Too Many Options: $EBAY, $FB, $TWTR, $AA, $NE

by Enis December 26, 2013 6:49 am • Commentary

Quiet volumes on the half day session on Christmas Eve, with a few tech standouts for options.

1. EBAY – Trader sold more than 50k of the Jan18th 55 calls to close at an average price of 1.327, and bought a similar amount of the Jan24th 56 calls to open for an average price of 1.61.  Trader likely rolled in order to capture the earnings event for EBAY in late January.  EBAY traded above $55 last week for the first time since early October.

2. FB – The Jan18th 60 calls traded almost 20k on the day.  FB’s high on Tuesday was $58.58, and the stock is up 118% in 2013.

3. TWTR – Twitter is now up more than 75% since its late November low, an incredible 1 month run for a $40 billion market cap company.  The weekly 70 and weekly 75 calls were the most active lines on Tuesday, and 30 day implied vol is now around 75, vs. close to 40 at the start of the month.

4. AA – Trader rolled 10k of the Jan18th 10 calls (selling to close) out to the Feb 11 calls (buying to open), collected about $0.26 in the process.  AA hit its highest level since early 2012.

5. NE – The March 34/36 risk reversal traded for around $0.94 to open.  Looks like a trader selling the March 36 calls to buy the March 34 puts, collecting a $0.94 credit.