Five Names Seeing Bullish Option Flow

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ON Semiconductor (ONNN) saw notable opening call buying on Wednesday at the 20% out of the money 7.5 strike in January. 5800 contracts traded, most near $0.20, with the largest tranche a 2700 lot bought when shares were near $6.26 at 10:10AM ET. Additional buying occurred a bit later at the same price as shares traded $0.05 lower. Shares finished at $6.28. This position is now the largest in the name, with 37,528 contracts as of this morning, most built up earlier this month. Shares are near the low end of their 52-week closing range of $5.86 to $9.50. Earnings are due November 1.

Kodiak Oil and Gas (KOG) call volume spiked just after 10 am as 8000 contracts hit the tape in October and November 10 strike calls. Both printed at the ask and they were not marked as spread, but ISEE Customer data (try command /isee KOG) shows that the 4000 November 10 calls trading for $0.55 were an opening customer, while the October 10 calls for $0.10 were a customer seller, and those opened as well. This appears to set up a position for a move higher after the Octobers roll off this week, just in time for earnings on November 1.

Another energy name, Anadarko Petroleum (APC) saw a buyer of nearly 14000 November 82.5 calls for $0.23 on Tuesday, and another 3000 at the same price yesterday, but clearing data shows (after they corrected an error from Tuesday's flow) that this flow was closing an existing short from $0.48 on September 25th when shares were near $70.65.

Thinly traded name health care name LCA-Vision (LCAV) saw more than 1500 calls trade on Wednesday (and open interest mysteriously lift by 2992- an error perhaps?) with most of the action in the March 5 calls where a buyer paid $0.65.

Jefferies Group (JEF) lifted late in the day on Wednesday with a burst of call volume in the final minutes of trading, including a sweep of 1235 November 16 calls for $0.30 when the market was $0.20 to $0.30. Similar activity was seen in January 16 calls, while implied vol stayed relatively flat at 30.5. No news on the stock to explain the bullish flow, but JEF shares are up a bit Thursday morning, near $15.24.

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At the time of publication, Henry Schwartz held no positions in the stocks or issues mentioned.

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