In case you got bored during the recent rally that lifted the Dow above 15,000 we have some excitement in the market today- check out the top movers among active option classes!
Granted these are primarily earnings reactions, but shares moving 5 to 10 standard deviations are very unusual (a statistician will tell you the chances of a 5 sigma move are about 1 in 3.5million), but earnings are earnings, and most people agree stock returns are not really normally distributed anyway. Regardless- these are big movers that indicate a significant impact of new information and often lead to trading opportunities.
A number of names have seen bullish flow this week, primarily in the form of unusually strong call buying accompanied by lifting implied volatility.
Corning Glass(GLW) saw early bullish flow on Thursday with more than 6,000 calls trading (about twice normal) and implied vol increasing a point to 20.7%. July 16 calls and May 15 calls are the most active, while the largest trade was a 412 lot of May 15 calls bought for $0.29.
Micron Tech(MU) is up $0.25 cents to $10.49, new 52-week highs, and recent trades on the memory chipmaker include a sweep of 2,610 weekly (expiring tomorrow) 10.5 calls for $0.14 when the market was $0.12 to $0.14. 3,405 traded against 1,508 in open interest and market is now $0.14 to $0.16 cents. Total options volume in MU in first 10 min was 7, 400 calls and 400 puts which is nearly 10x the typical volume for the open.
Bullish flow was noted in detected in Ocwen Financial Corp(OCN) Wednesday afternoon with 6,9100 calls trading (2x expected) and implied vol increasing over 2 points to 32.52%. Jun $40 Calls led the flow, shares up 3% Thursday morning.
Bullish trade in Occidental Petroleum (OXY) Wednesday as a buyer paid $0.96 for 10,000 May 90 calls (0.84% out-of-the-money to open a new position, as shares traded near $89.
A possible long-play into earnings (due May 21) is in Lowes Companies(LOW) with buyers of May 42 and June 43 calls to open new positions. Peer Home Depot (HD) is also due to report that week.