SPY had its lightest volume day since the half day session prior to the 4th of July holiday. Options volumes were similarly light (SPY options traded about 70% of the 1 month average volume).
1. VALE – Buyer of 60k of the Sept 12 puts for 0.11 to close. VALE has traded in a range of $12 to $15 for much of 2014, and the stock remains down 9% year-to-date. The company reports earnings on July 31.
2. EWZ – EWZ is testing its 9 month high around $50 (its 52 week high is $51.75 from Oct 2013). A trader sees much more potential upside, as the Nov 60 calls were bought 10k times for 0.425 in the morning. EWZ has not traded above $60 since June 2012.
3. LNG – The Jan15 75/85 call spread traded 50k times at $3.30 in the morning. The call spread was initiated in early April for close to $2.00. LNG has quadrupled since the end of 2012, never touching its 200 day moving average throughout that advance. The stock is up 67% year-to-date.
4. DHR – The Jan15 82.5/87.5 1×2 call spread traded 20k x 40k for 0.35. DHR has been rangebound throughout 2014, trading between $72.50 and $80 for much of the year. The stock’s all-time high is $81.14 from early June. DHR reports earnings before the open on July 17.
5. SLV – Calls about twice as active as the 1 month average, despite the 2% decline in silver. Buyer of over 25k of the Jan15 23 calls, paying an average price of 0.46 throughout the day. SLV has not traded above $23 since Sept 2013. Dan and CC discussed the precious metals sector in yesterday’s NTT post.