Tuesday’s total option volume of 16.8 million contracts resulted in net open interest growth of 4.11 million calls and 3.46 million puts. Bank of America Corporation (BAC), Apple Inc (AAPL), Facebook Inc (FB) and Dell Inc (DELL) saw the greatest growth. Top five new positions opened include 31k General Motors Company (GM) Mar-13 30 calls, 25k Peregrine Pharmaceuticals Inc (PPHM) Jul-13 5 calls, 25k Peregrine Pharmaceuticals Inc (PPHM) Jul-13 2.5 calls, 24k Chesapeake Energy Corp (CHK) Mar-13 18 puts and 23k Williams Companies Inc (WMB) Jan-15 50 calls.
In Banco Santander Brasil (BSBR), 12.5x the normal volume traded with over 6,000 Jun 9 calls bought to open. The stock has pulled back in the past week and it appears options traders are taking advantage of the current weakness to increase long-dated bullish exposure.
In Anadarko Petroleum (APC) there was an opening buyer of 10k May 90 (.21d) calls for $1.40 in the morning. That APC trade was later followed by an investor buying the August 80/100 call spread vs. selling August 65 (.18d) puts, 10,000x, paying $3.35 for the package, delta neutral. The stock is breaking out to highs not seen since last March.
In Williams Cos (WMB), an opening investor bought 22k Jan2015 50 (.14d) calls for $0.75, equal to buying 300k deltas. Last week, there was similar longer-term flow with investors buying 65k Jan2014 40/45 call spreads for $0.70, and three weeks ago 40k August 40/45 call spreads were also bought.