Options Market Commentary

Stocks are mixed this afternoon and off their highs in part due to a mixed ISM figure (new orders disappointed). Currently, the S&P is +.3% , the Russell -.2% and the Nasdaq is +7%. Bonds are stronger (TLT +.45) as the Jan ISM New Orders data fell to a one-year low. In single name news, Alphabet is slightly lower (-.65%) despite reporting impressive earnings – with the cost per click metric falling 29% year over year some investors are concerned about margin compression. The Consumer Discretionary sector is outperforming today (+.9%) and Financials are lagging (-.3%) on a flatter curve. Volatilities are slightly lower with the VIX -2% to 15.48, VXN -1% to 19.44, and RVX flat at 17.29.

ETF 30D Volatility Changes

SPY:    -2%         

IWM:   -2%   

QQQ:  -2%       

Directional Options Strategies

Bullish Option Strategies

VALE Seller 6,000 Mar 11 – 9 put spreads (appears closing, ref. 12.08)

ETSY Buyer 6,500 Feb 65 calls (ref. 60.45)

EBAY Seller 5,000 Apr 32 calls (closing) to Buy 10,000 Mar 22^nd 35 calls (ref. 35.25)

BABA Buyer 4,000 Mar 175 – 190 call spreads (ref. 170.87)

TTWO Buyer 2,000 Feb 8^th 113 calls (Earnings 2/6, ref. 107.06)

APC Seller 5,000 May 50 calls to Buy 7,500 May 55 calls (Earnings 2/5, monetizes and sizes up, ref. 49.01)

FIT Buyer 4,100 Apr 7 calls (ref. 6.46)

GILD 4,900 Feb 8^th 70 calls trade (ref. 67.99)

ON Seller 6,100 Feb 21 calls to Buy 9,100 Mar 22 calls (rolls out and up, ref. 21.66)

Bearish Option Strategies

MDLZ Buyer 6,500 Mar 44 puts (ref. 45.92)

CARS Seller 5,000 Jun 30 calls tied to stock (ref. 26.95)

NVAX 20,000 Feb – Apr 2 put spreads trade (ref. 2.33)

AMD Buyer 10,000 Apr 15 puts (ref. 23.36)

Macro Options Strategies

Bullish Option Strategies

QQQ Buyer 10,000 Mar 173 – 179 call stupids (ref. 170.66)

SPY Buyer 5,000 Mar 280 – 285 – 290 call flies (ref. 273.01)

SPY Buyer 13,256 Feb 8^th 277 calls (ref. 273.62)

EEM Seller 20,000 Feb 42.5 calls to Buy 25,000 Mar 43.5 – 45.5 call spreads (monetizes and rolls, ref. 43.20)

EFA Seller 13,500 Mar 8^th 61 – 65 strangles tied to stock (sells vol, ref. 63.30)

Bearish Option Strategies

EWZ Seller 25,000 Mar 40 – 44 call spreads (closing, ref. 45.23)

VIX Buyer 20,000 Mar 20 calls (ref. 16.85)

VIX Buyer 20,000 Apr 23 – 47 1x2 call spreads (ref. 16.80)

FXI Buyer 10,000 Feb 42 puts (ref. 43.19)

HYG Seller 50,000 Mar 77 puts to Buy 50,000 Apr 79 puts (rolls out and up, ref. 85.18)

SPY Seller 25,162 Mar 1^st 247 puts to Buy 34,000 Mar 22^nd 253 puts (rolls up and out, ref. 272.76)

XRT Buyer 10,000 Feb – Mar 43 put spreads (rolls out, ref. 44.83)

XBI Seller 10,000 Apr 90 calls to Buy 10,000 Apr 82 – 75 put spreads (ref. 83.96)

Finance Trades Options Strategies

LLY 5,000 Apr 130 RevCons trade (ref. 121.19)

EEM 20,000 Mar 40 RevCons trade (ref. 43.31)

HYG 14,000 Mar 95 RevCons trade (ref. 85.19)

Upcoming Earnings