MSFT a substantial Sep 27/28 ratio call spread traded 90k x 130k contracts, possibly an adjustment to a diagonal trade put on in late July, maintaining a bullish view.
ABX - an opening seller of 4k sep 43/46 strangles @ 1.94 is betting the miner will be rangebound through Sep expiration (30 calendar days away). A similar strategy was seen in PG, 15k Sep 57.5/60 strangles were sold @ 1.50.
SNI saw 15x avg daily volume, all apparently bearish opening put buyers.
AEO - reports earnings next Wednesday, low debt, cash on the balance sheet and monthly same store sales results would normally suggest a non-event, however there was substantial call buying on several September strikes, speculating on a possible acquisition of the company according to reports from a few sources, including Bloomberg.
BX - Saw an interesting ratio spread, customer sold the 3k Jan11 9 puts, bot 2k Jan11 11/16 call spreads essentially for even. Bullish. Trade makes money above 11, with a max profit of 1mm @ $16 or above at expiration, loses below $9 (get long 300k shares at that level)
General levels of volatility are little changed, expected given that the market was essentially flat. Vix up very slightly, short term SPX implieds down slightly from a week ago, while the long end is very slightly higher. Skew (the price of puts relative to calls) steepened slightly. Most actives were the usual suspects (MSFT, C, BAC, AAPL) and a couple unusual ones due to deal chatter (POT) unusual call volume in CMI should be ignored - dividend related, stock goes ex tomorrow.
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