Too Many Options: $INTC, $AAPL, $XHB, $VIX, $TWTR, $CLF

by Enis June 16, 2014 6:53 am • Commentary

The S&P 500 index advanced on Friday for the first time in four days.  The index is only down about 1% from its all-time high, but implied volatility picked up a bit in the second half of the week.  Apple and Intel were very active in single stock options.

1.  INTC – Call options traded nearly 10x the average daily volume, after INTC rose to its highest level in 10 years on its raised guidance.  A trader rolled up a winning bullish trade, selling 25,000 of the Oct 30 calls at 1.08 to close, and buying 75,000 of the Oct 33 calls for .27 to open.  INTC is now up 15% year-to-date.  It last traded above $30 in early 2004.  Dan put on a new trade in INTC on Friday afternoon.

2.  AAPL – Options traded around 2x the average daily volume, as AAPL declined for the third straight session, and is now lower than where it was on the day of its stock split.  Outside of June, the largest trade was a buyer of 22,500 of the Jan15 95/110 call spreads for $3.60.

3.  XHB – More buying of the December 26 puts, this time paying 0.45 for 70k.  XHB is one of the few sector ETFs that is negative in 2014.  The ETF has traded in the $28 – $34 range for much of the past year.

4.  VIX – VIX calls traded around 1.65x the average one month volume.  the Jul 17 calls were the most active line, trading over 75k on the session at an average price of $0.63.  VIX 30 day implied volatility has also bounced in the past week on the continued call buying, now around 56, its highest level since mid-April.

5.  TWTR – The Sept 50 calls were active again, trading over 30k at an average price of $0.95.  Most of the trading was buyer initiated.  $35 is important support on the downside, while TWTR has been unable to get above the $37.50 resistance level over the past week.

6.  CLF – Stock at 10 year lows – a trader rolls down a bearish view, buying 10k of the Aug 14/16 puts spreads, selling 10k aug 16 puts to close at 3.00 and buying to open 10k Aug 14 puts for 1.58 to open.  The stock is down 46% year-to-date.