Options activity was once again focused on the energy sector. XLE actually closed in the green by the close for the first time in 5 sessions. Meanwhile, the S&P 500 index closed down 0.7%, its largest daily loss since Oct. 22nd.
1. APC – Anadarko has sold off more than 30% in the past 4 months, but the stock remains above its 52 week low of $73.60. Yesterday, there was a large call butterfly buyer. Trader bought 16,500 x 33,000 x 16,500 of the Jan16 95 / 120 / 145 call butterfly for $2.65. This trade is profitable between $97.65 and $142.35 on Jan16 expiration, with a max profit of $22.35 at 120 on Jan16 expiration. The buyer spent $4.3725 million in premium for the position.
2. RIG – RIG hit its lowest level in nearly 20 years yesterday, and is now down 60% year-to-date. Puts traded over 170k in total, vs. the 1 month average of around 25k. Trader rolled put spreads, selling 22k of the Jan15 25/20 put spreads at 3.60 to close to buy 22k of the Jan15 19/15 put spreads for 1.00 to open.
3. KMI – KMI has held up much better than the other energy-related stocks, closing within 5% of its high for the year of $42.49 from August 11th (the day of the deal announcement). Someone sold 32k of the Jan15 40 calls at 1.60, likely to close.
4. COP – Buyer of 20k of the Dec20th 70 calls for 0.66 in the morning. COP is down 4% year-to-date, but has remained above its 52 week low of $62.74 from February in the past couple of months.
5. XOP – The Oil and Gas Exploration and Production ETF closed at a 2 year low yesterday. Puts were active, with the Jan15 47 put the most active line, trading over 48k at an average price of 2.63, mostly buyer initiated.