Volatility is shaking up the market and traders are loving the fast-pace of trades in the Weekly’s. I’m Angela Miles. Today I am covering Weekly options expiring this Friday. Next Friday is a traditional options expiration.
I’m starting with trades in the SPX. It’s a big volume day for SPX (S&P 500 Index) options contracts as the market responds to better-than-expect news on retail sales. One of the more predominate plays is at the 2,020 put strike going into Friday’s expiration. Implied volatility is relatively high at 25 implying this market still has a case of the jitters. On the call side, it’s mostly at-the-money call buying (2045 strike).
The Russell has a buying binge going on. Traders are setting up call positions at the 116 & 117 strikes. Put action is light.
Tesla shares have been mostly rolling lower this week, but today the stock is driving $3 higher to $213. Traders are jumping on the rally with call buying in the Weeklys at the 212 and 217 strikes. There appears to be some hedgers in traditional options in TSLA as 200, 205 and 210 put players move into the options market.
Lululemon reported earnings that included positive comments about online sales, which could be a plus going into the holiday season. The options straddle predicted up to a 10% move and indeed LULU is rallying about 10% higher today. Traders are counting on the stock stretching to new levels. The weekly calls are moving at the 50, 51.5, 52 and 53. Some of those call buyers may be shorts scrambling as LULU breaks out. Also in the Weeklys for this week, put players are buying options contracts at the 49 strike. And, someone in the traditional paper wants the 47 puts. Going out into January 52 calls are active. Perhaps it will be a happy holiday season for Lululemon athletic wear lovers.
A report says EBAY is considering massive job cuts next year and the stock is up a $1 to $56. The options are just getting started with 56 call buyers.
Amazon is active. As AMZN trades $307, call players are stepping into the 307, 315 and 320 call strikes, There is a smattering of put paper in the Weeklys at the 300 line. Feel free to check out my In The Money Show for trader Tim Biggam’s Amazon strategy.
Next Friday, Blackberry turns in earnings. Traders are already building positions on the put side at the 9.5 and 10 strikes.
And, before I take off there is one name to mention that is added to the list of available Weeklys: Talsman Energy.
That’s it for now. Follow me on Twitter @AngieMiles