Too Many Options: $HTZ, $PBR, $IYR, $SUNE, $ADSK

by Enis August 21, 2014 6:05 am • Commentary

New all-time high for the S&P 500 index, and VIX spot closed below 12 for the first time  in nearly a month.

1.  HTZ – Hertz traded its highest single day stock volume in its history.  The stock was down more than 10% in the morning after the large guide lower, but ended down just 4% after Carl Icahn announced that he had amassed a 8.5% stake in HTZ.  The Sept 25 puts were the most active line, with one large seller of 19k at 0.25 in the morning.  30 day implied volatility fell down to 35, its lowest level of the summer, after management finally shined some light on the long delayed earnings situation.

2.  PBR – The Sept 18 calls trade 45k for 0.67 to open in the morning.  PBR’s 52 week high is $17.97 from November.  30 day implied volatility remains elevated, around 45, which is near a 2 year high even though earnings is not for another 2 months.  Options traders have been active in buying calls in the past month.

3.  IYR – Rare trade in Jan16, as it looks like a buyer of 23,500 of the Jan16 45 puts for 0.65 to open.  IYR last traded below $45 in 2010.  IYR hit a new 52 week high this week, and is within 3% of its 5 year high of $76.21 from May 2013.

4.  SUNE – Some call buying in the Aug22nd 20 strike weeklies, with 3700 being bought for 2.35 to open in the morning.  SUNE is up 71% year-to-date, though the bulk of the gains came from January to March.  

5.  ADSK – Looks like a closing buyer of 8000 of the Oct 57.50 calls, which are bought for 1.18.  There is 12,000 of open interest in the strike, and nearly 12k traded on the session.  We discussed ADSK in Tuesday’s CotD post.