Smart Money Report

1. APD- A rollout from 1,216 Jan 2015 $135 calls (credit) into 3,000 Jan 2015 $150 calls (debit). Volume was above the open interest in the Jan 2015 $150 calls. Bill Ackman’s Pershing Square Capital Management owns nearly 10% of Air Products & Chemicals shares, making it the 3rd largest holding for the hedge fund.
2. C- 10,275 Jan 9 weekly $53.50 puts were sold for $0.64-$0.65 each, against no previous open interest. Shares of Citigroup are nearing a test of the $55 resistance level from the beginning of the year.
3. CAT- 4,397 May 2015 $95 puts were bought for $4.25 each, against open interest of 4,337 contracts. Net put premium in Caterpillar is +$2M vs net call premium of +$102K (put to call ratio near 1.5:1).
4. HYG- The Jan 17 2015 $85/89 put spread was put on 30,000 times for a $0.60-$0.65 debit. Volume was above the open interest in both options. Put activity is nearly 3x the average daily volume. The iShares iBoxx $ High Yield Corporate Bond ETF has been in the process of putting in a top since the summer. The (HYG) currently has a yield of 5.73%.
5. SWN- A rollout from 9,000 Dec $30 puts (credit) into 12,500 Jan 2015 $30 puts (debit). Volume was above the open interest in the Jan 2015 $30 puts. Yesterday, Southwestern Energy announced that they will purchase WPX Energy’s NE Pennsylvania operations for $300M.

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APD C CAT HYG Smart Money Report SWN unusual options activity