Bullish Idea:
Murphy Oil Corp. (MUR)
Murphy Oil (MUR) adds $4.54 to $63.54 after announcing plans to spinoff its refining business. The company also said it was paying a special dividend and initiating a $1 billion share buyback. The stock is up and recent options trades on the stock include a Jan 62.5 – 65 (1X2) call ratio spread for $1.70, 20000X. It possibly rolls a block of 20,000 Jan 62.5 calls opened earlier this month when 20,000 were bought for $1.89 following a CNBC report that Third Point might take an activist role in MUR (see 10/4 color). The stock has rallied 9.2 percent since that time and the position is being closed at $3.90 — a $4 million win. A new position is being opened in 40,000 Jan 65 calls for $2.80 and, at the same time, a 20000-lot of Jan 70 calls was sold at $1.10 per contract, resulting in a new position in the Jan 65 – 70 (2X1) call ratio spread. If so, the new position seems to express continued confidence in MUR.
Bearish Trading Ideas:
Overseas Shipholding Group: (OSG):
Overseas Shipholding (OSG), which saw a flurry of put activty Friday when the stock was still north of $5 (see 10/12 color), has come under fire today. The stock is down $1.46 to $3.71 on heavy volume of 2 million shares and at session lows on concerns the shipping company has maxed out its lending facilities. Another 20,000 puts and 7,350 calls traded on the stock. Jan 4 puts were the most actives Friday. Now, Jan and Oct 3 puts are seeing the bulk of the flow and 30-day ATM vols are soaring 83 percent to 220.
Trade Ideas (H/T: Fred Ruffy )
Murphy Oil Corp. (MUR)
Murphy Oil (MUR) adds $4.54 to $63.54 after announcing plans to spinoff its refining business. The company also said it was paying a special dividend and initiating a $1 billion share buyback. The stock is up and recent options trades on the stock include a Jan 62.5 – 65 (1X2) call ratio spread for $1.70, 20000X. It possibly rolls a block of 20,000 Jan 62.5 calls opened earlier this month when 20,000 were bought for $1.89 following a CNBC report that Third Point might take an activist role in MUR (see 10/4 color). The stock has rallied 9.2 percent since that time and the position is being closed at $3.90 — a $4 million win. A new position is being opened in 40,000 Jan 65 calls for $2.80 and, at the same time, a 20000-lot of Jan 70 calls was sold at $1.10 per contract, resulting in a new position in the Jan 65 – 70 (2X1) call ratio spread. If so, the new position seems to express continued confidence in MUR.
Bearish Trading Ideas:
Overseas Shipholding Group: (OSG):
Overseas Shipholding (OSG), which saw a flurry of put activty Friday when the stock was still north of $5 (see 10/12 color), has come under fire today. The stock is down $1.46 to $3.71 on heavy volume of 2 million shares and at session lows on concerns the shipping company has maxed out its lending facilities. Another 20,000 puts and 7,350 calls traded on the stock. Jan 4 puts were the most actives Friday. Now, Jan and Oct 3 puts are seeing the bulk of the flow and 30-day ATM vols are soaring 83 percent to 220.
Trade Ideas (H/T: Fred Ruffy )
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Great info - where do you get the flows info?
ReplyDeleteI get these from various subscriptions (paid & unpaid)and giving it free to my readers. I am not sure where retail can get these info. but you will have it here definitely.
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