Friday’s total option volume of 16.1 million contracts resulted in net open interest growth of 1.87 million calls and 2.68 million puts. Barrick Gold Corporation (ABX), Bank of America Corporation (BAC), Ford Motor Company (F) and NetApp Inc (NTAP) saw the greatest growth. Top five new positions opened include 27k Elan Corp ADR (ELN) May-13 14 calls, 27k Elan Corp ADR (ELN) May-13 14 puts, 25k Home Depot Inc (HD) May-13 75 calls, 24k JP Morgan Chase and Company (JPM) May-13 48 puts and 21k Ford Motor Company (F) 4/26 weekly 14 calls.
Spectranetics Corp (SPNC) is at a 52 week high. On Friday, the company announced a $250 million mixed shelf offering and the stock moved substantially higher. Additionally, options buyers bought 1,000 Apr 20 calls which was 60x normal options volume. These options expire on Friday and earnings are not scheduled until next week on April 23.
Tesla’s (TSLA) Model S was named the Motor Trend Car of the Year. The cars are appearing everywhere on Northern California highways. On Friday, there was an opening buyer of nearly 15,000 Jan 2015 30 strike puts. The stock has climbed by 11.5% over the past month. It appears a long stock holder plans to hold onto his position and is simply buying a bearish hedge given the recent run-up in the stock and its higher than market average volatility. The trade suggests TSLA is a good long-term buy but there will be a better buying opportunity than the Friday closing price.
Gold prices are breaking down. Gold is officially in a bear market having declined by more than 20%. On Friday, there was a buyer of 1100 Aurizon Mines (AZK) May 5 puts. This was 23x normal volume and the options are in-the-money. If you are looking to press the bet on a continued downward movement in Gold, AZK may be an excellent vehicle to implement this trade.