Options Market Commentary

Equities opened lower on weak Chinese data (exports down 4.4%) but have since pared losses. Currently, the S&P is -.49%, the Russell -.72%, and the Nasdaq -.63%. Even with equities muted, Bonds remain softer this afternoon with TLT -.34% and HYG -.30%. Meanwhile, XLF (+.86%) is outperforming today after Citi (+4%) reported earnings. Utilities are lagging the market on news that PGE (-46%) will declare bankruptcy. Energy is softer (USO -.64%) with WTI Crude is a bit lower (-.64%). Also worth noting is a bid in Gold (+.15%) as the dollar is weaker (-.02%). Volatilities are mixed today with the VIX +5.4% to 19.18, VXN +2.5% to 25.40, and RVX +3.5% at 22.47.

ETF 30D Volatility Changes

SPY:    +1%         

IWM:   +1%        

QQQ:  -1%       

Directional Options Strategies

Bullish Option Strategies

CL Seller 2,800 Feb 22^nd 60 puts to Buy 2,800 Feb 22^nd 64 calls (Earnings 1/25, ref. 61.74)

KEY Buyer 10,000 Jan 25^th 16.5 calls (Earnings 1/17, ref. 16.08)

PE Seller 2,500 Mar 15 puts to Buy 2,500 Mar 20 – 25 call spreads (ref. 18.74)

Bearish Option Strategies

ET Seller 7,000 Apr 17 calls (ref. 14.86)

TXN Buyer 2,000 Feb 97.5 puts (Earnings 1/23, ref. 96.47)

BBBY Buyer 10,000 Feb 15 puts (ref. 15.37)

RRC 8,000 Jun 12 puts trade tied to stock (ref. 11.70)

Macro Options Strategies

Bullish Option Strategies

GDX Buyer 10,000 Feb – Apr 22 call spreads (rolls out, ref. 21.12)

EEM Buyer 25,000 Feb 41.5 – 43.5 call spreads (ref. 40.36)

EEM Buyer 14,000 Mar 1^st 42 – 44 call spreads (ref. 40.19)

XLU Buyer 10,000 Feb 52 calls (ref. 51.65)

Bearish Option Strategies

XBI Seller 7,000 Mar 88 calls to Buy 7,000 Mar 78 – 68 put spreads (ref. 81.06)

QQQ 10,000 Mar 150 puts trade (ref. 159.08)

FXI Seller 20,000 Jan 41 calls (likely closing, ref. 39.85)

FXI Buyer 21,168 Feb 38 puts (ref. 39.86)

XLF Buyer 4,000 Jan 2th 23.5 puts (ref. 24.65)

EEM Seller 42,690 Dec 41 calls to Buy 142,300 Dec 37 – 30 put spreads (ref. 40.37)

EFA 12,000 Feb 1^st 60.5 puts trade (ref. 60.80)

SPX Buyer 13,350 Dec20 2100 puts (ref. 2616.12)

SMH Seller 13,500 Mar 100 calls to Buy 13,500 Mar 80 puts (ref. 89.69)

Finance Trades Options Strategies

BABA 3,900 Jan 130 – Mar 140 Jelly Rolls trade (ref. 149.05)

HYG 10,000 Mar 95 RevCons trade (ref. 83.66)

IWM 5,550 Feb 150 RevCons trade (ref. 142.31)

XLP 5,000 Feb 50 RevCons trade (ref. 51.39)

Upcoming Earnings

Volatility Standouts