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Potential selling action in McDonalds, Dicks Sporting Goods and J.P. Morgan during the first hour of trading.
Karla hosts and produces Options News and Mad About Options, and writes the Sidewinder report. Karla graduated from Colgate University, where she majored in English and Film and Media Studies.
McDonald’s (MCD) shares are up 69 cents to $64.10 during the first hour of trading without any news catalyst. The December calls have traded 10,000 times (one of the largest volumes we’ve seen this expiration Friday). We saw a couple blocks trade at the bid price, suggesting sellers trading to close with open interest at 20,000 contracts.
Dick’s Sporting Goods (DKS) shares are trading down 54 cents to $21.98, and the March 21 puts have hit the tape 2,000 times versus open interest of just 257 contracts. These puts traded for $1.30, and investors could be looking for limited downside. DKS reported earnings yesterday morning and beat estimates by issue downside guidance for next quarter.
J.P. Morgan (JPM) stock is down to $42.43, or about 12 cents, this morning, and the June 44 calls have crossed the tape 3,000 times for around $4. The calls have dropped 20 cents so far today, which is more than the delta would suggest. The December 42 straddle is trading at $3.38, or about 8% of strike, compared to yesterday’s December 43 straddle that closed at $3.38 – implied volatility still came in slightly.
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