Tuesday, December 29, 2009

GAP Tea Company (GAP) - Call Accumulator Paying Up

GAP is a $355 million company in retail food. The LIVEVOL™ Pro Summary is included below.

The company averages 517 option contracts traded a day. With an hour and a half to go there have been nearly 3,000 contracts traded. Further, the call to put ratio is 101:1. The Company snapshot is included below (click the image to enlarge it).

The biggest trades of the day snapshot below (click the image to enlarge it) shows that someone is buying the Jan 12.5 calls (green color implies trading on the offer - i.e. probably customer purchasing). The Options Tab snapshot below (click to enlarge) shows that over 2,700 of these calls have traded.

The open interest (OI) in the Jan 12.5 calls is ~2100. However, the Level II snapshot below (click the image to enlarge) shows that this OI has been steadily growing of recent.

The OI started rising on 12/24. Looking at the Jan 12.5 calls on 12/24 on the Time & Sales Tab reveals that those orders were purchases as well. This implies that the 2700 traded today are new positions - adding to the current one. Note the purchasers paid 0.42 and 0.45 on 12/24. Today they are paying up to 0.50.

This is call accumulation paying up as the accumulation continues on a 101:1 ratio calls to puts. Note also the May 12.5 calls with OI of 1,324 jumped by 900 on 12/23 - these trades were also purchases from what I can see.

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