Tuesday’s total option volume of 18.1 million contracts resulted in net open interest growth of 1.96 million calls and 2.35 million puts. Bank of America Corporation (BAC), Apple Inc (AAPL), First Solar Inc (FSLR) and Citigroup Inc (C) saw the greatest growth. Top five new positions opened include 25k American International Group Inc Corp (AIG) Apr-13 36 puts, 22k Bank of America Corporation (BAC) Jan-14 12 calls, 22k Intel Corporation (INTC) Mar-13 22 calls, 21k Bank of America Corporation (BAC) Jan-15 10 puts and 20k Dell Inc (DELL) May-13 14 calls.
Radian (RDN) is seeing bullish flow for the second day in a row. The top trade is a 10,000-lot of Jan-15 5 puts, sold for $1.075 per contract. Mar 8 and Jan 10 calls are the next most active in RDN yesterday and implied volatility is down 7.5 percent to 60.5. Yesterday’s flow was focused on Aug 8 calls and created nearly 10K of new open interest in the strike.
In Ciena (CIEN), there were buyers of the Apr 15 and 16 calls collectively 9,000x. The majority of the activity occurred in a single transaction. The next earnings release is March 7 before market open.
As a follow-up to yesterday’s note, Dollar Tree (DLTR) reported strong earnings and the stock is up 9% today. In sympathy, Dollar General (DG) is up roughly 3.5%. Yesterday, we saw strong bullish flow in DG.