Friday’s total option volume of 22.1 million contracts resulted in net open interest growth of 4.58 million calls and 3.69 million puts. Bank of America Corporation (BAC), Facebook Inc (FB), Morgan Stanley (MS) and Research In Motion Ltd (RIMM) saw the greatest growth. Top five new positions opened include 51k Facebook Inc (FB) 2/1 weekly 34 calls, 50k Facebook Inc (FB) 2/8 weekly 34 calls, 40k Sears Holdings Corporation (SHLD) Jan-15 70 calls, 40k Sears Holdings Corporation (SHLD) Jan-15 60 calls and 34k JP Morgan Chase & Company (JPM) Feb-13 50 calls.
In Arch Coal (ACI) on Friday, the stock rose on bullish comments from Sterne Agee regarding a cyclical recovery in coal. 6x the normal options volume traded with most of the activity being in the Feb 7 puts. But the trade was tied to 600K worth of stock so it appears to be essentially a bullish bet with a hedge in case Feb 5 earnings miss expectations.
Fidelity National Financial (FNF) has been on a tear up and to the right. On Friday, 26x the normal volume traded with the action being in the Jun 25 and 30 calls. It appears to be a call spread implying the stock has upside from $25 per share to about $30.
In Dunkin’ Brands Group (DNKN), there was a buyer of Feb 37.5 calls roughly 10k times. The stock has been strong after announcing last week 2013 expansion plans — the majority of Friday’s volume occurred in single transaction (~7480 contracts traded on the offer with a 0.25/0.35 bid/ask spread) – The company is confirmed to report earnings Jan 31 before the open.