The Options Insider

Looks Like a Savvy Call Sale in RMTI

by | Oct 8, 2014 | Unusual Activity

Some savvy call seller made the right move with 300 RMTI Oct 13 calls trading today at .40

1 X 2 call spreads going up in XLE- looks like a bullish play

XLE

Shares of Energy Select Sector SPDR (XLE) are down 1.42 to 85.69.? XLE is near the lower end of the 52 week range.

Today paper traded 5000/10000 XLE Oct 31 weekly call spreads for .43.?

  • The ADV is 45640 contracts.
  • The OI is 113 and 10166 contracts.

Volume went up in two size blocks.? The trade went up marked spread and is most likely an opening trade to catch some upside for a reduced price.? There is a similar 1 x 2 in the open interest already on the Oct 31 Weekly 92/95 strikes.? This could be the same customer giving it another try.

  • 30-day implied volatility is 23%. ?
  • 10-day implied volatility is 15%.
  • 30 day implied volatility is trading above the 10 day realized volatility

Energy Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of the Energy Select Sector Index (the Index). The Index includes companies from the following industries oil, gas and consumable fuels, and energy equipment and services. The Fund?s investment advisor is SSgA Funds Management, Inc.

 

Calls trade in RMTI- looks like a savvy sale

RMTI

Shares of Rockwell Medical Inc. (RMTI) are down .16 to 9.85 today.? RMTI is trading near the 52 week low.

Today paper traded 300 RMTI Oct 13 calls at .40.?

  • The ADV is 757 contracts.
  • The OI is 0 contracts.

Volume went up in 1 block.? The strike market was 4.40 wide at the time with the customer taking the premium they could get. The range in the name today is only .50 but the option markets are super wide.? RMTI was recently 11.5 as little as two days ago.? This is a call seller looking for premium.? IV 30 is up 70 points.

UA covered RMTI Oct 12 level call buyers on Oct 3rd and this could be a hedge for those.

  • 30-day implied volatility is 142%. ?
  • 10-day implied volatility is 86%.
  • 30 day implied volatility is trading above the 10 day realized volatility

Rockwell Medical, Inc., formerly Rockwell Medical Technologies, Inc., manufactures hemodialysis concentrate solutions and dialysis kits, and it sells, distributes and delivers these and other ancillary hemodialysis products primarily to hemodialysis providers in the United States, as well as internationally primarily in Asia, Latin America and Europe.

 

Put buyers in CLD- opening put buyers

CLD

Shares of Cloud Peak Energy Inc. (CLD) are down .57 to 10.78 today.? CLD is making a 52 week low.

Today paper traded 890 CLD Nov 10 puts for .50. ?

  • The ADV is 362 contracts.
  • The OI is 30 contracts.

Volume went up 1 large block.? The put volume on the strike is over 1500 contracts with buyers jumping in pushing the IV up by 9 points in Nov.? There was no real stock with this so the trader is looking for more downside.? The balance of volume could be a newsletter recommendation.

  • 30-day implied volatility is 49%. ?
  • 10-day implied volatility is 26%.
  • 30 day implied volatility is trading above the 10 day realized volatility

Cloud Peak Energy Inc. (CPE Inc.) is a holding company that manages its wholly owned subsidiary Cloud Peak Energy Resources LLC (CPE Resources). It is the producer of coal in the United States and in the Powder River Basin. During the year ended December 31, 2011, the Company?s coal sales were 98.7 million tons.