Thursday’s total option volume of 13.2 million contracts resulted in net open interest growth of 1.96 million calls and 1.46 million puts. Bank of America Corporation (BAC), Apple Inc (AAPL), Sandridge Energy Inc (SD) and McMoRan Exploration Co (MMR) saw the greatest growth. Top five new positions opened include 60k Bank of America Corporation (BAC) Mar 13 calls, 47k Nokia Corp (NOK) Jan-14 7 calls, 42k Nexen Inc (NXY) Dec 27 calls, 27k Procter and Gamble Co (PG) Jul 72.5 calls and 21k Sandridge Energy Inc (SD) Dec 8 calls.
Smith & Wesson (SWHC) reported in-line with a positive preannouncement and provided upside to full-year earnings and revenue guidance. The board of directors approved a $20 billion share repurchase program. In options, there were buyers of the Dec 11 calls 5,000 times. In Facebook (FB) we saw 17K Dec 26 puts purchased and 10K Dec 27 puts purchased. Additionally, there was a seller of 19K FB Frid 12/7 28 calls (expire today). We continue to like our recommended Dec 27 put position which is a play on the 140 million share lock-up coming off on Dec 14.