Options volumes shifted to emerging markets and commodities on Tuesday, as single stock options were more subdued. EEM had its highest close in more than a year, and FXI had its highest close since December.
1. EEM – $45 is the critical level to watch after yesterday’s rally. EEM has not been convincingly above $45 since August 2011. The Oct 42 puts traded 130k for 0.54 in the afternoon. EEM last traded below 42 in mid-May.
2. FXI – Options traded more than 3x the one month average. A three way trade in September was the standout – looks like the trader sold 25k of the Sept 37 puts at 0.378 to buy 25k of the Sept 39.5/41 call spread for 0.52, paying 0.142 for the package. FXI’s 1 year high is $40.32 from December.
3. AA – Someone rolled up the Jan15 17 calls to the Jan15 18 calls, collecting 0.36 for selling the Jan15 17/18 call spared around 22k times in the morning. AA is now up 61% year-to-date, an impressive run for the stock. Its 5 year high is $18.47 from April 2011.
4. DAL – Buyer of 20k of the Dec 42 / 50 calls for 1.44 to open. DAL’s high of the year is $42.66 from early June. The stock is still up 37% year-to-date even with the recent pullback. DAL reports earnings this morning before the open.
5. BIDU – BIDU touched $200 for the first time in its history. A trader sold 8,
6. MSFT – Big roll in MSFT calls – a trader sells 70k of the Aug 45 calls at 1.
7. MCD – Stock touched its lowest level since March after weaker-than-expected earnings results. Buyer of 16k of the Sept 105 calls for 0.13 in the morning, likely to close. MCD is now down 1% year-to-date.