SCSS - Call Accumulator into Earnings

Discussion in 'Trading' started by livevol_ophir, Feb 2, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    SCSS is trading 7.35 with vol up 15% today. Earnings are on 2/10.

    The company has traded over 4,300 options today in the first three hours on total daily average option volume of 202. Further, 4,225 have been calls for a 32:1 call: put ratio. The Company Tab snapshot is in the article.

    Essentially the entire volume has been purchases of the Feb 7.5 and Mar 7.5 calls. The day's biggest trades and Option Tab snapshots are in the article.

    Note the OI in both lines is in the 3000+ range - these trades could be closing as the volume is less than the OI. Also, the OI in the Feb 7.5 line looks suspiciously similar to the actual volume. I have included the Level II pop outs for each line below with the OI chart in the article.

    You can see that the OI for both lines has a similar climb. Going to the Time & Sales Tab I looked these opening trades up - they were also purchases. It seems that the call purchases today are a double down bet on the original call purchases (not necessarily by the same entity).

    So vol is up, OI is doubling, option volume is 2000% of the daily average and earnings are coming in a week.

    You can see details, charts, trades, prices, quotes here:
  2. Ophir, I'd like to say just one thing...

    You guys are posting some good stuff. If I were involved in equity options, I think I would find your ideas and general mkt color valuable.
  3. livevol_ophir

    livevol_ophir ET Sponsor

    Thanks a lot - I really appreciate it.