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Option Clips: CVS Caremark, Ralph Lauren, and Alcatel Lucent SA (ADR)

Reviewing notable options activity on CVS Caremark Corporation, Ralph Lauren Corp, and Alcatel Lucent SA (ADR)

by 2/5/2014 2:14 PM
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Two equities generating buzz on StockTwits today are pharmacy chain CVS Caremark Corporation (NYSE:CVS) and apparel maker Ralph Lauren Corp (NYSE:RL). France-based Alcatel Lucent SA (ADR) (NYSE:ALU), meanwhile, is also garnering unusual attention in the options pits. Here's a look at how traders have been aligning their speculative bets today.

  • CVS Caremark Corporation (NYSE:CVS) is down 0.6% at $65.70, as traders digest the company's plans to stop selling tobacco products. CVS options are in demand today, sending its 30-day at-the-money implied volatility 6.8% higher, to a fresh annual peak of 23.2%. Overall put volume is running at twice the normal rate, with more than 3,800 contracts exchanged. Digging deeper, all signs point to bearish, buy-to-open activity at the at-the-money February 65 put, which is most active thus far.

  • Ralph Lauren Corp (NYSE:RL) fell to a new annual low of $146 today, but has since trimmed its deficit to 2.1% to trade at $150.95. In the wake of the company's fiscal third-quarter revenue miss, total option volume is running at seven times the typical intraday pace, with roughly 11,000 calls and 6,300 puts traded. One long-term speculator has swooped in amid the stock's decline, implementing a three-way spread with January 2015 165- and 200-strike calls, and January 2015 145-strike puts.

  • Alcatel Lucent SA (ADR) (NYSE:ALU) is 0.9% higher at $4.15, ahead of the firm's turn in the earnings spotlight tomorrow morning. Around 2,200 puts have changed hands thus far, nearly tripling the equity's average intraday volume. More than 80% of the action has transpired at the February 4 put, which is seeing bearish, buy-to-open activity, per the International Securities Exchange (ISE).


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