Action in options has been highlighted today by trading in some well-known blue-chip names, including
Michael Schwartz, chief options strategist at
CIBC World Markets
, said it was "more of the same," in the market today. However, he pointed to a few situations that caught his eye, including the action in Disney, Xerox and the
Shares of Disney were surging, up 2 5/16 to 39 1/8 after
raised its rating on the entertainment giant to outperform significantly from outperform and lifted its price target on the stock to 47 from 41. The action in Disney options, though, was in the April 35 puts as 4438 contracts on the April 35 puts traded by midday. The April 35 puts were trading at 9/16, down 9/16 ($56.25). Open interest on the April 35 puts on Friday stood at 9617.
That volume could have stemmed either from speculators thinking Disney wouldn't hold on to today's gains or from shorts surrendering their puts in the face of today's rally.
Schwartz also highlighted the options action in Xerox. Xerox and
said they've settled their patent-infringement lawsuits against each other. Xerox was up 11/16 to 26 1/2. Buyers came in for the out-of-the-money April 30 calls, which have traded 3348 contracts. The calls were at 3/4, up 1/8 ($75).
Meanwhile, in the world of the Nasdaq 100 unit trust, a little more than 10,000 April 103 puts have traded this morning, showing some investors still interested in hedging. The Nasdaq 100 unit trust split 2-for-1 after the close Friday. The puts were trading at 3 7/8 ($387.50). Conversely, 2266 of the April 112 calls have traded. The April 112 calls were lately at 6 ($600).