Options Report

(This Options Report is an example of what will be included in my ORM Equity/Option Trader Subscription Service for $9.99 per month)

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Open Interest Updates From The Previous Trading Days Action

1. AECOM (ACM)- June $27.50 put open interest went from 3,632 to 8,398 contracts (more buying yesterday).
2. Air Products & Chemicals (APD)- Apr $140 put open interest went from 2,077 to 4,280 contracts (selling as part of a bull risk reversal yesterday).
3. Atmel (ATML)- Apr $9 call open interest went from 3,309 to 5,246 contracts (buying yesterday).
4. Bank of New York Mellon (BK)- Mar 20 $40 call open interest went from 17,027 to 18,663 contracts (more buying).
5. Anheuser Busch Inbev SA (BUD)- Jan 2016 $130 call open interest went from 5,466 to 7,968 contracts (more buying as part of a bull risk reversal).
6. Delta Air Lines (DAL)- Apr 17 $49 call open interest went from 25,217 to 37,215 contracts (more call rollouts from March expiration).
7. Kraft Foods (KRFT)- Mar $62.50 call open interest went from 3,294 to 6,780 contracts and June $67.50 call open interest went from 5,382 to 18,106 contracts (buying in both options yesterday).
8. Northwest Biotherapeutics (NWBO)- July $6 put open interest went from 14,153 to 22,153 contracts (more selling).
9. Pepsico (PEP)- Apr 17 $105 call open interest went from 56,716 to 83,399 contracts (buying yesterday).
10. Financial Select Sector SPDR Fund ETF (XLF)- June $25 call open interest went from 89,583 to 162,246 contracts (large buying yesterday).

New Options Trades

1. Brookdale Senior Living (BKD)- The July $35/$37.50 bull risk reversal was put on 5,000 times for a $1.20 debit. There was a 100K block of stock traded shortly after this for $37.26. On average, just 732 options trade per day.
2. Barnes & Noble (BKS)- The Oct $20/$25 bull risk reversal was put on 2,500 times for a $0.60 debit.
3. Citigroup (C)- A rollout from 20,000 Mar 13 weekly $53 calls ($0.55 credit) into 20,000 Mar 27 weekly $53.50 calls ($0.76 debit).
4. Cigna (CI)- The Jan 2016 $110/$130/$150 bull call spread risk reversal was put on 1,300 times for a $0.00 debit.
5. Centene (CNC)- The Sep $60/$70/$80 bull call spread risk reversal was put on 2,500 times for a $0.70 credit.
6. ConocoPhillips (COP)- 10,000 May $70 calls were purchased for $0.35 each. This follows a buyer of 10,000 Apr 17 $65 calls for $0.66-$0.70 each on March 10th.
7. Corning (GLW)- 10,000 Jan 2016 $30 calls were purchased for $1.16-$1.18 each.
8. Gulfport Energy (GPOR)- 3,500 July $47.50 calls were bought for $3.90-$4.20 each. Options activity  was 12x the average daily volume.
9. HollyFrontier (HFC)- Roughly 5,000 Mar 20 $40 calls were bought for $0.45 each. Call activity was 3x the average daily volume as implied volatility jumped 6.8% t0 40.14.
10. Humana (HUM)- The Jan 2016 $145/$170/$200 bull call spread risk reversal was put on 1,000 times for a $0.50 debit. Options activity was 2x the average daily volume.
11. Interactive Brokers (IBKR)- 1,000 Apr $35 calls were bought for $0.45 each. Implied volatility rose 9.9% to 27.06.
12. Intel (INTC)- 20,000 Mar 20 $33.50 calls were purchased for $0.19 each. Call activity was nearly 3x the average daily volume.
13. Lifelock (LOCK)- Put activity was 2x the average daily volume as buyers stepped into the Apr $13, $14, May $14, and Aug $14 puts. Volume was above the open interest in both options.
14. MasterCard (MA)- 5,500 Apr 10 weekly $84 puts were sold for $1.02 each.
15. ManpowerGroup (MAN)- 2,000 Apr $85 calls were bought for $1.75-$1.85 each. Call activity was 8x the average daily volume as implied volatility rose 11.3% to 29.00.
16. McDonald’s (MCD)- 7,000 June $97.50 calls were purchased for $2.72-$2.84 each, against open interest of 9,588 contracts.
17. Marvell Technology Group (MRVL)- Roughly 6,000 Apr 17 $18 calls were purchased for $0.24-$0.30 each, against open interest of 3,042 contracts. This follows buying in the Apr 17 $17 calls in the previous two weeks (nearly 16,000 in open interest).
18. Nucor (NUE)- More than 5,000 Mar 20 $47 calls were bought for $0.38-$0.45 each. Call activity was 5x the average daily volume.
19. Ocean Rig UDW (ORIG)- A rollout from 915 June $7.50 puts ($1.65 credit) and 2,024 June $10 puts ($3.80 credit) into 3,500 Jan 2016 $5 puts ($1.00 debit).
20. Steel Dynamics (STLD)- Nearly 5,000 Apr $19 calls were bought for $0.20-$0.25 each. Call activity was 4x the average daily volume.
21. Teva Pharmaceuticals (TEVA)- The Apr 17 $55/$60 bull risk reversal was put on 2,500 times for a $0.30 debit. Not long after this trade someone came in and bought another 1,500 Apr $60 calls for $1.07 each. Call activity was 4x the average daily volume.
22. Tyson Foods (TSN)- 5,000 Mar $37 calls were bought for $1.10-$1.15 each.
23. Take-Two Interactive Software (TTWO)- 4,000 June $24 calls were purchased for $2.25-$2.35 each. Call activity was over 2x the average daily volume and the call to put ratio was 24:1.
24. VF Corp (VFC)- A rollout from 3,500 Apr $77.50 puts ($4.15-$4.30 credit) into 10,000 Apr $72.50 puts ($1.35-$1.50 debit). Put activity is 8x the average daily volume.
25. United States Steel (X)- The July $15/$19 bear put spread was put on 15,000 times for a $0.95 debit.
26. Xilinx (XLNX)- The Apr $35/$37 bear put spread was put on 13,000+ times for a $0.24 debit.

Notable List Of Equities/ETFs I’m Tracking With Unusual Options Activity

1. 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).
2. 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.
3. 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.
4. 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. The Apr $140/$160 bull risk reversal was put on 2,200 times for a $0.10 debit on March 10th.
5. 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.
6. 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.
7. 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 18,663 contracts on the morning on March 11th.
8. 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.
9. 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.
10. 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).
11. 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.
12. 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). On March 10th, 30,000 May $15 puts were bought for $0.36-$0.40 each.
13. 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.
14. 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.
15. 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.
16. 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.
17. 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.
18. 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).
19. 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.
20. 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.
21. 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.
22. 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.
23. 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).
24. 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.
25. 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.
26. 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.
27. 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.
28. 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.
29. 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.
30. 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).
31. 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.
32. 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.
33. Financial Select Sector SPDR Fund ETF (XLF)- June $25 call open interest went from 89,583 to 162,246 contracts (large buying on March 10th).
34. 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.
35. 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.

BKD BKS C CI CNC COP GLW GPOR HFC HUM IBKR INTC LOCK MA MAN MCD MRVL NUE Options Reports ORIG STLD TEVA TSN TTWO VFC X XLNX