Weekly Weekly’s for 9.25.14

It’s big week for weekly options!  I’m Angela Miles covering weekly options expiring this Friday and next Friday.

Apple shares are trading around a 3 point range this week. Options contracts are trading briskly. Apple confirms pulling its IOS 8 software update, which is causing some iPhone users to lose their cell service. There are also customer complaints the new iPhone 6 plus is bending in their pockets. There is HUGE options volume in AAPL today. Earlier today while I was on the CBOE trading floor, more than 205,000 contracts traded early. One of the most active strikes: 100 calls with 20,000 contracts trading in the strike. It looks like a bulk buy of those contracts. Put activity includes the 87 and 89 strikes. Going into next week’s weekly action. Vol is at 32%. The calls are generating interest in the 100, 101 and 105 strikes. Some traders are already setting up for Apple’s earnings by building positions in the 102 calls and 101 puts in the traditional October contracts.

Yahoo is once again in play. The tech company has a 1-year lock on its remaining shares in Alibaba. Yahoo still has a 15% stake in BABA after selling part if its stake once Alibaba IPOed last week, YHOO is trading around $39 and traders are using the options to trade like stock with most of the action centering around the 39 strike price. Call options in the weeklys going into Friday are active in the 39 and 40 lines, puts at 39. Next week calls are active at 41. Reaching into November the 41 calls are moving along with 40 and 45 puts with an implied volatitily of 36. Similar to Apple traders are taking early positions into Yahoo’s earnings.
Netflix is active this week. As the stock trades around $448 dollars calls and puts are in demand. Call players are in the 455 strike and put buyers at 445. Next week gets really interesting with way out-of-the money puts active at 407 and 410 in NFLX.

Gopro is on a roll.  Shares have more than tripled since its IPO in late June. Traders are coming for puts at the 74 and 75 strikes. On the call side, GPRO 80 call contracts are attracting buyers. Next week gets call-heavy for Gopro with 78, 79 and 80 lines in play. An indication momentum traders believe Gopro could still be trading around $80 next week. In weekly’s paper 2 weeks from now however, puts are active at 75 and 80 with an implied vol of 115%. Translation: puts are expensive in Gopro. It may be a tough to borrow stock or the “shorts” taking positions.

Micron earnings are expected after the close. The 32 straddle is pricing in at $2.20. There are more calls than puts trading in the weeklys.

Nike also reports earnings today with more puts than calls trading. The NKE 80 straddle is pricing in at $3.25.
Blackberry turns in earnings Friday. On Wednesday, the company released its first smartphone in a couple years. if you are a Blackberry fan you will be glad to know there is a double keyboard on the Passport phone. The 11 strike on the call side appears to be popular. The 10 straddle price is 95 cents (~9% move?).

There’s a Takeover chatter stock worth mentioning. It’s Yelp. And, 75 strike call buyers are popping up going into Friday’s expiration.

The Russell 2,000 is extra busy today as technicians call the chart “toppy”. There’s a bit of panic tone as traders take positions in the 109, 110 and 111 puts in IWM.

That’s it for now.   Feel free to follow me on Twitter @AngieMiles