Your intraday options trading update.
LinkedIn Options Could Start Soon
The biggest news this morning was the dramatic jump in social networking site LinkedIn Corp. (NYSE: LNKD) with the stock skyrocketing up at one point more than 140% to 109 on its first day of trading. LNKD valued at somewhere around $9 billion at these prices, according to reports.
So will we see options on LNKD? Does a bear buy puts in the woods?
A spokesperson for the NASDAQ OMX PHLX and sister NASDAQ Options Market (NASDAQ: NDAQ) wrote in an email that “All U.S. options exchanges … will start trading options on Linked In next Friday, May 27.”
A spokesperson with the Chicago Board Options Exchange (NASDAQ: CBOE) declined to say whether the exchange would list LNKD but confirmed the soonest it would become eligible would by May 27.
As this is only the first day of trading for LNKD it doesn’t yet meet options listing standards. But it probably soon will. According to The Options Industry Council an underlying must meet these requirements —
* be listed on a major national exchange,
* close above $3.00 per share “for a majority of the trading days during at least five trading days”,
* have at least 2,000 shareholders,
* have at least 7 million publicly-held shares outstanding, excluding shares held by directors or holders of 10% or more of the underlying.
High Options Volume by Strike
The SPDR S&P 500 ETF (NYSE: SPY) holds most of the busy strikes today with the ETF at 134.50. The at-the-money SPY May 134 Put trading 91,282 contracts, down .16 to .30. The SPY May 135 Call trades about 89,000 while the SPY May 135 Put trades 70,000.
The S&P 500 Index Options (CBOE: SPX) sees its SPX Jul 1320 Put trade 66,000 contracts, down 1.30 to 24.00. SPX was at 1342.07.
The CBOE Volatility Index (CBOE: VIX) garners more than 55,000 contracts apiece on its VIX Jun 32.5 Calls and VIX Jul 30 Calls. The VIX was at 15.92.
Major Stock Trading Volume Movers
Health and fitness firm Gaiam (NASDAQ: GAIA) trades down 1.6% to 5.06 on 2.3 million shares.
Smart Technologies (NYSE: SMT) trades 5.5 million shares, down 2.59 to 7.13. Quarterly release yesterday disappointed with FY 2012 revenue expected to be flat.
Big Lots (NYSE: BIG) is down 4.40 to 33.34 on 11 million shares after Wall Street Journal reports retailer has decided not to sell itself.
Find more option analysis and trading ideas at Options Trading Strategies.
Stocks/Underlying – Big Daily Change in Option Volume
Pharmacyclics (NASDAQ: PCYC) trades 818 options, a rise of 2600% with the stock up .24 to 6.92. OptionMONSTER reports 7,500 PCYC Aug 6 Puts traded for 0.30. Company is scheduled to discuss a cancer treatment drug during a medical industry meet first week in June.
Take-Two Interactive (NASDAQ: TTWO) trades 22,600 options as stock is up .32 to 17.93. Game maker released L.A. Noire this week.
IShares MSCI Hong Kong Index Fund (NYSE: EWH) trades more than 18,000 options, a rise of 831%. EWH is up .10 to 19.27.
Stocks/Underlying – High Option Volume
Top equity is Bank of America (NYSE: BAC), down .08 to 11.71. 80,382 options trade.
SPY has option volume of about 894,007 option contracts while the SPX trades more than 455,000 option contracts.
VIX is down .51 to 15.72 with 272,000 options trading against the index.
The iShares Silver Trust (NYSE: SLV) trades down .19 to 34.04 2oth about 210,000 options trading.
The iShares Russell 2000 Index ETF (NYSE: IWM) trades 175,000 options.
Burney Simpson is the managing editor of InvestorPlace options pages.