Too Many Options: $TSO, $BBRY, $LNG, $SO, $CBS, $SIRI

by Enis June 23, 2014 6:02 am • Commentary

SPX futures traded in a 4 handle range throughout Friday’s session, an extremely tight range, especially for a triple witching expiration.  Outside of options expiring on Friday, here were some of the single stock options standouts:

1.  TSO – Dan discussed the continued bullish call activity in the energy sector in Friday’s CotD post, zeroing on TSO:

Today was no different with a very bullish roll in the refinery space, TSO. When the stock was 60.83 a trader sold 13,000 of the November 57.50 calls at 6.30 to close and bought 19,000 of the August 62.50 calls for 2.27 to open, making the Aug calls the single largest line of open interest.

TSO reports earnings in early August, and the stock is trading at a 1 year high.  $65.75 is the all-time high from May 2013.

2.  BBRY – The stock rallied on big volume for the second straight session, hitting the highest level since early March, and only 10% away from the 2014 high.  Calls remained very active, with over 240k trading on the session.  Weekly 9 and 9.5 calls were the most active lines, while the Jul19th 10 calls also traded nearly 20k at an average price of 0.38.  30 day implied volatility rose nearly 10 points on Friday, into the mid-50’s.

3.  LNG – LNG has been a monster, up 59% on the year after a strong week last week.  A trader sold out of a bullish call position, selling 10k Sept 75 calls at 2.80.  There is 17k of open interest in that strike.  LNG has around 676k of open interest in total in calls, and only around 230k total in puts.  

4.  SO – Buyer of 41k of the Jul19th 47 calls for 0.15 in the morning.  SO 30 day implied volatility moved from around 12.5 on Thursday to around 16 on Friday, which is near a 2 year high for SO.  SO’s high in 2014 is $46.81 from late April.  We discussed the recent strength in utilities in Thursday’s MorningWord post about XLU.

5.  CBS – Seller of 33k of the Jun27th 60 calls at 1.25 to close vs. buying 33k of the Jul3rd 60 calls for 1.80 to open.  CBS remains one of the few laggards in the media sector, down 7% in 2014.

6.  SIRI – The Jan15 4 calls traded 108k at 0.095 in the morning.  SIRI last traded above $4 in October 2013, and only for a couple weeks.