Options Flow Summary and Unusual Activity Alert: Cheniere Energy Inc. (LNG) & Time Warner (TWX)
There was a broad rally in US markets today as credit fears eased and bargain hunters lifted prices.
The option volume was light, with nearly 5 million puts and 5.6 million calls trading with a bullish bias to the flow. The CBOE Vix was lower by a point to 23.03.
Cheniere Energy Inc (LNG) $28.60 +6.48%
A massive call spread was legged on the ISE in LNG just after 1:30pm today. A large institutional customer appears to have bought the September 35-40 callspread 20,000 times for $1.10 tied to 300,000 shares of stock at $28.45.
This bullish spread will create the largest open interest position in the stock. As you might think, it helped to lift LNG volume to nearly 30 times its normally quiet 2,200 contract day.
Time Warner (TWX) $16.55 +0.36%
We saw bearish activity in TWX options today that included a large multi-market sweep to buy nearly 10,000 October 18 puts for $2.45 this morning.
The stock held steady but underperformed the market. The ISE sentiment data shows the buyer to be a firm or broker-dealer account opening a new position.
Posted By: Trade Alert
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