Tuesday’s total option volume of 16.4 million contracts resulted in net open interest growth of 2.05 million calls and 2.52 million puts. Dell Inc (DELL), Facebook Inc (FB), Apple Inc (AAPL) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 33k Chimera Investment Corporation (CIM) Mar-13 2.5 puts, 33k Dell Inc (DELL) Feb-13 11 puts, 32k Dell Inc (DELL) Feb-13 15 calls, 24k Sprint Nextel Corporation (S) Jan-14 10 calls and 24k Bank of America Corporation (BAC) May-13 12 calls.
Symantec (SYMC) is at multi-year highs. Yesterday, nearly 3x the normal options volume traded as an investor bought to open 6,000 Feb 22 calls. Yesterday, the stock was upgraded to overweight from equal-weight at Morgan Stanley. The company is scheduled to report earnings on Jan 23.
In Vornado Realty (VNO), there was 20x the normal volume of calls traded with the action concentrated in the March 84 strike. The stock has been rising off of lows since mid November and the week at-the-money implied volatility is at a 52 week low. Vornado was upgraded to Overweight from Neutral at JP Morgan this morning.
37x the normal options volume traded yesterday in Flowers Foods (FLO). The action was concentrated in the April 30 calls with over 4,000 contracts bought opening. FLO signed agreements to acquire certain Hostess Bread brands and bakeries on Monday.