The Options Insider

Large 3-way Combination Goes up in GE

by | Apr 23, 2015 | Unusual Activity

20000 GE Jan 2016 24 puts and 26/30 call spreads went up 3 blocks on the PHLX.? 1.3 million shares of stock went up 2 min later for 26.89.

Calls and puts trade in GE- large 3 way combination goes up

?GE

Shares of General Electric Co. (GE) are up .09 to 27 today. ??GE is near the top of the 52 week range.

  • Paper traded 20000 GE Jan 2016 24 puts and 26/30 call spreads for .63.
  • The ADV is 103k contracts.
  • The OI is 386 on the puts and 2500/146833 on the call spread.

The volume went up 3 blocks on the PHLX.? The trade looks like a short combo where the trader is selling the call spreads and buying the puts. 1.3 million shares of stock went up 2 min after the option print for 26.89.

  • IV 30 is trading for 15%.
  • HV10 is trading for 58%.
  • IV 30 is trading below the HV 10.

General Electric Company (GE) is a diversified infrastructure and financial services company. The products and services of the Company range from aircraft engines, power generation, oil and gas production equipment, and household appliances to medical imaging, business and consumer financing and industrial products. The Company serves customers in more than 100 countries. The Company?s operating businesses that are reported as segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Appliances & Lighting and GE Capital.

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Calls and puts trade in TWC- likely strangle seller

?TWC

Shares of the Time Warner Cable Inc. (TWC) are down 1.0 to 148.64 today. ??TWC is near the middle of the 52 week range.

  • Paper traded 6500 TWC Jun 140 puts and Jun 160 calls at 5.50.
  • The ADV is 10486 contracts.
  • The OI is 785 contracts.

The volume went up in 2 blocks on the PHLX. ??Both calls and puts went up at the same time and the same size but did not get marked spread.? The trade does look like a strangle seller betting on the TWC/CMCSA deal in that the strangle goes out worthless and the deal happens.? IV is down 5 points today in TWC.

  • IV 30 is trading for 28%.
  • HV10 is trading for 34%.
  • IV 30 is trading below the HV 10.

Time Warner Cable Inc. (TWC) is a provider of video, high-speed data and voice services in the United States with clustered cable systems located in five geographic areas including New York State, the Carolinas, the Midwest, Southern California and Texas.

 

Calls trade in UAL- diagonals with stock go up

?UAL

Shares of United Continental Holdings (UAL) are down .73 to 63.29.?? UAL is near the upper end of the 52 week range.

  • Paper traded 10000 UAL Jun 75 calls over Sep 72.5 calls for 2.68.
  • The ADV is 27k contracts. ?
  • The OI is 41k and 5000 contracts.

The volume went up in 2 blocks on the PHLX marked buy-write.? Stock of 200k shares traded 63.77 at the time.? This trade looks like Jun is closing a long call and the trader could be closing some short stock from higher levels. If so this is synthetic ratio straddle looking for more big moves.

  • IV 30 is trading for 37%.
  • HV10 is trading for 18%.
  • IV 30 is below the HV 10.

United Continental Holdings, Inc. (UAL) is a holding company and its principal, wholly owned subsidiary is United Air Lines, Inc. (United). The Company transports people and cargo through its mainline operations, which use jet aircraft with at least 118 seats, and its regional operations, which use smaller aircraft that are operated under contract by United Express carriers.