Too Many Options: $CSCO, $EBAY, $TSM, $BAC, $BBBY

by Enis July 7, 2014 7:35 am • Commentary

Naturally, Thursday’s half-day saw very light options volumes, with technology names the most active as the major indices hit new highs once again.

1.  CSCO – CSCO rallied to its highest level since last August.  Calls actually traded more than the average daily volume over the past month, even though it was a short session.  The Oct 26 calls traded over 15k, with a buyer paying 0.69 for around 10k in the morning.  CSCO last traded above $26 for a brief period last summer.

2.  EBAY – EBAY touched its 50 day moving average (now around $50.78) for the first time since early April.  One trader rolled the Jul19th 52.5 calls out to the Aug 52.5 calls, 10k times, paying 0.40 for the privilege in the morning.  EBAY last traded above $52.50 prior to its earnings report in late April.

3.  TSM – Buyer of over 10k of the Jan15 17.5 puts for 0.30 to open.  TSM hit its highest level since the year 2000 on Thursday after the rally over the past 6 months.  The stock’s all-time high is $27 from January 2000.

4.  BAC – One of the few stocks that had above-average options volumes on Thursday.  The stock traded above $16 for the first time since its April gap lower on the news that it had to suspend its buyback and its dividend increase plans.  Calls dominated the volumes, and the Aug 16 calls were the most active line, trading over 25k on the session at an average price of 0.50.  BAC reports earnings on July 16th before the open.

5.  BBBY – BBBY has rallied nearly 10% since its post-earnings low in late June.  The Jul19th 60 calls traded over 10k at an average price of 0.49 throughout the day.  The earnings gap is at $61.11.  BBBY is down 26% year-to-date.