This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Names Seeing Bullish Option Flow

TheStreet Premium Services

A complimentary preview
of Options-Profits Previews

Endo Health Solutions (ENDP) call volume was high yesterday, with a focus on the 30 strike in January and April. Total call volume near 3100 contracts was 22x normal, while put volume was just 406 contracts. Net call open interest grew by 2712 contracts, and with shares very near their low of the year, it looks like some of this flow is anticipating upside.

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.

HOG 5 Minute Contract Volume Window
Source: Trade Alert


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!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Top Rated Stocks Top Rated Funds Top Rated ETFs