Largest option buying in equities so far
David Russell | [email protected]
VeriSign (VRSN): An investor bought 10,000 January 41 calls for $1.51 and sold an equal number of January 45 calls for $0.51. The call spread cost $1 and will earn a 300 percent profit if the stock returns to $45 or higher on expiration. VRSN is down 19 percent to $37.98 after a weak earnings report.
MEMC Electronic Materials (WFR): An investor bought 6,500 November 2.50 calls for $0.14 against existing open interest and sold an equal number of December 3 calls for $0.10, rolling a short position to the higher strike. He or she probably own shares and is now poised to collect more upside if a strong earnings report on Nov. 7 lifts the stock. WFR fell 2.52 percent to $2.32. (See related story)
Citigroup (C): More than 6,000 November 35 calls were bought for $2.17 but volume was far below open interest at the strike. C fell 2 percent to $36.66.
Activision Blizzard (ATVI): A block of 14,000 January 10 puts were bought for $0.25 as investors look for downside over the next 1-1/2 months. ATVI is down 1.99 percent to $10.84. (See related story)