CBOE composite put/call ratio declined to 0.75, near its lows of the past month, as options traders turned more bullish yesterday.
1. SIRI – Stock has been weak since Liberty Media pulled its bid for the company, and it hit its lowest level since June yesterday. Someone sold 50k of the June 3/3.5 strangle at 0.23 around noon. That trade is profitable if SIRI is between 2.77 and 3.73 on June expiry.
2. FB – The Apr19th 65 calls were the most active line, trading over 40k at an average price of 2.65, mostly in the morning. FB bounced near its 50 day ma. We discussed our thoughts on FB in our COO post yesterday. FB reports earnings after April expiry.
3. AMTD – Stock has been on a tear over the past year, and hit its highest level since 1999 last week. It is already up 14% in 2014. Someone sold 30k of the Nov 36 calls at 2.05 to open, likely an overwrite against an existing position.
4. AUY – The July 9 calls traded over 30k at an average price of 0.934, mainly from a morning buyer. The break-even on that trade is near $10, which coincides with the 50 and 200 day moving averages. My thoughts on precious metals were in yesterday’s Macro Wrap.
5. SLV – The July 21.50 calls traded 22,500 at 0.43 in the afternoon. SLV was weaker than GLD on the February strength, and the 21.50-22 area is important resistance going forward.
6. WAG – Buyer of 10k of the Jan15 50 puts for 0.90 in the morning, and then a buyer of 7,412 of the same line for 1.01 in the afternoon. WAG jumped on its earnings report yesterday. The stock has not traded below $50 since early September. That also happens to be its long-term breakout level to a new all-time high, above its 2005-2007 resistance around there.
7. AMAT – The Jan15 20 calls traded 14k at 2.06 in the morning. AMAT has had a strong start to 2014, up 15% year-to-date, and at its highest level since 2008. See our Deep Dive post from November for a more detailed analysis of the stock.