Too Many Options: $BBRY, $CAT, $EBAY, $EEM, $EWJ, $FXI, $HPQ, $INTC, $RAX, $TWTR

by Dan January 15, 2014 4:16 pm • Commentary

1. BBRY – the stock continues to avoid its inevitable demise, now trading up some  57% from the December lows.  One trader sees the $6 level as a sort of line in the sand and sold 20,000 of the Sept 6 puts to open at .55, if the stock is above $6 on Sept expiration the trader will collect $1,100,000.

2. CAT – stock broke out to new 9 month highs, closing up 2% on the day, a trader bought 6k feb 95 calls for 1.03

3. EBAY – the stock is still down on the year (about 2%) and one trader looking down into next week’s Q4 earnings report and buys the Jan 24th (wkly) 47.5/52.5 put spread, 5,000x to open for 1.22.   See our trade from yesterday here

4. EEM – after yesterday’s monster roll that saw a put buyer in Feb buying 242,000 Feb 40 puts for 1.00, today a trader buys much longer dated and way out of the money puts in June, buying 85,000 of the 30 puts to open for .24

5. EWJ – with the next BOJ meeting on Jan 22nd, there was a buyer of March 11 puts, in one trade there was a buyer of 82,000 to open paying .09 vs buying about 1,200,000 shares for 12.04

6. FXI – emerging market etf’s continue to see bearish flow as one trader sets its sights on China, buying 10,000 of the Jan15 33 puts for 2.21

7. HPQ – despite making a new 52 week high briefly today, the stock settled in and was a noticeable under-performer.  Aside from a buyer of the Jan 29 calls, paying .20 for 9,000, likely to close, there was also a buyer looking way up and out, buying 4500 of the Aug 37/39 call spreads for .21

8. INTC – there was a seller to open of the Jan (Friday expiration) 26.50 puts, with a seller in the morning of 25,000 at .33 to open, and then later in the afternoon as the stock was lower a seller of 15,000 at .47.  The company reports earnings after the close tomorrow.

9. RAX – for the second straight day saw call buying in February, the Feb 37.50 calls were active, as a trader swept multiple exchanges buying 3k for 3.10.  Read our trade on RAX from today here

10. TWTR – after treading a bit of water below $60 for the last few days, the stock broke above that level, which was accompanied by some bullish calling buying.  A trader bought 6,000 of the Feb 65/80 call spreads this morning for 3.00 when the stock was 59.74, it closed at 61.