Here is some generally directional, untied options activity that caught my eye during Tuesday’s trading:
1. T – total options volume was more than 3x average daily volume with calls making 75% of the volume. The largest single stock options trade was in T today as the stock was up nearly 3%
2. JCP – the beleaguered retailer has seen its shares gain 36% in 2015, but still down 22% from the 52 week highs made last Fall. Today when the stock was $8.78 there was an opening buyer of 20,000 of the July 10th weekly 9 calls for 18 cents. These calls break-even at $9.18, up 4.5% on July 1oth. There are no scheduled events as earnings are not expected until mid August. Short interest is still very high at 36% of the float. Taking a slightly longer term snapshot of the stock’s performance, it is down 80% from the 5 year highs made in early 2012, and has spent the better part of the last two years below $10, and as low as $5:
3. JD – has been a stock that we have had our eyes on for the last couple months (read here and here) which has had a large build up in call open interest, much of it appearing to be directional. Today when the stock was $34.50, one trader apparently rolled a bullish view out, selling to close 3,000 Sept 37 calls at 1.70 to close and buying 3,000 Dec 37 calls for 3.00 to open. Later in the afternoon there was an opening buyer of 2,000 of the Sept 36 calls for 2.15 to open when the stock was $34.58
4. WMB – A day after WMB’
5. XLF – total options volume ran almost 2x average daily volume, with two very large trades. The first was an opening outright put purchase when the stock was 25.22, a trader bought to open 45,