Weekly Weekly’s for 2.12.15

Apple officially dominates the world in terms of market cap and it’s a major play in weekly options.

I’m Angela Miles reporting today on weekly options expiring this Friday, the 13th. Next Friday is a traditional options expiration.

Traders and investors are taking a shine to Apple this week as the stock breaks out to new highs. Today AAPL is trading around $126. Plenty of call buyers are moving into the market plucking up calls in the 126, 127 and 128 strikes.  Next week 130 calls are active in the traditional options. And, in weekly options two weeks from now, 127 call buyers are getting some interest.
On the put side 125 and 126 strikes are generating buyers, but there are clearly more calls than puts in play. Also worth noting, implied volatility in February remains relativity low at 23.  Low vol can be an indication the marketplace is comfortable with the direction a Apple is heading.

In post-earnings news Tesla is taking traders for a ride to the downside.  TSLA is attracting put buyers down to the 185 strike. Even though the stock has already made a major move today, the weekly options straddle indicates a 3.5% move is still possible into Friday.

In earnings coming up after the close….

Groupon reports results. The stock is trading $7.60 and puts are more prevalent than calls at 7 and 7.5. The straddle suggests a 12.5% move is possible up or down.

Game site Zynga also turns in earnings. There is not a lot of paper trading yet outside of some calls at the 3 strike and puts at 2.5. However, the straddle paper reveals the market makers think a 14% swing is possible up or down following earnings.

Turning to other action in weekly options

Utilities SPDR implied volatility is elevated to 35 from its  norm of 16. Today as XLU trades $45.90, 46 strike call buyers are energized for an upward move.

SPX is attracting hedgers with the 2,050 and 2,065 strike puts.  Weekly Call buyers have been seen in the 2,100 and 2,010 lines.

That does it for now. I’m Angela Miles. Thank you for watching. I hope it’s a great trading day and you will take a moment and follow me on Twitter. @AngieMiles