In the options market, the net deltas on the S&P 500 doubled yesterday. Investors are getting long technology. This sector represented two thirds of all of the money flow into the market. Yesterday, we recommended the Nov 6 calls in Atmel (ATML). 4,500 calls traded which represented 17% of open interest. The net delta position increased from the prior day.
In Array Biopharma (ARRY), there was a buyer of Dec 5 calls. Since mid July, the stock has appreciated by 71%. With the stock at $6.00 per share, this appears to be a high conviction bullish trade.
Yesterday, there was a buyer of almost 12,000 Oct 52.5 Calls in Herbalife (HLF). There is speculation that Einhorn is presenting at the Value Investing Congress on Monday and could mention HLF like he did last year. The next earnings release for HLF is October 29, well after options expiration.