Thursday’s total option volume of 21.5 million contracts resulted in a net open interest decrease of 1.24 million calls and an increase of 2.54 million puts. Morgan Stanley (MS), MGM Resorts International (MGM), Chesapeake Energy Corp (CHK) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 67k Morgan Stanley (MS) Mar-13 22.5 puts, 21k Rite Aid Corp (RAD) Apr-13 2 calls, 21k Aetna Inc (AET) Apr-13 50 puts, 19k Heckmann Corporation (HEK) Sep-13 3 puts and 17k NRG Energy Inc (NRG) Jun-13 28 calls.
In BGC Partners (BGC), it appears they were rolling the May 5 Calls out to Aug 5. The company recently exceeded earnings forecasts and declared a quarterly dividend. The next earnings release is on May 2.
PMC Sierra (PMC) is breaking out to the upside through resistance. Yesterday, 48x the normal flow traded. Options investors bought 1300 May 8 and 1000 Aug 8 calls. The stock is currently trading at about $6.85.
In Redwood Trust (RWT), the stock has been moving steadily up and to the right for the past year. The stock is at a 52 week high after gaining about 100% appreciation in the past year. Yesterday, there was a buyer of RWT Oct 25 calls 5,000x. RWT is a play on the health of the jumbo loan market in residential real-estate.