Unusual Options Activity: PFE, TWTR, PG, and FB

A Pfizer Inc. (NYSE:PFE) speculator made a huge trade, while Twitter Inc (NYSE:TWTR) options were predictably popular

by Josh Selway

Published on Jul 29, 2015 at 5:13 PM

Across the 12 major exchanges today, 8.2 million calls crossed, versus 6.3 million puts. The day's put/call volume ratio ended at 0.76. 

One of the largest trades of the day occurred on
Pfizer Inc. (NYSE:PFE). One speculator apparently bought to open identical 20,000-contract blocks of the October 35 puts and October 37 calls -- a long strangle. This means the trader put down $2.68 million in hopes of a big move for PFE. Specifically, the position will profit if PFE marches north of $38.34 (call strike plus net debit of $1.34) -- in uncharted territory -- or falls south of $33.66 (put strike minus net debit) by October options expiration. Shares of PFE closed 1.1% higher at $35.76, and hit a multi-year high of $36.13.

It's not a surprise to see that Twitter Inc (NYSE:TWTR) had accelerated option volume after its big earnings miss. Put volume on the social media stock ran at five times the normal pace. TWTR closed at $31.24 -- down 14.5% -- after a day on the short-sale restricted list.

A pre-earnings bull jumped on Procter & Gamble Co (NYSE:PG) today, after the blue chip named a new CEO, with big activity at the August 82 and 83 calls. PG closed at $80.62 -- up 0.5% -- and reports earnings Thursday morning.

Facebook Inc (NASDAQ:FB) options crossed at twice the expected amount today ahead of earnings, with the weekly 7/31 series dominant. FB closed at $96.99 -- up 1.8% -- but is moving lower in electronic trading.

Speaking of interesting options trades, Adam Warner offered up some ideas for those traders looking to get a piece of China's markets


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.
HD Stock Sinks on Bear Notes, In-Store Changes
Home Depot stock received price target cuts after sharing in-store changes
Macy's Stock Hits New Lows After Being Booted from S&P 500
Carrier Global will replace Macy's on the S&P 500
The Latest Investor's Guide to Precious Metals
Learn how to protect savings and maximize returns by investing in precious metals.