Thursday’s total option volume of 20.7 million contracts resulted in net open interest growth of 2.70 million calls and 2.68 million puts. Salesforce Com Inc (CRM), Barrick Gold Corporation (ABX), Apple Inc (AAPL) and Facebook Inc (FB) saw the greatest growth. Top five new positions opened include 40k Acadia Pharmaceuticals Inc (ACAD) Jan-15 15 calls, 38k Facebook Inc (FB) May-13 22 puts, 31k Sprint Nextel Corporation (S) Aug-13 8 calls, 25k National Bank of Greece SA New (NBG) Aug-13 1 calls and 23k Bank of America Corporation (BAC) Nov-13 10 puts.
Tellabs (TLAB) is a troubled stock that is near all-time lows. Yesterday, there was a buyer of 2500 Sep 2 calls which was 24x normal volume. The next earnings release is April 25.
In Bally Technologies (BYI), there was a buyer of 3470 May 45 puts. This volume was 63x normal. Bally has recently broken down through its 75-day moving average. The company reports earnings next week on April 24.
Generally, many of the trades involving puts lately appear to be hedging on stocks which are performing well including CCI, ATLS and ACN. It appears that the options market sees the equity market as short-term oversold and expects a bounce near-term.