Traders are busy buying options in retailers and tech this week, as tomorrow is Options Expiration for traditional options.
Next Friday going into the long holiday weekend for Memorial Day is an expiration Friday for Weeklys. I’m covering both in my report.
I’m starting with JC Penney. JCP reports earnings tonight after the close. This week calls have been active in the 10 strike as the stock trades around $8 dollars. Today in options that expire tomorrow traders are purchasing 9 strike calls and 8.5 strike puts. The JCP straddle suggests a possible ~10 percent move up or down.
In earnings news for next week….
Salesforce.com reports on Tuesday. The stock has had bounced around in a $5 dollar range this week. Currently, 54 strike calls are the most active along with minor buying at the 50 put line. The stock is $51. The straddle suggests a $4.00 move up or down is possible.
Home Depot also reports Tuesday. HD trading $75, in the money calls are active in the 72 strike. There’s not much action the puts. Implied volatility for next week is pumping up and is presently at 30%.
On Wednesday, Hewlett Packard turns in results and is attracting action in the May 29 calls. The straddle indicates a move up or down of $2.20 in HP.
Also Wednesday, Target delivers earnings. Next week’s TGT May 55 puts are active as that stock trades $58.
Tiffany reports as well and traders are buying 90 strike calls.
As for those trending tech stocks….
Twitter has been trying to move higher.
Going into tomorrow’s expiration 31 and 32 strike puts are moving. There are call sellers at the 33 and 34 strikes as well for this week.
Facebook is bouncing around and rallied above $60 this week. The stock trades now around $58. Traders are buying 58 and 59 strike calls. This week and next week the 56 puts are in demand.
Ford calls have been ramping up this week in the 16 strike with weekly options that expire May 30th. It’s suggested the stock has a greater than 2 in 5 chances of trading above the 16 strike by then. Today 15 and 16 calls are the most active going into this Friday’s expiration.
Traders are also closely watching the IWM. The Russell has been slipping, and today is down around 2 percent (below $107). Traders are coming for the puts at 107 and 108. Those 108 strike puts are also attracting traders for next week’s Weeklys expiration.
One other note: the Apple Mini options have been deleted from the list of available Weeklys.