
  3. FXI – The May 46 calls traded 43k times throughout the day at an average price of $0.38.  FXI last traded above $46 in April 2011.
  4. YUM – Buyer of 34k of the Dec 65 puts for 0.20 to open.  YUM has rallied from around $65 after earnings to $74 on Friday.  The stock’s all-time high is $75.13, seen in August.
  5. TWTR – On the first day of options trading for TWTR, the most active line was the Dec 30 put, which traded around 30k at an average price of 0.05.  Implied volatility for TWTR settled in the low 50’s for shorter maturities, and 60 for Feb expiry, which captures Twitter’s first earnings report.