Macro ETFs once again dominated options volumes as traders were more concerned with portfolio protection than individual stock situations.
1. SPY – The weekly 180 calls were actually the most active line, mostly trading ahead of the Fed event, as some traders anticipated a repeat of the December meeting, when the SPY rallied 1.7%. The call options traded nearly 150k at an average price of $0.40 (closed 0.19 on the day).
2. LEA – Lear broke its 100 day moving average for the first time in more than a year this week. The June 65/90 risk reversal (selling put, buying call) traded for a credit of $0.65, 50k times in the afternoon. LEA hit an all-time high in December of $83.72.
3. T – Stock closed 1% lower on earnings, though above the $33 support level that was initially broken for the first time since mid-2012. The weekly 33 calls traded over 40k at an average price of 0.34. The intraday low was $32.01, which is an important reference point going forward.
4. C – Buyer of about 20k of the March 52.5/55 call spread for 0.30 late in the session. C tested its 6 month low near $47.50 and bounced late in the day. The stock broke its 200 day moving average last week for the first time since September 2012.
5. EWY – The Feb 59/52 put spread traded 35k for 1.25. The South Korea ETF broke below its 200 day ma for the first time since September last week, and the 1 year low is around $50.
6. YHOO – Despite the nearly 9% drop on earnings, YHOO calls were much more active than puts, trading almost 2.5x as many on the day. The Apr 38 calls were the most active line, trading over 25k at an average price of 1.52.