Right on market close Monday (literally 3:59 EST) the Ticker started popping up block trades in KERX.
Keryx Biopharmaceuticals (KERX) – Not Quite the Golden Signal
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Canadian Natural Resources (CNQ) – Call Spreader with Put Sales
The company traded over 7,000 options in the first hour on total daily average option volume of just 2,061. A single trade put up 6,000 of those contracts on December 42.5/47.5 call spread purchase 2,000x with July 34 puts sold to fund it 2,000x.
VXX (Short Term VIX Futures ETN) – Active in June (and July)
Yesterday the ETN traded over 21,000 options. All but 3,243 contracts were calls. A lot of the action was in the front month (June) OTM calls.
British Pound US Dollar (XDB) – Order Flow Bets on a Breather for the Next Week
The index traded over 2,300 options in the first hour on total daily average option volume of just 265. All of the action was in the front month surrounding the ATM options.
Harley-Davidson (HOG) – Put Spreader on Call Sale in July
The company traded over 51,000 options in the first hour on total daily average option volume of just 14,645. The largest trade was a July 20/25 put spread purchase funded by a July 30 call sale 2,187x each.
VIX Skew – What It Indicates and How Accurate It Is
VIX skew can be a good indicator of the future. It can also fail in that regard. In actuality the VIX skew is just the sum of expectations for the future. And expectations of the market can be right or wrong.
BP Plc (BP) – Volatility Spiking, Stock Dropping, Possible Trades
The company traded over 481,000 options on total daily average option volume of just 77,697. The largest trade was the July 32 puts 20,000x @ $2.45 just as the stock started its collapse yesterday.
VIX Mid-Term Futures (VXZ) – Butterly Bets on Volatility Drop
There were over 10,000 options traded on total daily average option volume of just 270. All but 1 (one) contract were puts. The largest trade was the Jul 81/85/89 butterfly.
Auxilium Pharma (AUXL) – Front Month Put Spread Opportunity
The company traded over 4,100 options in the first hour on total daily average option volume of just 744. All of the action was in the front month.
QuickSilver (KWK) – Block Trades Again; Skew Can't Find Equilibrium
The company was very active again yesterday. It traded nearly 10,000 options in the first hour on total daily average option volume of just 1,868. Again, the largest trade was the Jul 11/13 risk reversal (sell puts/buy calls).
IRM, CTAS – The Anatomy and Timing of Pro Summer Volatility Sales
I've been writing for a while that pros tend to sell summer to collect premium over what is usually a dead period. Later they may (usually do) take that premium won and buy the Fall for a swoon.The trades yesterday, though they seem to be in totally different stocks because of the totally different industries, are in fact very similar.
PowerShares DB Oil (DBO) – Bet on Oil Direction Against Changed Skew
The ETF traded over 3,500 options in the first three hours on total daily average option volume of just 209. All but 30 contracts have been puts. Close to all of the action is in the October puts (purchases).