Archive for November, 2010

Unusual Gold LEAPS Option Alerts (GLD)

Gold is at a crossroads and the options trading is showing some unusual activity out in the long-dated LEAPS for the SPDR Gold Shares. The JAN-2012 $150.00 GLD CALLS have traded 7,479 contracts today versus an open interest of 27,030 contracts.  Last trade was $9.55.  If you go out farther in the LEAPS, the JAN-2013 [...]

Palm Harbor 30X Volume Alert (PHHM, CVCO)

Palm Harbor Homes Inc. (NASDAQ: PHHM) is one of the rare exceptions of what happens when companies file for bankruptcy protection under Chapter 11.  The company announced by press release that it and 5 subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company has partnered with Fleetwood [...]

Amazon Speculators Move to Options (AMZN)

It looks as though equity traders in high-priced shares are becoming speculative options traders.  Look no further than Inc. (NASDAQ: AMZN) today.  At Noon EST the stock itself is up almost 0.6% at $178.23 and we have already hit 5.7 million shares. Here is the volume in DEC-2010 CALLS as of NOON EST, with [...]

Options Alert: Dividend Capture in Coke & McDonalds (KO, MCD)

McDonald’s Corporation (NYSE: MCD) and The Coca-Cola Company (NYSE: KO) are not stocks we generally associate with dividend capture trades, or dividend stripping trades.  On Friday, there were two major groupings of large call options trades out in January 2011 expiration. We confirmed with Joe Kunkle of that these were dividend stripping trades.  It [...]

Irish Banks See Volume on Dead Day (AIB, IRE)

The market is down in the U.S. on a holiday-shortened trading session.  Still, there is active trading in the Irish banks today.  The Bank of Ireland (NYSE: IRE) was down much worse but shares are now down about 2.6% at $1.54 after a low of $1.46 this morning.  Allied Irish Banks plc (NYSE: AIB) is [...]

Amazon Sees Black Friday Options Spike (AMZN) Inc. (NASDAQ: AMZN) is up on its own today, but the stock is seeing very elevated trading activity in its weekly options which expire this Friday.  The trade is an obvious bet on strong Thanksgiving Day and Black Friday sales figures being sent through the sites.  An unofficial 4:00 PM EST close of [...]

Big VIX Option Trading… Volatility Looming? (VIX)

Out of the money calls are often a Hail Mary, and out of the money calls on the volatility index  is a derivatives bet on top of a derivative bet that the markets could head south or that wild price fluctuations will be seen. The stahndout options trade today is hard to judge so we [...]

EA Sees Large Option, Exit Likely (ERTS)

Electronic Arts Inc. (NASDAQ: ERTS) has what appeared to be extremely unusual options trading volume on the surface.  It may just be a close-out trade.  An options screen showed that the JAN-2011 $20 CALLS showed a whopping 75,877 contracts traded ay 12:15 PM EST, the equivalent of more than 7.5 million shares on a fully [...]

El Paso Trading Tied to Diamondback & Insider Trading (EP)

El Paso Corporation (NYSE: EP) is down today, but not only news of its own.  It turns out the the widely reported ongoing insider trading probe is to blame.  A hedge fund called Diamondback Capital has El Paso as a key holding.  Shares saw a rapid drop today after 12 EST when word came out [...]

Options Bets… $157 on in 90 days? (CRM)

Last week at 24/7 Wall St. we noted how the analyst pack was chasing (NYSE: CRM) with higher and higher price targets despite many formal ratings being cautious to neutral.  What is interesting is that options traders are stepping in and making serious upside exposure bets to the same stock with out of the [...]