Precious metals were the most active sector in the options market on Thursday. Both gold and silver broke above their 200 day moving averages on the largest volume of the year. GDX also broke out to a new 3 month high on its largest volume of the year. In the broader market, the CBOE composite put/call ratio closed at 0.67, its lowest level since May 12th.
1. CSCO – Seller of 105k of the Jan16 15 puts at an average price of 0.2680 in the afternoon. This is a similar trade to the VZ put seller of the Jan16 33 puts that we saw earlier this week. CSCO last traded below $15 in July 2012.
2. BBRY – Stock closed at its highest level since late March after a better-than-expected earnings report. BBRY is up 22% year-to-date. The weekly options were very active, mainly on the 9 strike. Outside of the weekly options, the Jul19th 9 and 10 calls both traded around 8k, and the Jan15 10 calls traded around 6500. BBRY’s high in 2014 is $10.85 from January.
3. GDX – Calls traded more than 5x the average 1 month volume, on the highest volume day for GDX in 2014. The weekly 26 calls traded over 30k, and the Sept 25 calls traded over 17k on the session at an average price of 1.92. 30 day implied volatility in GDX moved up about a point and a half, less than I would have expected given the large move in the underlying.
4. SLV – SLV closed at its highest level since mid-March. Calls traded nearly 300k times on the session, vs. the 1 month average of 43k. The weekly 20 calls were the most active line, but SLV calls in Jan16 were also quite active. Buyer of 20k of the Jan16 22 calls for 1.32 in the morning and 20k of the Jan16 23 calls for 1.13 in the afternoon. SLV’s 1 year high is $23.84, and the $25 is a crucial resistance level on the long-term chart.
5. GLD – Underlying volume in GLD was over 20 million for the first time since September. Weekly calls were very active, with the weekly 125, 126, and 127 calls all trading over 50k. The Jan16 150 calls traded over 14k at an average price of 3.14 on the day, mostly buyer initiated in the afternoon.