Continental Airlines (CAL) is up 51 cents to $11.61 and options volume is running 2X the average daily. A lot of the activity is in the May 11 straddle and appears to be mostly sellers of puts and calls to open new positions this morning, collecting about $3.35 per straddle.
Grand Canyon Education (LOPE) is down 13 cents to $15.37 and options volume is running 11X the usual. Most of the action is in the Sept and June 17.5 calls (83 percent on the CBOE and 17 percent on the PHLX). Looks like speculative call buying. This stock is probably worth a closer look given [...]
Target (TGT) April 30 – 32.5 call spread is active after 25K recently crossed for an average of $2.275 per spread. Now traded 31K times. Shares are up $1.08 to $36.11 and the spread is possibly closing of part of a 1X2 call ratio spread traded 31000X for 12 cents on March 17 when TGT [...]
Wynn Resorts (WYNN) finished down 14.4 percent to $26.71 Tuesday and June 15 – 21 put spread was actively traded. Open interest increased by roughly 10K in both contracts, suggesting new positions were opened. While a lot of the volume traded mid-market, it appears that buyers were initiating the spread, paying $1.60 in exhange for [...]
Costco (COST) fell $1.35 to $46.39 and 17K puts traded on the retailer, compared to 1,470 call options. Open interest increased by 13K. July 45 puts were the most actives. 7,850 traded and, with 84 percent hitting ask-side, it appears that some investors were buying premium. Open interest increased by 6,113 to 18,568.
Gap Stores (GPS) is down 49 cents to $13.97 and14.1K April 15 calls traded so far, compared to only 1500 of existing open interest. In addition, with 81 percent hitting ask-side, it looks like some traders are opening new bullish, short-term, positions on the retailer (perhaps in anticipation of monthly chain store sales results Thursday.) [...]
Bed, Bath and Beyond (BBBY) puts are actively traded ahead of earnigns, due out after the closing bell. 18K traded, compared to 3,800 calls. Shares are down 45 cents to $25.92 and recent trades include a 1X3 May 20 – 24 put ratio spread, looking like buyer paid 20 cents, 1000X. Meanwhile, implied vols are [...]
Open interest in Kohl’s (KSS) puts increased by 11K after a day of active trading Monday. Shares rose 49 cents to $45.80 and most of the new interest is in the May puts. It appears that several strategists were active in the stock, one paying 35 cents for the May 40-45 1X2 ratio spread, 2500X; [...]
Bed, Bath and Beyond (BBBY) is down $1.11 to $25.61 and the April 24 – 26 put ratio spread trades 1250X for 25 cents. Looks like a buyer opening a new bearish position ahead of earnings tomorrow before the bell.
MGM Mirage (MGM) is up another $1.02 to $5.62 and options volume is running at 2X the average daily. The stock ran higher after the Wall Street Journal reported MGM hired Morgan Stanley to explore the sale of Grand Detroit and Beau Rivage casinos, two cash cows (click here for related story). Shares saw a [...]