Options Market Commentary

Stocks are softer on the first trading day of 2019 but are well off this morning’s lows. Currently, the S&P is -.38%, the Russell -.35%, and the Nasdaq is -.19% while bonds continue their bullish run with TLT +.24% (10-year 2.663%). Worth noting is the underperformance of sectors that saw relative strength during the selloff – Healthcare (-1.5%), Utilities (-2%) are Consumer Staples (-1%) are all trailing the broader market. Energy is stronger this afternoon in tandem with oil prices (Crude up 4.4%). Volatilities are mixed with the VIX -1% to 26.68, VXN +1% to 31.73, and RVX -1% at 28.29.

ETF 30D Volatility Changes

SPY:      -1%         

IWM:     -2%        

QQQ:     +1%       

Directional Options Strategies

Bullish Option Strategies

MTG 10,000 Mar 11 calls trade (ref. 10.29)

AAPL Buyer 5,000 Mar 160 calls (ref. 154.86)

AOP Seller 4,500 Jan 40 puts (opens write, ref. 42.01)

MRVL Buyer 3,500 Jan 11^th 16.5 calls (ref. 16.44)

THC Seller 9,650 Jan20 25 calls (closing) to Buy 9,650 Jan20 20 calls (rolls down, ref. 17.22)

RRC Buyer 10,000 Jan 11^th 10.5 calls (ref. 10.04)

AR Buyer 38,550 Jan20 15 calls (ref. 9.79)

EXAS Buyer 5,000 Jan 11^th 63 – 68 call spreads (ref. 63.32)

Bearish Option Strategies

ECA Seller 54,700 Jan20 10 calls tied to stock (ref. 5.97)

SBGL Seller 7,000 Jul 5 calls to Buy 7,000 Jul 2.5 puts (ref. 2.88)

Macro Options Strategies

Bullish Option Strategies

JNK Seller 20,000 Mar 29 puts tied to stock (ref. 33.43)

HYG Buyer 25,000 Mar 84 calls (ref. 33.42)

SMH Seller 10,000 Feb 80 puts (opens write, ref. 87.79)

GLD Buyer 3,567 Jan20 150 calls (ref. 121.54)

Bearish Option Strategies

SPY Buyer 17,500 Jan 7^th 240 – 230 – 220 put spreads (ref. 246.04)

SPY Buyer 17,500 Feb 1^st 220 – 205 – 195 put flies (ref. 249.71)

IWM Buyer 5,000 Jan 131 – 117 put spreads (ref. 132.06)

VIX Seller 10,000 May 17 – 25 strangles to Buy 60,000 May 37.5 calls (ref. 20.92)

XOP Seller 27,500 Jan 23 puts (closing) to Buy 35,000 Feb 23 puts and Sell 20,000 Feb 30 – 31 call spreads (ref. 26.01)

USO Seller 50,000 Jan 9 puts (closing) to Buy 20,000 Feb 9 – 8.5 put stupids (ref. 9.60)

EEM Buyer 13,000 Jun 38.5 puts tied to stock (ref. 38.99)

EEM Buyer 11,090 Feb 1^st 38 puts (ref. 39.05)

Finance Trades Options Strategies

EFA 5,000 Mar 59 RevCons trade (ref. 58.43)

SPY 11,000 Jan 250 RevCons trade (ref. 249.86)

Upcoming Earnings

Volatility Standouts