our trader today for chart talk is james ramelli from keene on the market dot com. re not gonna talk about tech or some other high flying sector but chemicals. you're seeing some big gains to be made in one particular company. >>right---sial. sigma aldridge---they make chemicals and test kits for biopharmaceutical companies and a lot of other chemicals for life sciences. this stock has been performing very well this year. it's up over 28%. but what i want to talk about is some very interesting options activity we saw in friday's trading session. what we saw here was jan 90 calls being sold against open interest to open new positions further out of the money in january, february, and april. traders came and bought huge lots of january 95 strike calls, february 95 strike calls and april 100 strike calls. by the end of the day, over 15 thousand contracts traded across those three expirations and that is a 125 times the average daily option volume in this stock. the stock immediately responded, spiked higher, and i already have taken profits in this trade. and i think it

james ramelli of keene on the market.com. good to have you back on the show. > >good to be here. > >you noted some call buying in sysco and then we got the news that there was a merger and it lifted that stock higher. > >right. so huge news on monday's session in sysco. the stock trades as high as 25% higher from friday's close. it did pull back quite a bit though. we saw this get kind of telegraphed when we saw huge institutional money coming into sysco that i highlighted when i joined you guys a while back. they were buying the december 35 straight calls and the january 35 straight calls. now, i was long both of them. the december's for 35 cents, i was able to sell them for $7.30 on monday's open. and january's for 50 cents i was able to sell even higher. this is a huge winning trade and a great example of why we follow unusual option activity. this stock popped on a merger and acquisition announcement. did this trader that bought all of these calls know something? it's very possible. they might get a call from the sec. but

joining us now for chart talk is james ramelli of keene on the market here to talk about a couple ofocks. good morning. >>good morning. >>let's start with cheniere energy. a lot of call buying happening here. they are looking for a big run in this stock. >>we see some aggressive out of the money call buying with some pretty aggressive targets in cheniere. whenever we talk about unusual option activity i always point to cheniere as a stock that is a great example of telegraphs in unusual option activity. institutional order flow, telegraphs moves higher in lng very well and it has all year long. it's a stock that has gone through a couple periods of consolidation throughout the year. but whenever we see institutional money coming in and getting long this stock, it heads higher. i'm currently long lng along with a lot of other traders at our firm. this is one that we really like into the next year. >>let's get the details on this one. the stock is trading around $42 but these traders think it could go well above $50. correct? >>correct. and a lot of this could be a play on volatility.

james ramelli of keene on the market dot com is doing some internet shopping for us today. good morning james. > >good morning. > >you have your eyes on ebay. and this is a stock that is showing a lot of activity in the options market. what are the options telling you james? > >the options market would be telling me that institutional money is getting very bullish ebay through next year. last year we saw record call volume trading in ebay. where nearly 215 thousand call contracts traded against around 21 thousand puts. so some massively bullish institutional order flow in ebay with very large blocks of out of the money call spreads being bought. why are they coming in and making this trade in ebay now? towards the end of the year, retail data is what's in focus. consumer spending is what's in focus here. and it seems like institutional money is expecting a really good quarter for ebay. we had the black friday numbers come out. spending was actually down in brick and mortar stores year over year but online spending was up 17 percent year over year. so this should be a very go

joining us now from cme group-- alan knuckman and james ramelli. topic one: baby taper - is the taper tantrum by bears over? alan: i really don't think it had any impact. it had a 6% impact earlier this summer when they first mentioned that silly word but now that it's come and gone, we were down 2% of the highs. i think we up and up more. james: i completely agree. on the annoucement we saw a huge short covering and the market held up pretty well the day following the annoucement. alan: it's just a little baby taper. it's nothing. james: right. what's the difference between 85 and 75? 10 billion dollars. i really don't think we're gonna see that much of an effect. alan: it's not tightening most importantly and they're not raising interest rates, maybe ever. angie: topic two: the new greek crisis - whole foods says sit will no longer sell chobani yogurt in its stores. chobani says that's okay, we're gonna be fine. was that a turnoff for investors. should people buy whole foods stock? james: i like whole foods at these levels. we saw it selloff very