HPQ & XLF Weekly Options Trades Highlighted

Calendar Q3 earnings season kicks off tomorrow with Alcoa (AA) scheduled to report earnings after the market close. With shares of AA trading around $10, the weekly options straddle could be purchased for $0.73, representing a ~7% move for the week.

Notable weekly options flow today includes buyers of over 3k Hewlett Packard (HPQ) Oct 26 calls for $0.58 and buyers of over 10k Oct 12 puts in the S&P Financials ETF (XLF) for $0.22. The XLF flow looks interesting, could be traders positioning for weakness in the financials off of JP Morgan (JPM) quarterly earnings release set for Thursday before the open.

IBM and Green Mountain Coffee Roasters (GMCR) are a couple of names surfacing on my customized MarketClub Weekly Options screens today, will be looking to initiate weekly options positions tomorrow. The YHOO put sale from Friday is up over 56% today, making no changes, another night of decay sounds good to me.

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