Unusual options?activity today included way-OTM short-term call buyers in GLNG, keeping the party going in RIG, and a diagonal call buyer in AEO.
Call buyers jump in GLNG- way OTM short term call buyers
Shares of Golar LNG ltd. (GLNG) are up 2.03 to 66.67.? GLNG is making a 52 week high.
Today paper traded 448 GLNG Sep 80 calls for .25-.30. ?
- ADV is 7638 contracts.?
- OI is 177.
Volume went up several small blocks on multiple exchanges.? The early volume most bought calls post earnings on a very aggressive call buy.? GLNG would have to keep its momentum going to make these calls perform.? This is a pie in the sky type of purchase with IV normally settling after earnings.
- 30-day implied volatility is 47%.??
- 10-day implied volatility is 14%.?
- 30 day implied volatility is trading above the 10-day realized volatility.
Golar LNG Limited (Golar) is the owner and operator of liquefied natural gas (LNG) carriers and floating storage regasification units (FSRUs).
Puts roll in RIG- looks like they are keeping the put party going
Shares of Transocean LTD (RIG) is up .52 to $38 today. ??RIG is near the 52 week low.
Today paper traded 7235 Sep 37/39 put spreads at 1.06.?
- ADV is 17790 contracts.?
- OI is 11909 on the 39s and 4035 on the 37s.
Volume went up in 2 large blocks.? The trade looks like a roll down to a lower strike to capture profits. ?RIG has been on a big downdraft and this put buyer is looking to keep this going.? IV is flat for the day so far.? Volume on the 37 strike is jumping to 14k+ contracts.? The roller is looking for RIG to break to new lows.
- 30-day implied volatility is 21%.??
- 10-day implied volatility is 15%.?
- 30-day implied volatility is trading above the 10-day realized volatility
Transocean Ltd. (Transocean) is an international provider of offshore contract drilling services for oil and gas wells. The Company operates in two segments: contract drilling services and drilling management services.
Calls rolling up in AEO- diagonal call buyer
Shares of American Eagle Outfitters (AEO) are up .24 to13.90 today. ?AEO is near the middle of the 52 week range.
Today paper traded 5000 AEO Sep 14/ Jan 15 calls spreads for .40.
- ADV is 7176 contracts.?
- OI is 1727 in the Sep 14 and 17909 in Jan 2015 contracts.
Volume went up in 2 blocks.? The diagonal call spread is opening in Sep and buying in Jan.? The trader could be looking for the Sep options to pay for the Jan options.? Closing the Jan 15s here would be very early into the cycle if this was an unusual forward diagonal roll.? In either case the trade is thinking minimum upside on this trade for AEO.? UA profiled similar activity? on Aug 20th after AEO earnings.
- 30-day implied volatility is 27%.??
- 10-day implied volatility is 63%.?
- 30-day implied volatility is trading below the 10-day realized volatility
American Eagle Outfitters, Inc. (AEO, Inc.) is a specialty retailer that operates in the United States and Canada, and online at ae.com.