Too Many Options: $OXY, $CSCO, $SLV, $ZMH, $JCP

by Enis August 15, 2014 6:31 am • Commentary

Yesterday was one of the lowest volume days of the year in the overall market.  Second straight untilled gap up, and the S&P 500 index closed right at its 200 day moving average.

1.  OXY – Trader paid 1.20 for 30,000 of the Jan15 110/120 call spreads to open when the stock was 100.56.  The spread looks like it traded a total of 50k on the session, all around 1.20.  OXY last traded above $110 in May 2011, and its all-time high is $117.885 from May 2011.  The stock’s high for 2014 is $105.64, and the stock is up 5% year-to-date.  

2.  CSCO – Stock ended near a 2 month low after its earnings report, though volume was much lighter on earnings relative to most earnings releases over the past couple of years.  The most active line was the Oct 26 calls, which traded over 55k at an average price of 0.205.  CSCO’s high this year was $26.08 in late July.

3.  SLV – Silver has remained depressed int he past couple of weeks even as precious metals miners and gold have seen some demand.  Buyer of 49,800 of the Jan15 22/30 call spreads paying 0.26, looks like a trader rolling down a long call position from the 30 strike to the 22 strike.

4.  ZMH – The Dec 105 calls traded 18,270 for 1.65 in the morning.  That line initially traded around 20k in early June at a price above $6.  ZMH made an all-time high of $108.33 shortly after earnings in late april.

5.  JCP – JCP closed near the closely watched $10 resistance level, and that will be the spot to watch in the session today after last night’s earnings report (stock indicated around $10 at the moment).  Most active lines yesterday were the Aug16th 8.5 puts and the Aug16th 10 calls, both of which traded over 20k.  Volumes yesterday were more than 5x the 1 month average, and slightly skewed towards puts (123k puts traded vs. 110k calls).