Largest option buying in equities so far
David Russell | [email protected]
Yahoo (YHOO): An investor bought 10,000 November 17 calls for $0.19 and sold an equal number of November 18 calls for $0.07. Volume was more than quadruple open interest at both strikes. The bullish call spread cost $0.12 and will earn a profit of 733 percent if the stock closes at or above $18 on expiration. YHOO rose 1.67 percent to $15.87.
Deckers Outdoor (DECK): An investor purchased 10,000 January 50 calls for $1.05 and $1.10 while selling a large block of shares at the same time. Known as a delta-neutral trade, the strategy will make money from the passage of time rather than a directional move. DECK fell 0.30 percent to $36.12.
Oracle (ORCL): Investors bought more than 6,400 October 31 weekly calls expiring the end of next week for $0.32 to $0.45, looking for the software maker to rally in the short term. ORCL rose 0.88 percent to $31.