Option Flow Summary and Unusual Activity Alert: Corning Inc (GLW) & PDL BioPharma Inc (PDLI)
General Sentiment
It has been a down day in the US markets today on a weak ISM index release. Broad averages are down nearly 2.5%. We saw the CBOE VIX spike to 28.15, showing a return of significant ëworryí in the market, and a demand for options to protect holdings through uncertain times.
Corning Inc (GLW) $23.65 -3.71%
Interesting volume seen in GLW today, with persistent upside call buyers focused on Feb 25 strike calls. The company has a conference call scheduled for Friday. The ISE sentiment data confirms todayís flow to be mostly customer accounts creating new long positions.
The largest trade involved a multi-market sweep of more than 7,300 contracts for $.20 this morning when the stock was at $23.68. The stock quickly rallied $.20 after the trade, but has since returned those gains. It is back near the original level, while the $.25 are now trading at $.25 as buyers continue to nibble.
PDL BioPharma Inc (PDLI) $14.38 -4.64%
PDLI options trading is triple their normal daily volume, with non-customer buying of upside 20 strike calls tied to stock in Jan and May expirations on the ISE.
The stock is down $9 from levels seen last fall. These buyers may be positioning for a potential bounce, or possibly covering short-stock positions they intend to keep on for the longer term.
Posted By: Trade Alert
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About Henry Schwartz
Henry Schwartz has traded derivatives on US and European exchanges for nearly 20 years. His experience includes market-making and institutional trading at the Hull Group, Salomon Brothers, Bear Stearns and most recently Banc of America Securities, where he led the electronic market-making project coincident with the launch of the ISE. His current work involves real-time stream analysis of options market activity for a number of leading institutional sell-side firms.
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