Tuesday’s total option volume of 14.3 million contracts resulted in net open interest growth of 2.64 million calls and 2.05 million puts. Intel Corporation (INTC), Microsoft Corp (MSFT), First Solar Inc (FSLR) and J C Penney Company Inc (JCP) saw the greatest growth. Top five new positions opened include 42k Intel Corporation (INTC) Jul-13 16 puts, 25k JP Morgan Chase and Company (JPM) May-13 47 puts, 25k TJX Companies Inc (TJX) Jul-13 45 puts, 24k Microsoft Corp (MSFT) May-13 30 calls and 20k Dell Inc (DELL) Jan-15 15 calls.
Yesterday, there was a buyer of 7,000 Taser International (TASR) Sep 12.5 calls. This was 20x normal. Last week, TASR announced multiple orders of its TASER Smart Weapons as its Telesales Group, delivered record bookings of $3.3 million from small-size law enforcement agencies in the first quarter. The company recently has had sales success with its on-officer cameras and conducted electrical weapons.
The airline industry is consolidating. Yesterday, there was speculation that Republic Airways (RJET) might be of interest to Frontier Airlines. 1,500 calls and 40 puts traded on the RJET, which was 11X the daily average. Apr and May 12.5 calls saw the bulk of the flow.
Microsoft (MSFT) and Intel (INTC) showed good relative strength yesterday. In wafer manufacturer MEMC Electronic Materials (WFR), 15886 calls traded, or 3x the recent average daily call volume in the name. AT the money implied volatility lifted by 4.45 points. Investment firm Lazard released a positive note on WFR this morning.