Mid-day Flow Summary: SBUX & TSN
Starbucks (SBUX)
The stock is lower by $.85 cents to $26.47 on comments made at a growth stock conference. SBUX options are trading very actively today. 67,000 contracts have changed hands by noon, which is more than twice itís recent daily average.
Most of the trading activity is concentrated in August options, which will include earnings on August 2nd. Consistent buyers have been accumulating 27.5 calls in July, August, and Jan 08 this morning. The August 27.5s are by far the most active with nearly 9000 contracts trading. As expected, implied vols have been bid up, reflecting expectations of an active summer for the stock.
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Tyson Foods (TSN)
Tyson options normally trade a quiet 1000 contracts daily. However, volume has spiked over the past two weeks with consistent call buyers positioning for an upside move. Takeover chatter has been mentioned and stock has been on a solid run since $18 in March to current price near $24.
Todayís volume is already over 19,000 contracts. Aggressive multi-market sweep orders have been used to buy several thousand July 22.5 and 25 calls while the stock has continued itís run.
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About Henry Schwartz
Henry Schwartz has traded derivatives on US and European exchanges for nearly 20 years. His experience includes market-making and institutional trading at the Hull Group, Salomon Brothers, Bear Stearns and most recently Banc of America Securities, where he led the electronic market-making project coincident with the launch of the ISE. His current work involves real-time stream analysis of options market activity for a number of leading institutional sell-side firms.
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