Too Many Options: $SPY, $CSCO, $MSFT, $PLUG, $OCN, $EXC, $DOW

by Enis March 27, 2014 5:39 am • Commentary

Macro ETFs dominated options volumes, as the CBOE composite put/call ratio closed above 1 for only the third time in the past 6 months.

1.  SPY – Put/call ratio has averaged about 1.6 over the past month, but registered a 2.25 reading yesterday on heavy put volume.  The weekly 185 puts traded over 120k, and the Apr19th 185 and Apr19th 180 puts both traded over 50k on the day.  The S&P 500 index closed just above the 1850 level that is near unchanged on the year.  The 50 day ma comes into play around 183.50.

2.  CSCO – Stock hit its highest level in more than a month intraday, before reversing by the close.  The $23 level is the obviously resistance spot to watch on the upside.  Calls traded almost 4x average 1 month volume.  Buyer of 26k of the May 23 calls for 0.49 in the morning was the largest print.

3.  MSFT – Buyer of 15k of the Jan15 40 calls for 2.67.  MSFT has stalled around the $40 level in the last week.  Dan put on an options trade in MSFT last Monday, and that trade is still outstanding.

4.  PLUG – The roller coaster of PLUG continues.  Realized volatility has been so extreme, that 100 day realized volatility is now 222, an astounding figure for a greater than 3 month period.  PLUG is now up 9% on the week after rallying 50% on Tuesday and declining 24% on Wednesday.  Weekly options were very active, with the weekly 6.5 puts and the weekly 7 calls both trading over 20k.

5.  OCN – Seller of 10k of the Apr19th 35 puts at 0.70.  Stock has declined 35% since its November 2013 high.  OCN’s has briefly traded below $35 on 2 days in February, and it is a support level going back 18 months.

6.  EXC – Buyer of 20k of the May 31 puts for 0.545 to open.  EXC has been on a tear in 2014, up 18% year-to-date, quite a run for a utility stock.  The stock broke out to a nine month high on Friday.  EXC reports earnings in late April.