Options Report

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Open Interest Updates From The Previous Trading Days Action

1. Gilead Sciences (GILD)- May 15 $90 put open interest went from 19,233 to 22,465 contracts, May 15 $100 call open interest went from 20,521 to 25,574 contracts, and May 15 $115 call open interest went from 7,877 to 12,938 contracts (bull call spread risk reversal put on for a $2.60 debit).
2. McDonald’s (MCD)- June $97.50 call open interest went from 17,290 to 42,008 contracts (more buying yesterday).
3. PDL BioPharma (PDLI)- May $7 call open interest went from 2,476 to 4,083 contracts (more buying yesterday).
4. Pepsico (PEP)- Apr 17 $105 call open interest went from 84,870 to 94,692 contracts (more buying yesterday).
5. Packaging Corp. of America (PKG)- Apr $80 call open interest went from 624 to 2,632 contracts (bought as part of a call rollout).
6. Transocean (RIG)- May 15 $14 put open interest went from 5,144 to 10,481 contracts (buying for $1.60 yesterday).
7. Vale SA (VALE)- June $6 put open interest went from 30,494 to 50,546 contracts (bought as part of a put rollout).

New Options Trades

1. ADT Corp. (ADT)- Sizable purchases in the May $40 (3,000+ traded) and July $38 calls (1,200+ traded) for $1.10-$1.25 and $2.69-$2.70, respectively. 5,000+ Mar $39 calls remain in open interest as well (big buying on March 5th) and 2,000+ were bought today for $0.45-$0.55 each.
2. Peabody Energy (BTU)- A rollout from 10,000 Mar 13 weekly $6.50 puts ($1.10-$1.11 credit) into 20,000 Mar 20 $5 puts ($0.10-$0.13 debit). Volume was above the open interest in the Mar 20 $5 puts. Put activity was 8x the average daily volume.
3. CABELA’S (CAB)-  Roughly 4,000 Mar $60 calls were purchased for $0.15-$0.30 each and 1,500 Apr $60 calls were purchased for $2.15-$2.60 each. Call activity was 18x the average daily volume (implied volatility +12% to 27.68).
4. Citizens Financial Group (CFG)- Over 6,000 Apr $25 puts were bought for $0.65-$0.90 each. Total put open interest was just 917 contracts as 17 puts trade on an average day. Implied volatility spiked 17.3% to 24.45.
5. Check Point Software Technologies (CHKP)- 2,500 Apr $80 puts were purchased for $1.34-$1.40. Put activity was 7x the average daily volume.
6. CIT Group (CIT)- 2,500 Oct $41 puts were purchased for $1.63 and 2,500 Oct $43 puts were purchased for $2.26 each. Put activity was 9x the average daily volume.
7. ConocoPhillips (COP)- 10,000 Mar 20 $63 calls were bought for $0.21-$0.22 each and there was also sizable buying in the Apr 17 $62.50 and $65 calls early in the morning. Volume was above the open interest in the Mar 20 $63 and Apr 17 $62.50 calls. Analysis on (COP) from March 11th
8. Campbell Soup (CPB)- 2,000 Jan 2017 $55 calls were bought for $1.20 each and 1,000 Jan 2017 $38 puts were sold for $2.20-$2.25 each.
9. California Resources (CRC)- 7,500 Aug $7 puts were purchased for $1.25 each. Put activity was 12x the average daily volume.
10. Golar LNG (GLNG)- 4,000 Mar $35 calls were bought for $0.80-$0.85 each, against open interest of 3,601 contracts.
11. Harley-Davidson (HOG)- A rollout from 3,000 May $62.50 puts ($4.79 credit) into 3,000 May $60 puts ($3.29 debit).
12. HSBC Holdings (HSBC)- 5,000+ Apr $40 puts were bought for $0.35-$0.40 each. Put activity was 3x the average daily volume.
13. ChipMOS Technologies (IMOS)- 1,500 June $25 calls were purchased for $1.00-$1.15 each.
14. Macquarie Infrastructure (MIC)- A rollout from 500 Apr $75 calls ($5.00 credit) into 500 Oct $80 calls ($4.20 debit). Volume was above the open interest in the Oct $80 calls.
15. Noble (NE)- 2,500 Apr 17 $13 puts were bought for $0.65 each. This follows a put rollout from 4,000 Mar 20 $18 puts ($3.90 credit) into 7,000 June $15 puts ($2.35 debit) on March 12th.
16. NVIDIA (NVDA)- 11,000 May $19 puts were bought $0.23-$0.25 each. Put activity was 4x the average daily volume.
17. Market Vectors Oil Services ETF (OIH)- 10,000 Mar 20 $31.50 puts were purchased for $0.45-$0.50 each. The put to call ratio was 7:1.
18. Plains All American Pipeline (PAA)- Another 3,000 Aug $47.50 calls were purchased for $2.30-$2.65 and 1,980 Aug $47.50 puts were sold for $4.00-$4.20 each. This marked the fifth consecutive trading day of the Aug $47.50/$47.50 bull risk reversal being put on in size.
19. QUALCOMM (QCOM)- 3,000+ Mar 20 $69.50 calls were bought for $0.38-$0.52 and 10,000 Mar 20 $70 calls were bought for $0.24-$0.35 each. Volume was above the open interest in both options.
20. Rovi (ROVI)- 2,900 Apr $22.50 puts were purchased for $2.00 each, against open interest of 2,141 contracts. On average, just 117 puts trade per day.
21. Market Vectors Russia ETF (RSX)- 15,000 Apr 17 $18 calls were bought for $0.30-$0.35 each, against open interest of 11,658 contracts. On average, 15,002 calls trade per day.
22. Sunesis Pharmaceuticals (SNSS)- 2,500 July $2.50 calls were purchased for $0.60 each.
23. Suncor Energy (SU)- Roughly 7,000 Apr 17 $29 calls were bought for $0.51-$0.58 each. Call activity was 4x the average daily volume.
24. Tesoro (TSO)- 5,000 Mar 20 $85 calls were purchased for $1.89-$2.20 each.

