Wednesday’s Notable Options Activity: $KO, $TMUS, $LNG, $SPLS, $HTZ

by Enis November 20, 2014 6:35 am • Commentary

Even though markets were a bit more volatile intraday and monthly options expiration is tomorrow, single stock options volumes remained low ahead of next week’s Thanksgiving holiday.

1.  KO – Calls were very active in KO, trading over 125k on the session vs. the 1 month average of around 29k.  Buyer of around 15k of the Jan15 44 calls for 1.18 near the close, and a buyer of 15k of the Feb 48 calls for 0.36, also near the close.  KO has rallied 3.5% this week alone, and is within 2% of its all-time high of $44.87 from October.

2.  TMUS – Trader rolled a put position from Nov to Jan15, selling 30k of the Nov22nd 26 puts at 0.05 to close to buy 30k of the Jan15 25 puts for 0.64 to open.  TMUS traded as lows as $24.50 in mid-October and is down 18.5% year-to-date.  It’s a good example of a stock that has performed poorly while the business has continually gained market share from competitors.

3.  LNG – LNG remains one of the few energy companies that has maintained the bulk of its gains, still up 68% year-to-date.  The Jan15 80 / 85 1×2 call spread traded 7k x 14k for even money in the morning.  LNG’s high of the year (and all-time high) is exactly $85 from September.

4.  SPLS – The Jan15 14 calls traded over 15k at an average price of 0.52.  SPLS closed at its highest level since January on a stronger than expected earnings report.  The stock is still down 12.5% year-to-date, but has rallied 30% from its June low of $10.70.  Short interest is now around 12%.

5.  HTZ – HTZ has struggled mightily since its all-time high in August, and is down 22.5% year-to-date.  Buyer of 12,500 of the Jan16 25 / 35 call spreads for 2.20 to open in the morning.  The $25-$26 area is the technical area to watch on the upside given that it acted as support for much of 2014.