Friday’s total option volume of 20.1 million contracts resulted in net open interest growth of 2.90 million calls and 3.24 million puts. Volume has been running greater than 30% above the year-to-date daily average for four of the past five days. The pick-up in activity is the result of the wild move in gold last week and the increased volatility.
Bank of America (BAC), JP Morgan Chase (JPM), Apple (AAPL) and Procter and Gamble (PG) saw the greatest growth. Top five new positions opened include 27k Petroleo Brasileiro (PBR) Jun-13 20 calls, 22k Procter and Gamble (PG) May-13 72.5 puts, 18k Guess (GES) Sep-13 22 puts, 18k JP Morgan Chase (JPM) May-13 52.5 calls and 16k Microsoft (MSFT) May-13 31 calls.
Petroleo Barasileiro (PBR) volume was four times normal on Friday. 27K PBR June 20 calls and 27K PBR May 20 calls traded with the stock at $16.37. It appears this investor was rolling out the trade (closing May calls bought April 11) to allow more time for the big move needed to work out.
Pitney Bowes (PBI) volume was 10 times normal on Friday. Investors bought to open 10K May 12 puts and 5 May 13 puts with the stock at $14.31. The stock is up nearly 35% year-to-date although the stock only has a P/E of 6.8, investors appear to be playing a downside move.
In Overstock.com (OSTK) volume ran 21 times normal as a stock hit a 52-week high. The stock exploded higher on earnings last Thursday and gapped higher again on Friday. Investors bought to open 1,700 May 20 calls looking for more upside.