A trader bought 810 ANN Dec 35-31 Put Spreads for $1.15 (2.2 times usual volume) with stock at $35.70
A trader bought 3,808 DDD May 55-50 Put Spreads for $1.60 (2.3 times usual volume) with stock at $69.88
A trader bought 7,659 ADSK Dec 45 Calls for $0.92 (2.5 times usual volume) with stock at $41.46
A trader bought 2,500 ITUB Jasn 15 Calls for $0.65 (4.1 times usual volume) with stock at $14.76
A trader bought 1,400 CSUN Nov 10 Calls for $0.34 (5.4 times usual volume) with stock at $8.55

A trader bought 1,000 XBI Dec 122 Calls for $4.10 (2.9 times usual volume) with stock at $120.62
A trader bought 7,800 TWM Jan 32 Calls for $0.05 (4.3 times usual volume) with stock at $13.74
A trader bought 1,367 MAT Nov 45 Calls for $0.725 (2.9 times usual volume) with stock at $45.26
A trader bought 1,000 ALLT Mar 12.5 Calls for $1.85 (13.6 times usual volume) with stock at $12.87
A trader bought 8,000 LCC Dec 23 Calls for $1.85 (2.4 times usual volume) with stock at $23.55

A trader bought 8,517 AVG Nov 20 Puts for $1.25 (3.4 times usual volume) with stock at $20.17
A trader bought 13,695 BBRY Dec 7 Puts for $1.06 (4.9 times usual volume) with stock at $6.63
A trader bought 2,800 NUAN Dec 14 Puts for $0.45 (2.9 times usual volume) with stock at $15.76
A trader bought 1,000 CLH Nov 60 Puts for $1.35 (7.8 times usual volume) with stock at $61.38

A trader bought 1,000 ALLT Mar 12.5 Calls for $1.85 (13.6 times usual volume) with stock at $12.87
A trader bought 8,000 LCC Dec 23 Calls for $1.85 (2.4 times usual volume) with stock at $23.55
A trader bought 8,517 AVG Nov 20 Puts for $1.25 (3.4 times usual volume) with stock at $20.17
A trader bought 13,695 BBRY Dec 7 Puts for $1.06 (4.9 times usual volume) with stock at $6.63
A trader bought 7,800 TWM Jan 32 Calls for $0.05 (4.3 times usual volume) with stock at $13.74

United States Steel Corporation (X) is a producer and seller of steel mill products in North America and Europe. The company’s stock is currently trading around $25.50 in a 52 week range of $15.80-$26.29. The stock has been performing well this year but has lagged the overall market adding only 6.54% to share prices year to date. Despite the stocks relative under-performance to the broader market options traders have stepped in to make some very bullish bets on X through January. Earlier in today’s trading session a trader sold 21,000 of the Jan 26-23 put spreads for $1.22. This short in the money put spread is a bullish bet that exposes this trader to $3.74 million worth of risk. This block also represents volume 2 times greater than the average daily option volumes in X. Shares of X are also trading well on the chart. X is well above the Ichimoku Cloud and the future cloud is indicating there could be more upside in store for X. We believe that this unusual option activity and strong chart present us with an opportunity for a covered call trade in X. (more…)

A trader bought 1,000 DBD Nov 30 Calls for $0.55 (2.3 times usual volume) with stock at $29.93
A trader bought 1,000 NTRS Dec 60 Calls for $0.30 (3.2 times usual volume) with stock at $56.46
A trader bought 10,000 ADSK Dec 44 Calls for $0.88 (2.6 times usual volume) with stock at $40.95
A trader sold 20,511 X Jan 26-23 Put Spreads for $1.22 (2 times usual volume) with stock at $25.65
A trader bought 1,000 OCN Dec 50 Calls for $5.35 (2.1 times usual volume) with stock at $53.56

A trader bought 19,588 MRO Dec 33 Puts for $0.48 (4.6 times usual volume) with stock at $35.26
A trader bought 1,250 FTR Jan 4.5 Puts for $0.30 (2 times usual volume) with stock at $4.42
A trader bought 1,000 JAH Apr 50 Puts for $1.55 (2.1 times usual volume) with stock at $55.45
A trader bought 2,600 TWO Nov 9 Puts for $0.20 (5.2 times usual volume) with stock at $9.31

A trader sold 20,511 X Jan 26-23 Put Spreads for $1.22 (2 times usual volume) with stock at $25.65
A trader bought 1,000 OCN Dec 50 Calls for $5.35 (2.1 times usual volume) with stock at $53.56
A trader bought 19,588 MRO Dec 33 Puts for $0.48 (4.6 times usual volume) with stock at $35.26
A trader bought 2,600 TWO Nov 9 Puts for $0.20 (5.2 times usual volume) with stock at $9.31
A trader bought 10,000 ADSK Dec 44 Calls for $0.88 (2.6 times usual volume) with stock at $40.95

Autodesk, Inc. (ADSK) is a company that develops design software for customers in architecture, engineering, and digital media industries. Shares of ADSK are currently trading around $40.90 in a 52 week range of $30.22-$42.82. The stock has been strong this year adding to share prices by over 15% year to date and over 26% in the past 12 months. Unusual activity in ADSK indicates to us that traders believe this run will continue through the end of the year. Early in today’s trading session a trader bought 10,000 ADSK Dec 44 calls for $0.88. This block represents volume 2.6 times the average daily option volume in ADSK. This is a very bullish trade that expresses this block trader’s belief that the stock will rally through the end of the year. The chart of ADSK also confirms that the stock is trading in bullish territory and could have more upside to come. Shares are trading well above the Ichimoku Cloud with the future cloud strongly sloping higher suggesting higher prices in the future. Given the technical strength in ADSK and the bullish unusual option activity we believe that ADSK sets up well here for a swing trade. (more…)

Cheniere Energy, Inc (LNG) is operates liquid natural gas related businesses. The company’s stock is currently trading around $39.75 in a 52 week range of $13.85-$40.85. The stock has been raging higher rallying over 111% year to date and over 144% in the past 12 months. LNG is set to report their most recent quarterly earnings today after the close. Recent earnings day performance in LNG has been relatively weak with the stock selling off 3 of the past 4 quarters. On average, the stock moves 2.4% on earnings day. Despite LNG’s weakness on earnings day we have seen a lot of bullish options order flow recently.  On Tuesday a trader bought 10,000 of the LNG Jun 34-44 bullish risk reversals for $0.51.  This is a very bullish bet that comes on the back of several other bullish blocks bought over the past two weeks. With a very strong chart we believe that this bullish order flow signals trader’s strong conviction to the upside in LNG. Currently the options market is implying a move of around $1.60 by November 8^th expiration giving us an upside target of $41.35 by Nov 8^th expiry. Using this target we can now set up an options strategy. (more…)