This Morning’s Bullish Trading
Himax Technologies (HIMX), a Taiwan-based company making semiconductors for flat panel display, is up 77 cents, or 7 percent, to $11.73 in active trading of 11 million shares on positive analyst commentary Monday. Options volume is running 2.5X the daily average and the flow is very lopsided, as about 19,000 calls and 1,150 puts traded on the stock today. January 13 calls, which are now 10.8 percent out-of-the-money and expiring in 32 days, are the most actives in HIMX through midday. 4,160 contracts traded. December 11, December 12, and January 12 calls on the stock are drawing interest as well.
Trucking company YRC Worldwide (YRCW) is up 97 cents, or 7.7 percent, to $13.46 in active trading of 2.6 million shares on news Solus Alternative Asset Management has raised its stake in the company to 14.56% from 9.57%. The stock has now rallied 34.8 percent in two days and options in YRCW are busy for a second day as well. Players were opening in April 12.5 calls on the stock Friday. Today, December 10 calls are the most actives in YRCW. 3,900 contracts have changed hands.
This Morning’s Bearish Trading
Oracle (ORCL) is up 56 cents to $33.78 and options on the software-maker are busy Monday morning. About 49,000 puts and 7,900 calls traded on the stock so far. The top trade is a spread, in which the investor was apparently selling 17,650 December 34 puts on the stock at 96 cents and buying 17,650 December 33 puts for 53 cents per contract. Looking at open interest and trade history in these two contacts, this Dec 33 ? 34 put spread, at 43 cents, appears to close a position in December 34 puts that was opened earlier this month when the stock was trading above $35. Shares have moved lower since that time and dropped last Thursday on negative analyst commentary. Now a new position is being opened in December 33 puts today. If so, the ?rolling? activity seems to be expressing concerns about the risks of further losses on Oracle throughout the rest of this week. The company will be reporting earnings Wednesday afternoon.
Crown Castle International (CCI), a Houston, TX wireless infrastructure company, is down 2.9 percent to $71.79 on increasing volume of 3.5 million shares and options volume is running 2.5X the daily average. 3,821 puts and 168 calls traded on the stock through midday. January 65 puts are the most actives. 2,335 changed hands. April 65, April 67.5 and January 70 puts on CCI are also drawing interest today. It?s not clear what is motivating the relative weakness in the stock or the higher volumes, but the overall flow seems to be expressing a negative short-term view on Crown Castle today.