Tuesday’s total option volume of 16.9 million contracts resulted in net open interest growth of 2.19 million calls and 2.30 million puts. Bank of America Corporation (BAC), J C Penney Company Inc (JCP), Apple Inc (AAPL) and TD Ameritrade Holding Corporation (AMTD) saw the greatest growth. Top five new positions opened include 41k TD Ameritrade Holding Corporation (AMTD) Aug-13 23 calls, 22k General Electric Company (GE) Mar-13 24 calls, 20k Bank of America Corporation (BAC) Mar-13 12 calls, 20k Facebook Inc (FB) Apr-13 30 calls and 18k J P Morgan Chase and Company (JPM) Apr-13 47 puts.
In TD Ameritrade (AMTD), there was a buyer of 42,000 Aug 23 calls yesterday. This was 15x the recent average daily call volume in the name. On March 1, we recommended the August 22 calls for $0.40. The last trade was $0.75. Based on the continued bullish activity in AMTD, it looks like this trade has legs. We recommend staying long this position. We believe a bullish market and rising account balances will help boost AMTD earnings going forward.
In rarely traded Navios Maritime Holdings Inc (NM), 62x the normal volume was traded yesterday. Roughly 1,300 June 5 calls were bought. The stock appears poised to break out through a triple top and leg higher. The company is scheduled to release earnings on May 16.