Too Many Options: $FB, $SUNE, $INTC, $LINE, $GILD, $ADBE

by Enis March 25, 2014 6:25 am • Commentary

Very light options volumes for the second straight day.  As high fliers have gotten hit, a lot of the call volume related to those names has dried up.  However, even macro ETF options volumes were light on Monday.

1.  FB – Stock hit its lowest level since mid-February, and touched its 50 day moving average (around $64.40) for the first time since late January.  FB has not traded below its 50 day ma since early December.  Trader sold 56k of the May 70 calls at 3.00 to close, and bought 40k of the May 65 calls to open for about 4.99.  30 day implied vol in FB hit its highest level since late January.  It closed near 48 yesterday.

2.  SUNE – SUNE is already up 49% year-to-date, and has quadrupled in the past year.  The solar power developer has seen large call volume for much of the past 6 months.  Yesterday, the Apr19th 20/22 call spread traded 17k times for 0.55 near noon.  The Apr 20, 22, and 23 calls were all active.  30 day implied volatility neared 70, near its highest level in 5 months.  SUNE remains well above its 50 day moving average, which is around $16.75.

3.  INTC – Buyer of 41,500 of the Apr19th 26 puts for 1.01 to open.  INTC reports earnings on April 15th,.  The stock has traded above 26 for only a few days in the past year.  Support is around $24.

4.  LINE – Stock hit its lowest level since October after a downgrade to neutral by the JPMorgan analyst.  Looks like a trader rolling down protection,  selling 13,752 of the Apr19th 28 put at 1.30 to buy 24,277 of the Apr19th 26 put for 0.60 in the afternoon.

5.  GILD – Trader sold 20k of the May 80/70 put spread at 6.23.  GILD neared its 200 day ma intraday and bounced.  The 200 day ma, which has not been breached in more than a year, is now around $67.50.  The two day volume in GILD is the highest since late 2012.

6.  ADBE – The Apr19th 65 puts traded over 17k at an average price of $0.924 throughout the day.  We took off our ADBE put butterfly from last week for a quick gain ourselves.  ADBE did not breach its rising 50 day moving average, now around $64.65.  Next support after that level is near $60.