Anadarko Petroleum Corporation (APC) is an energy exploration and production company with production around the world. The company’s stock is currently trading around $100.25 in a 52 week range of $73.60-$103.50. The stock has been massively outperforming the market this year with shares of APC rallying more than 26% year to date. Options traders seem to think this trend will continue as we have seen some huge bullish bets hitting the tape today. Earlier this morning a trader bought 25,000 APC Jan 2015 120-135 Call Spreads for $1.61. This order represents volume nearly 2.5 times the average daily option volume in APC. This trade also required this trader to lay out more than $4 million in premium. With the chart of APC trading in bullish territory order flow this strong could be signaling some serious upside in APC.

Block Trade:  Trader bought 25,000 APC Jan 2015 120-135 Call Spreads for $1.61
Risk: $161 per 1 lot
Reward: $1,339per 1 lot
Breakeven: $121.61

Chesapeake Energy Corporation is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids (NGL) from underground reservoirs in the United States.

CHK followed by short one sentence description of the company’s business area, product, operation. CHK is currently trading around $29.24 in a 52 week range of $18.86.00-$29.27. The company’s stock has been over performing the market this year with shares rallying year to date. Options traders seem to think that this trend will reverse/continue as order flow in CHK has been decidedly bearish/bullish during today’s trading session. Earlier today a trader bought 35,000 CHK Oct 35-40 Call Spreads for $.41 debit. This is an extremely bullish order and involves this trader laying out $1,435,000 in total premium. With this order flow and this chart set up I believe CHK is setting up well for a long.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

Airlines have been doing well this year and two names in the space are coming into focus today after reporting earnings early this morning. United Continental Holdings, Inc. (UAL) and American Airlines Group Inc.(AAL) are both seeing some unusual options activity in early trading today. Both stocks are trading lower this morning with UAL trading lower by over 6%. Despite the weakness in these names this morning options order flow has been relatively bullish in both names. Early this morning we saw a trader buy 5,000 AAL Apr 25^th 38 calls for $0.15. This was labeled as an opening position and with expiration only 1 day away these may be considered “lottery tickets” but the reward to risk ratio is setting up well here if AAL reverses. The action in UAL was smaller with a trader buying 2,000 UAL Jun 45 calls for $2.04. The UAL trader is not likely looking for a quick move higher but a return to pre earnings levels in UAL through June expiration. While these are two very different setups both are looking for a reversal in these names but with two very different time frames.

Block Trades: Trader Bought 5,000 AAL Apr 25^th Weekly 38 Calls for $0.15
Risk: $15 per 1 lot
Reward: Unlimited
Breakeven: $38.15

Trader Bought 2,000 UAL Jun 45 Calls for $2.04
Risk: $204 per 1 lot
Reward: Unlimited
Breakeven: $47.04

Move, Inc (MOVE) is a real estate information marketplace providing buyers and sellers of real estate with information and resources through online portals. The company’s stock is currently trading around $12.15 in a 52 week range of $9.91-$18.36. The stock has been very weak this year with shares falling more than 24% year to date. Despite the weakness in the stock options traders are taking a very bullish view on MOVE. Earlier this morning a trader bought 2,000 MOVE Jul 12.5 Calls for $0.90. Over 4,800 contracts have now traded on that line representing the majority of today’s option volume in MOVE. More than 70 times the average daily option volume has already traded in MOVE. Although shares of MOVE are trading well below the cloud order flow this massive is worth looking at.

Block Trade: Trader Bought 2,000 MOVE Jul 12.5 Calls for $0.90
Risk: $90 per 1 lot
Reward: Unlimited
Breakeven: $13.40

Move, Inc. operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. MOVE is currently trading around $12.10 in a 52 week range of $9.91-$18.0036. The company’s stock has been underperforming the market this year with shares falling year to date. Options traders seem to think that this trend will reverseas order flow in XYZ has been decidedly bullish during today’s trading session. Earlier today a trader bought 2000 MOVE July 12.5 Calls for $.90. This is an extremely bullish order and involves this trader laying out $180,000 in total premium. With this order flow and this chart set up I believe XYZ is setting up well for a long.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

My Trade: I bought 150 MOVE July 12.5 Calls for $1.00
4 Targets: $1.15, $1.30, $1.50 and $1.75

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

Stanley Black & Decker, Inc. provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems for various industrial applications. SWK is currently trading around $82.20 in a 52 week range of $73.77-$92.76. The company’s stock has been over performing the market this year with shares rallying year to date. Options traders seem to think that this trend will continue as order flow in XYZ has been decidedly /bullish during today’s trading session. Earlier today a trader bought 2400 SWK May 82.5 Calls for $2.05. This is an extremely bullish order and involves this trader laying out $492,000 in total premium. One sentence summary of the chart and the cloud. With this order flow and this chart set up I believe XYZ is setting up well for a long.

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u.

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

My Trade: I bought 100 SWK May 82.5 Calls for $1.91 and will Sell 80% by End of the Day:
Targets: $2.10, $2.30 and $2.60

Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long

FMC Technologies, Inc. provides technology solutions for the energy industry worldwide. Its Subsea Technologies segment offers subsea systems for the offshore production of crude oil and natural gas, as well as installation and workover tools, service technicians for installation assistance, and field support for commissioning, intervention, and maintenance of its subsea systems. FTI reported Earnings yesterday after the bell and I as I watch institutional order flow all day long, I saw a trader buy 1200 of the FTI May 57.5 Calls for $.80. Most traders might say that a 1200 lot is not a “Big” order, but the trade has to be compared to the usual volume of options that stock trades in a day, so this was over 25 times “Usual Volume.” Lets break down their P&L:

The Trade: Trader bought 1200 FTI May 57.5 Calls for $.80
Their Cash Outlay: $96,000
Cash Profit if Sold at Today’s Pricing: $180,000

Full Disclosure:
I bought 15 FTI May 57.5 Calls for $.80
I sold them today for $1.90 for a $1650 Profit