Tuesday’s total option volume of 17.3 million contracts resulted in net open interest growth of 2.86 million calls and 2.69 million puts. Apple Inc (AAPL), EMC Corp (EMC), Exxon Mobil Corp (XOM) and Ford Motor Company (F) saw the greatest growth. Top five new positions opened include 50k Exxon Mobil Corp (XOM) Jul-13 85 puts, 24k Microsoft Corp (MSFT) Jan-15 35 calls, 23k EMC Corp (EMC) May-13 24 calls, 20k Ford Motor Company (F) 5/10 weekly 14 calls and 16k Bank of America Corporation (BAC) Jan-14 7 puts.
The shareholder base of Apple (AAPL) is rotating from momentum to growth to value investors. AAPL is currently trading at about 4x EBITDA. This is a level where value investors see value. One way to gain exposure to AAPL is to sell puts. Yesterday, there was a seller of January 330 puts. The premium collected was used to buy the Jan 410-465 call spread, 2500x.
In Braskem Sa (BAK), there was a buyer of 6,000 Jun 17.5 calls. This was 64x normal. Brazilian stocks have been strong lately. JP Morgan and Citigroup upgraded the stock to Overweight from Neutral yesterday.
In Ocwen Financial Corp (OCN), there was a buyer of 7500 May 35 puts. Earnings are expected on May 2, before market open.