Tuesday’s Notable Options Activity: $FB, $SO, $PPL, $PAYX, $AMD, $KO

by Enis October 29, 2014 6:57 am • Commentary

IWM had its largest one day percentage advance in the past year, and QQQ neared its high of the year on yesterday’s broad market rise.  Utility stocks were unusually active yesterday as earnings reports for that sector approach.

1.  FB – Options traded over twice the 1 month average, with calls traded about 1.15x more actively tan puts.  The weekly 85 calls and the weekly 75 puts were the only lines trading over 20k on the session.  The Dec 87.5 calls and the Nov 75 puts were the most active lines outside of weekly options.  FB is trading down about 7.5% in the pre-market after yesterday’s results.

2.  SO – Two large trades in SO.  Buyer of 25k of the Jan15 48 calls for 0.52 in the afternoon.  About 45 minutes later, a buyer of over 25k of the Nov 46 puts for 0.74.  SO reports earnings this morning before the open.  The stock is within 3% of its all-time high of $48.74 from April 2013.

3.  PPL – Seller of 32k of the Jan15 35 calls at 0.55 to open in the afternoon.  PPL’s high for the year is $35.56.  The company reports earnings before the open on Nov. 4th.

4.  PAYX – Seller of 34k of the Dec 46 calls at 0.75 midday.  PAYX hit a new 5 year high of $46.15 yesterday.  The stock’s 10 year is $47.14 from 2007.

5.  AMD – Seller of 52k of the Jan15 3 puts at 0.42, likely to close.  AMD one of the few stocks without a bounce in the past 2 weeks.

6.  KO – Stock has failed to bounce after a weak earnings report as well, even as the broader staples sector has seen relative strength.  Seller of 23k of the Dec 41 calls at 0.53 to open.  KO’s next earnings report is not until February.