Monday’s total option volume of 13.9 million contracts resulted in net open interest growth of 2.15 million calls and 2.21 million puts. Blackberry (BBRY), Apple (AAPL), Facebook (FB) and Dell (DELL) saw the greatest growth. Top five new positions opened include 22k Dell (DELL) Mar-13 14 calls, 21k Ford Motor Company (F) Mar-13 13 calls, 20k Delphi Automotive (DLPH) May-13 40 calls, 16k Las Vegas Sands (LVS) Mar-13 55 calls and 16k McMoRan Exploration (MMR) May-13 16 calls.
Market participants were fast to act in the options of McGraw Hill (MHP) and Moody’s (MCO) on news that McGraw Hill’s S&P unit is likely to face charges related to mortgage-bond ratings leading up to the financial and credit crisis of 2007-2009. Volatility spiked and volume ran five times normal at MHP and 24 times normal at MCO as the stocks plummeted.
For the second day in a row, there was bullish flow in Teradyne (TER) where traders bought to open 6K TER Feb 17 calls. Earnings were last week, so these traders are expecting some other positive news in the next couple of weeks. Other bullish flow was seen in Oncothyreon (ONTY) where 1800 May 3 calls traded and Chimera Investment Corp (CIM) in the Jan 2014 3.50 calls traded nearly 11K times.