10/25/11 ABX

10/25 ABX diag 45/50 (Jan/ Nov) for 4.55.

• Ray recomended it.
• Stock at support at around 47. Monthly resistant is $55 but seems to be forming cup and handle. However, remember that Cup and handle needs to break at least 2% to confirm. so it is around 57.5.
• Option flow:

1. on 10/18, 1000 # single Apr12 45 call was bought at around $5.6. Worth around 560k
2. on 10/19, 579 # Jan 13 vertical spread (35/62.5) was bought at $11.49. Worth around 650K. B/E is $47
3. on 10/20, 6100# single call of Jan 12 45 bought at around $3.25. Worth around 2 million. On 10/21, another 2500# was bought at $3.75.
4. On 10/20, 756# single put of Apr 12 40 put was sold at $3.35. Margin required 850K.