Here is some generally directional, untied options activity that caught my eye during Tuesday’s trading:
1. AAPL – when the stock was $
3. FB – saw a large block of out of the money calls bought in May. When the stock was 79.
This lack of movement is reflected in short dated options prices, as 30 day at the money implied vol (blue below) nears all time lows. But the problem with calling options prices cheap is that 30 day realized vol (white below) is at 21, meaning the stock is not moving and therefore owning options can be a painful endeavor
4. UUP – the Powershares US Dollar etf sees a massive put purchase,
5. BABA – in front of Tuesday’s lock up expiration it looks like a trader rolled down some protection, possibly selling protective puts and opening a collar. When the stock was 84.65 a trader sold to close 9,000 April 82.50 puts at 2.22, and sold to open 9,000 July 105 calls at 1.10 and bought to open 9,000 July 75 puts for 2.60. If this in fact was a collar against 900,000 shares of stock, then the investor will have gains of the stock up until 105, and losses to 75, and protection below (excluding the premium paid for the overlay.)