Paper bought 19,372 ETFC Jan 2015 7 Puts for $.41 (7.9 times usual volume) when stock was trading $11.47
Paper bought 1900 BSX April 8 Puts for $.62 when stock was trading $7.50
Paper bought 1634 MTL Oct 5 Puts for $.90 (2.7 times usual volume) when stock was trading $5.42
Paper sold 4500 DV April 30 Puts for $.86 when stock was trading $30.49
Paper bought 3196 CTSH April 75 Puts for $.85 (3.1 times usual volume) when stock was trading $78.64

Paper bought 700 PFF Oct 41 Calls for $.175 (5.8 times usual volume) when stock was trading $40.33
Paper bought 4440 PAL Sep 2 Calls for $.14 (4.7 times usual volume) when stock was trading $1.48
Paper bought 900 BJRI April 35 Calls for $.25 (7.3 times usual volume) when stock was trading $31.68
Paper bought 1000 VPR Jan 2015 55 Calls for $2.60 when stock was trading $38.70
Paper bought 800 NRGY July 20 Calls for $1.30 (2.7 times usual volume) when stock was trading $19.91

Paper bought 500 NRGM July 25 Calls for $.80 (66.4 times usual volume) when stock was trading $23.50
Paper bought 2500 AMX April 21 Calls for $.25 (10.5 times usual volume) when stock was trading $20.09
Paper bought 8000 GT April 13 Calls for $.55 (4.8 times usual volume) when stock was trading $13.19
Paper sold 1000 ACAS May 15 Puts for $.52 when stock was trading $15.04
Paper sold 1000 ASIA July 11 Puts for $.275 (14.7 times usual volume) when stock was trading $11.92

If one was inclined to play this triangle, a trader could put on a butterfly whose short ‘guts’ is at the apex of the consolidation in May and hope for horizontal action. Should a trader put on the spread now at the aforementioned level, the spread would actually have a negative Vega position, for price is at the short strike, which is fine if that confirms your thesis. Otherwise, it may be prudent to wait until oil hits one of the two trend lines. A short Vega position may not be wise considering the historically low VIX level and how ‘on edge’ this market seems to be.  Should oil keep rallying, this action may support the oil and gas sector and put a damper on the retail sector and force capital to shift sectors, which may cause volatility too.

Either way opinions might fall; oil is absolutely a key driver to watch in a market that is mostly consumed by what AAPL and GOOG are doing.

—

salerno.mark.a@gmail.com

Sometimes, I miss trades, because I am at a meeting, on the phone or away from my desk.  Every Morning when I wake up the first thing I do is turn on CNBC.  I watch to see the stocks that are moving in pre-market trading. On 3.4.2013 I saw a Trader buy 7500 STX April 35-38 Bull Call Spread for $.46.  I jumped on on board and bought the STX April 35 Calls for $.69 in real-time with real-money.  I sold the balance of these for $1.66 today. Then CNBC’s Jon Najarian talked these on the Halftime Report as well.  Great Call by him as he only flagged one trade that day. This was the biggest order over the last 10 trading days.  Let me show a breakdown of how much money this trader made.

Paper bought 7500 STX April 35-38 Call Spreads for $.47
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)
Risk: $47 per a lot
Reward: $253
Breakeven: $35.47
Cash Outlay for this Trade: $352,500

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

On 3.12.2013, these Call Spread are worth $1.06, so lets breakdown this trades Profits.

$1.06- $.47 * 100 * 7500=  $442,500

If a trader risked $1,000 on this trade and bought 52 Options they would have netted $2,300

If a trader risked $5,000 on the trade and bought 260 Options, they would netted $11,500

This is just another example of trading with the BIG money and Hedge funds in the BEST Live Trading Room http://bit.ly/108XTgh as I breakdown over 2,000 trades in a day and also tweet them on our Premium Twitter feed http://bit.ly/WmtfI4

By the way, SEC leave those HNZ traders alone.

Paper bought 800 AN April 41 Puts for $.40 (9.5 times usual volume) when stock was trading $44.06
Paper bought 2500 JNK April 41 Puts for $.50 (2.6 times usual volume) when stock was trading $40.91
Paper bought 260 NYX June 33 Puts for $.15 when stock was trading $37.63
Paper bought 500 DK March 40 Puts for $.85 (3.8 times usual volume) when stock was trading $39.30
Paper sold 1900 TJX Jan 40 Puts for $1.625 when stock was trading $44.74

Paper bought 1000 DAR April 17.5 Calls for $.55 (18.9 times usual volume) when stock was trading $17.32
Paper bought 856 GPRE June 12.5 Calls for $1.10 (15.6 times usual volume) when stock was trading $12.01
Paper bought 8795 SQQQ April 35 Calls for $1.25 (7.1 times usual volume) when stock was trading $33.80
Paper bought 1000 PGH July 6 Calls for $.15 (4.8 times usual volume) when stock was trading $5.32
Paper bought 3000 LNC Jan 2014 40 Calls for $.78 (2.8 times usual volume) when stock was trading $33.06

Paper bought 7479 JCP Aug 17 Calls for $2 when stock was trading $15.47
Paper bought 3000 LNC Jan 2014 40 Calls for $.78 (2.8 times usual volume) when stock was trading $33.06
Paper sold 2700 DNR April 18 Puts for $.35 (5.0 times usual volume) when stock was trading $18.37
Paper bought 464 RVM Aug 2.5 Calls for $.15 (25 times usual volume) when stock was trading $2.10
Paper sold 25,000 SNE Jan 2014 13 Puts for $.85 (7.4 times usual volume) when stock was trading $15.63