The Options Insider

Ratio Put Spread in MRO

by | Dec 1, 2014 | Unusual Activity

2000/3500 MRO Dec 31/Jan 27 puts for 2.82 over 1.04 (1 to 1). ?

Puts trade in MRO- possible ratio put spread

MRO

Shares of Marathon Oil Corp. (MRO) are down.60 to 28.30 today.? MRO is making a 52 week low.

Paper traded 2000/3500 MRO Dec 31/Jan 27 puts for 2.82 over 1.04 (1 to 1). ?

  • The ADV is 6008 contracts.?
  • The OI is 2363 and 3025 contracts.

The volume went up in 2 blocks.? As the trades printed they went up out of sequence and through the big.? Execution on the trade looked like closing the Dec 31 puts for good money and opening more puts in Jan.? This is a house money roll doubling up in size.

  • IV 30 is trading for 43.?
  • HV10 is trading for 64.?
  • IV 30 is trading under the HV 10.

Marathon Oil Corporation (Marathon Oil) is an international energy company engaged in exploration and production, oil sands mining and integrated gas with operations in the United States, Angola, Canada, Equatorial Guinea.(E.G.), Ethiopia, Gabon, Kenya, the Kurdistan Region of Iraq, Libya, Norway, Poland and the United Kingdom.

Calls trade in BMY- opening upside spec

BMY

Shares of Bristol-Myers Squibb Co (BMY) are up .30 to 59.34 today. ?BMY is near a 52 week high.

Paper traded 255 BMY Dec 05 Weekly 60.5 calls for .28. ??

  • The ADV is 16893 contracts.
  • The OI is 89 contracts.

The volume went up in 1 block.? The trade went up with scattered paper buying up the strike.? This could be a newsletter trade.? Jan 57.5 calls traded 8000x with paper buying so there is some heavy upside call buying in BMY.

  • IV 30 is trading for 24.
  • HV10 is trading for 6.
  • IV 30 is trading over the HV 10.

Bristol-Myers Squibb Company (BMS) is engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products on a global basis. It operates in BioPharmaceuticals. Its products are sold worldwide, primarily to wholesalers, retail pharmacies, hospitals, government entities and the medical profession. It manufactures products in the United States (U.S.), Puerto Rico and in 6 foreign countries. In April 2014, the Company acquired iPierian Inc.

 

Call ratios trade in BKS- low cost upside play

BKS

Shares of the Barnes and Noble Inc. (BKS) are down .87 to 22.48 today.? BKS is in the upper end of the 52 week range.

Paper traded 1810/3620 BKS Dec 23/25 call spreads for .88 and .31 (1 to 1).?

  • The ADV is 1826 contracts.
  • The OI is 308 and 1465 contracts.

The volume went up in 2 blocks.? The spread as a 1 x 2 call spread for .24 with the customer most likely banking on a small move up from earnings.? The 1 x 2 call spread reduces the cost but there is risk above $27.? This is most likely a long play.

  • IV 30 is trading for 50%.
  • HV10 is trading for 25%.
  • IV 30 is trading over the HV 10.

Barnes & Noble, Inc. (Barnes & Noble) is a bookseller. The Company is a content, commerce and technology company that provides customers access to books, magazines, newspapers and other content across its multi-channel distribution platform. As of April 27, 2013, it operated 1,361 bookstores in 50 states, 686 bookstores on college campuses, and operates one of the Web eCommerce sites, and develops digital content products and software.