Options Trades Out of the Gate

LCC shares are now trading up nine cents to $3.19, or a 3% rally. The January 4 calls have traded 11,500 times versus open interest of 5,700 contracts. Investors traded these options to open this morning. The January 4 calls are trading up 10 cents, which is more than the delta would suggest- indicating buyers in the market.

The EWZ ETF is trading at $75.33, down 87 cents or roughly 1% this morning. Emerging markets have been in the spotlight throughout recovery, and it looks like an investor employed a butterfly to express moderate bearishness. The December 60-65-70 put traded 15,000 times out of the gate, meaning the December 60 and 70 puts traded 15,000 times, while the December 65 puts traded 30,000 times. We saw similar activity at the beginning of the month, when an investor bought the December 70 puts and sold the December 65 puts. The December 75 straddle is trading at $5.83, compared to yesterday’s at-the-money straddle that closed at $5.80.

STI shares are trading down 15 cents to $23 this morning, after the Fed announced fresh talks with several banks, including STI, about TARP repayment plans. The January 17.5 put traded 5,000 times so far today versus open interest of 10,000 contracts. Out of the gate, investors traded these puts for 34 cents, which is the bid price, and that indicates selling action.