Monday’s total option volume of 10.8 million contracts resulted in net open interest growth of 1.99 million calls and 1.61 million puts. Apple Inc (AAPL), Bank of America Corporation (BAC), Vodafone Group (VOD) and Vale SA (VALE) saw the greatest growth. Top five new positions opened include 25k Goodyear Tire and Rubber Company (GT) May-13 13 calls, 21k Clearwire Corporation (CLWR) Sep-13 3 puts, 20k General Electric Company (GE) Jan-15 30 calls, 18k Best Buy Company (BBY) May-13 26 calls and 14k CommonWealth REIT (CWH) May-13 20 puts. Generally, we have a quiet morning with a positive bias.
In Liberty Interactive Corp (LINTA), there was a buyer of nearly 11,000 Jan 2014 22 strike calls. This was 75x normal volume. Today, the company is presenting at the Telsey Advisory Group Spring Conference.
In Avago Technologies (AVGO), there was a buyer of 4,000 July 32.5 calls. The stock is currently trading at $34.66 making the call purchase a high delta purchase. The company is scheduled to report earnings on May 22.
On April 4, we saw a huge call buyer in Seabridge Gold (SA) with the activity concentrated in the Jan 2014 13 calls. Today, there was a buyer of the Jan 2015 10 puts. It appears the trading in SA is a buy of volatility rather than direction.