News from Cyprus rattled the markets today, and traders are
using short-term weekly options to stay nimble.
optionMONSTER's Heat Seeker monitoring program detected unusual
activity in companies such as ConocoPhillips, Anadarko Petroleum,
and Michael Kors. Volume focused on contracts expiring this Friday,
letting investors profit from short-term rallies, while also
limiting their losses if panic intensifies in the broader market.
KORS was the first to grab attention with more than 4,500 of its
57.50 Weekly calls purchased for $0.75 to $1. Minutes later,
attention turned to the APC 85 Weekly calls, where more than 6,000
contracts were bought mostly for $1.30.
Then the biggest volume hit in COP, where traders snapped up more
than 20,000 Weekly 60 calls. Most of the contracts priced for $0.16
to $0.21. Those COP calls have already more than tripled from their
initial prints for $0.07, which illustrates the leverage potential
of weekly options.
Apple, another long-time favorite of short-term traders, is also
seeing bullish activity. Its 450 Weekly calls have changed hands
almost 21,000 times, making them the top contract on our
page. The AAPL 460s, 445s, and 455s are also active.
Weekly options have grown increasingly popular in the last two
years as investors use the instruments to play short-term moves in
some of the market's most popular companies. Despite representing
less than 2 percent of all the contracts in the market, they
account for almost 18 percent of today's volume, according to
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