As the market holds near all-time highs and many observers wonder if the recent 22% climb ( SPDR S&P 500 ETF(SPY) from 136 to 166 in five months!) is bubblicious or not, we continue to see plenty of aggressive option positions opened that indicate a long view.
Regions Financial (RF) closed at $9.14, multi-year highs, and options on the bank were busy on Wednesday with nearly 14,000 calls and 2,500 puts trading and front-month May 9 calls most active. Jun 9, Jan 10 and May 8 calls are also seeing interest and 30-day implied volatility is up 14% to 22. No news on the stock to explain the heightened activity. Earnings were reported on April 23. Sirius Satellite(SIRI) added $0.08 to $3.53 on heavy spot volume of 112 million shares with no headlines to explain the action. Calls led puts by an extreme ten to one as nearly 5,000 calls and 5,000 puts changed hands. The biggest trade was a 1,300-lot of Jan 4 calls for $0.18 per contract that appeared to close an existing short. June at-the-money 3.5 calls were the most active with more than 13,000 trading. 30-day ATM implied volatility is up 9.5% to 28.
Waste Management (WM) was another name seeing upside interest as shares closed at $41.98, new decade highs, and we saw 4,100 of Oct 42 calls bought for $1.30 per contract. 8,126 total traded vs prior open interest of 826. Bullish flow comes despite news Jana Partners has liquidated its stake in the company, according to a 13F filing out Wednesday.
ZIOPHARM Oncology(ZIOP), a New York-based biotech that fell from the $5 handle last year to the $1 range appears to be picking up some interest in a recovery. An opening customer paid $0.225 for 5,000 October 3 calls to open a new position.
TiVo(TIVO) has seen a few days of bullish flow in the form of upside ratio call spreads. Jun 13 - 15 (1X2) call ratio spread was bought on the stock for $0.25, 3,000X. Looks like a repeat of Friday, when the same ratio spread was opened for $0.12, 8,000X. Also saw the May - Jun 14 call spread for $0.65, 4,500X, opening on both legs in front of earnings, due out after market on May 20.