Unusual Option Action

Today’s Unusual Recap – Thursday 6-4-15

Today was the first trading session of the week where the market didn't obey the rules.   Instead of closing smack in the middle of the daily range, the $SPY closed sharply lower.  But in 2015 fashion the market was able to spike higher into the close to finish OTL -off the lows.

There were quite a few option trades that had my attention today.  I shared most of them in the News portion of the chat room.  I'll go over them as well as others that have piqued my interest below.  During market hours I post them right as they occur outside of the main chatroom to keep it clean and it also helps keep a nice record of the data.  Some of the bigger, more important trades I post in both chatrooms.

The VIX

As the VIX rockets out of "The Wedge"  trader(s) position for increased volatility.  How bout them VIX June and July 20's?

For the WYNN

How bout them $WYNN calls?  Quite a few in the chat room had them from pennies to dollars.  The $107 strike was $.05 offer all week and soared to $2.74 today.

Let's get into today's option action....  Some individual names.  Bullish action first

Bullish

Keep Reading

Wednesday’s Unusual Recap – Options, Commentary, Smiles, Tears

The tears of option joy.  Positioning for a move to occur via out of the money stock options, and then watching that move come to fruition right before your very eyes.  $FEYE continues to impress in 2015, and after the bell a collaboration with Visa has the stock up near the $50 level.  A price I thought it would hit this spring when I was writing my 2015 stocks to watch.

One chart I wake up in the middle of the night to drool over - $INTC.  This head and shoulders pattern continues to develop.  I've been watching it for a few weeks and finally made the move Friday getting the July $33 puts for $.61 a $.10 discount to what I was willing to pay.  I was able to use my wife's $BBBY 20% coupon on this option.

Bounce if you must $INTC but I'm riding you to the promised land.  Oh man.  That H&S formation....   It's going to take another 5 $ALTR acquisitions to avert it.   Or take a page from the $SINA handbook of stock price management and have executives scoop up a half a billion $$$ in shares.

 

The market faded early gains and was able to muster another 'middle of the pack' type close.  Stocks weren't too high or too low when the bell range.. they were just right.

Let's take a look at some of the unusual action we saw today in the option market.

Keep Reading

Monday Option Recap 6-1-15

The stock market gyrated between gains and losses today.  At the end of the session the $SPY found itself smack in the middle of the days range.  It was a not too hot, not too cold, type of a day.

$SINA rallied as the CEO did what every investor wished their CEO did, he bought back almost 1/2 a BILLION $$ of the company stock.  The stock rallied 23% and the stock options were up, in some cases, a few thousand percent.

$SINA wasn't the only stock turning penny options into dollars.

Keep Reading

Option Recap – 5/28/15

Worries from China's overnight collapse of 6% sent indices lower initially before stocks, in now classic 2015 fashion,  recovered their losses into the close.   After the bell stocks are still moving higher.  $GME, $ULTA, and $DECK are all spiking higher after reporting earnings.  A strangle trade on $GME of $41 calls $.80 and $39 puts $.80 should work out rather nicely when the market opens for trade tomorrow.

$EBAY saw large call action, that I highlighted via audio in the chat room

Keep Reading