Tuesday’s total equity option volume of 20.1 million contracts added to Monday’s pick up as market participants position themselves ahead of Dec expiry this Friday. Average daily volume this month is 14.2 million contracts.
Microsoft Corp (MSFT), Bank of America Corporation (BAC), Sirius XM Radio Inc (SIRI) and Nokia Corp (NOK) saw the greatest growth. Top five new positions opened include 49k Microsoft Corp (MSFT) Jan-13 28 calls and 49k Microsoft Corp (MSFT) Jan-13 30 calls (an opening bull call spread), 49k Nokia Corp (NOK) Jan-13 4.5 puts, 37k Sirius XM Radio Inc (SIRI) Jan-13 3 puts and 36k Sirius XM Radio Inc (SIRI) Jan-13 3 calls where traders were selling vol.
In unusual trades, market participants are looking for further gains in Boyd Gaming (BYD) as they bought calls (the Jan 7 calls traded 13K calls) – the volume represented 140% of total open interest. In Och Ziff Capital Management (OZM), investors appeared to be putting on a buy-write: 2750 Jan 7.5 calls traded for $2 with the stock at $9.41. The volume represented 45% of total open interest in the name. 5,372 YPF Sociedad Anonima (YPF) calls traded which represented 30% of total open interest and was 8x the recent avg daily call volume. Traders bought 1128 YPF Jan 20 and 1125 Apr 20 calls.