Options Market Commentary

Equities continue to move lower following yesterday’s hike and not-so-dovish comments from Chair Powell. Currently, the S&P is -1.4%, the Russell is -1.8%, and the Nasdaq is -1.7%. Bonds are stronger with TLT +.40%. The 10-year yield has receded to 2.771% and the 2-10 spread has flattened to .1044 bps. Energy remains under pressure with crude prices down 4% on the day as XOP is -2.9% and XLE -2%. Both Gold and the miners are meaningfully stronger today with GLD +1.54% and GDX +3.4%. Volatilities are catching a bid today as we reach YTD lows with the VIX +9% to 27.92, RVX +9% to 31.21, and VXN +5% to 30.77.

ETF 30D Volatility Changes

SPY:        +8%

IWM:       +8%

QQQ:       +3%

Directional Options Strategies

Bullish Option Strategies

BVN Buyer 3,000 Mar 18 call options (ref. 16.21)

AMLP Seller 11,400 Dec 10 put options (closing, ref. 9.09)

ESV Seller 5,000 Jan 5 put options and 5,000 Mar 4 put options (both closing, ref. 3.50)

WYNN Buyer 11,000 Mar 105 – 120 call options spreads (ref. 98.02)

MSFT Buyer 10,000 Dec 28^th 103 call options (ref. 100.78)

Bearish Option Strategies

CL Seller 11,326 Dec 65 put options (closing) to Buy 11,326 Jan 62.5 put options (ref. 60.96)

USB Buyer 3,000 Jan 4^th 44 put options (ref. 45.96)

ADSK 4,500 Jul 120 put options trade tied to stock (ref. 128.66)

OPK Seller 30,000 Jun 5 put options (closing)  to Buy 30,000 Jan20 5 put options spreads (rolls out, ref. 2.68)

PSEC Buyer 10,000 Feb 6 put options (ref. 5.83)

F Buyer 20,000 Jan 8 put options tied to stock (ref. 8.32)

GE Buyer 110,000 Dec 8 put options tied to stock (closing, ref. 7.45)

Macro Options Strategies

Bullish Option Strategies

GLD Buyer 6,600 Feb 126 call options (ref. 118.98)

SPY Buyer 10,000 Dec 31^st 260 – 265 call option spreads (ref. 250.36)

VXX Seller 20,000 Jan 2th 55 call options (ref. 44.07)

Bearish Option Strategies

HYG Seller 6,000 Dec 81 put options (closing) to Buy 6,000 Jan 81 put options (ref. 80.85)

HYG Buyer 35,000 Feb 79 – 75 put options spreads (ref. 81.03)

HYG Seller 25,000 Jan 80 call options to Buy 25,000 Jan 79 put options (ref. 80.27)

HYG Seller 9,687 Dec 85 – 80 put options spreads (closing) to Buy 9,154 Jan 81 – 78 put options spreads (rolls out and down, ref. 80.92)

IWM Buyer 9,000 Feb 120 put options (ref. 133.51)

IEF Buyer 30,000 Feb 103 put options tied to stock (ref. 103.33)

SPY Buyer 5,000 Dec 248 – 245 – 242 put options flies (ref. 248.67)

EEM Seller 13,000 Jun 36 put options (closing) to Buy 13,000 Dec19 32 put options (rolls out and down, ref. 38.73)

Finance Trades Options Strategies

PAYX 3,390 Dec 65 RevCons trade (ref. 65.35)

Upcoming Earnings

Volatility Standouts