Mid-day Flow Summary
PAYCHEX
Notable activity this morning in Paychex (PAYX). Total option volume was triple the recent daily average. Trading was concentrated in the April 37.5 Calls, where an aggressive buyer lifted the $0.85 offer on several exchanges simultaneously. He purchased a total of over 4000 contracts. The stock was relatively flat this morning. However, with a total open interest of only 3228 contracts, today's options activity suggests that someone is looking for a short term move in the stock.
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MONSANTO
Monsanto (MON) also very active at 7x average daily option volume. Earnings were released this morning and the stock is trading up nearly 4% to $58.40. The bulk of the trading activity is concentrated near-the-money on the 55 and 60 strikes, with primarily bid-side activity suggesting sellers. 4200 April 60 calls have traded and just over 1000 April 60 Puts.
YAHOO
Yahoo (YHOO) was busy as well this morning. 33,000 contracts traded in total, with seller dominated near-term trading of 6000 April 30 Calls. We also saw consistent buyers of longer dated July and October options. The July 30 calls saw a burst of activity at 10:20am when 5000 contracts were purchased for $3.30 on the CBOE and ISE
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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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