Level 3 Communications (LVLT) communications saw a buyer of January 22 calls yesterday, which are about $1 in the money, but the buyer paid $1.43 for 2200, and this flow follows buying in the same contract on Tuesday.
Harley Davidson (HOG) is an occasional 'deal chatter' name and yesterday we saw an impressive midday spike in call volume and stock price. Buyer(s) lifted offers for the two day December 50 calls when shares were under $49. A total of 4150 traded on the day (and nearly 3000 contracts were opened), and shares took off to the upside about the same time, from $49 to $49.75 as players tried to figure out if the flow was 'smart' or not. Gains did not stick and HOG finished under $49, but I'd keep an eye out for a potential repeat today.
Avon Products (AVP) January 16 calls were very busy yesterday and led by a buyer of 10000 January 16 calls for $0.37, opening, when shares were near $14.71. This is now the largest block open in the name and it may suggest a potential suitor from earlier this year staging a reappearance in the coming weeks.
NYSE Euronext (NYX)- is the story of the day. The company is expected to be acquired by ICE, and while option flow immediately in front of the deal was light (3100 contracts yesterday, about 30% below normal), I am struck by how call heavy the flow was during the past month, and also how the put/call skew (sometimes called the smile or smirk) was trending flatter right into the news. One contact on the AMEX (which is of course, located inside the NYSE building) pointed out this interesting bit of flow.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV