Weekly Weekly’s 5.8.14

Weekly Options volume has surged this week in Yahoo and Twitter. And, Priceline has earnings out today!

There is so much to get to.  I’m Angela Miles covering Weekly Options that expire this Friday 5/9 . Next Friday is a traditional options Expiration.

I’m leading with Priceline. Implied volatility in PCLN is high, it was in the 80 percentile and remains near 70%. Traders appear to be comfortable buying the stock around $1,100. Priceline sold off into earnings as put sellers and buyers moved into the options market. PCLN is falling right now on a disappointing forecast and is trading at $1,105. Put buyers, sellers and spreaders are back today. Among the many active strikes: 1,100, 1,070, 1,040.   There are call buyers in the market with the 1,130 and 1,140 strikes. Traders tell me a nice feature of options is it costs less to trade options than a stock, especially one trading above $1,000.

Now onto those momentum tech stocks that had a rough week. Tesla (TSLA) out with earnings after the close last night is a major mover. The electric car company reported a $50 million dollar loss. But, is investing in R&D. Traders say $180 is critical to TSLA. Puts strikes active are the 175 and 180.   There is light call buying at 190.

Twitter‘s lock up period expired this week.   TWTR tumbled and is trading at $31.30.
There are blocks of call buyers at 30 and 31 strikes suggesting the stock could close above $31or even $32 by Friday.

Yahoo has more fallout from Alibaba’s proposed IPO. Today YHOO 33 and 34 puts are active along with a few 35 strike calls.

Apple is trading $589 after topping $600 this week, the bias is on the call side with trades employing the 590 and 595 call strikes. On the put side a few AAPL 590 buyers have emerged.

Fireeye has been interesting with puts active this week. The stock fell recently on mixed earnings news.
It’s trading $28 today. Puts are active in the 27 line while 28 strike calls were busy.

In SPX traders are going put heavy at the 1,855 and 1,860 strikes. There are call buyers at 1,885.

Joining the list of available Weeklys: iShares Nasdaq Biotechnology ETF.

That’s it for now. If you have questions about trading Weekly options feel free to email us or tweet us your questions. We will get you an answer and if it airs on this show. We will send you a gift.   Angela Miles.