Options Market Commentary

Stocks attempted to rally on the open but have pared gains after a weak May Dallas Fed Manufacturing print (-5.3 vs. 6.2 est.) Currently, the S&P is +.15%, the Russell is +.25% and the Nasdaq is +.55%. Bonds are bid (TLT +.70%, US 10 year yield down to 2.27%) in sympathy with the weak Dallas Fed figure but also legged higher on a  strong 2-Yr. note auction (Bid-to-cover ratio 2.75 vs. 2.51 prior). Over the weekend, Fiat Chrysler and Renault made headlines by announcing merger talks – the potential synergy would create the third largest automaker by production. The dollar is bid this afternoon (UUP +.38%) as both the Euro (FXE -.35%) and Pound (FXB - .30%) are lower on the heels of European elections. Tech is outperforming this afternoon (XLK +.65%) while Consumer Staples (XRT -.50%) lags the broader market. Volatilities are seeing a mild bid with the  VIX +2% to 16.21, VXN +1% to 20.82, and RVX +1.5% to 19.70

ETF 30D Volatility Changes

SPY:    -2%

IWM:    -2%

QQQ:   -3%

Directional Options Strategies

Bullish Option Strategies

KSS Seller 5,475 Jul 52.5 puts tied to stock (collects $3.60, appears closing, ref. 51.27)

UNG Buyer 4,200 Jul 22 calls (paid b/w $.86 and $.89, ref. 21.92)

CBAY Buyer 3,000 Jun 15 calls (paid $.120 , ref. 12.45)

CYTK Buyer 5,000 Nov 14 calls (paid $.75, opening, ref. 10.26)

HAL Seller 10,000 Jul 20 puts to Buy 10,000 Jul 25 calls (paid roughly $.10 avg., opening, ref. 22.87)

COTY 6,900 Jul 15 calls trade (paid b/w $.29 and $.33, ref. 13.12)

Bearish Option Strategies

GE Seller 116,000 May 31^st 9.5 calls to Buy 116,000 May 31^st 9 puts tied to 11.7M shares (closing, collects $.03, ref. 9.34)

UBER Buyer 5,000 May 31^st 40 puts (paid $.95, Earnings 5/30 after the close, ref. 40.89)

MU Buyer 10,000 Oct 30 – 25 put spreads (untied, paid $1.40, ref. 33.09)

SNAP 15,000 Jan 10 calls trade vs. 8,150 Jul 9 puts tied to stock (appears to sell calls and buy puts to monetize bullish risky, ref. 11.30)

DELL Buyer 4,700 Jun 60 puts (paid $.75, Earnings 5/30, ref. 67.01)

YNDX Buyer 2,000 May 31^st 36 puts (paid $.25, ref. 36.76)

SFLY  Seller 2,500 Sep 55 calls (untied, collects $1.45, ref. 48.94)

DOCU 1,450 Jun 60 – 45 put spreads trade vs. 1,450 Sep 60 – 45 put spreads (appears to roll out, largest print trades $.65, Earnings 6/6, ref. 54.75)

Macro Options Strategies

Bullish Option Strategies

GLD Buyer 10,100 Aug 127 calls (paid $.53, ref. 120.80)

EFA Seller 5,000 Jun20 60 puts to Buy 5,000 Jun20 69 calls tied to stock (collects $.80, ref. 64.64) 

INDA Seller 10,000 Jun 35 puts tied to stock (possibly closing, collects $.50, ref. 35.65)

OIH Seller 3,000 Jul 14 straddles tied to stock (collects $1.45, short vol, ref. 13.73)

VIXW Seller 19,000 Jun 26^th 23 calls (collects $.55, adds to existing position, ref. 17.10 (Jun 26^th)

Bearish Option Strategies

QQQ Seller 10,000 Jun 181 calls to Buy 20,000 Jun 165 puts tied to stock (collects $1.53, ref. 178.75)

EEM Buyer 7,000 Jun 39.5 – 37.5 put spreads (untied, paid $.42, ref. 40.17)

EEM 20,000 Dec 38 puts trade tied to stock ($1.55, ref. 40.18)

EEM 23,000 Jun 40 puts trade tied to stock ($.77, ref. 40.17)

VIX Buyer 12,000 Jun 20 calls (paid $.775, ref. 16.85 (Jun))

Finance Trades Options Strategies

BABA 2,500 May 31^st 157.5 RevCons trade (ref. 155.27)

Upcoming Earnings

Volatility Standouts