Too Many Options: $SPY, $QQQ, $PBR, $FTK, $QCOM

by Enis August 8, 2014 6:01 am • Commentary

SPY options were by far the most active, as traders continue to focus on the macro picture rather than deal in single stock options.

1.  SPY – Calls were nearly as active as puts (vs. the 1 month average put/call ratio of around 2 for SPY), as the weekly 194 calls traded over 180k on the session (looks like buying in the morning, and then a seller near the close).  Outside of the August expirations, the Sept 190 and 192 puts were the most active lines, trading around 60k and 50k, respectively.  SPY closed below its 100 day moving average for the first time since April, though the rising 200 day ma around $186 is still more than 2% away.

2.  QQQ – QQQ closed right on its 50 day ma, which it has not closed below since mid-May.  A break of the 50 day ma brings the March highs near $91.50 into play.  Buyer of 30k of the Aug29th 96 calls for 0.74, vs. selling 40k of the Aug29th 98 calls at 0.19.  $97.51 is the high of the year.

3.  PBR – The Nov 18/23 1×2 call spread traded 13,200 x 26,400 for 0.60.  PBR’s 52 week high is $17.97, so the trader is targeting a breakout by November expiration.  PBR has not touched 23 since October 2012.

4.  FTK – 6 big prints – 1) the Sept 20 puts trade 62k for 0.075; 2) the Jan15 23 puts trade 45k for 0.85; 3) the Jan15 28 puts trade 30k at 2.75; 4)  the Jan15 32 calls trade 30k for 1.12; 5)  the Sept 28 puts trade 26k for 1.45; 6)  the Sept 29 puts trade 12k at 2.05.  The Sept prints look closing.  FTK is up 36.5% year-to-date.

5.  QCOM – Buyer of 17k of the Jan15 65 puts for 1.53 shortly after the open.  QCOM has not traded below $65 since July 2013.  The stock’s selloff in the past few weeks has left it down 2.5% year-to-date.