As the market holds near all-time highs and many observers wonder if the recent 22% climb (
SPDR S&P 500 ETF
(SPY) from 136 to 166 in five months!) is bubblicious or not, we continue to see plenty of aggressive option positions opened that indicate a long view.
Regions Financial (RF) closed at $9.14, multi-year highs, and options on the bank were busy on Wednesday with nearly 14,000 calls and 2,500 puts trading and front-month May 9 calls most active. Jun 9, Jan 10 and May 8 calls are also seeing interest and 30-day implied volatility is up 14% to 22. No news on the stock to explain the heightened activity. Earnings were reported on April 23.
Waste Management (WM) was another name seeing upside interest as shares closed at $41.98, new decade highs, and we saw 4,100 of Oct 42 calls bought for $1.30 per contract. 8,126 total traded vs prior open interest of 826. Bullish flow comes despite news Jana Partners has liquidated its stake in the company, according to a 13F filing out Wednesday.
ZIOPHARM Oncology (ZIOP), a New York-based biotech that fell from the $5 handle last year to the $1 range appears to be picking up some interest in a recovery. An opening customer paid $0.225 for 5,000 October 3 calls to open a new position.
TiVo (TIVO) has seen a few days of bullish flow in the form of upside ratio call spreads. Jun 13 - 15 (1X2) call ratio spread was bought on the stock for $0.25, 3,000X. Looks like a repeat of Friday, when the same ratio spread was opened for $0.12, 8,000X. Also saw the May - Jun 14 call spread for $0.65, 4,500X, opening on both legs in front of earnings, due out after market on May 20.