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Minyan Mailbag: Jon Najarian

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Thx Dr. J!

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Note: Our goal in Minyanville is to remove intimidation from the financial markets and encourage an interactive dialogue among the Minyanship. We share this next article, written by Minyan Jon Najarian, with that very intent.

For more of Jon's work click here.



  • A drop in crude hit Valero (VLO) as it broke through $80 all the way to a fresh 52-week high up at $81.95 in the first half hour before breaking down to $78.70 in the next hour of trading. Traders hit the VLO April 80 & 85 calls hard, trading 8,100 and 2,500 of each, looking to lock in some of the profits from this latest move. VLO calls trade over 21,000 versus 11,000 puts and my dollar weighted index says over $3 is being spent for each call against $1 for each put.

  • A large volatility move in Pfizer (PFE) options today after their announcement that they are pulling Bextra from the market. I show over 100,000 calls trading against 20,000 puts as PFE trades down $.29 to $26.57 at mid session. Nonetheless, Prudential raised their target for PFE and Morgan Stanley upgraded shares to overweight today.

  • Bed, Bath & Beyond (BBBY) call volume of 15,000 against 5,400 puts is heavy in the bulls favor, as you would expect after last night's very positive earnings report. However, my dollar weighted scan shows over 4:1 ratio. The April 35 and 37.50 calls have had rapid turnover today, trading 2,400 and 3,500 respectively. The April 35s are up $2.30 to $2.85 (+400%) and the April 40s are up from a dime last night to $.65 today, a gain of 650%.

  • Our trade of the day from yesterday, Alcoa (AA) is trading up over $1.40 today and April call buyers are cashing out after their 100% profits from the April 30 calls, which have moved up from $.75 to $1.50 in a single session. I show 4,400 of those calls changing hands.

No positions in stocks mentioned.

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