2015-03-10 Options Report (ACM) (APD)
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Open Interest Updates From The Previous Trading Days Action
- Bank of New York Mellon (BK)- Mar 20 $40 call open interest went from 13,063 to 17,027 contracts (more buying yesterday).
- Continental Resources (CLR)- Apr $40 put open interest went from 1,451 to 3,825 contracts (buying yesterday).
- Louisana-Pacific (LPX)- May $16 put open interest went from 3,433 to 5,578 contracts (more buying as part of a rollout).
- Macerich (MAC)- Apr $95 call open interest went from 4,958 to 11,374 contracts and Apr $105 call open interest went from 2,642 to 10,549 contracts (more bull call spreads bought).
- Theravance (THRX)- Mar $2o call open interest went from 1,063 to 2,686 contracts (buying yesterday).
- Tyco International (TYC)- Apr $45 call open interest went from 1,336 to 8,322 contracts (buying yesterday).
- Wal-Mart Stores (WMT)- Apr 17 $85 call open interest went from 2,269 to 13,415 contracts (call rollout).
- WPX Energy (WPX)- Apr $10 call open interest went from 4,585 to 8,737 contracts (more buying).
New Options Trades
- Aecom (ACM)- Following a buyer of 3,600+ June $27.50 puts on March 6th for $1.30-$1.45 each, another 4,800 were bought for $1.60 each on March 10th.
- Anika Therapeutics (ANIK)- A rollout from 1,700 Mar $50 calls ($0.05 credit) into 1,500 Apr $45 calls ($1.50 debit) on March 10th.
- Air Products & Chemicals (APD)- The Apr $140/$160 bull risk reversal was put on 2,200 times for a $0.10 debit on March 10th. Option activity was 4x the average daily volume. The buyer of 2,400 Sep $155 calls from February 27th remains in open interest.
- American Express (AXP)- A rollout from 6,178 Mar 13 weekly $82.50 calls ($0.04 credit) into 6,178 Mar 27 weekly $82.50 calls ($0.43 debit) on March 10th. There was also a buyer of 12,000+ Mar 27 weekly $80 calls for $1.11-$1.20 each. Call activity was 4x the average daily volume.
- Anheuser Busch Inbev SA (BUD)- The Jan 2016 $110/$130 bull risk reversal was put on another 2,500 times for a $0.60 credit on March 10th. This trade was done 5,000 times ($1.50 debit) as well on January 30th.
- ConocoPhillips (COP)- 10,000 Apr 17 $65 calls were purchased for $0.66-$0.70 each on March 10th.
- Delta Air Lines (DAL)- The Mar 17 $49 call rollout into Apr 17 $49 calls was done another 4,000+ times. Read yesterday’s Options Report for more on this trade.
- Express (EXPR)- A rollout from 2,000 Mar $12 calls ($2.90 credit) into 3,000 Mar $14 calls ($1.45 debit) on March 10th. Volume was above the open interest in the Mar $14 calls. Q4 earnings are due out tomorrow morning.
- Freeport-McMoRan (FCX)- 30,000 May $15 puts were purchased for $0.36-$0.40 each on March 10th. From March 3rd through the 9th, Jan 2016 $20 put open interest rose to 30,228 from 9,775 contracts (large chunks of buying on several days).
- CurrencyShares Euro Trust ETF (FXE)- The Jan 2016 $94/$102 bear put spread was put on 200,000 times for a $1.96 debit on March 10th. Put activity was 37x the average daily volume.
- IMAX (IMAX)- 5,000 June $36 calls were bought for $1.00 each on March 10th. 8,000+ still sets in open interest in the Apr $36 calls and June $33 calls from large buying.
- Kraft Foods Group (KRFT)- 10,000 June $67.50 calls were purchased for $0.70 each on March 10th.
- Nike (NKE)- 14,000 Mar 20 $95 puts were sold for $1.15-$1.32 each on March 10th heading into Q3 earnings on March 19th. The big Mar 13 weekly $98 call buyer remains in open interest.
- Northwest Biotherapeutics (NWBO)- 8,000 July $6 puts were sold for $0.60 each, against open interest of 14,153 contracts on March 10th. Starting at $1.10 on February 17th there has been sizable selling in these puts as open interest continues to build.
