Turn Those Machines Back On!

• Posted by Adam Warner
• on December 29th, 2009

Some interesting trades yesterday via Cuttone and Company

In Bank of America (BAC), the Jan2011 30/40 ratio call spread was bought.  The Jan2011 30 calls were bought 140,000 times for $0.16, while the Jan2011 40 calls were sold 50,000 times for $0.04, delta neutral versus 880,000 shares at 15.30.  Although this trade was delta neutral, it looks like a bullish directional bet on BAC.

In Apple (AAPL), there was call buying in the front month, including the Jan 210 and 220 lines, as the stock continued its rally.

In the SPDR Gold Trust (GLD), the Jan 150 calls were sold 34,000 times for $0.01, in what was likely a former gold bull closing a long position in order to book the loss in 2009.  Some large positions were opened in this line for $2 – $6, so this could be a significant loss.

 

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