The Options Insider

Tough Put Close in AMJ

by | Oct 17, 2014 | Unusual Activity

Lots of put sales today in AMJ, as 16,500 Nov 44 puts traded for 0.40.

Puts trade in AMJ- tough put close

AMJ

Shares of JPMorgan Alerian MLP Index ETF (AMJ)? are down .07 to 49.51 today.? AMJ is trading in the middle of the 52 week range.

Today paper traded 16500 AMJ Nov 44 puts for .40.?

  • The ADV is 3917 contracts.?
  • The OI is 21148 contracts.

Volume went up in two large blocks.? Total trade is over 21k contracts with buyers coming in to close.? This trade ended up being good with AMJ bouncing from the low 42s.? .40 offers went up with paper lifting the offers.? The puts are at .40 going out.? Lots of puts sales went up as well in Nov.

UA covered this trade on 10/14

?Volume went up in 1 giant block.? The trade on the strike is well over 21930 contracts with the IV up 2.34 points today. The 1.95 price is now underwater by .50 as AMJ bounced off of some lows today.? No stock of any size went up around the time of this print.? This could be a position cover of an existing long.? The Nov 48s traded as well for 3.6 with those options underwater right now.?

  • 30-day implied volatility is 30%.? ?
  • 10-day implied volatility is 45%.?
  • 30 day implied volatility is trading below the 10 day realized volatility

Alerian?MLP?Index Exchange Traded Notes (“ETNs”) provide investors a way to gain exposure to midstream energy MLPs. ?The?ETN?coupons are reported on Form 1099s and therefore eliminate the administrative burden associated with K-1 forms. Investors can trade the ETNs on the NYSE, Arca exchange or receive a cash payment at the scheduled maturity or upon early repurchase2, based on the performance of the index less accrued tracking fees and, if applicable, the repurchase fee. The ETNs are senior, unsecured obligations of JPMorgan Chase & Co.

Puts roll in CMLP- deep put rolls

CMLP

Shares of Crestwood Midstream Partners (CMLP) are down .62 to 20.10 today.? CMLP is near the middle of the 52 week range.

Today paper traded 3823 CMLP Oct Nov 35 puts for .425.?

  • The ADV is 1363 contracts.?
  • The OI is 8261 and 2622 contracts.

Volume went up in 3 blocks.? The trade is a roll of an existing position where long Oct puts are going to Nov.? The trade could be a puts and stock play on an increase in a dividend if there is long stock against it.? There are move of these puts to roll.

  • 30-day implied volatility is 43%.? ?
  • 10-day implied volatility is 71%.?
  • 30 day implied volatility is trading below the 10 day realized volatility

Crestwood Midstream Partners LP is a master limited partnership. The Company owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. In November 2013, the Company announced that it has completed the acquisition of Arrow Midstream Holdings, LLC, a privately-held midstream company.