- Philip Morris International (PM)- 8,000 Apr 17 $85 puts were purchased for $0.67-$0.69 each on March 10th. Put activity was 3x the average daily volume.
- PowerShares DB US Dollar Index Bullish ETF (UUP)- 7,500 Mar 20 $25 calls were sold for $0.92 each, against open interest of 37,544 contracts. In the last two weeks the (UUP) has rallied from $25 to $26 (sizable move for a currency ETF).
- Western Union (WU)- More than 6,400 Apr $20 calls traded on March 10th with the majority being bought for $0.23-$0.35 each.
- Financial Select Sector SPDR Fund ETF (XLF)- A total of 72,000 June $25 calls were purchased for $0.34-$0.37 each, against open interest of 89,583 contracts. By the end of the day 84,744 of these calls traded.
- Zions Bancorp (ZION)- Roughly 10,000 Mar $27 puts were bought for $0.66-$0.85 each on March 10th. This trade created the largest open interest of any (ZION) option. Implied volatility spiked 21.2% to 29.65.
Notable List Of Equities/ETFs I’m Tracking With Unusual Options Activity
- ACHILLION PHARMACEUTICALS (ACHN)- The Sep/Jan 2016 $15 call calendar was put on 7,500 times for a $1.20 debit on March 6th. He/she sees the stock approaching the $15 level by the fall, but not exceeding that price until after September options expiration (lowers the cost of the trade by selling Sep $15 calls).
- Applied Materials (AMAT)- Massive open interest in the Apr 17 (monthly expiration) $23-$27 calls due to call purchases and bull call spreads in recent months. A buyer of 13,300 Apr 17 $25 calls for $0.75 each on February 3rd sent open interest above the 100,000 mark.
- Air Products & Chemicals (APD)- A rollout from 2,460 June $145 calls ($13.70 credit) into 2,460 Sep $155 calls ($9.50 debit) on February 25th. Trader took profits on the June calls, but still sees upside north of $165 by September options expiration.
- Arcos Dorados (ARCO)- More than 5,000 Mar $5 puts were bought on March 9th for $0.50-$0.55 each. On average, only 55 puts trade per day and this activity was 2x the total put open interest at the time. Q4 earnings are due out on March 17th.
- Bank of New York Mellon (BK)- Nearly 10,000 more Mar 20 $40 calls traded on March 9th for $0.44-$0.64 each, marking the third day of massive buying. Call activity was nearly 6x the average daily volume. Open interest stood at 17,027 contracts on the morning on March 10th.
- Burlington Stores (BURL)- 2,500 Mar $55 calls were purchased for $3.20 each on March 6th. There remains 14,000+ in the Mar $50 calls from buying in the previous few months (sitting on a profit). Q4 earnings are due out on March 18th.
- Boardwalk Pipeline Partners (BWP)- A rollout from 125,000 Mar $17 calls ($0.65 credit) into 45,000 Sep $18 calls ($1.70 debit) on February 19th and a rollout from 15,000 Jan 2015 $16 calls ($0.75 credit) into 15,000 June $16 calls ($1.80 debit) on December 1st, 2014. Both traders see a high $10’s/low $20’s stock price later this year.
- Diamond Offshore Drilling (DO)- A rollout from 6,200 Mar $30 puts ($1.30 credit) into 6,200 Apr $25/$30 bear put spreads ($1.78 debit) on March 4th. The trader wants to extend his/her bearish position by an additional months; sees potential downside risk to $25 by April options expiration (breakeven of $28.22).
- Epizyme (EPZM)- The Mar $17.50/$22.50 bear put spread was put on 5,000 times for a $1.60 debit on March 6th. Prior to this trade total option open interest was 547 contracts. Q4 earnings are due out on March 12th and the stock has 23.59% short interest.
- Freeport-McMoRan (FCX)- Jan 2016 $20 put open interest rose to 26,172 from 9,775 contracts during March 3rd-6th (started paying $2.79 during this streak).
