Calls were more active than puts (CBOE put/call closed at 0.81) after the fourth straight day in the green for the Nasdaq. However, single stock options activity was quite low once again.
1. S – Sprint has been active this week as speculation mounts of a bid by Sprint for T-Mobile. S has rallied more than 10% so far this week, though it is still down 19% so far in 2014. Calls traded more than 4x the average 1 month daily volume, with the May 9 calls trading over 50k on the day, at an average price of 0.31.
2. XLU – Utilities are having a monster year, up more than 13% year-to-date already. The etf is approaching its all-time high of $44.66 from December 2007. Options were active yesterday, and the May30th 43 puts were the most active line, trading over 30k at an average price of 0.53.
3. SUNE – Active on the call side once again. Buyer of 20k of the Jan15 25 / 30 call spread for 1.08 to open. SUNE last traded above $25 in 2008. The stock’s high in 2014 is $21.93. The company is expected to report earnings next week.
4. AMAT – AMAT has sold off more than 10% in the past month, but remains positive on the year. Buyer of 9,527 of the Jan15 22 calls for 0.90 in the morning. AMAT reports earnings in mid-May.
5. AAL – Buyer of 10k of the Jan15 40 / 45 call spread for 1.40 to open. AAL’s high since it started trading publicly again in December is $39.88 in March. The stock is already up 44% so far in 2014.
6. WYNN – In front of earnings yesterday, a someone paid 4.55 to buy 4600 of the May17th 195 puts to open. The break-even is down 7.5% by May expiration. WYNN traded up about 3% in the after-market yesterday after its earnings report.