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. Barnes & Noble (BKS)- The Oct $20/$25 bull risk reversal was put on 2,500 times for a $0.60 debit on March 11th.
9. 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.
10. 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.
11. 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) on March 11th.
12. Cigna (CI)- The Jan 2016 $110/$130/$150 bull call spread risk reversal was put on 1,300 times for a $0.00 debit on March 11th.
13. Centene (CNC)- The Sep $60/$70/$80 bull call spread risk reversal was put on 2,500 times for a $0.70 credit.
14. 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).
15. 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.
16. 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.
17. 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.
18. Gulfport Energy (GPOR)- 3,500 July $47.50 calls were bought for $3.90-$4.20 each on March 11th. Options activity  was 12x the average daily volume.
19. Humana (HUM)- The Jan 2016 $145/$170/$200 bull call spread risk reversal was put on 1,000 times for a $0.50 debit on March 11th. Options activity was 2x the average daily volume.
20. Interactive Brokers (IBKR)- 1,000 Apr $35 calls were bought for $0.45 each on March 11th. Implied volatility rose 9.9% to 27.06.
21. 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.
22. International Paper (IP)- 5,000 July $60 calls were purchased for $1.18-$1.20 each on March 12th.
23. 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.
24. Lexmark International (LXK)- A rollout from 2,200+ Mar $40 puts ($2.05-$2.53 credit) into 4,700+ Apr $38 puts ($1.30-$1.60 debit) on March 12th.
25. 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.
26. 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.
27. ManpowerGroup (MAN)- 2,000 Apr $85 calls were bought for $1.75-$1.85 each on March 11th. Call activity was 8x the average daily volume as implied volatility rose 11.3% to 29.00.
28. McDonald’s (MCD)- June $97.50 call open interest went from 17,290 to 42,008 contracts on March 13th (large buying on March 11th and 12th).
29. Mosaic (MOS)- A rollout from 2,500 Apr 17 $50 puts ($2.68 credit) into 10,000 Apr 17 $45 puts ($0.59 debit) on March 12th. There was large buying in the Apr 17 $50 puts on March 3rd and 4th, but option traders still see more downside in the near-term.
30. 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). On March 11th, Roughly 6,000 Apr 17 $18 calls were purchased for $0.24-$0.30 each.
31. NetApp (NTAP)- 20,000+ Apr 17 $36 puts were purchased for $0.53-$0.68 each on March 12th. The put to call ratio was 9:1 and put activity was 17x the average daily volume.
32. Nucor (NUE)- More than 5,000 Mar 20 $47 calls were bought for $0.38-$0.45 each on March 11th. Call activity was 5x the average daily volume.
33. 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.
34. PDL BioPharma (PDLI)- 1,600 May $7 calls were purchased $0.70 each, against open interest of 2,476 contracts on March 12th. Call activity was 9x the average daily volume. On February 25th and 27th, nearly 2,000 were bought for $0.30-$0.50 each.
35. Pepsico (PEP)- Apr 17 $105 call open interest went from 84,870 to 94,692 contracts (large buying starting on February 19th through March 12th).
36. Packaging Corp of America (PKG)- A rollout from 2,000 Mar $80 calls ($0.70 credit) into 2,000 Apr $80 calls ($2.05 debit) on March 12th.
37. 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.
38. 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.
39. 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).
40. 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.
41. 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.
42. 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.
43. 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.
44. 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.
45. Steel Dynamics (STLD)- Nearly 5,000 Apr $19 calls were bought for $0.20-$0.25 each on March 11th. Call activity was 4x the average daily volume. 1,500 May $18 calls were bought for $1.00 and 3,000 May $20 calls were bought for $0.30-$0.35 each on March 12th too.
46. Teva Pharmaceutical (TEVA)- The Apr 17 $55/$60 bull risk reversal was put on 2,500 times for a $0.30 debit on March 11th. Not long after this trade, someone came in and bought another 1,500 Apr $60 calls for $1.07 each. These trades come after the March 5th rollout from 4,000 Mar 20 $52.50 calls ($4.05 credit) into 6,000 Jan 2016 $45/$60 bull risk reversals ($2.90 debit) and the 12,000+ June $57.50/$65 call spreads bought and 5,000+ June $50 puts sold throughout February.
47. Take-Two Interactive Software (TTWO)- 4,000 June $24 calls were purchased for $2.25-$2.35 each on March 11th. Call activity was over 2x the average daily volume and the call to put ratio was 24:1.
48. 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) on March 11th.
49. 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.
50. 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).
51. 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.
52. 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.
53. Financial Select Sector SPDR Fund ETF (XLF)- June $25 call open interest went from 89,583 to 162,246 contracts on March 11th (large buying on March 10th).

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