Unusual activity ?

Discussion in 'Options' started by white17, Jan 23, 2003.

  1. white17


    A couple days ago someone mentioned the "unusual activity" in the EMC feb. 7.5C. I watched those today and there was a good deal of activity with several 50 & 100 lots going through at the ask. I also THINK I saw a 500K trade go through on the underlying at about 2:58pm. It didn't even phase the market. Now that trade may have been on JNPR as they are next to each other on my page but I'm pretty sure it was EMC.

    Anyone else have any observations on this one they want to share?
  2. I mentioned this same point in a different thread a few days ago. Starting Tuesday, there was great action on those EMC calls. Now that we are in hindsight, it was an obvious play. Tons of decent sized option contracts going through on the ask. I did happen to see EMC off and on Tuesday & Wednesday. Huge huge blocks going through. I was really surprised how EMC got a second wind in yesterdays session. I thought for sure it was going to get sold down, just like SEBL did at the open. I dumped my calls yesterday too early. I think at the highs of the session, you could have bailed for like .45.

    THere was absolutely insane volume on CSCO Feb 15.00 calls yesterday. A 20,000+ volume day. The majority (bigger blocks) all on the ask. Those guys are bumming they did not wait until today. The open interest also jumped today right around that number, so clearly those trades yesterday were new positions, not covers.
  3. I doubt those guys are bumming today..I have a good feeling they were synthetically buying the put.
  4. white17


    Optionsplayer; right. The highest I saw was .45 x .50. Even though it dropped today the stock still seems to have some resilience. I think it will pick up again next week.

    Rock: could be, but remember that CSCO reports earnings on the 4th. Now considering that JNPR's numbers were pretty good and a few other techs have been positive the last few days ( look at NT today) I wouldn't bet against CSCO going into earnings. If they declare a dividend however all bets are off. IMO