Monday’s total option volume of 11.6 million contracts resulted in net open interest growth of 1.87 million calls and 1.85 million puts. Apple Inc (AAPL), Microsoft Corp (MSFT), Genworth Financial Inc (GNW) and Bank of America Corporation (BAC) saw the greatest growth. Top five new positions opened include 26k Genworth Financial Inc (GNW) Apr-13 10 calls, 20k CME Group Inc (CME) Jan-14 65 calls, 20k CME Group Inc (CME) Jan-14 52 puts, 18k Hecla Mining Company (HL) Jun-13 5 calls and 13k Arcelor Mittal (MT) Sep-13 15 calls.
Comcast (CMCSK) has climbed steadily over the past year. Yesterday, there was a buyer of 5,000 CMCSK Apr 40 calls. Telecom services was the third best performing sector of the S&P 500 yesterday. Investors appear to want equity exposure as the market moves towards record highs but with defensive stocks like utilities, consumer staples and telecom services.
In Iron Mountain (IRM), there was an opening buyer of 2,000 Apr 35 calls. This was 6x normal. IRM has been consolidating at about $34.50 and appears poised to breakout to new highs.
On the bearish side, there was very little notable bearish put flow yesterday. Jamba, Inc. (JMBA), McKesson Corp. (MCK) and Chiquita Brands (CQB) had significant bearish trades yesterday but only CQB appears to be in a negative trend. JMBA and MCK are at highs and the put activity appears to be part of a hedge strategy.