Too Many Options: CSCO, FB, HUN, GE, PFE, XLF

by Enis May 15, 2014 6:19 am • Commentary

After hitting a 1 month low on Monday, the CBOE composite put/call ratio jumped to its third highest level of the past 6 months, closing at 1.08.  Overall volumes were still very light.

1.  CSCO – Calls were slightly more active than puts (139k vs. 129k) ahead of the afternoon earnings report.  The weekly 22.5 put, however, was the most active single line, trading over 30k.  Outside of May, the June 22 puts was the most active option, trading over 10k at an average price of 0.34.  CSCO reported a better-than-expected number and is trading up about 6% in the pre-market, at its highest level since September.

2.  FB – The 60 line was active in weekly options, with both the weekly 60 puts and the weekly 60 calls trading over 20k on the day.  FB’s declining 50 day moving average is now around $62.25.  The stock has not traded above its 50 day ma since late March.

3.  HUN – 39k of the May17th 23 calls traded at 2.425.  19k of the Aug 25 calls traded at 1.45, and 13k of the Aug 23 puts traded for 0.55, all in the morning.

4.  GE – Buyer of 20k of the June 27 calls for 0.30 in the afternoon.  GE has not traded above $27 since January, and the stock is still down 4.5% year-to-date after closing 2013 at a 5 year high near $28.

5.  PFE – PFE closed near a 6 month low once gain, just above the $29 support level.  The June 29 puts were the most active line, trading over 21k, mostly in two big chunks for 0.68 in the morning.  PFE’s 1 year low is $27.12 from June.  $30 is important resistance on the upside.

6.  XLF – Financials underperformed yesterday as bond yields hit a new 6 month low.  Puts were active, trading almost twice the average volume.  The weekly 22 puts traded over 36k, and the July 22 puts traded 20k for 0.55 in the afternoon.