Where does the trade go from here? I’m Angela Miles, and that is what I am covering today. Option’s plays in hot stocks going into next week’s options expiration.
Let’s get it started with the grand-daddy of them all: Apple. Apple’s iPhone 6 hits store shelves tomorrow. Implied volatility has remained tame with many traders busy selling vol this week. This morning, 81,000 contracts were moving to start the day. As AAPL trades around $102 players are positing call trades at the 101 and 102 strikes. There are also put buyers at the 100 line, but not much to suggest a near-term breakdown in the stock.
Yahoo is moving big this week on Alibaba’s IPO Friday. Yahoo has a 23% stake in BABA. Traders are really going after the 48 calls, with buyers and sellers. Implied vol is pumped up to 83. Put action is light. Retail paper is active in YHOO.
US Steel has been on fire, including a 10 percent jump yesterday. The company is making strategic moves to return to profitability. Puts are in play at the 45 and 46 strikes for next week, which could predict a slight pull back is in store for the stock after a hot run.
As Apple and Alibaba steal the show, options paper is just a bit lighter today in the momentum names…Such as Tesla, which has been active this week. The CEO, Elon Musk is out talking about self-driving cars . Going into next week the 265 and 260 calls are in gear.
Amazon has 325 puts active for next week as the stock trades $325.
Netflix has more calls than puts trading. NFLX trades at $455. The most popular call strike so far is 460 for next Friday’s expiration.
Gilead Sciences is in play on news its selling its Hepatitis C drug at a lower cost in developing nations. The bulls are positioning in the 105 and 106 strikes as shares trend higher this week.
Among other movers…
Whole Foods has 40 strike put contracts on the move into the Weekly’s expiration.
EEM Emerging Market Index was active going into the FOMC announcement. Traders remain active into next week at the 43 and 44 put lines.
Micron Technologies has earnings next Thursday. The most active strike are the 32.5 and 37 calls.
One final mention, options are active for next week’s expiration in SPX, the predominate strike is 1,970 puts, Although the 2005 strike calls are active. Angie Miles