Thursday’s total option volume of 15.4 million contracts resulted in net open interest growth of 2.67 million calls and 2.37 million puts. Bank of America Corporation (BAC), Facebook Inc (FB), Apple Inc (AAPL) and Pandora Media Inc (P) saw the greatest growth. Top five new positions opened include 55k Bank of America Corporation (BAC) Apr-13 13 calls, 39k Bank of America Corporation (BAC) Mar-13 12.5 calls, 35k Bank of America Corporation (BAC) Jun-13 14 puts, 32k Constellation Brands (STZ) Apr-13 45 calls and 26k Bank of America Corporation (BAC) 3/28 weekly 12.5 calls.
In car manufacturer General Motors (GM), there have been several instances of call/call spread buying over the past several weeks, and yesterday morning it continued with an opening buyer of 15k Jan 30 (.45d) calls for $2.24. In late January and early February there was a steady stream of seemingly bullish flow as participants bought calls and call spreads in March, June and January and Jan’15.
In Crocs (CROX), an investor bought 2,500 September 18 (.34d) calls for $0.88, equivalent to buying ~90K deltas, which at the time of the trade was over 50% of the total stock volume. Yesterday’s volume compares to the ADV of about 1,500 calls.
In Talisman Energy (TLM), we have seen a handful of large delta buyers over the past two weeks. Yesterday an investor sold 10k July 11 (.29d) puts at $0.60 vs. buying 5k July 14 (.34d) calls for $0.60. Last Friday a similar strategy was enacted with an opening participant selling July 11 puts vs. buying July 14 puts on a delta neutral basis. Additionally, in past sessions investors sold October 11 puts vs. buying October 14 calls, 5,000x, and separately an investor sold the October 11 puts as well, along with buying the October 13 calls, 8,000x.