Today?s unusual options trading activity takes us into a deal falling apart in AGN, call buying in ERIC, and a strange buy-write in TIVO.? Let?s take a deeper look.
Put ratio spreads trade in AGN- A close or bet on the deal falling apart
?Shares of Allergan, Inc. (AGN) are down .25 to 162.87 today.? AGN is near the top of the 52 week range.
Today paper traded 4500/2000 AGN Sep 140/Oct 145 put spreads for .55 credit. ?
- ADV is 7807 contracts.?
- OI is 9093 in Sep and 9481 in Oct.
Volume went up in two blocks.? This put spread traded is most likely a close.? If not, a customer is looking for a breakup of the deal and a way to cash in on a short term drop into the 130 range.? If closing, they probably put it on for a credit and are taking the slow pullback from highs to exit.
- 30-day implied volatility is 30%.?
- 10-day implied volatility is 36%.?
- 30-day implied volatility is trading below the 10-day realized volatility.
Allergan, Inc. is a multi-specialty health care Company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products.
Calls trade in ERIC- big call buying in here
Shares of Ericsson (ERIC) are up .14 to 12.59 today.? ERIC is in the middle of the 52 week range.
Today paper traded 4000 ERIC Jan 2015 14 calls for .3-.35.?
- ADV is 1813 contracts.?
- OI is 217 contracts.
Volume went up in 2 large blocks.? This trade is part 6000+ calls for up to .35 today. The calls are now offered .30.? The balance of the paper came in scattered blocks on multiple exchanges so the investors are looking for higher prices.? IV is slightly higher in ERIC today.
- 30-day implied volatility is 19%.??
- 10-day implied volatility is 13%.?
- 30-day implied volatility is trading above the 10-day realized volatility
Telefonaktiebolaget LM Ericsson (Ericsson) is an information and communications technology (ICT) solutions provider. The Company operates in four segments: Networks, Global Services, Support Solutions and Modems.???
Calls trade in TIVO- a strange buy write
Shares of Tivo Inc. (TIVO) are up .21 today to 13.76. ?TIVO is near the upper end of the 52 week range.
Today paper traded 6050 TIVO Sep 13 calls for .88.?
- ADV is 944 contracts.?
- OI is 1553 contracts.
Volume went up in 1 block market buywrite.? If the trade was a straight up buywrite, the premium over parity would be .33 at the time of the post (13.55 stock price) or 2.5% until Sep expiration.? Not a bad 1 month return.? The premium over parity as of this post is now .24.? There is additional paper buying the strike with the IV up marginally today.? This is not a bad yield play on a slower moving stock.
- 30-day implied volatility is 33%.??
- 10-day implied volatility is 17%.?
- 30-day implied volatility is trading above the 10-day realized volatility
TiVo Inc. (TiVo), a developer and provider of software and technology that enables the search, navigation, and access of content across sources, including linear television, on-demand television, and broadband video.