Weekly Weekly’s for 2.6.14


Linkedin is the next big social media company to report earnings. And, it leads off this week’s Weeklys Report.

I’m Angela Miles covering Weeklys option action going into options expiration this Friday and next Friday.

LinkedIn reports earnings after the close. Right now with the stock trading $215 the 215 straddle price is $20.50 suggesting about a 9% move. Calls are active up to the 250 strike and on the put side down to 180.

Zynga also has earnings after the bell, although there is a lot less paper trading compared to LinkedIn. The 4 straddle prices at $0.20.

Twitter still has plenty of follow up positioning after reporting earnings last night that disappointed in user growth. The stock has really been moving today and is now around $52. The big deal here for traders is that implied volatility remains high at 135. It did not collapse on earnings as tends the be the case with most earnings plays. In the Weeklys expiring this week the 52, 53 and 55 calls have the most activity. There is some put action in the Feb 50’s.

Taking a glimpse into next week, there are 53 and 55 strike call buyers and vol is relatively high at 80.

Green Mountain on the rise! The company surprised traders with news it has a deal with Coke to do an at home beverage service.

The stock was up more than 50% – 60% last night. Today, the stock is $102 and multiple strikes are trading. The bulk of trading centers around the 110 and 120 call strikes. Put action is light so far.

The other stock to watch that’s moving on the Green Mountain news is Soda Stream, which is an at home beverage service. As that stock trades $39, traders are coming for 40 calls this week and next week in the Weeklys. Implied vol is spiking to 120.

Checking earnings for next week: Zillow reports Wednesday and 585 calls are generating interest.

The SPX is attracting call and put buyers. Puts are heaviest at 1,665 and 1,720 and calls at 1,777 and 1,790. There is one addition to the list of Weeklys: Palo Alto Networks (PANW).