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Frederic Ruffy

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  • Tuesday Options Recap [View article]
    Bottom fishing mostly. Rather than buying shares, buying calls and call spreads to lock in the right to buy the underlying shares (UNG, CHK) using an options contract.

    Amazing decline in natural gas prices. You'd think there would be a counter rally at some point.
    Jan 17 07:55 PM | 1 Like Like |Link to Comment
  • Friday Options Recap [View article]
    Hi. Good question.

    Typically, the sentiment in the options market reflects sentiment in the underlying stock. In this case, SIRI has been performing well over the past few weeks and the sentiment in the options market seems to reflect expectations that the trend will continue.

    What was unusual about SIRI Friday was the surge in volume in the underlying stock (81 million shares vs daily average of 26 million) and a similar surge in the call volume (51,000 vs. 9,700 daily average). I'm not clear what was driving it, but seems to reflect expectations for a news catalyst to lift the stock.

    The expiration is likely a factor as well. Only four trading days left for the Jan 2012s and so some of the volume was likely closing and offsetting trades. Still, unusual action in SIRI Friday.
    Jan 16 01:48 PM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    Good plan. Thanks for the info.
    Jan 10 03:47 PM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    13,940 Feb 34 calls traded on SWN Friday and open interest increased by 12,262 to 20,600 and is now the largest position in the name. So, Friday's activity probably adds to bullish positions opened earlier in the week. I had a source on the exchange floor tell me the 5000 of the 34s were bought against the sale of Jan 34s. Another 1750 Feb 34s were bought electronically on ISE.
    Jan 9 10:53 AM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    Bullish flow in CAH as well. Good point.
    Jan 9 10:50 AM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    oops posted this in the wrong place
    Jan 9 10:47 AM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    13,940 Feb 34 calls traded on SWN Friday. Open interest increased by 12,263 to 23,062 and is now the largest position in the name. So nearly all of Friday's activity was opening and added to positions opened earlier in the week.
    Jan 9 10:46 AM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    Good stuff. I agree with Trader Jive. Looking at the activity earlier in the week, which included Feb 34 call buyers in SWN, I think today's flow will add to the open interest in those calls.

    And I have it from a source on the exchange floor that the Feb 34 calls were bought against the sale of Jan 34s. A firm initiated the trade. We can check the open interest numbers and update Monday.

    Thanks for the input!
    Jan 6 07:46 PM | Likes Like |Link to Comment
  • Wednesday Options Recap [View article]
    No worries Bill. haha!

    I always get comments when I write about SIRI. It seems to be a popular stock.

    Open interest in SIRI calls increased by 9,000 and, since more than 26K traded, that confirms some of activity was closing trades.

    Happy New Year!
    Dec 29 10:43 AM | Likes Like |Link to Comment
  • Wednesday Options Recap [View article]
    Who is Brian?

    I wrote that the calls traded, not that they were bought :)

    Yesterday's options activity in SIRI was mostly in smaller lots. It seemed to include a mix of buyers and sellers.

    I would give it a few more days and see what happens. Sometimes SIRI sees a surge of options activity for whatever reason and then it just fizzles out -- nothing dramatic happens.

    Good luck!
    Dec 29 09:27 AM | Likes Like |Link to Comment
  • Tuesday Options Recap [View article]
    97,000 puts and 75,000 calls in RIMM. Typical volume over the past month is 64,000 calls and 64,000 puts.
    Dec 20 05:05 PM | Likes Like |Link to Comment
  • Monday Options Recap [View article]
    I checked multiple sources. Those didn't trade yesterday. I think that is an error on Yahoo finance. Note that the open interest in the contract is still 3025 and unchanged, suggesting they did not trade.
    Nov 15 12:11 PM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    Wow. Somebody timed that trade right huh?
    Nov 9 09:48 AM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    This dates back several months. I don't remember what was happening at that time. Is this a general question about unusual options activity? Can you post in one of the more recent articles? That might help other readers as well. Thank you.
    Oct 15 07:04 PM | Likes Like |Link to Comment
  • Friday Options Recap [View article]
    Hi, good questions.

    There is a 50/50 chance that an at-the-money call will be in-the-money at expiration. The risk is that the stock holds steady or edges higher through the expiration. Then you need to close the position or get assigned on the calls.

    In the calendar or diagonal spread you want the calls to expire worthless and then hold the position or sell more calls. For that reason, it's typically better to sell OTM call options -- which consist only of time value and have lower deltas (lower probabilities of finishing in-the-money).

    Also, look at the charts. In WFC, there is clear resistance at $26. So a Jan13 30 - Nov 26 call spread might make sense if you are a long-term bull on the stock (but not there have been massive put spreads bought on the bank this week. not sure why)
    Oct 6 10:08 AM | Likes Like |Link to Comment
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