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Unusual Options Activity Review - SNV, USG, TASR, SEED, FMCN, BARE, ISLE, .VIX, GLD

Bullish Flow
Synovus Financial (SNV), a Columbus, GA regional bank, edged down 7 cents to $1.61 and more than 5,000 calls traded on the session. The volume represents 3X the typical volume and compares to 1,120 puts. Players were most interest in the February calls at the 2.5 line. 2,469 changed hands. The top trade of the day was a lot of 471 contracts for 15 cents on the ISE, which was an opening customer buy order, according to sentiment data. In fact, the data indicate that 83 percent of the SNV calls traded Monday were opening buyers.

Bullish activity also picked up in USG, Taser (TASR), and Origin Agritech (SEED).


Bearish Flow
Focus Media (FMCN) saw a noticeable uptick in put activity Monday. Shares lost 14 cents to $12.96 and most of the focus was on the April puts at the $5 strike. One investor bought 26,000 contracts at 20 cents each. 27,962 had traded by the closing bell and since open interest is zero, this looks like new positions in these deep-out-of-the-money puts. 32,000 puts and 5,565 calls traded total, or about 9X the average daily. The action comes ahead of earnings, which are expected soon -- perhaps this week.

Bearish activity also picked up in Bare Escentuals (BARE), Isle of Capris Casinos (ISLE), and Focus Media (FMCN).


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Index Trading
Trading is quiet in the index market, and is likely to remain that way heading into the holiday. 550,000 calls and 438,000 puts traded across all the cash indexes, which represents 84 percent the typical volume. The CBOE Volatility Index (.VIX) fell 1 point to 21.19 and the low readings from the VIX also reflect expectations for quiet trading in the weeks ahead. However, the top index trade Monday seems to reflect the view that things might soon change. One player bought 20,000 December 60 calls at 4 cents each. The trade, which looks like a new position, seems kind of like buying a lottery ticket. That is, it's very cheap to buy, the pay-off potential is huge, but the odds of VIX closing above 60 by the December expiration seem somewhat remote.


ETF Trading
SPDR Gold Trust (GLD) gained $1.35 to $114.29 and hit a new 52-week high after gold hit another record high Monday. In the options market, GLD volume surged. 379,000 contracts traded on the exchange-traded fund. A lot of the activity was due to spread trading. For example, one investor bought the February 120 - 134 call spread, 11650 times. Another bought the June 124 - 152 call spread, 10000 times. In the end, 243,000 calls and 136,000 puts had traded on the session.

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