For Monday's Options Action, Mike Khouw of Cantor Fitzgerald is honing in on a stock that has been on options traders' radars: Northern Trust .
A potential takeover by HBSC fueled a lot of call buying, Khouw said. This drove up the price of options, he noted. Chasing that kind of action is a "dangerous game," but selling premium while preserving a bullish bet is one way to try and capitalize on it.
***MIKE'S NTRS TRADE****
Sell the Oct. 50 puts at $3.40 to buy 55 calls for $1.00
To learn more about this trade, watch the video now!*
* Editor's Note: We will have this video shortly.
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Trader disclosures for Aug. 16, 2010:
Joe Terranova
Terranova owns (AKAM)
Terranova owns (V)
Terranova owns (NRG)
Terranova owns (POT)
Terranova owns (OXY)
Terranova owns (GLD)
Terranova owns (BAX)
Terranova owns (MOS)
Terranova owns (PFE)
Terranova owns (SU)
Terranova owns (XBI)
Terranova owns (GOOG)
Terranova owns (LRCX)
Terranova owns (AXP)
Terranova owns (C)
Terranova owns (GS)
Terranova owns (BMO)
Terranova owns (MSFT)
Terranova owns (QCOM)
Terranova owns (FCX)
Terranova owns (APA)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners own more than 1% of (ABAX)
Virtus Investment Partners own more than 1% of (ALK)
Virtus Investment Partners own more than 1% of (AMKR)
Virtus Investment Partners own more than 1% of (CASS)
Virtus Investment Partners own more than 1% of (CSVI)
Virtus Investment Partners own more than 1% of (XLY)
Virtus Investment Partners own more than 1% of (XLP)
Virtus Investment Partners own more than 1% of (DRYS)
Virtus Investment Partners own more than 1% of (EXR)
Virtus Investment Partners own more than 1% of (XLI)
Virtus Investment Partners own more than 1% of (IGE)
Virtus Investment Partners own more than 1% of (LDR)
Virtus Investment Partners own more than 1% of (LPHI)
Virtus Investment Partners own more than 1% of (XLB)
Virtus Investment Partners own more than 1% of (MGRC)
Virtus Investment Partners own more than 1% of (NRCI)
Virtus Investment Partners own more than 1% of (DBV)
Virtus Investment Partners own more than 1% of (SUBK)
Virtus Investment Partners own more than 1% of (XLK)
Virtus Investment Partners own more than 1% of (XLU)
Virtus Investment Partners own more than 1% of (WDFC)
Virtus Investment Partners own more than 1% of (YDNT)
Steve Grasso
Grasso owns (ASTM)
Grasso owns (BA)
Grasso owns (BAC)
Grasso owns (C)
Grasso owns (CSCO)
Grasso owns (JPM)
Grasso owns (LPX)
Grasso owns (MO)
Grasso owns (MOT)
Grasso owns (NDAQ)
Grasso owns (PFE)
Grasso owns (PRST)
Stuart Frankel & Co and it’s partners own (BAX)
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (DYN)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TBT)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Karen Finerman
Finerman & Finerman's firm owns (BAC)
Finerman & Finerman's firm owns (CVS)
Finerman’s firm owns (GENZ) call spreads
Finerman’s firm owns (FLIR)
Finerman & Finerman's firm owns (HPQ)
Finerman & Finerman's firm owns (JPM)
Finerman's firm owns (RIMM)
Finerman & Finerman's firm owns (TJX)
Finerman's firm owns (WMT)
Finerman's firm owns (YUM)
Finerman's firm is short (IJR)
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman’s firm owns S&P 500 puts
Finerman’s firm owns Russell 2000 puts
Jon Najarian
Jon Najarian owns (CSCO) short puts
Jon Najarian owns (EBAY) short calls
Jon Najarian owns (TJX) short calls
Jon Najarian owns (GIS) calls
Brian Kelly
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (JNJ)
Accounts managed by Kanundrum Capital are long Swiss Franc
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (XBI)
Accounts managed by Kanundrum Capital own (RIMM)
Accounts managed by Kanundrum Capital are long U.S. Dollar
Accounts managed by Kanundrum Capital are long Japanese Yen
Accounts managed by Kanundrum Capital are short (IAI)
Accounts managed by Kanundrum Capital are short (RTH)
Accounts managed by Kanundrum Capital are short the U.K. Pound
Anthony Scaramucci
Scaramucci and SkyBridge Capital own (MO)
Scaramucci and SkyBridge Capital own (PFE)
Scaramucci and SkyBridge Capital own (KFT)
Dennis Gartman
Funds managed by Dennis Gartman own gold
Neil Currie
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided.
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and non-investment banking securities-related services are being, or have been, provided.
(WMT) is, or within the past 12 months has been, a client of UBS Securities LLC, and non-securities services are being, or have been, provided.
Within the past 12 months, UBS Securities LLC has received compensation from (WMT), (SWY), (SHLD), (KR)
Bob Wetenhall
RBC Capital Markets Corp. makes a market in the securities of Strayer Education, Inc.
Mike Khouw
Cantor Fitzgerald makes a market in (NTRS)