Too Many Options: $WMB, $AMAT, $BRCM, $RSG, $CMCSA, $BIDU

by Enis August 14, 2014 6:21 am • Commentary

Some big prints in a variety of names as options traders re-focused on single names given that index volatility has declined.

1.  WMB – 32k of the Nov 60 calls traded at 1.35 in the afternoon.  Separately, later in the session, seller of 20k of the Aug16th 56 calls at 0.88.  WMB’s high of the year is $59.68, and the stock is up 47% year-to-date.  The next earnings report is likely to be in late October, and will be captured by November options.

2.  AMAT – AMAT reports earnings after the close today.  The options market is implying about a 4% move.  Yesterday morning, the Jan15 22 calls traded 25k for 1.38, and the Jan15 24 calls traded 45k at 0.75.  Also in the morning, but as a separate print, the Oct 22 calls traded 30k at 0.80.  AMAT’s high of the year is $23.46.

3.  BRCM – Saw a very large opening call sale when the stock was 37.64 – a trader sold 34,000 of the Nov 40 calls at 1.01.  This is likely an overwrite against long stock, which would place the call-away level at 41.01 on Nov expiration, or up about 9%.  BRCM’s next earnings report is in late October.  The stock’s high of the year is $40.74.  

4.  RSG – Republic Services, a waste management company, broke out to a new all-time high in June, and set another new high yesterday.  A trader sold 20k of the Jan15 40 calls at 0.65 to open, likely an overwrite against a long position.  Over 30k traded on the session at an average price of 0.67.

5.  CMCSA – Seller of 27k of the Oct 55 calls at 1.07 in the morning.  In the afternoon, a 3-way traded, looks like a seller of 20k of the Jan16 45 puts at 2.40, to buy 20k of the Jan16 57.5 / 70 call spread for 2.92.  CMCSA has stalled since January, even though the stock did make a slight new all-time high of $56.49 in late July.

6.  MWE – Seller of 15k of the Sept 77.5 calls at around 0.66 in the morning.  MWE’s all-time high is $76.83 from an intraday move on Tuesday of this week.  MWE is up 13% year-to-date.

7.  BIDU – BIDU has held up well after a breakout in July.  Saw some call buying yesterday – trader pays 0.41 for 5,000 of the Aug16th 225 calls to open with stock 218.31.  Over 12k traded on the session at an average price of 0.38.  BIDU’s high after earnings is $229.60.