Tuesday’s Notable Options Activity

MW –  Men’s Wearhouse is trying to break out to its 2014 highs after a dismal end to that year. The stock is up nearly 20% in 2015 and an recent days has seen some bullish options activity with certain traders betting on even more gains. On Tuseday traders were buying the May 50 calls with over 1400 trading on the day. Those are very much in the money and about 75 deltas. If the stock can get above the $54-$55 level there is no resistance until last Summer’s highs near $59.

AMAT – There was some interesting activity in June calls in AMAT on lines that previously had no open interest. The 24, 25 and 27 call strikes all traded in size. Both the 24 and 25 strikes appear to have been bought. The 27 calls printed mid market so may have been sold. I don’t even know what that’s called. Let’s name it a call stupid tree? If that was in fact the intention the trader is looking for new highs for the stock this Summer.

BAC – An interesting calendar roll in BAC as a trader sold to close 12,000 of the Jan’16 17 calls at 0.77 and bought to open 12,000 of the Jan’17 17 calls for 1.61. The roll cost that trader about 2 vol points but they gained nearly 10 deltas and an extra year in time. That seems dollar cheap for a roll on a bullish bet in the stock, especially considering the time involved. This type of roll make a ton of sense in a stock in the $15 dollar range as options often have a difficult time pricing in that amount of time. I approve.