Monday’s total option volume of 15.1 million contracts resulted in net open interest growth of 2.28 million calls and 2.34 million puts. Apple Inc (AAPL), Dell Inc (DELL), Constellation Brands (STZ) and Research In Motion Ltd (RIMM) saw the greatest growth. Top five new positions opened include 66k MetroPCS Communications Inc (PCS) May-13 10 calls, 33k CBS Corp (CBS) Feb-13 40 calls, 32k Constellation Brands (STZ) Feb-13 37.5 calls, 30k Phillips 66 (PSX) May-13 65 calls and 30k Sears Holdings Corporation (SHLD) Jan-15 60 calls.
In Thomson Reuters Corp (TRI), 674x the normal volume of options traded. There were 11,000 July 30 calls bought opening. 10.2K contracts traded as a single block at $1.60 with the bid/ask spread at 1.25/1.75. For the past year, the stock has traded in a range of roughly $26.50 to $30.20. The stock is near the high end of the range. The company is scheduled to present at New York Analytics and Pricing Forums on Feb 6 and is expected to report earnings in mid February.
In Seadrill Ltd (SDRL) there was a buyer of nearly 12,000 Feb 40 calls which is 10x normal volume. SDRL is on the cusp of breaking up through its 75-day moving average. The company is expected to report earnings on Feb 28, after options expiration.