Tuesday’s Notable Options Activity: $CBS, $EEM, $EPI, $QUNR, $XLF

by Dan April 8, 2015 7:57 am • Commentary

Here is some generally directional, untied options activity that caught my eye during Tuesdays trading:

1. CBS – when stock was $61 a trader paid 2.45 for 45,000 June 62.50 calls to open. The calls break-even at $64.95, just below the 52 week high made last July at $65.24. The all time high in the stock is just below $69 from early 2014.

2. XLF – when the etf was 24.25 a trader sold to close 73,000 April 24.50 calls at 12 cents,these calls were apparently bought last week on March 31st when the stock was 24.33 for 21 cents (read here). 

3. EEM – closed above its 200 day moving average (yellow line below) on Monday for the first time since late November, and this morning in the pre-market trading above the important $42 technical resistance level:

EEM 1yr chart from Bloomberg
EEM 1yr chart from Bloomberg

Late int he afternoon when the etf was $41.65 a buyer paid .47 for 35,000 of the May 42.50 / 45 call spreads to open.  This trade breaks-even at $42.97, with a max gain of up to 2.03 between $42.97 and $45.

4. QUNR – here is Bloomberg’s description of what this company does:

Qunar Cayman Islands Limited operates a search-based commerce platform. The Company provides travel product information from thousands of travel services providers in one location. Qunar Cayman Islands offers its services in China.

I really don’t know what any of that means, but it at-least a few investors in the last month have woken up to QUNR’s prospects for offering “travel product information” as the stock is up 50% in the last month, even with yesterday’s nearly 10% decline.

QUNR 1yr chart from Bloomberg
QUNR 1yr chart from Bloomberg

When the stock was $44.60 a trader rolled out a bullish view, selling to close 10,000 July 45 calls at $4.15 and bought 15,000 Oct 60 calls for 2.20 to open.

5. EPI – saw 5x average daily options volume yesterday yesterday, with the largest trade of the day in the most active strike.  When the Indian etf was trading 23.27 a trader bought to open 20,000 April 23 puts for .20, 30,000 traded on the day.  Earlier in the day it looked like there was a closing seller of 20,000 May 24 calls at 30 cents.