Back in Black...just

Market Close May 5

Net P&L slightly up now to +$134. Big gainers here have been ETE, VALE and CTL. CTL is a new position I took on the 2nd May after some suspicious put volumes prior to earnings made me think the market could take a dive. And it did! Numbers were poorer than expected and the stock has taken a hit. Now I need to consider what to do after a large move...just close out the profit or perhaps sell an out-of-the-money put as a small hedge?

Open P&L +$134.

TradeOpenDaysP&L
EMC Long Put13-Apr-1622-110
ETE Long Call19-Apr-1616190
MRO Long Call19-Apr-1616-66
KEY Long Call20-Apr-161524
MS Long Put20-Apr-1615-40
VALE Long Put21-Apr-1614165
JNPR Long Put21-Apr-1614-10
KMI Long Call28-Apr-167-80
IPHI Long Call29-Apr-166-40
NG Long Call29-Apr-166-60
MRO Short Call29-Apr-16652
CTL Long Put2-May-163109
Read more...

May 5, Top 10 Option Volume Opportunities

SymbolTypeStrikeExpirationVolumeOpen Int
SEASCall1916052012,368531
WFTCall716061713,165581
NBRPut71606178,000680
VALEPut516050615,1151,579
AALCall331605066,894747
ZNGAPut2.516061710,5191,162
MGMCall2216050618,6692,954
MGMCall2216050618,6692,954
TSLAPut21016050612,7672,155
BABACall8516061712,2862,459

Full list available from Option Scanner Pro

HRB Move an Inside Job?

HRB Stock tanked on Wednesday the 27th after the company reported a disappointing tax season. Outlook remains bleak for the stock and their next report is due out in June.

However, it appears someone knew of the pending downward move in the stock.

Option scanning tools showed that the $23 put option had significant volume trade the day before the stock plummeted. 19k options traded through one strike, which saw the puts outnumber the calls traded by 5 to 1. The next day, HRB drops 13.56%.

The Puts rose 386%

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Delta measures the theoretical change to the value of an option as the underlying changes. This means the option's value is tied to the underlying by the amount of "delta" the option theoretically has. Traders can then offset the risk of the opiton by trading an appropriate amount of shares in the underlying security

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I've put together a little something in Microsoft Excel that just does this, plus prices up all of the Option Greeks.

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Scan thousands of stocks and ETFs for profitable option opportunities in minutes. Option Scanner Pro will tell you where the huge option volume action is taking place.

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