Weekly Weekly’s 7.17.14


Tomorrow is a traditional options expiration. Next week, it’s just the Weeklys, which is what I am focused on today. Popular stocks with weekly options turn in their earnings next week.

Next week starts strong with earnings from Netflix ($444). Right after the bell this morning, 10,000 contracts traded with a few call buyers at the 450 strike calls, but mostly it’s the put option contracts traders are after with multiple strikes moving including 385, 415 and 430 strikes. The straddle suggests a 9 percent move is possible up or down in NFLX.

Also Monday, Chipotle reports.. Surprisingly, the options action in CMG is light so far. The stock is trading around $590. There are a few put players at the 540 put strike. The straddle is pricing in around $46 predicting a 7 percent move off earnings.

On Wednesday, Gilead Sciences ($87) comes in with earnings news. A few 88 strike calls are in play and the straddle points to a possible 6 percent move.  Similar to CMG, options paper is on the light side in the early going, which is subject to change. So, where are the big trades?????…..

Facebook! FB earnings are also out on Wednesday. The stock is trading around $67 and has been trending higher. Today, traders are positioning in upside weekly calls for next week in the 69 and 70 lines. But, there is big buying of puts all the way down to the 57 strike as traders prepare for earnings. Implied volatility is around 74 for puts and calls, which in my book makes it difficult to determine a bullish or bearish tone. The straddle is gauging around an 8 percent move. Stay tuned.

Thursday it’s Amazon ($355) earnings day and multiple call contracts are flying out the door. Especially. At the 350, 360 and 370 strike calls, that could represent a spread strategy. The AMZN straddle prices a 6 percent move.

Checking the SPX there are notable downside hedge positions at 1,850 and 1,900.

Now onto the names added and deleted from the list of available Weeklys.  Added to the list: Actavis, Tableau Software, GW Pharmaceuticals, Intermune, Lorillard and Zulily.

Deleted from the list of Weeklys: Abbott Laboratories, Equinix, Honeywell, KB Homes, Lowes, Macy’s, Tiffany and Sysco (the food, not technology).

I’m Angela Miles. You can follow me on TWITTER@AngieMiles.