A giant put sell on Hewlett-Packard Company (HPQ), and post-earnings traders turn bearish on Facebook Inc (FB)
Blue chips flirted with gains late in the day, but ultimately closed modestly lower. Across the 12 major exchanges, 7.2 million calls crossed, versus 5.8 million puts. The day's put/call volume ratio settled at 0.8.
Among the most notable trades was Hewlett-Packard Company (NYSE:HPQ), where someone likely sold to open 50,000 November 30 puts for $1.78 apiece. If that's the case, the trader collected $8.9 million in premium ($1.78 per contract * 100 shares per contract * 50,000), which he or she can pocket if HPQ stays north of $30 through November options expiration. Facebook Inc (NASDAQ:FB) post-earnings options traders took a bearish rout, with puts crossing at three times normal. Sector peer LinkedIn Corp (NYSE:LNKD) also saw accelerated put action ahead of earnings.
Staples, Inc. (NASDAQ:SPLS) saw a massive call spread in the January 2016 series. United States Steel Corporation (NYSE:X) saw heavy call volume, as well. Speaking of bullish bets, some traders are expecting Amazon.com, Inc. (NASDAQ:AMZN) to jump 21% next month. Also, is it a good time to buy CBOE Volatility Index (VIX) calls?
