Too Many Options: $DIS, $XLE, $LNG, $SAN, $WMB, $TWTR

by Enis December 31, 2013 6:56 am • Commentary

CBOE put/call ratio closed below 0.80 for the 7th straight day, the first time that has happened in more than 3 years.

1.  DIS – Stock hit a new all-time high yesterday, capping off a very strong 2013, up more than 53%.  Trader sold 30k of the Jan18th 72.5 calls at 3.90 in the afternoon.  The rising 50 day ma comes into play around 70.

2.  XLE – Big volume on the Jan18th 87 puts for the third straight day, this time trading over 30k during the session.  The puts traded throughout the day at an average price of $0.726.  The ETF yesterday broke back below the $88 breakout level that was the high in October and November.

3.  LNG – Stock is up 130% in 2013.  The all-time high for LNG was $48 in 1995, and the 2006 high was around $44.50.  The stock’s high in December is $46.39, but it has fallen back below $44.  The March 50 calls traded 25k at 1.22 in the afternoon.

4.  SAN – Trader sold 20k of the Jan15 10 calls at 0.45.  SAN last traded above $10 in 2011.  Santander’s high in 2013 is $9.32.

5.  WMB – Trader sold 20k of the Jan18th 40 calls at 0.23, likely rolling it to the August 26 calls, which traded 10k for 0.71.  WMB’s all-time high of $40.29 was reached in mid-1999.  WMB hit its highest level since then on Monday.

6.  TWTR – Stock did close above the $60 technical level.  Call to put ratio was more subdued, at only 1.1.  The weekly 65 calls were the most traded line, at over 20k on the day.  Implied vol was close to unchanged out 1 month.