By David Russell
One of the newest innovations in our market has been the Weekly options, which are quickly gaining in popularity among major institutional traders. These instruments let investors play for short-term moves more efficiently and cheaply than standard expirations. Below is some of the noteworthy activity today.
Amazon.com (NASDAQ:AMZN): Options expiring tomorrow account for 35 percent of all volume. The big trade early was an investor rolling the 160 calls to the 165 strike, but later in the session there was buying in the 165 and 160 puts. AMZN is down 1.2 percent to $155.07 but is up 27 percent in the last month.
Baidu.com (NASDAQ:BIDU): Options expiring tomorrow account for 28 percent of all activity. The big trades occurred in the 100 puts, which were both purchased and sold, although buyers seemed to lead the activity. The 105 calls were also sold. BIDU is down 2.05 percent to $101.59 but is up 31 percent in the last month.
Google (NASDAQ:GOOG): Options expiring tomorrow account for 34 percent of all volume. The main activity has resulted from investors selling the 520 calls and 530 calls. GOOG is down 0.75 percent to 523.74 but is up 16 percent in the last month.
Netflix (NASDAQ:NFLX): Options expiring tomorrow account for 32 percent of all volume. The main activity resulted from investors selling the 160 puts and the 165 puts, which reflects confidence the downside is limited. NFLX is down 3.83 percent to $164.10 but is up 34 percent in the last month.
BP (NYSE:BP): Options expiring tomorrow account for 22 percent of all volume. The big trade was the purchase of 4,000 40 calls and the sale of 2,000 39 calls. The activity came against open interest, so it could have been a roll up or the closing of a bullish ratio spread. Regardless, either explanation reflects an upside bias. BP rose 2 percent to $40.80.
Disclosure: No positions