Largest option buying in equities so far
David Russell | [email protected]
Walgreen (WAG): Some 24,242 January 2015 50 calls was purchased for $6.05 against open interest of 7,310 contracts. A large block of shares was sold less than two minutes later, indicating the use of a so-called delta-neutral trade that profits from volatility rather than a rally in the share price. WAG rose 1.27 percent to $50.89.
Exxon Mobil (XOM): Some 13,500 September 90 puts were bought, mostly for $1.18, as investors brace for further downside in the energy giant. XOM fell 2.40 percent to $91.50.
Wells Fargo (WFC): A block of 6,048 August 39 puts were bought for $0.04 and an equal number of August 46 calls were sold for $0.07. The trader collected $0.03 and is now protected against a near-term selloff in the San Francisco-based lender. WFC rose 1.75 percent to $44.26.