LYB - Call Order Flow Explodes

Discussion in 'Options' started by livevol_ophir, Dec 2, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    LYB closed yesterday at $29.88, up 2.3%. The <a href="http://www.livevol.com/">LIVEVOL™ Pro Summary</a> is <a href="http://livevol.blogspot.com/2010/12/lyb.html">in the article</a>.

    <img src="http://www.livevolpro.com/help/images/blog/lyb_summary.gif" />

    Here's a quick note on a stock that would normally never make it on my radar, but the high one-sided option volume relative to the average makes it worth a quick write.

    LYB together with its subsidiaries, primarily manufactures and sells chemicals and polymers worldwide.

    The company traded over 25,000 contracts on total daily average option volume of just 1,303. The action was in the Dec 30 calls, which traded more than 21,000x, purchases as I see it. The Stats Tab and Day's biggest trades snapshots are included (<a href="http://livevol.blogspot.com/2010/12/lyb.html">in the article</a>).


    The Options Tab (<a href="http://livevol.blogspot.com/2010/12/lyb.html">in the article</a>) illustrates that the calls are mostly opening (compare OI to trade size).&nbsp; The OI as of this morning is now over 24,000, so that existing interest was also long.


    The Skew Tab snap (<a href="http://livevol.blogspot.com/2010/12/lyb.html">in the article</a>) illustrates the vols by strike by month.


    What's odd is that the skew doesn't really show a change in shape, at least as of the close.&nbsp; The stock has gone from ~ $15 in July, to now nearly $30.

    This is trade analysis, not a recommendation.

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    Details, trades, prices, vols, skews, charts here:
    <a href="http://livevol.blogspot.com/2010/12/lyb.html">http://livevol.blogspot.com/2010/12/lyb.html</a>

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