Cantor Morning News

Certainly the most unusual trade was the 4 legged ATVI call spread, initiating customer bot 125k Feb 12 calls, Sold 250k Feb 13 calls, bot 62.5k Feb 14 calls, and bot 62.5k Feb 15 calls. Trade is most profitable at $13 at Feb expiration, cust paid a .19 debit to initiate this trade and the bank crossed them all. Bullish, betting a relatively small amount, but the trade isn't just picking a direction, it's picking a price.

WHR - Whirlpool seeing unusual call activity on the Sep 75, 80, 85, 90 and 95 strikes. Implied vols are up, suggesting these were bought. The Sep 80's were trading for ~ 2.79 for example, which have an upside breakeven of +6.5%. Bullish.

EP saw above average volume, much of it a result of a sale of ~5k Jan11 12.5 calls. It does not appear this traded w/stock - if initiator is range bound this could represent a level where the holder is comfortable exiting the underlying position (net 13.10 or so). If the initiator holds no position this represents where the initiator would get short. In either case it would represent a target sell price on a position that will collect ~ .62 in premium over 4 months.

ISLN - Isilon Systems (ISLN) rallies on the heels of HPs (HPQ) moves to buy 3Par. Shares of the Seattle-based data storage device maker are up $2.05 to $19.88. One contrarian minded investor seems to be using today's strength as an opportunity for a bearish trade in ISLN, apparenly paying $1.55 for the Dec 12.5 - 17.5 put spread, 3000X in midday action Monday. Looks opening. Fred Ruffy (Trade-Alert) 14:58

ATVI and WAG which saw a good sized sale of Sep 27 puts (bullish) joined the usual bank and deal names on the most actives in an otherwise light trading day for options. VIX was essentially flat to down slightly adjusting for calendar vs. trading day calculations (the three front month VIX futures were all off slightly). SPX term structure essentially unchanged 2-3mo implied vol down slightly all else unch'd,

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