Monday's Notable Options Activity

Low volume drift higher yesterday was accompanied by limited options volume as well.  Macro ETF volume has declined considerably in the past week, and single stock options interest is lower after the end of earnings season.

1.  AAPL - AAPL closed just below its July 29th intraday high of $99.44.  Calls traded more than 2.5x more than puts, with the top 6 most active lines all calls.  The weekly 100 calls and weekly 98 calls both traded over 50k on the session.  Outside of weekly options, the Sept22nd 100 and the Sept22nd 105 calls both traded around 30k.  AAPL options traders are pricing in higher volatility for the week of the iPhone 6 release, expected on Sept 9th.

2.  AEO - The Sept 12 calls traded over 40k at an average price of 0.35, mostly in the afternoon.  AEO reports earnings on Wednesday after the close.  The options market is implying about a 9% move, vs. the 4 quarter average of 8.5% and the 8 quarter average of 7.5%.  AEO last traded above $12 in early April.

3.  HTZ - Stock broke out to a new all-tim high above $30 on Monday.  Buyer of 20,926 of the March 29 calls for 4.40 in the morning.  Hertz has been a focus of special situations traders as the company plans to spinoff its equipment rental business, and use the proceeds to pay back debt and buy back stock.  The company has delayed its most recent earnings filing due to an accounting review dating back 3 years.

4.  ADSK - AutoDesk had a big reversal on earnings on Friday, failing to make a new all-time high and then briefly touching a 2 month low.  Buyer of 8k of the Oct 57.5 calls in the morning, paying 1.33 to open.  ADSK’s intraday high this year is $58.68 from February.

5.  NUE - Stock made a new 6 month high on big volume yesterday, and is now up 0.5% year-to-date, after spending most of 2014 in the red.  The Oct 55 calls traded over 12k at an average price of 0.886, mostly buyer to open.  Nucor is expected to report earnings in mid-October.  The stock’s 5 year high is $54.73 from November.

This post by Enis Taner (@enistaner) originally appeared on RiskReversal.com

Wednesday's Notable Options Activity - Hertz, Sun Edison

New all-time high for the S&P 500 index, and VIX spot closed below 12 for the first time  in nearly a month.

1.  HTZ - Hertz traded its highest single day stock volume in its history.  The stock was down more than 10% in the morning after the large guide lower, but ended down just 4% after Carl Icahn announced that he had amassed a 8.5% stake in HTZ.  The Sept 25 puts were the most active line, with one large seller of 19k at 0.25 in the morning.  30 day implied volatility fell down to 35, its lowest level of the summer, after management finally shined some light on the long delayed earnings situation.

2.  PBR - The Sept 18 calls trade 45k for 0.67 to open in the morning. PBR’s 52 week high is $17.97 from November.  30 day implied volatility remains elevated, around 45, which is near a 2 year high even though earnings is not for another 2 months.  Options traders have been active in buying calls in the past month.

3.  IYR - Rare trade in Jan16, as it looks like a buyer of 23,500 of the Jan16 45 puts for 0.65 to open.  IYR last traded below $45 in 2010.  IYR hit a new 52 week high this week, and is within 3% of its 5 year high of $76.21 from May 2013.

4.  SUNE - Some call buying in the Aug22nd 20 strike weeklies, with 3700 being bought for 2.35 to open in the morning.  SUNE is up 71% year-to-date, though the bulk of the gains came from January to March.  

5.  ADSK - Looks like a closing buyer of 8000 of the Oct 57.50 calls, which are bought for 1.18.  There is 12,000 of open interest in the strike, and nearly 12k traded on the session.  We discussed ADSK in Tuesday’s CotD post.  

This post by Enis Taner (@enistaner) originally appeared on RiskReversal.com

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