I am a trader, not an expert on geopolitical events. For me it’s important to stay focused on markets, namely price action and order flow. We knew that there was a chance of news over the weekend and we saw some interesting price action into Friday’s close. As far as Russia we actually saw a fair amount of options activity early last week in the Market Vectors Russia ETF (RSX), as traders positioned themselves for the weekend. Puts massively out traded calls on Tuesday and Wednesday as concerns over the situation in the Ukraine continued.

Today we are actually seeing the exact opposite; calls are out trading puts in the opening hour of the session as two huge blocks of short puts hit the tape this morning. A trader sold 9,650 then another 9,500 Mar 21 puts this morning for $0.40 indicating they believe RSX will stay above 21 through March expiration

Although it is an obviously tense situation I think if market participants were truly in a panic we would see a much larger move in the VIX. Although the VIX is up nearly 15% today it’s still only trading at 16. Traders can still buy relatively cheap protection and I still do not see a reason to get short the market. We overlooked some positive data this morning because of the Ukraine situation. Not time to panic yet.

InterMune, Inc (ITMN) is a biotechnology and medical research company focused on developing therapies for the treatment of lung conditions. The company’s stock is currently trading around $31.05 in a 52 week range of $8.21-$37.22. The stock is now higher by over 261% over the past 12 months with stock prices nearly doubling during today’s trading session. This large move higher was telegraphed by some unusual options activity earlier this month.On February 10th a trader sold 9,900 ITMN May 8 puts to buy 9,900 of the May 15 calls for a net debit of $2.78. With stock at $31.05 this spread is worth $16.05. At that level this trader profits over $15.8 million in this trade. This was the biggest trade in the past 10 days and did a good job of leading the move higher. The options action in ITMN and subsequent move higher in the stock is another great example of the value of reading the tape.

Rovi Corporation (ROVI) is a company that focuses on providing content discovery, video delivery and advertising through a number of platforms. The company’s stock is currently trading around $24.70 in a 52 week range of $16.00-$26.55. The stock performed very well last year with shares gaining over 38% in the past 12 months. Options action during today’s trading session would suggest that traders believe the stock will continue this rally through April expiration. Early in the session a trader bought 1,077 ROVI Apr 25 calls for $1.60. This is a very bullish trade that also represents volume nearly 4 times the average daily option volume in ROVI. Shares of ROVI are also trading well above the Ichimoku Cloud and the future cloud is thick and upward sloping. We believe that strong technicals and bullish order flow provide a great signal for a long setup in ROVI.

Trade: Buying the ROVI Apr 25 Calls for $1.55
Risk: $155 per 1 lot
Reward: Unlimited
Breakeven: $26.55

Southwestern Energy Company (SWN) is an independent oil and natural gas company with a focus on exploration and production. The company’s stock is currently trading around $42.35 in a 52 week range of $31.91-$43.51. The stock made a new 52 week high yesterday extending its year to date rally to about 7.5%. Traders seem to believe that SWN’s strength will continue as we have seen some very large bullish orders hitting the tape today. Earlier in the trading session a trader bought 15,000 SWN Jun 47 calls for $1.05. This is a $1.575 million bet on more upside in SWN. With shares of SWN trading just off of their 52 week highs and well above the Ichimoku Cloud we believe that order flow this large signals for a long opportunity in SWN.

Trade: I bought the SWN Jun 47 Calls for $1.10
Risk: $110 per 1 lot
Reward: Unlimited
Breakeven: $48.10

OSI Systems, Inc (OSIS) is a designer and manufacturer of electronic components and parts for the healthcare, aerospace, security and defense industries. The company’s stock is currently trading around $61.85 in a 52 week range of $39.00-$78.50. The stock has under performed the market over the past year with shares gaining only 8.12%. Recent price action has been more bullish however and options action in the name during today’s session indicates that traders believe this trend will continue through July expiration. Early in the session a trader bought 1,421 OSIS Jul 65 Calls for $5.62. This is a very large block to trade in OSIS. This block represents volume over 13 times the average daily option volume in OSIS. With the stock trading above the Ichimoku Cloud and the future cloud sloping higher we believe that order flow this strong is a great signal for a long in OSIS.

Trade: I bought the OSIS Jul 65 Calls for $5.70
Risk: $570 per 1 lot
Reward: Unlimited
Breakeven: $70.70

To See Our TradingView Post Click Here

Rovi Corporation (ROVI) is a IT services and consulting firm with a focus on digital entertainment. The company’s stock is currently trading around $23.85 in a 52 week range of $16.00-$26.55. The stock has been performing well over the past year with shares rallying over 32% in the past 12 months. Options action in ROVI during today’s trading session would suggest that traders believe this trend will continue and that ROVI will be strong through April expiration. Late in the session a trader bought 2,418 ROVI Apr 25 Calls for $0.93. This is a very large block that represents volume more than 11 times the average daily option volume in ROVI. Shares of ROVI are also trading well above the Ichimoku Cloud and the future cloud is sloping higher suggesting there is more potential upside in ROVI. We believe that this strong order flow and bullish chart set up signals for a long position in ROVI.

Trade: I bought the ROVI Apr 25 Calls for $1.02
Risk: $102 per 1 lot
Reward: Unlimited
Breakeven: $26.02

Comstock Resources Inc (CRK) is a oil and natural gas exploration and production company with most of its operations in Texas and Louisiana. The company’s stock is currently trading around $20.00 in a 52 week range of $13.12-$20.12. The stock has performed very well in the past year with shares gaining over 45% in the past 12 months. Options action in CRK during today’s trading session would suggest that traders believe there is more upside to come. Earlier in today’s session a trader bought 6,000 CRK Jun 20 Calls for $1.80. This is a very bullish trade and this block represents volume nearly 5.5 times the average daily option volume in CRK. Shares of CRK are also trading well above the Ichimoku Cloud with the future cloud beginning to slope higher. This indicates the stock is trading in bullish territory and that there could me more upside in the future. We believe that the bullish order flow in CRK and the strong chart are more than enough signal for a long position.

Trade: I bought the CRK Jun 20 Calls for $1.80
Risk: $180 per 1 lot
Reward: Unlimited
Breakeven: $21.80