Too Many Options: XLE, GLW, CCJ, SUNE, KATE, CTL

by Enis May 9, 2014 6:00 am • Commentary

Most active options lines were SPY, IWM, and QQQ puts, as options traders were more focused on broad market protection rather than single stocks.  Meanwhile, energy was the worst performing sector, and there was a big buyer of XLE puts.

1.  XLE – The June 93 puts and the July 90 puts both traded 50k times late in the day, both on the offer, looks like they were both bought to open, for 1.67 and 1.34 respectively.  XLE rallied 15% from its February low to its May 7th high, and is still up 6% year-to-date after yesterday’s 1.4% drop.

2.  GLW – The weekly 21 calls traded 26,500 at 0.09 in the afternoon, looks like a seller to close.  The calls initially traded 30k for around 0.80 on April 7th, but GLW has been essentially flat in the past month, and the calls decayed.  GLW is up 17& so far in 2014.

3.  CCJ – The Jan15 25 calls traded 31k for 0.65, and the Jan16 30 calls traded 39k for 1.05, both midday.  CCJ is down more than 20% from its March high, exacerbated by a poor late April earnings report.  The stock is now down 4% on the year.  The stock has not traded above $30 since early 2011.

4.  SUNE – This is a crowded hedge fund long, and a name singled out by David Einhorn as a long too.  Stock closed near a 2 month low yesterday, and Jan15 options were active.  Trader sold 15k of the Jan15 12 puts at 1.09 to buy 15k of the Jan15 17/27 call spread for 2.68, all to open.

5.  KATE – The Jul 33/40 1×2 call spread traded 10k x 20k for $2.50 to open.  Kate Spade reports earnings next week.  The stock’s high in 2014 is $40.75, and it’s all time high from February 2007 is $46.84.

6.  CTL – Stock closed at a 11 month high, up 6% after a strong earnings report.  Buyer of over 15k of the June 38 calls for an average price of 0.34 shortly after the open.