Author Archive: efriedman
additional color; replacing UST in SPX tonight on the close. ~20mm shares to buy. Look for stock to move towards VWAP at bell.
Despite looking like repeated sales on Continental Airlines December 17.5 puts, there appears to be a large buyer. 31,200 contracts have now traded, or almost 7 times the existing open interest. An opening trade of this size ahead of expiration with oil breaking key technical supports is perplexing. A plausible explanation is the pressure on [...]
Another 327 Nov 490 calls trade, this time at 37 with index higher at 498…again printed midmkt.
MS Commodity Related Index 309 Nov 490 calls trade 35 (midmkt but looks like same customer as .xng since it was opening and probably a call sale). Worth noting commodities across the board coming off their highs.
Opening seller of 200+ 11/400 calls at avg price of 46.5. Seller hit the bid as index came in off its 10 day highs at 425-430 level.
and DAL follow up color: Over last 2 years trades of this size would print in the airlines ahead of substantial drops in the stocks. A potential catalyst, distillates (including jet fuel) rallying for the first time in many weeks and the final acceptance that were in recession.
Amex Broker Dealer Index – Looks like a closing seller of the 7/140 calls. Given the savvy of this product’s customers and the 2 day rally in financials, I would look for a pullback tomorrow.
Amex Broker/Dealer Index. Opening buyer of 200+ june 160 puts @ .75, index 166.52 last. This product trades by appointment only and the customer(s) have an uncanny history of being right. Simply put, financials and brokers in particular are facing rough sledding in next couple of days for reasons yet to be known.
(retail spyder) Opening buyer 5000 september 31 puts versus selling 5000 july 32 calls, 2.15 vs 1.15. The customer pays 1.00 net to get short ~450,000 deltas. Trades in this name are largely directional and accurate. There is a Piper Jaffray retail conference today to boot.
Amex Biotech Index call options trading 4x usual daily volume. A buyer bought 400 july 800 calls and 200 july 820 calls paying 13.60 and 6.10 respectively. This equates to ~17% implied volatlity. The group is continuing a multi-day rally on the back of the recently completed ASCO (cancer)conference, the upcoming ADA (diabetes) conference and [...]