Single stock options moved back to the forefront as realized volatility in the major indices has been quite light in the past week.
1. INTC – The Oct 36 calls traded 45k for 0.34 at the same time that the Jan15 37 calls traded 45k at 0.61. INTC has not traded above $37 since February 2001. The stock has consolidated in the past month after its big gap higher on earnings in mid-July, and is up 27.5% year-to-date.
2. XLF – The Aug29th 22.5 / 23 1×2 call spread traded 44k x 88k for 0.14 to open in the morning. XLF’s high of the year is $23.07, while the rising 200 day moving average is around $21.90. The 1×2 call spread is profitable between 22.64 and 23.36.
3. MU – The Oct 30 calls traded nearly 30k throughout the session at an average price of 2.58. MU has pulled back in the past month from its high of $34.85, but the stock is still up 41% year-to-date. The next earnings report will be in early October.
4. DXM – Rarely traded small-cap stock, but had a big options roll on Tuesday. The Aug16th 12.5 calls traded 20k for 0.95 and the the Sept 12.5 calls traded 20k for 1.35. DXM only has a float of 14 million shares, which makes the 2 million share option trade even more significant.
5. AIG – Trader rolled 12,700 of the Aug16th 52.5 calls out to Nov 52.5 calls, paying 1.80 for the privilege. AIG held its 200 day moving average near $51.50 on the most recent selling. The stock’s high this year is $56 from June. AIG is up 4.5% year-to-date.