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
Updated on Jun 24, 2020 at 10:16 AM

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


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