Options Market Commentary

Stocks are slightly stronger this afternoon led higher by strong earnings from Chip-makers. Currently, the S&P is +.10%, the Russell +.70%, and the Nasdaq +.60%. Despite the measured risk-on feel in equities, bonds are communicating a bit of caution with TLT stronger (+.47%) and the 10-year yield is down 4 basis points to 2.716%. In single name news, Lam Research is up 15% after reporting impressive quarterly earnings – the positive news has Semiconductors outperforming today (SMH +6%). Meanwhile, Consumer Staples are lagging the broader market with both Pepsi and Coke down more than 1%. Volatilities are softer with the VIX -1.3% to 19.27, VXN -4% to 23.53, and RVX -3.6% at 22.61.

ETF 30D Volatility Changes

SPY:    -4%         

IWM:   -3%   

QQQ:  -4%       

Directional Options Strategies

Bullish Option Strategies

SYMC Buyer 3,200 Jan 25^th 20.5 calls (ref. 19.99)

TSM Buyer 3,500 Mar 37 calls (ref. 37.28)

LVS Buyer 4,497 Jan20 55 calls (ref. 56.09)

CL Seller 5,000 Feb 59 puts (Earnings 1/25, ref. 61.46)

GE Seller 123,000 Mar 8^th 8.5 puts to Buy 123,000 Mar 8^th 9 calls tied to stock (ref. 8.79)

PBR Seller 10,000 Mar 14 puts (ref. 15.45)

LVS Seller 17,446 Mar 45 puts (likely closing, ref. 56.86)

EOG Buyer 6,600 Jun 105 calls (ref. 96.32)

MU Seller 5,500 Jan20 30 puts to Buy 5,500 Jan20 40 calls tied to stock (ref. 36.76)

Bearish Option Strategies

F Seller 16,000 Jan20 10 calls tied to stock (ref. 8.61)

AKS Seller 29,000 Jan20 3 puts to Buy 46,000 Jan21 2 puts (rolls out and down, ref. 2.65)

PAH Buyer 9,500 Feb 10 puts (ref. 11.08)

SM Buyer 1,900 Mar 12.5 puts (Earnings 2/21, ref. 19.03)

KO Buyer 4,200 Feb 22^nd 46 puts (Earnings 2/14, ref. 47.72)

Macro Options Strategies

Bullish Option Strategies

EFA Buyer 5,200 Jan 25^th 57 puts and 3619 Jan 25^th 56 puts to Sell 8,790 Feb 22^nd 61 puts (rolls write up, ref. 61.54)

QQQ Buyer 6,298 Mar 179 calls (ref. 162.51)

Bearish Option Strategies

QQQ Seller 80,000 Apr 163 calls (ref. 162.58)

EWZ Buyer 5,000 Jan 25^th 43 puts (ref. 43.32)

XOP Buyer 5,000 Feb 29 – 27 1x2 put spreads (ref. 29.53)

EEM Buyer 10,000 Sep 40 puts tied to stock (ref. 41.55)

SPY Buyer 20,000 Feb 230 puts (ref. 263.45)

XLF Seller 10,000 Jan20 27 puts to Buy 10,000 Jan21 27 puts tied to stock (rolls out, ref. 25.84)

Finance Trades Options Strategies

LLY 4,000 Apr 150 RevCons trade (ref. 117.24)

XOP 14,000 Feb 33 RevCons trade (ref. 29.75)

SIRI 4,000 Feb 8 RevCons trade (ref. 5.71)

Upcoming Earnings

Volatility Standouts