Too Many Options: $EEM, $XLF, $MSFT, $INTC, $CNP, $GE, $GM

by Enis December 9, 2013 7:52 am • Commentary

Friday was the strongest one day move higher since Nov. 8th.  Not surprisingly, most large prints were on the call side.

  1. EEM – Seller of 126k of the Dec 40 puts at 0.28 to close shortly after the open.  Meanwhile, the Dec 41/Mar 40 put diagonal traded (Dec sold, Mar bought),  continuing the theme last week of rolling Dec puts out to Jan and March expiries.
  2. XLF – The Dec13th 21.50 calls traded almost 100k on the day at an average price of 0.06.  Mostly a morning seller to close around 0.05.  Jan14 22 calls traded over 40k as well.
  3. MSFT – The Jan14 40 calls traded over 40k at an average price of $0.645, mostly buyer initiated.  High of the year was on Wednesday, at 38.98.
  4. INTC – Dec 25 calls traded almost 40k on the day, at an average price of 0.35.  However, stock was for sale most of the day, and that call line closed at 0.26.
  5. CNP – The Feb 22.5 straddle traded at 2.74, 20k times in the morning, sending implied vol down more than 3 points in Feb.  Stock has traded between 22 and 26 for more than 6 months.
  6. GE – Dec 28 calls traded over 30k at an average price of 0.0833, mostly in the morning.  GE’s high of the year is 27.50
  7. GM – The Jan14 40 calls were the most active line, trading over 20k, with two prints of 5k at 1.75 midday.  GM hit its highest level since coming out of bankruptcy.