On a day of light volume when the indices were mostly unchanged, single stock options and ETF options were more active.
1. BAC – BAC has started the year on a tear, up more than 5% since the Dec 31st close. Over 500k calls traded on Friday (3x the 1 month average), with the Jan18th 16 calls trading over 50k, at an average price of 0.58.
2. GM – Stock had its biggest down day on Friday since August 27th after a weaker than expected U.S. sales number. The important support level on the downside is the 50 day ma around $38.70. The Jan18th 42 calls traded over 45k, mostly at 0.31. GM’s high in 2013 was $41.85.
3. XLF – Jan18th 22 calls traded over 40k, mostly for 0.19 in the morning. XLF hit its highest level since 2008 on Friday, while implied vol is near 1 year lows, as Dan detailed in Friday’s update post.
4. EEM – Trader rolled 22,500 of the Jan18th 40 puts (sold to close) down to the Feb 39 puts (bought to open), and paid $0.17 for the privilege. EEM has not traded below $40 since September. Dan outlined a potential protection trade on Friday.
5. TWTR – Call to put ratio closed the day around 2 (compared to 1 month average of 1.2). The Jan18th 80 calls traded over 35k on the day, at an average price of $2.38, and 30 day implied volatility remained above 100.
6. UPS – The Jan18th 100 calls traded over 20k at an average price of $4.064, almost all in the morning. Stocks’ earnings report is in late January.
7. SLW – Looks like a buyer of 5k x 10k of the Jan15 33/47 1×2 call spread, paying $0.34 for the structure. SLW last traded above $33 in February 2013.