Too Many Options: $DIS, $DOW, $WMB, $BAC, $MU, $GDX

by Enis January 2, 2014 6:59 am • Commentary

CBOE put/call ratio remained near 3 year lows on Tuesday.  The most traded names in single stock space were repeats (DIS, DOW, WMB) from the past week.

1.  DIS – The Jan18th 75 calls traded over 20k at 1.99, a day after the Jan18th 72.5 calls were sold to open.  DIS call volume this week has been very active.  The stock had one of its best annual performances of the past 20 years in 2013.

2.  DOW – The Jan18th 40 call strike traded 85k at 4.61 on Tuesday.  That’s the same strike that traded over 145k on December 26th, which was the day that DOW hit 44.99, its highest level since 2007.  Stock does not report earnings until late January.

3.  WMB – Trader sold 26k of the Jan18th 40 calls at 0.27 to close midday.  That line also traded 20k on Monday.  WMB’s all-time high of $40.29 is the level to watch on the upside.

4.  BAC – The Jan18th 16 calls traded over 27k at an average price of 0.17.  Stock is trading about 1% higher this morning after an upgrade.  The stocks’ high in 2013 was 15.98 on November 26th.

5.  MU – February expiry calls were active, with the Feb 24 and Feb 22 call strikes trading 18k and 13k, respectively.  MU’s 2013 high is 23.67, which is also its highest level since 2002.

6.  GDX – The Jan15 15/35 risk reversal traded 16k times for around 0.30.  GDX closed 2013 at its lowest yearly close since the ETF’s inception in 2006.