Too Many Options: $AA, $BBRY, $BSX, $CLF, $EBAY, $EWZ, $JPM, $SLV, $VIX

by Dan January 21, 2014 4:16 pm • Commentary

Below is a list of interesting untied stock, etf and index options activity on the day:

1. AA – the stock continues its monster run, up 6% today, up 13% yt and up 22% from its post earnings lows on Jan 10th.  A trader today swapped out of some now in the money calls by selling 13k June 10 calls at 2.27 to close and bought 13k June 13 calls for .63 to open.

2. BBRY  – another 2013 loser that caught a bid in 2014.  BBRY closed up 10% on the day and and now sits up 34% on the year.  Options activity was pretty bullish today with traders looking a bit long dated.  One trader bought 6k April 10 calls  1.26 to open.   While another trader sold 15k Jan 15 10 calls at 2.12 to close and rolled up his bullish view and bought 25k Jan15 15 calls for .82 to open

3. BSX – stock broke out earlier in the month and is up 16% on the year in what feels like a straight line.  The company has not set its Q4 reporting date yet, but very likely it falls into Feb expiration.  There was a buyer of the Feb 14 calls, paying .45 for 19k, more than 25k have traded on the day.

4. CLF – stock continues its ytd decline, down 19% and flirting with key technical support down at $20.  When the stock was near its lows this morning at 20.82 a trader bought 12,500 April 19 put for .93 to open.

5. EBAY- reports Q4 earnings tomorrow after the close, the options market is implying about a 5.5% one day move which is essentially inline with the 4q avg move.   A trader sold 5800 Feb 52.50 calls to close at 2.78 and bought 11,500 Feb 55 calls to open for 1.56

6. EWZ – after a horrendous year in 2013, I think it is safe to say that the 6% year to date decline for the Brazilian Bovespa, putting it very near the 52 week lows has caused some investors too position for a breakdown. One trader did just that today and bought 65,000 Feb 39 puts for up to .35 to open placing the break-even below 5 year lows.

7. JPM – looked as of a long holder of stock sold long dated calls against it with the idea of adding some yield.  A trader sold 20k Jan2015 70 calls at 1.00 top open, the all time high in the stock was $67.17 back in 2000.

8. SLV – despite the weakness today in gold and silver, one trader rolled down a bullish bet as he sold 50k Jan15 38 calls at .10 to close and bought 50k Jan15 27 calls for .46 to open

9. VIX – The fear index closed up 3% on a day that saw the S&P 500 close up 28 bps, likely having something to do with tomorrow mornings settlement of Jan VIX as well as the first day back from a 3 day weekend.  One trader positioned for upside looking out all the way to May as he bought 90,000 May 23 calls for .95, with break-evens well above the highs of last year.