Weekly Weekly’s Option Report for 2.19.15


I’m Angela Miles covering weekly options. Tomorrow, traditional options expire and next Friday Feb. 27 it’s a Weekly’s expiration.

A busy earnings week is ahead starting Monday with SINA. The options paper is surprisingly light in the early going and the market is wide in SINA. That is likely to pick up into earnings the Chinese internet company tends to be popular with traders. The straddle at the 38 strike prices in at $1.75, which translates to around a 4.5% move up or down.

Tuesday will be a big day for earnings…

Starting with Home Depot (HD), the stock is now trading near highs at $112. Most of the action is in-the-money calls at 110 and 111. The HD straddle predicts about a 3.5% move.

First Solar (FSLR) reports on Tuesday an as the stock trades $48 a trader came into the market today presumably purchasing 56 calls. Those are way out-of-the money considering the trader is suggesting the stock could be trading above $56 by options expiration next week. The straddle is set for about a 9% move.

Also on Tuesday, Hewlett Packard reports and as HPQ trades $38 puts are active at the 37.5 strike calls at the 38.5 strike while the straddle forecasts about a 5% move. Hewlett has surprised the market with past earnings, but for now traders appear to be playing it close to the strike price.

On Wednesday Target turns in earnings. TGT is a $77 stock and earlier today some just out-of-the money put players moved into the 76 put strike. The straddle on TGT is looking for around a 3.8% move.

Thursday JCP reports results and paper is starting to build on this one around the 7.5 and 8 put strikes and the 8.5 call strike as the stock trades $8. This one could be a mover. The straddle predicts an 11% move is possible.

Also active in weekly options…

There is chatter in the market today that billionaire investor Carl Icahn may be taking a stake in Qualcomm. There are options actively trading going into this Friday’s expiration as well as in the Weeklys expiring next Friday. As QCOM trades $70 calls are active in a number of strikes including 71, 72, and 73 perhaps because traders think the stock could rallly next week on the Ichan outcome.

Apple attracted speculation regarding an I-Car this week. Today, there is a report about an electric car battery company suing Apple for stealing employees. Most of the action in next week’s Weeklys is in-the-money call sellers at the 125 and 128 strikes. Implied volatilitly for next week’s options is coming down its now around 20 compared to 24 yesterday. Out of the gate this morning 103,000 AAPL options contracts traded.

The other story floating around the market is will Apple buy Tesla? As TSLA trades $206, 205 and 212 calls are moving and the paper seems to expect an upside move in Tesla next week.

Finally, a look at the SPX, which has multple options contracts in play, mostly on the call side going up to the 2,130 strike. The puts that are active are centered around the the 2,080 strike.

And, before I take off for today, one name has been added to the list of available Weeklys: Capital One Financial (COF, $79.34).

That’s a wrap for now. I’m Angela Miles. You can find my options trading shows daily at CBOETV.COM. And, follow me on Twitter @AngieMiles.