Wednesday’s total option volume of 19.1 million contracts resulted in net open interest growth of 2.53 million calls and 2.75 million puts. Citigroup Inc (C), Bank of America Corporation (BAC), Microsoft Corp (MSFT) and Williams Companies Inc (WMB) saw the greatest growth. Top five new positions opened include 24k Occidental Petroleum Corporation (OXY) May-13 90 calls, 20k Clearwire Corporation (CLWR) Sep-13 3.5 puts, 20k Clearwire Corporation (CLWR) Sep-13 3.5 calls, 17k EMC Corp (EMC) Jan-14 15 puts and 17k EMC Corp (EMC) Jan-14 20 puts.
In Owens Corning (OC), there was a buyer of 4,000 Aug 45 calls yesterday. OC beat earnings estimates on April 24 and is appearing at an industry conference on June 11. Otherwise, it does not appear that there are any major catalysts to explain the call buying.
In Casella Waste Systems (CWST), there was a buyer of 1302 Dec 5 calls yesterday. This was large volume for the rarely traded security. The stock has traded in a range of $3.80 to roughly $4.40 for the past year.
The bull market continues with few pullbacks. Buying at the high has worked all year long. While it is emotionally challenging to step into the market at the new high, it appears the market momentum is gaining strength.