Friday’s total option volume of 18.1 million contracts resulted in net open interest growth of 2.96 million calls and 2.54 million puts. Dell Inc (DELL), Bank of America (BAC), Apple (AAPL) and Exelon (EXC) saw the greatest growth. Top five new positions opened include 36k Dell (DELL) 2/8 weekly 14.5 calls, 31k Bank of America (BAC) Feb-13 12 calls, 28k Dell (DELL) Mar-13 15 calls, 25k MetLife (MET) Jan-14 50 calls and 23k MetLife (MET) Jan-14 45 calls.
Ahead of earnings, market participants are positioning for further upside in Pacer International (PACR) where 1K PACR Feb 5 calls were bought to open (50 times normal volume and earnings before the open on 2/7, stock ) and in Triquint Semiconductor (TQNT) where 1,200 Feb 6 calls were bought to open (3 times normal and earnings after the close on 2/6, stock $5.59).
In Teradyne (TER), option traders got long 6,500 TER Jul 16 calls which represented 6 times normal volume. And lastly, in Thermo Fisher Scientific (TMO), with the stock at all-time highs, market participants got long 7K TMO Mar 75 calls with the stock at $75 – could be a stock replacement strategy as the stock is up nearly 20% YTD.