- Kulicke and Soffa Industries (KLIC)- Someone sold their 620 Apr $13 calls ($3.40 credit) and purchased 620 Apr $15 calls for $1.60 each. The Apr $16 calls also had some buyers in late January/early February for $0.75 each. Total call open interest is about 3.5x the size of total put open interest.
- Macy’s (M)- The Apr $60/$62.50/$65 bull call spread risk reversal was put on 4,500 times for a $0.20 debit on March 9th.
- Macerich (MAC)- Large Mar $90 call buying on several days in February (open interest 16K+). On March 6th, someone bought the Apr $95/$105 bull call spread 1,700 times for a $1.75 debit. The trader sees upside to $105 by April options expiration (Macerich is a M&A target). Apr $95 call open interest was 11,374 contracts and Apr $105 call open interest was 10,549 contracts as of March 10th.
- Marvell Technology Group (MRVL)- Apr 17 $17 call open interest increased by 10,000+ contracts from buying on March 4th and 5th for $0.30-$0.42 each (stood at 15,405 contracts on March 6th).
- Nike (NKE)- Nearly 5,000 Mar 13 weekly $98 calls were purchased for $0.83 each on March 4th. Nike doesn’t report earnings until March 19th, but February retails sales and earnings from Hibbett Sports (HIBB) are due out prior to Mar 13 weekly options expiration.
- Olin (OLN)- On February 9th, 12,000+ May $30 calls were bought for $0.45-$0.60 each. On average, just 644 calls trade per day. Despite having more than a triple in paper gains, he/she remains content with holding the position.
- PMC-Sierra (PMCS)- On February 12th, there was a roll from 10,000 Feb $7 calls ($2.15 credit) and Feb $8 calls ($1.15-$1.20 credit) into 24,000 Jan 2016 $10 calls ($0.90-$1.00 debit). He/she took some profits near February options expiration, but continues to see this year beyond $11.
- Qorvo (QRVO)- The May $70/$80 bull call spread was put on 7,000 times for a $2.15 debit on February 20th. On March 3rd, 2,000 May $80 calls were purchased for $1.90 each (took open interest up to 9,214 from 7,229 contracts the next day).
- Regions Financial (RF)- 30,000+ Mar $10 calls and 12,000+ Apr $10 calls remain in open interest. Both have had buyers step up in size starting in late February, possibly on the increased chance of a Fed Funds rate hike.
- Rosetta Resources (ROSE)- A rollout from 5,000 Mar $22.50 puts ($4.40 credit) into 10,000 Mar $17.50 puts ($0.85 debit) on March 6th. The trader is taking profits on the Mar $22.50 puts (initially purchased for $1.80-$2.25 each), but still sees more downside to come in the near-term.
- RSP Permian (RSPP)- The June $25/$30/$35 bull call spread risk reversal was put on 2,000 times for a $0.30 credit on March 5th. Q4 earnings are due out on March 17th.
- Salix Pharmaceuticals (SLXP)- Since February 23rd, open interest rose from 2,868 in the Apr $160 calls to 59,574 contracts as of March 6th. A move above $160 would be above Valeant Pharmaceutical’s offer of $10B for the company.
- SunTrust Banks (STI)- 2,000 July $45 calls were bought for $0.68 each on March 9th. Call activity was nearly 3x the average daily volume.
- Westlake Chemical (WLK)- Big buying on February 19th, February 23rd, and March 5th took open interest in the Mar $70 calls from 17 to 9,493 contracts (started paying $1.10 each). This activity accounts for nearly half of all call open interest in Westlake Chemical.
- Wal-Mart Stores (WMT)- On March 9th, someone rolled out 20,000 Mar 20 $85 calls ($0.12 credit) into 12,000+ Apr 17 $85 calls ($0.56 debit).
- WPX Energy (WPX)- Nearly 4,500 Apr $10 calls were bought for $1.46-$1.70 each on March 6th. Call activity was 9x the average daily volume. This action is by far the largest OI of any WPX Energy option.
- Zogenix (ZGNX)- The Oct $2/$4 bull call spread was put on 20,000 times for a $0.40-$0.45 debit on March 6th. On average, only 1,098 calls trade per day. Q4 earnings are due out on March 10th.